RING ENERGY INC (REI) Stock Fundamental Analysis
NYSEARCA:REI - NYSE Arca - US76680V1089 - Common Stock - Currency: USD
REI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of REI while its profitability can be described as average. REI is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
REI had positive earnings in the past year.
In the past year REI had a positive cash flow from operations.
REI had positive earnings in 4 of the past 5 years.
REI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of REI (4.72%) is comparable to the rest of the industry.
REI has a Return On Equity of 8.11%. This is comparable to the rest of the industry: REI outperforms 51.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.41%, REI is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REI is significantly below the industry average of 23.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 8.11% | ||
| ROIC | 7.41% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
1.3 Margins
With a decent Profit Margin value of 20.25%, REI is doing good in the industry, outperforming 70.95% of the companies in the same industry.
In the last couple of years the Profit Margin of REI has grown nicely.
The Operating Margin of REI (33.52%) is better than 75.71% of its industry peers.
In the last couple of years the Operating Margin of REI has grown nicely.
The Gross Margin of REI (93.37%) is better than 98.10% of its industry peers.
REI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 33.52% | ||
| PM (TTM) | 20.25% | ||
| GM | 93.37% |
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REI is still creating some value.
REI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, REI has more shares outstanding
Compared to 1 year ago, REI has an improved debt to assets ratio.
2.2 Solvency
REI has an Altman-Z score of 0.67. This is a bad value and indicates that REI is not financially healthy and even has some risk of bankruptcy.
REI has a worse Altman-Z score (0.67) than 61.43% of its industry peers.
The Debt to FCF ratio of REI is 15.99, which is on the high side as it means it would take REI, 15.99 years of fcf income to pay off all of its debts.
REI has a Debt to FCF ratio of 15.99. This is comparable to the rest of the industry: REI outperforms 45.71% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that REI is somewhat dependend on debt financing.
REI has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 15.99 | ||
| Altman-Z | 0.67 |
ROIC/WACC0.7
WACC10.65%
2.3 Liquidity
REI has a Current Ratio of 0.47. This is a bad value and indicates that REI is not financially healthy enough and could expect problems in meeting its short term obligations.
REI has a worse Current ratio (0.47) than 87.14% of its industry peers.
A Quick Ratio of 0.44 indicates that REI may have some problems paying its short term obligations.
REI has a worse Quick ratio (0.44) than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for REI have decreased strongly by -37.50% in the last year.
REI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.37% yearly.
Looking at the last year, REI shows a decrease in Revenue. The Revenue has decreased by -4.51% in the last year.
REI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.36% yearly.
EPS 1Y (TTM)-37.5%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-50%
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.31%
3.2 Future
REI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.44% yearly.
The Revenue is expected to grow by 6.67% on average over the next years.
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-3.11%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 2.64, which indicates a rather cheap valuation of REI.
REI's Price/Earnings ratio is rather cheap when compared to the industry. REI is cheaper than 98.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of REI to the average of the S&P500 Index (27.53), we can say REI is valued rather cheaply.
A Price/Forward Earnings ratio of 1.42 indicates a rather cheap valuation of REI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REI indicates a rather cheap valuation: REI is cheaper than 99.52% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, REI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.64 | ||
| Fwd PE | 1.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, REI is valued cheaper than 88.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REI is valued cheaper than 88.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.67 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
REI has a very decent profitability rating, which may justify a higher PE ratio.
REI's earnings are expected to grow with 26.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y26.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for REI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.7928
+0.02 (+2.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner Change0%
Ins Owners9.69%
Ins Owner Change5.93%
Market Cap163.73M
Analysts45
Price Target3.04 (283.45%)
Short Float %5.84%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.08%
Min EPS beat(2)-6.2%
Max EPS beat(2)-1.97%
EPS beat(4)1
Avg EPS beat(4)-1.85%
Min EPS beat(4)-6.2%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)2.61%
EPS beat(12)5
Avg EPS beat(12)-0.8%
EPS beat(16)7
Avg EPS beat(16)2.58%
Revenue beat(2)0
Avg Revenue beat(2)-2.41%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.83%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)-0.71%
Revenue beat(12)7
Avg Revenue beat(12)4.23%
Revenue beat(16)11
Avg Revenue beat(16)7.81%
PT rev (1m)-13.98%
PT rev (3m)8.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-74.84%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-14.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.64 | ||
| Fwd PE | 1.42 | ||
| P/S | 0.47 | ||
| P/FCF | 5.67 | ||
| P/OCF | 0.92 | ||
| P/B | 0.19 | ||
| P/tB | 0.19 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)0.3
EY37.84%
EPS(NY)0.56
Fwd EY70.58%
FCF(TTM)0.14
FCFY17.63%
OCF(TTM)0.86
OCFY108.48%
SpS1.7
BVpS4.24
TBVpS4.24
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 8.11% | ||
| ROCE | 8.39% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.42% | ||
| ROICexgc | 7.42% | ||
| OM | 33.52% | ||
| PM (TTM) | 20.25% | ||
| GM | 93.37% | ||
| FCFM | 8.22% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
ROICexc(3y)11.42%
ROICexc(5y)9.9%
ROICexgc(3y)11.42%
ROICexgc(5y)9.9%
ROCE(3y)12.92%
ROCE(5y)11.18%
ROICexcg growth 3Y-13.56%
ROICexcg growth 5Y7.52%
ROICexc growth 3Y-13.56%
ROICexc growth 5Y7.52%
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
F-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 15.99 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 152.52% | ||
| Cap/Sales | 42.39% | ||
| Interest Coverage | 3.13 | ||
| Cash Conversion | 82.54% | ||
| Profit Quality | 40.61% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.67 |
F-Score4
WACC10.65%
ROIC/WACC0.7
Cap/Depr(3y)189.7%
Cap/Depr(5y)162.85%
Cap/Sales(3y)41.16%
Cap/Sales(5y)37.88%
Profit Quality(3y)48.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-37.5%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-50%
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-4.51%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.31%
Revenue Next Year-3.11%
Revenue Next 2Y6.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-20.37%
EBIT growth 3Y11.55%
EBIT growth 5Y15.65%
EBIT Next Year38.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.62%
FCF growth 3Y24.85%
FCF growth 5YN/A
OCF growth 1Y-17.86%
OCF growth 3Y38.79%
OCF growth 5Y12.77%