RGC RESOURCES INC (RGCO) Stock Fundamental Analysis
NASDAQ:RGCO - Nasdaq - US74955L1035 - Common Stock - Currency: USD
Taking everything into account, RGCO scores 5 out of 10 in our fundamental rating. RGCO was compared to 14 industry peers in the Gas Utilities industry. While RGCO has a great profitability rating, there are quite some concerns on its financial health. RGCO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RGCO was profitable.
In the past year RGCO had a positive cash flow from operations.
RGCO had positive earnings in 4 of the past 5 years.
In the past 5 years RGCO always reported a positive cash flow from operatings.
1.2 Ratios
RGCO has a Return On Assets of 4.06%. This is in the better half of the industry: RGCO outperforms 78.57% of its industry peers.
RGCO has a Return On Equity of 11.24%. This is in the better half of the industry: RGCO outperforms 78.57% of its industry peers.
The Return On Invested Capital of RGCO (5.30%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RGCO is in line with the industry average of 6.29%.
The last Return On Invested Capital (5.30%) for RGCO is above the 3 year average (4.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.24% | ||
| ROIC | 5.3% |
ROA(3y)-1.18%
ROA(5y)0.7%
ROE(3y)-3.98%
ROE(5y)2.02%
ROIC(3y)4.48%
ROIC(5y)4.2%
1.3 Margins
Looking at the Profit Margin, with a value of 14.50%, RGCO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Profit Margin of RGCO has grown nicely.
RGCO's Operating Margin of 21.39% is fine compared to the rest of the industry. RGCO outperforms 64.29% of its industry peers.
In the last couple of years the Operating Margin of RGCO has grown nicely.
With a Gross Margin value of 56.90%, RGCO is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
RGCO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.39% | ||
| PM (TTM) | 14.5% | ||
| GM | 56.9% |
OM growth 3Y0.84%
OM growth 5Y3.42%
PM growth 3Y1.14%
PM growth 5Y1.66%
GM growth 3Y2.62%
GM growth 5Y2.12%
2. Health
2.1 Basic Checks
RGCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RGCO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RGCO has more shares outstanding
The debt/assets ratio for RGCO has been reduced compared to a year ago.
2.2 Solvency
RGCO has an Altman-Z score of 1.10. This is a bad value and indicates that RGCO is not financially healthy and even has some risk of bankruptcy.
RGCO has a Altman-Z score (1.10) which is in line with its industry peers.
RGCO has a debt to FCF ratio of 21.66. This is a negative value and a sign of low solvency as RGCO would need 21.66 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.66, RGCO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
RGCO has a Debt/Equity ratio of 0.98. This is a neutral value indicating RGCO is somewhat dependend on debt financing.
RGCO has a better Debt to Equity ratio (0.98) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.66 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.79
WACC6.71%
2.3 Liquidity
RGCO has a Current Ratio of 0.57. This is a bad value and indicates that RGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RGCO (0.57) is worse than 64.29% of its industry peers.
RGCO has a Quick Ratio of 0.57. This is a bad value and indicates that RGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
RGCO has a Quick ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The earnings per share for RGCO have decreased by -1.54% in the last year.
RGCO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.44% yearly.
The Revenue has grown by 9.74% in the past year. This is quite good.
RGCO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.48% yearly.
EPS 1Y (TTM)-1.54%
EPS 3Y-1.93%
EPS 5Y1.44%
EPS Q2Q%17.46%
Revenue 1Y (TTM)9.74%
Revenue growth 3Y4.02%
Revenue growth 5Y4.48%
Sales Q2Q%11.68%
3.2 Future
Based on estimates for the next years, RGCO will show a small growth in Earnings Per Share. The EPS will grow by 6.50% on average per year.
The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y9.91%
EPS Next 2Y6.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.24%
Revenue Next 2Y5.72%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.05 indicates a correct valuation of RGCO.
Compared to the rest of the industry, the Price/Earnings ratio of RGCO is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RGCO to the average of the S&P500 Index (26.25), we can say RGCO is valued slightly cheaper.
RGCO is valuated correctly with a Price/Forward Earnings ratio of 15.62.
