1.09 USD
-0.01 (-0.91%)
1.1 USD
+0.01 (+0.92%)
REI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 207 industry peers in the Oil, Gas & Consumable Fuels industry. REI has an excellent profitability rating, but there are concerns on its financial health. REI has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year REI was profitable.
- REI had a positive operating cash flow in the past year.
- Of the past 5 years REI 4 years were profitable.
- Each year in the past 5 years REI had a positive operating cash flow.
1.2 Ratios
- REI has a Return On Assets of 4.57%. This is in the better half of the industry: REI outperforms 62.80% of its industry peers.
- The Return On Equity of REI (7.72%) is comparable to the rest of the industry.
- The Return On Invested Capital of REI (6.18%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for REI is significantly below the industry average of 21.94%.
- The last Return On Invested Capital (6.18%) for REI is well below the 3 year average (11.40%), which needs to be investigated, but indicates that REI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 7.72% | ||
| ROIC | 6.18% |
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
- REI's Profit Margin of 20.72% is fine compared to the rest of the industry. REI outperforms 77.78% of its industry peers.
- REI's Profit Margin has improved in the last couple of years.
- REI has a Operating Margin of 29.70%. This is in the better half of the industry: REI outperforms 73.91% of its industry peers.
- REI's Operating Margin has improved in the last couple of years.
- REI's Gross Margin of 92.88% is amongst the best of the industry. REI outperforms 96.62% of its industry peers.
- REI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.7% | ||
| PM (TTM) | 20.72% | ||
| GM | 92.88% |
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
- REI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, REI has more shares outstanding
- The number of shares outstanding for REI has been increased compared to 5 years ago.
- Compared to 1 year ago, REI has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.71, we must say that REI is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.71, REI is doing worse than 61.84% of the companies in the same industry.
- The Debt to FCF ratio of REI is 15.05, which is on the high side as it means it would take REI, 15.05 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 15.05, REI perfoms like the industry average, outperforming 48.79% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that REI is somewhat dependend on debt financing.
- REI has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 15.05 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.56
WACC10.98%
2.3 Liquidity
- REI has a Current Ratio of 0.63. 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 Current ratio of 0.63. This is in the lower half of the industry: REI underperforms 75.36% of its industry peers.
- A Quick Ratio of 0.58 indicates that REI may have some problems paying its short term obligations.
- With a Quick ratio value of 0.58, REI is not doing good in the industry: 73.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
- REI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -45.00%.
- 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 small growth in Revenue. The Revenue has grown by 1.46% in the last year.
- The Revenue has been growing by 13.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-45%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-11.93%
3.2 Future
- The Earnings Per Share is expected to decrease by -23.65% on average over the next years. This is quite bad
- Based on estimates for the next years, REI will show a decrease in Revenue. The Revenue will decrease by -6.19% on average per year.
EPS Next Y-85.72%
EPS Next 2Y-23.65%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14.08%
Revenue Next 2Y-6.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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 4.95, which indicates a rather cheap valuation of REI.
- Based on the Price/Earnings ratio, REI is valued cheaply inside the industry as 94.20% of the companies are valued more expensively.
- REI is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 5.34 indicates a rather cheap valuation of REI.
- 96.62% of the companies in the same industry are more expensive than REI, based on the Price/Forward Earnings ratio.
- REI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.95 | ||
| Fwd PE | 5.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, REI is valued cheaply inside the industry as 89.86% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, REI is valued cheaper than 87.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 3.42 |
4.3 Compensation for Growth
- REI has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as REI's earnings are expected to decrease with -23.65% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-23.65%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
RING ENERGY INC / REI FAQ
Can you provide the ChartMill fundamental rating for RING ENERGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to REI.
Can you provide the valuation status for RING ENERGY INC?
ChartMill assigns a valuation rating of 8 / 10 to RING ENERGY INC (REI). This can be considered as Undervalued.
Can you provide the profitability details for RING ENERGY INC?
RING ENERGY INC (REI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for REI stock?
The Price/Earnings (PE) ratio for RING ENERGY INC (REI) is 4.95 and the Price/Book (PB) ratio is 0.25.
Can you provide the expected EPS growth for REI stock?
The Earnings per Share (EPS) of RING ENERGY INC (REI) is expected to decline by -85.72% in the next year.