RING ENERGY INC (REI) Stock Fundamental Analysis
USA - NYSEARCA:REI - US76680V1089 - Common Stock
0.98 USD
-0.07 (-6.67%)
0.9901 USD
+0.01 (+1.03%)
Taking everything into account, REI scores 4 out of 10 in our fundamental rating. REI was compared to 210 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
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.
In the past 5 years REI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.57%, REI perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.72%, REI is in line with its industry, outperforming 52.86% of the companies in the same industry.
REI has a Return On Invested Capital (6.18%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for REI is significantly below the industry average of 21.71%.
The 3 year average ROIC (11.40%) for REI is well above the current ROIC(6.18%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of REI (20.72%) is better than 73.33% of its industry peers.
In the last couple of years the Profit Margin of REI has grown nicely.
The Operating Margin of REI (29.70%) is better than 73.33% of its industry peers.
In the last couple of years the Operating Margin of REI has grown nicely.
REI's Gross Margin of 92.88% is amongst the best of the industry. REI outperforms 96.67% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), REI is creating some value.
The number of shares outstanding for REI has been increased compared to 1 year ago.
REI has more shares outstanding than it did 5 years ago.
REI has a better debt/assets ratio than last year.
2.2 Solvency
REI has an Altman-Z score of 0.69. This is a bad value and indicates that REI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.69, REI is in line with its industry, outperforming 40.48% 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.
REI has a Debt to FCF ratio (15.05) which is in line with its industry peers.
REI has a Debt/Equity ratio of 0.50. This is a neutral value indicating 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 | 0.69 |
ROIC/WACC0.57
WACC10.91%
2.3 Liquidity
A Current Ratio of 0.63 indicates that REI may have some problems paying its short term obligations.
The Current ratio of REI (0.63) is worse than 79.05% of its industry peers.
REI has a Quick 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's Quick ratio of 0.58 is on the low side compared to the rest of the industry. REI is outperformed by 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for REI have decreased strongly by -50.00% in the last year.
Measured over the past years, REI shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.37% on average per year.
The Revenue for REI has decreased by -13.66% in the past year. This is quite bad
The Revenue has been growing by 13.36% on average over the past years. This is quite good.
EPS 1Y (TTM)-50%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-58.33%
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.68%
3.2 Future
The Earnings Per Share is expected to decrease by -14.22% on average over the next years. This is quite bad
REI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.48% yearly.
EPS Next Y-51.52%
EPS Next 2Y-14.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-11.43%
Revenue Next 2Y-1.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 4.26, which indicates a rather cheap valuation of REI.
Compared to the rest of the industry, the Price/Earnings ratio of REI indicates a rather cheap valuation: REI is cheaper than 95.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of REI to the average of the S&P500 Index (27.38), we can say REI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 3.81, the valuation of REI can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of REI indicates a rather cheap valuation: REI is cheaper than 95.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, REI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.26 | ||
| Fwd PE | 3.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REI indicates a rather cheap valuation: REI is cheaper than 88.10% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, REI is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 3.3 |
4.3 Compensation for Growth
The decent profitability rating of REI may justify a higher PE ratio.
REI's earnings are expected to decrease with -14.22% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.22%
EPS Next 3YN/A
5. Dividend
5.1 Amount
REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.98
-0.07 (-6.67%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner Change-25.45%
Ins Owners9.69%
Ins Owner Change0.55%
Market Cap202.41M
Analysts80
Price Target2.55 (160.2%)
Short Float %5.61%
Short Ratio3.2
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)1
Avg EPS beat(2)13.31%
Min EPS beat(2)-1.97%
Max EPS beat(2)28.58%
EPS beat(4)1
Avg EPS beat(4)4.17%
Min EPS beat(4)-6.2%
Max EPS beat(4)28.58%
EPS beat(8)4
Avg EPS beat(8)2.37%
EPS beat(12)6
Avg EPS beat(12)1.92%
EPS beat(16)7
Avg EPS beat(16)2.74%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-1.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)1.87%
Revenue beat(8)4
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)2.17%
Revenue beat(16)10
Avg Revenue beat(16)6.43%
PT rev (1m)-16.25%
PT rev (3m)-27.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-56.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.02%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)-8.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.26 | ||
| Fwd PE | 3.81 | ||
| P/S | 0.61 | ||
| P/FCF | 6.76 | ||
| P/OCF | 1.26 | ||
| P/B | 0.23 | ||
| P/tB | 0.23 | ||
| EV/EBITDA | 3.3 |
EPS(TTM)0.23
EY23.47%
EPS(NY)0.26
Fwd EY26.28%
FCF(TTM)0.15
FCFY14.8%
OCF(TTM)0.78
OCFY79.19%
SpS1.62
BVpS4.35
TBVpS4.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 7.72% | ||
| ROCE | 7% | ||
| ROIC | 6.18% | ||
| ROICexc | 6.18% | ||
| ROICexgc | 6.18% | ||
| OM | 29.7% | ||
| PM (TTM) | 20.72% | ||
| GM | 92.88% | ||
| FCFM | 8.96% |
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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 15.05 | ||
| Debt/EBITDA | 2.28 | ||
| Cap/Depr | 132.46% | ||
| Cap/Sales | 38.98% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 43.23% | ||
| Current Ratio | 0.63 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 0.69 |
F-Score4
WACC10.91%
ROIC/WACC0.57
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)-50%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-58.33%
EPS Next Y-51.52%
EPS Next 2Y-14.22%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-13.66%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.68%
Revenue Next Year-11.43%
Revenue Next 2Y-1.48%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-37.9%
EBIT growth 3Y11.55%
EBIT growth 5Y15.65%
EBIT Next Year38.81%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-53.69%
FCF growth 3Y24.85%
FCF growth 5YN/A
OCF growth 1Y-26.76%
OCF growth 3Y38.79%
OCF growth 5Y12.77%