RPC INC (RES) Stock Fundamental Analysis
USA - NYSE:RES - US7496601060 - Common Stock
4.51 USD
-0.1 (-2.17%)
4.509 USD
0 (-0.02%)
We assign a fundamental rating of 6 out of 10 to RES. RES was compared to 61 industry peers in the Energy Equipment & Services industry. While RES has a great health rating, its profitability is only average at the moment. RES is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RES had positive earnings in the past year.
In the past year RES had a positive cash flow from operations.
RES had positive earnings in 4 of the past 5 years.
In the past 5 years RES always reported a positive cash flow from operatings.
1.2 Ratios
RES has a Return On Assets (3.61%) which is comparable to the rest of the industry.
RES has a Return On Equity (4.85%) which is in line with its industry peers.
RES's Return On Invested Capital of 3.66% is on the low side compared to the rest of the industry. RES is outperformed by 70.49% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RES is significantly above the industry average of 8.05%.
The last Return On Invested Capital (3.66%) for RES is well below the 3 year average (15.58%), which needs to be investigated, but indicates that RES had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.85% | ||
| ROIC | 3.66% |
ROA(3y)13.49%
ROA(5y)2.89%
ROE(3y)17.4%
ROE(5y)3.95%
ROIC(3y)15.58%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 3.71%, RES is doing worse than 62.30% of the companies in the same industry.
In the last couple of years the Profit Margin of RES has grown nicely.
RES's Operating Margin of 3.98% is on the low side compared to the rest of the industry. RES is outperformed by 73.77% of its industry peers.
In the last couple of years the Operating Margin of RES has grown nicely.
The Gross Margin of RES (25.75%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | 3.71% | ||
| GM | 25.75% |
OM growth 3Y116.13%
OM growth 5YN/A
PM growth 3Y96.73%
PM growth 5YN/A
GM growth 3Y4.67%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RES is creating some value.
The number of shares outstanding for RES remains at a similar level compared to 1 year ago.
RES has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RES is higher compared to a year ago.
2.2 Solvency
RES has an Altman-Z score of 4.05. This indicates that RES is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.05, RES belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
The Debt to FCF ratio of RES is 0.61, which is an excellent value as it means it would take RES, only 0.61 years of fcf income to pay off all of its debts.
RES has a better Debt to FCF ratio (0.61) than 85.25% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that RES is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.03, RES belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.05 |
ROIC/WACC0.41
WACC8.95%
2.3 Liquidity
RES has a Current Ratio of 2.64. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.64, RES belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that RES has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.16, RES belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The earnings per share for RES have decreased strongly by -47.27% in the last year.
RES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 142.91% yearly.
RES shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.66%.
RES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.97% yearly.
EPS 1Y (TTM)-47.27%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-22.66%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%15.56%
3.2 Future
The Earnings Per Share is expected to decrease by -12.46% on average over the next years. This is quite bad
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y-36.5%
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
EPS Next 5Y-12.46%
Revenue Next Year10.73%
Revenue Next 2Y8.27%
Revenue Next 3Y5.78%
Revenue Next 5Y3.48%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.55, RES is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as RES.
RES is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.86, which indicates a correct valuation of RES.
The rest of the industry has a similar Price/Forward Earnings ratio as RES.
RES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RES is valued cheaper than 80.33% of the companies in the same industry.
RES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RES is cheaper than 62.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.01 | ||
| EV/EBITDA | 4.33 |
4.3 Compensation for Growth
RES has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RES's earnings are expected to decrease with -6.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
5. Dividend
5.1 Amount
RES has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
RES's Dividend Yield is rather good when compared to the industry average which is at 3.29. RES pays more dividend than 86.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of RES decreases each year by -19.34%.
RES has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RES decreased in the last 3 years.
Dividend Growth(5Y)-19.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
RES pays out 65.65% of its income as dividend. This is not a sustainable payout ratio.
RES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP65.65%
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
4.51
-0.1 (-2.17%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.51%
Inst Owner Change0.36%
Ins Owners4.51%
Ins Owner Change0.06%
Market Cap995.00M
Analysts70
Price Target5.94 (31.71%)
Short Float %18.71%
Short Ratio9.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP65.65%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.99%
Min EPS beat(2)-13.27%
Max EPS beat(2)23.25%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-28.94%
Max EPS beat(4)23.25%
EPS beat(8)3
Avg EPS beat(8)-12.42%
EPS beat(12)5
Avg EPS beat(12)-3.77%
EPS beat(16)9
Avg EPS beat(16)443.19%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-3.02%
Revenue beat(12)5
Avg Revenue beat(12)-2.18%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)-2.78%
PT rev (3m)-6.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-26.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-17.53%
Revenue NQ rev (1m)-1.11%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-4.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.55 | ||
| Fwd PE | 15.86 | ||
| P/S | 0.7 | ||
| P/FCF | 11.01 | ||
| P/OCF | 3.86 | ||
| P/B | 0.91 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 4.33 |
EPS(TTM)0.29
EY6.43%
EPS(NY)0.28
Fwd EY6.3%
FCF(TTM)0.41
FCFY9.08%
OCF(TTM)1.17
OCFY25.91%
SpS6.47
BVpS4.95
TBVpS4.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.85% | ||
| ROCE | 4.65% | ||
| ROIC | 3.66% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 5.2% | ||
| OM | 3.98% | ||
| PM (TTM) | 3.71% | ||
| GM | 25.75% | ||
| FCFM | 6.34% |
ROA(3y)13.49%
ROA(5y)2.89%
ROE(3y)17.4%
ROE(5y)3.95%
ROIC(3y)15.58%
ROIC(5y)N/A
ROICexc(3y)18.93%
ROICexc(5y)N/A
ROICexgc(3y)20.05%
ROICexgc(5y)N/A
ROCE(3y)19.82%
ROCE(5y)N/A
ROICexcg growth 3Y132.45%
ROICexcg growth 5YN/A
ROICexc growth 3Y130.46%
ROICexc growth 5YN/A
OM growth 3Y116.13%
OM growth 5YN/A
PM growth 3Y96.73%
PM growth 5YN/A
GM growth 3Y4.67%
GM growth 5Y1.54%
F-Score4
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 112.99% | ||
| Cap/Sales | 11.74% | ||
| Interest Coverage | 59.13 | ||
| Cash Conversion | 125.76% | ||
| Profit Quality | 170.98% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 4.05 |
F-Score4
WACC8.95%
ROIC/WACC0.41
Cap/Depr(3y)166.7%
Cap/Depr(5y)132.34%
Cap/Sales(3y)11.82%
Cap/Sales(5y)10.83%
Profit Quality(3y)94.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.27%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-46.67%
EPS Next Y-36.5%
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
EPS Next 5Y-12.46%
Revenue 1Y (TTM)-22.66%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%15.56%
Revenue Next Year10.73%
Revenue Next 2Y8.27%
Revenue Next 3Y5.78%
Revenue Next 5Y3.48%
EBIT growth 1Y-65.12%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year127.35%
EBIT Next 3Y38.37%
EBIT Next 5Y24.57%
FCF growth 1Y-36.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.26%
OCF growth 3Y94.18%
OCF growth 5Y10.81%