RGCO's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RGCO to the average of the S&P500 Index (22.15), we can say RGCO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 15.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGCO indicates a slightly more expensive valuation: RGCO is more expensive than 78.57% of the companies listed in the same industry.
64.29% of the companies in the same industry are more expensive than RGCO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.3 | ||
| EV/EBITDA | 11.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RGCO may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)11.15
EPS Next 2Y6.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGCO has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.98, RGCO has a dividend in line with its industry peers.
RGCO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of RGCO has a limited annual growth rate of 4.26%.
RGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
RGCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
RGCO pays out 62.41% of its income as dividend. This is not a sustainable payout ratio.
RGCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.41%
EPS Next 2Y6.5%
EPS Next 3YN/A
20.55
-0.4 (-1.91%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners38.46%
Inst Owner Change1.01%
Ins Owners19.48%
Ins Owner Change0.78%
Market Cap211.87M
Analysts85.71
Price Target27.54 (34.01%)
Short Float %0.67%
Short Ratio4.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend0.8
Dividend Growth(5Y)4.26%
DP62.41%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.34%
Min EPS beat(2)0%
Max EPS beat(2)6.69%
EPS beat(4)2
Avg EPS beat(4)33.19%
Min EPS beat(4)-71.99%
Max EPS beat(4)198.04%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.02%
Min Revenue beat(2)2.9%
Max Revenue beat(2)5.14%
Revenue beat(4)3
Avg Revenue beat(4)2.03%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)5.14%
Revenue beat(8)3
Avg Revenue beat(8)-8.08%
Revenue beat(12)7
Avg Revenue beat(12)1.33%
Revenue beat(16)10
Avg Revenue beat(16)4.83%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-50%
EPS NY rev (1m)1.63%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)3.37%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 15.62 | ||
| P/S | 2.32 | ||
| P/FCF | 32.3 | ||
| P/OCF | 7.55 | ||
| P/B | 1.8 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 11.78 |
EPS(TTM)1.28
EY6.23%
EPS(NY)1.32
Fwd EY6.4%
FCF(TTM)0.64
FCFY3.1%
OCF(TTM)2.72
OCFY13.25%
SpS8.86
BVpS11.43
TBVpS11.43
PEG (NY)1.62
PEG (5Y)11.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.06% | ||
| ROE | 11.24% | ||
| ROCE | 6.95% | ||
| ROIC | 5.3% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 5.34% | ||
| OM | 21.39% | ||
| PM (TTM) | 14.5% | ||
| GM | 56.9% | ||
| FCFM | 7.18% |
ROA(3y)-1.18%
ROA(5y)0.7%
ROE(3y)-3.98%
ROE(5y)2.02%
ROIC(3y)4.48%
ROIC(5y)4.2%
ROICexc(3y)4.52%
ROICexc(5y)4.23%
ROICexgc(3y)4.52%
ROICexgc(5y)4.23%
ROCE(3y)5.98%
ROCE(5y)5.57%
ROICexcg growth 3Y2.57%
ROICexcg growth 5Y2.76%
ROICexc growth 3Y2.57%
ROICexc growth 5Y2.76%
OM growth 3Y0.84%
OM growth 5Y3.42%
PM growth 3Y1.14%
PM growth 5Y1.66%
GM growth 3Y2.62%
GM growth 5Y2.12%
F-Score5
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.66 | ||
| Debt/EBITDA | 3.82 | ||
| Cap/Depr | 201.11% | ||
| Cap/Sales | 23.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.87% | ||
| Profit Quality | 49.53% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 1.1 |
F-Score5
WACC6.71%
ROIC/WACC0.79
Cap/Depr(3y)246.92%
Cap/Depr(5y)250.6%
Cap/Sales(3y)27.44%
Cap/Sales(5y)29.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.54%
EPS 3Y-1.93%
EPS 5Y1.44%
EPS Q2Q%17.46%
EPS Next Y9.91%
EPS Next 2Y6.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.74%
Revenue growth 3Y4.02%
Revenue growth 5Y4.48%
Sales Q2Q%11.68%
Revenue Next Year8.24%
Revenue Next 2Y5.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y9.57%
EBIT growth 3Y4.9%
EBIT growth 5Y8.05%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y181.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y43.71%
OCF growth 3Y14.64%
OCF growth 5Y3.47%