RPC INC (RES) Stock Fundamental Analysis
NYSE:RES - New York Stock Exchange, Inc. - US7496601060 - Common Stock - Currency: USD
RES gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Energy Equipment & Services industry. RES scores excellent points on both the profitability and health parts. This is a solid base for a good stock. RES is not valued too expensively and it also shows a decent growth rate. These ratings could make RES a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
RES had positive earnings in the past year.
RES had a positive operating cash flow in the past year.
Of the past 5 years RES 4 years were profitable.
RES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RES has a Return On Assets of 7.56%. This is in the better half of the industry: RES outperforms 68.25% of its industry peers.
Looking at the Return On Equity, with a value of 9.40%, RES is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
With a Return On Invested Capital value of 6.54%, RES perfoms like the industry average, outperforming 49.21% of the companies in the same industry.
RES had an Average Return On Invested Capital over the past 3 years of 15.58%. This is significantly above the industry average of 8.69%.
The last Return On Invested Capital (6.54%) 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 | 7.56% | ||
| ROE | 9.4% | ||
| ROIC | 6.54% |
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 5.82%, RES is in line with its industry, outperforming 49.21% 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 5.73% is on the low side compared to the rest of the industry. RES is outperformed by 68.25% of its industry peers.
RES's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 26.74%, RES perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
In the last couple of years the Gross Margin of RES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| PM (TTM) | 5.82% | ||
| GM | 26.74% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RES is still creating some value.
Compared to 1 year ago, RES has about the same amount of shares outstanding.
RES has more shares outstanding than it did 5 years ago.
RES has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.41 indicates that RES is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.41, RES belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
The Debt to FCF ratio of RES is 0.03, which is an excellent value as it means it would take RES, only 0.03 years of fcf income to pay off all of its debts.
RES's Debt to FCF ratio of 0.03 is amongst the best of the industry. RES outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that RES is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, RES belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.41 |
ROIC/WACC0.71
WACC9.21%
2.3 Liquidity
RES has a Current Ratio of 4.95. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.95, RES belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
RES has a Quick Ratio of 4.18. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.18, RES belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 4.18 |
3. Growth
3.1 Past
The earnings per share for RES have decreased strongly by -48.57% in the last year.
The Earnings Per Share has been growing by 142.91% on average over the past years. This is a very strong growth
The Revenue has grown by 15.09% in the past year. This is quite good.
Measured over the past years, RES shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
EPS 1Y (TTM)-48.57%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-53.85%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%-11.9%
3.2 Future
RES is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.56% yearly.
RES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.20% yearly.
EPS Next Y-21.37%
EPS Next 2Y-0.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.65%
Revenue Next 2Y14.2%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.56, the valuation of RES can be described as correct.
RES's Price/Earnings is on the same level as the industry average.
RES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 10.63 indicates a reasonable valuation of RES.
RES's Price/Forward Earnings is on the same level as the industry average.
RES's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
RES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RES is cheaper than 93.65% of the companies in the same industry.
71.43% of the companies in the same industry are more expensive than RES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.48 | ||
| EV/EBITDA | 2.83 |
4.3 Compensation for Growth
The decent profitability rating of RES may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RES has a Yearly Dividend Yield of 3.52%.
In the last 3 months the price of RES has falen by -23.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.06, RES pays a better dividend. On top of this RES pays more dividend than 84.13% of the companies listed in the same industry.
RES's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 Years1
Div Non Decr Years2
5.3 Sustainability
33.88% of the earnings are spent on dividend by RES. This is a low number and sustainable payout ratio.
RES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP33.88%
EPS Next 2Y-0.56%
EPS Next 3YN/A
4.52
-0.01 (-0.22%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners45.35%
Inst Owner Change-3.74%
Ins Owners4.38%
Ins Owner Change0.26%
Market Cap996.93M
Analysts71.11
Price Target6.38 (41.15%)
Short Float %19.97%
Short Ratio9.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP33.88%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.32%
Min EPS beat(2)-2.61%
Max EPS beat(2)23.25%
EPS beat(4)2
Avg EPS beat(4)1.09%
Min EPS beat(4)-28.94%
Max EPS beat(4)23.25%
EPS beat(8)3
Avg EPS beat(8)-12.99%
EPS beat(12)6
Avg EPS beat(12)6.39%
EPS beat(16)10
Avg EPS beat(16)450.27%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.63%
Max Revenue beat(2)2.49%
Revenue beat(4)2
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-4.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.99%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)-3.1%
PT rev (3m)-8.76%
EPS NQ rev (1m)11.24%
EPS NQ rev (3m)20.75%
EPS NY rev (1m)-6.96%
EPS NY rev (3m)4.83%
Revenue NQ rev (1m)16.23%
Revenue NQ rev (3m)25.13%
Revenue NY rev (1m)16.74%
Revenue NY rev (3m)25.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 10.63 | ||
| P/S | 0.57 | ||
| P/FCF | 7.48 | ||
| P/OCF | 3 | ||
| P/B | 0.92 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 2.83 |
EPS(TTM)0.36
EY7.96%
EPS(NY)0.43
Fwd EY9.41%
FCF(TTM)0.6
FCFY13.37%
OCF(TTM)1.51
OCFY33.37%
SpS7.92
BVpS4.9
TBVpS4.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 9.4% | ||
| ROCE | 8.32% | ||
| ROIC | 6.54% | ||
| ROICexc | 8.98% | ||
| ROICexgc | 9.69% | ||
| OM | 5.73% | ||
| PM (TTM) | 5.82% | ||
| GM | 26.74% | ||
| FCFM | 7.62% |
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-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.31% | ||
| Cap/Sales | 11.41% | ||
| Interest Coverage | 585.96 | ||
| Cash Conversion | 139.56% | ||
| Profit Quality | 131.02% | ||
| Current Ratio | 4.95 | ||
| Quick Ratio | 4.18 | ||
| Altman-Z | 5.41 |
F-Score7
WACC9.21%
ROIC/WACC0.71
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)-48.57%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-53.85%
EPS Next Y-21.37%
EPS Next 2Y-0.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.09%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%-11.9%
Revenue Next Year16.65%
Revenue Next 2Y14.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-44.31%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year149.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.19%
OCF growth 3Y94.18%
OCF growth 5Y10.81%