RPC INC (RES) Stock Fundamental Analysis
NYSE:RES - New York Stock Exchange, Inc. - US7496601060 - Common Stock - Currency: USD
Taking everything into account, RES scores 7 out of 10 in our fundamental rating. RES was compared to 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 has a correct valuation and a medium 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.
In the past year RES had a positive cash flow from operations.
RES had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RES had a positive operating cash flow.
1.2 Ratios
RES's Return On Assets of 7.56% is fine compared to the rest of the industry. RES outperforms 68.25% of its industry peers.
RES has a Return On Equity of 9.40%. This is in the better half of the industry: RES outperforms 60.32% of its industry peers.
With a Return On Invested Capital value of 6.54%, RES perfoms like the industry average, outperforming 50.79% 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 8.50%.
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
RES has a Profit Margin (5.82%) which is comparable to the rest of the industry.
RES's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.73%, RES is not doing good in the industry: 68.25% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of RES has grown nicely.
RES has a Gross Margin of 26.74%. This is comparable to the rest of the industry: RES outperforms 52.38% of its industry peers.
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
RES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RES remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RES has more shares outstanding
Compared to 1 year ago, RES has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.68 indicates that RES is not in any danger for bankruptcy at the moment.
The Altman-Z score of RES (5.68) is better than 96.83% of its industry peers.
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 98.41% of its industry peers.
RES has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
RES has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. RES outperforms 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.68 |
ROIC/WACC0.72
WACC9.04%
2.3 Liquidity
A Current Ratio of 4.95 indicates that RES has no problem at all paying its short term obligations.
The Current ratio of RES (4.95) is better than 96.83% of its industry peers.
A Quick Ratio of 4.18 indicates that RES has no problem at all paying 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.
RES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 142.91% yearly.
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
Based on estimates for the next years, RES will show a decrease in Earnings Per Share. The EPS will decrease by -0.56% on average per year.
Based on estimates for the next years, RES will show a quite strong growth in Revenue. The Revenue will grow by 14.20% on average per year.
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
A Price/Earnings ratio of 14.06 indicates a correct valuation of RES.
65.08% of the companies in the same industry are more expensive than RES, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RES to the average of the S&P500 Index (26.57), we can say RES is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 11.90, the valuation of RES can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RES is on the same level as its industry peers.
RES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RES is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
RES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RES is cheaper than 80.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.37 | ||
| EV/EBITDA | 3.33 |
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 3.29%. 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 3.47. RES pays more dividend than 84.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, RES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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
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
5.06
-0.01 (-0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.42%
Inst Owner Change-3.74%
Ins Owners4.51%
Ins Owner Change0.26%
Market Cap1.12B
Analysts71.11
Price Target6.38 (26.09%)
Short Float %19.52%
Short Ratio11.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP33.88%
Div Incr Years0
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)0%
PT rev (3m)-9.42%
EPS NQ rev (1m)-5.57%
EPS NQ rev (3m)23.37%
EPS NY rev (1m)0%
EPS NY rev (3m)4.83%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)24.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)23.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 11.9 | ||
| P/S | 0.64 | ||
| P/FCF | 8.37 | ||
| P/OCF | 3.35 | ||
| P/B | 1.03 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 3.33 |
EPS(TTM)0.36
EY7.11%
EPS(NY)0.43
Fwd EY8.4%
FCF(TTM)0.6
FCFY11.94%
OCF(TTM)1.51
OCFY29.81%
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 | 5.68 |
F-Score7
WACC9.04%
ROIC/WACC0.72
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%