RING ENERGY INC (REI) Stock Fundamental Analysis
NYSEARCA:REI - US76680V1089 - Common Stock
0.9562 USD
+0.03 (+2.82%)
Overall REI gets a fundamental rating of 5 out of 10. We evaluated REI against 209 industry peers in the Oil, Gas & Consumable Fuels industry. REI has an excellent profitability rating, but there are concerns on its financial health. REI is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
REI had positive earnings in the past year.
REI had a positive operating cash flow in the past year.
Of the past 5 years REI 4 years were profitable.
In the past 5 years REI always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.57%, REI is in line with its industry, outperforming 56.94% of the companies in the same industry.
REI has a Return On Equity of 7.72%. This is comparable to the rest of the industry: REI outperforms 51.20% of its industry peers.
REI has a Return On Invested Capital of 6.18%. This is comparable to the rest of the industry: REI outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for REI is significantly below the industry average of 23.53%.
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
With a decent Profit Margin value of 20.72%, REI is doing good in the industry, outperforming 71.29% of the companies in the same industry.
In the last couple of years the Profit Margin of REI has grown nicely.
REI has a Operating Margin of 29.70%. This is in the better half of the industry: REI outperforms 71.29% of its industry peers.
REI's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 92.88%, REI belongs to the top of the industry, outperforming 97.13% of the companies in the same industry.
In the last couple of years the Gross Margin of REI has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REI is still creating some value.
Compared to 1 year ago, REI has more shares outstanding
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 0.68. 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 (0.68) than 60.29% of its industry peers.
REI has a debt to FCF ratio of 15.05. This is a negative value and a sign of low solvency as REI would need 15.05 years to pay back of all of its debts.
REI has a Debt to FCF ratio of 15.05. This is comparable to the rest of the industry: REI outperforms 47.37% of 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.
The Debt to Equity ratio of REI (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 15.05 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.57
WACC10.87%
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.
With a Current ratio value of 0.63, REI is not doing good in the industry: 79.43% of the companies in the same industry are doing better.
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 has a Quick ratio of 0.58. This is in the lower half of the industry: REI underperforms 75.60% 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.
The earnings per share for REI have been decreasing by -11.37% on average. This is quite bad
Looking at the last year, REI shows a very negative growth in Revenue. The Revenue has decreased by -13.66% in the last year.
Measured over the past years, REI shows a quite strong growth in Revenue. The Revenue has been growing by 13.36% on average per year.
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
Based on estimates for the next years, REI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.44% on average per year.
REI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.69% yearly.
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-12.12%
Revenue Next 2Y-1.69%
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 4.16, which indicates a rather cheap valuation of REI.
Based on the Price/Earnings ratio, REI is valued cheaply inside the industry as 95.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.76. REI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 1.71, the valuation of REI can be described as very cheap.
Based on the Price/Forward Earnings ratio, REI is valued cheaply inside the industry as 99.04% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of REI to the average of the S&P500 Index (34.91), we can say REI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.16 | ||
| Fwd PE | 1.71 |
4.2 Price Multiples
REI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REI is cheaper than 86.60% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, REI is valued cheaply inside the industry as 87.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.59 | ||
| EV/EBITDA | 3.24 |
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.
The decent profitability rating of REI 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)0.23
PEG (5Y)N/A
EPS Next 2Y26.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSEARCA:REI (8/22/2025, 11:21:39 AM)
0.9562
+0.03 (+2.82%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners31.25%
Inst Owner Change-25.52%
Ins Owners9.69%
Ins Owner Change1.05%
Market Cap197.47M
Analysts76.67
Price Target3.04 (217.93%)
Short Float %5.75%
Short Ratio2.11
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)-13.98%
PT rev (3m)-13.98%
EPS NQ rev (1m)12.5%
EPS NQ rev (3m)-56.31%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-9.1%
Revenue NY rev (1m)-9.29%
Revenue NY rev (3m)-9.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.16 | ||
| Fwd PE | 1.71 | ||
| P/S | 0.59 | ||
| P/FCF | 6.59 | ||
| P/OCF | 1.23 | ||
| P/B | 0.22 | ||
| P/tB | 0.22 | ||
| EV/EBITDA | 3.24 |
EPS(TTM)0.23
EY24.05%
EPS(NY)0.56
Fwd EY58.52%
FCF(TTM)0.15
FCFY15.17%
OCF(TTM)0.78
OCFY81.17%
SpS1.62
BVpS4.35
TBVpS4.35
PEG (NY)0.23
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 | 0.68 |
F-Score4
WACC10.87%
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 Y18.31%
EPS Next 2Y26.44%
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-12.12%
Revenue Next 2Y-1.69%
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%