RPC INC (RES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RES - US7496601060 - Common Stock
6.43 USD
-0.09 (-1.38%)
6.43 USD
0 (0%)
Overall RES gets a fundamental rating of 5 out of 10. We evaluated RES against 61 industry peers in the Energy Equipment & Services industry. RES has an excellent financial health rating, but there are some minor concerns on its profitability. RES does not seem to be growing, but still is valued expensively.
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
- With a Return On Assets value of 3.13%, RES perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
- With a Return On Equity value of 4.25%, RES perfoms like the industry average, outperforming 46.77% of the companies in the same industry.
- With a Return On Invested Capital value of 3.98%, RES perfoms like the industry average, outperforming 43.55% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RES is above the industry average of 12.92%.
- The 3 year average ROIC (15.58%) for RES is well above the current ROIC(3.98%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 4.25% | ||
| ROIC | 3.98% |
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
- RES's Profit Margin of 3.05% is in line compared to the rest of the industry. RES outperforms 41.94% of its industry peers.
- In the last couple of years the Profit Margin of RES has grown nicely.
- RES's Operating Margin of 4.11% is on the low side compared to the rest of the industry. RES is outperformed by 62.90% of its industry peers.
- RES's Operating Margin has improved in the last couple of years.
- RES's Gross Margin of 25.36% is in line compared to the rest of the industry. RES outperforms 54.84% of its industry peers.
- RES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.11% | ||
| PM (TTM) | 3.05% | ||
| GM | 25.36% |
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.
- 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.
- Compared to 1 year ago, RES has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.68 indicates that RES is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 4.68, RES belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
- RES has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.73, RES belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
- A Debt/Equity ratio of 0.03 indicates that RES is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.03, RES belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 4.68 |
ROIC/WACC0.45
WACC8.87%
2.3 Liquidity
- RES has a Current Ratio of 2.78. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
- RES's Current ratio of 2.78 is amongst the best of the industry. RES outperforms 82.26% of its industry peers.
- RES has a Quick Ratio of 2.31. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
- RES has a better Quick ratio (2.31) than 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
- RES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.21%.
- Measured over the past years, RES shows a very strong growth in Earnings Per Share. The EPS has been growing by 142.91% on average per year.
- Looking at the last year, RES shows a very negative growth in Revenue. The Revenue has decreased by -17.05% in the last year.
- The Revenue has been growing slightly by 2.97% on average over the past years.
EPS 1Y (TTM)-48.21%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-17.05%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%32.42%
3.2 Future
- Based on estimates for the next years, RES will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.46% on average per year.
- The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y-35.11%
EPS Next 2Y-16.58%
EPS Next 3Y-5.59%
EPS Next 5Y-12.46%
Revenue Next Year16.02%
Revenue Next 2Y9.69%
Revenue Next 3Y7.86%
Revenue Next 5Y3.48%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 22.17, RES is valued on the expensive side.
- 67.74% of the companies in the same industry are more expensive than RES, based on the Price/Earnings ratio.
- RES's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 21.49, RES is valued on the expensive side.
- RES's Price/Forward Earnings ratio is in line with the industry average.
- RES is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 21.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RES is valued a bit cheaper than 75.81% of the companies in the same industry.
- RES's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.81 | ||
| EV/EBITDA | 5.94 |
4.3 Compensation for Growth
- The decent profitability rating of RES may justify a higher PE ratio.
- A cheap valuation may be justified as RES's earnings are expected to decrease with -5.59% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-16.58%
EPS Next 3Y-5.59%
5. Dividend
5.1 Amount
- RES has a Yearly Dividend Yield of 2.45%.
- Compared to an average industry Dividend Yield of 1.14, RES pays a better dividend. On top of this RES pays more dividend than 83.87% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, RES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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.
- RES has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
- RES pays out 74.59% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of RES has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP74.59%
EPS Next 2Y-16.58%
EPS Next 3Y-5.59%
RPC INC / RES FAQ
What is the fundamental rating for RES stock?
ChartMill assigns a fundamental rating of 5 / 10 to RES.
Can you provide the valuation status for RPC INC?
ChartMill assigns a valuation rating of 3 / 10 to RPC INC (RES). This can be considered as Overvalued.
How profitable is RPC INC (RES) stock?
RPC INC (RES) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for RES stock?
The Price/Earnings (PE) ratio for RPC INC (RES) is 22.17 and the Price/Book (PB) ratio is 1.29.
Can you provide the financial health for RES stock?
The financial health rating of RPC INC (RES) is 8 / 10.