RGC RESOURCES INC (RGCO)
US74955L1035 - Common Stock
Taking everything into account, RGCO scores 4 out of 10 in our fundamental rating. RGCO was compared to 14 industry peers in the Gas Utilities industry. While RGCO is still in line with the averages on profitability rating, there are concerns on its financial health. RGCO has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RGCO was profitable.
RGCO had a positive operating cash flow in the past year.
Of the past 5 years RGCO 4 years were profitable.
RGCO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.20%, RGCO is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
RGCO has a better Return On Equity (11.91%) than 78.57% of its industry peers.
The Return On Invested Capital of RGCO (4.56%) is worse than 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RGCO is in line with the industry average of 5.43%.
The last Return On Invested Capital (4.56%) for RGCO is above the 3 year average (4.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 11.91% | ||
| ROIC | 4.56% |
ROA(3y)-1.31%
ROA(5y)0.64%
ROE(3y)-4.23%
ROE(5y)1.94%
ROIC(3y)4.38%
ROIC(5y)4.09%
1.3 Margins
RGCO has a Profit Margin of 15.82%. This is amongst the best in the industry. RGCO outperforms 85.71% of its industry peers.
RGCO's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 21.42%, RGCO is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of RGCO has remained more or less at the same level.
RGCO has a Gross Margin of 57.84%. This is comparable to the rest of the industry: RGCO outperforms 57.14% of its industry peers.
In the last couple of years the Gross Margin of RGCO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.42% | ||
| PM (TTM) | 15.82% | ||
| GM | 57.84% |
OM growth 3Y-2.83%
OM growth 5Y0.69%
PM growth 3Y-11.61%
PM growth 5Y0.81%
GM growth 3Y-8.69%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RGCO is destroying value.
The number of shares outstanding for RGCO has been increased compared to 1 year ago.
Compared to 5 years ago, RGCO has more shares outstanding
RGCO has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that RGCO is in the distress zone and has some risk of bankruptcy.
RGCO has a Altman-Z score of 1.15. This is comparable to the rest of the industry: RGCO outperforms 57.14% of its industry peers.
RGCO has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.29, RGCO is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.15 |
ROIC/WACC0.69
WACC6.58%
2.3 Liquidity
RGCO has a Current Ratio of 1.31. This is a normal value and indicates that RGCO is financially healthy and should not expect problems in meeting its short term obligations.
RGCO has a Current ratio of 1.31. This is amongst the best in the industry. RGCO outperforms 92.86% of its industry peers.
A Quick Ratio of 1.00 indicates that RGCO should not have too much problems paying its short term obligations.
RGCO has a better Quick ratio (1.00) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.56% over the past year.
Measured over the past 5 years, RGCO shows a small growth in Earnings Per Share. The EPS has been growing by 4.84% on average per year.
The Revenue for RGCO has decreased by -18.96% in the past year. This is quite bad
Measured over the past years, RGCO shows a quite strong growth in Revenue. The Revenue has been growing by 8.26% on average per year.
EPS 1Y (TTM)5.56%
EPS 3Y-4.28%
EPS 5Y4.84%
EPS growth Q2Q-1.04%
Revenue 1Y (TTM)-18.96%
Revenue growth 3Y15.57%
Revenue growth 5Y8.26%
Revenue growth Q2Q-14.12%
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 6.60% on average per year.
Based on estimates for the next years, RGCO will show a decrease in Revenue. The Revenue will decrease by -4.08% on average per year.
EPS Next Y3.79%
EPS Next 2Y6.6%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-14%
Revenue Next 2Y-4.08%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.20, the valuation of RGCO can be described as rather expensive.
Based on the Price/Earnings ratio, RGCO is valued a bit more expensive than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of RGCO to the average of the S&P500 Index (28.83), we can say RGCO is valued slightly cheaper.
RGCO is valuated correctly with a Price/Forward Earnings ratio of 16.02.
RGCO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGCO is cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.47, RGCO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RGCO is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RGCO does not grow enough to justify the current Price/Earnings ratio.
RGCO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.8
PEG (5Y)3.76
EPS Next 2Y6.6%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGCO has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.52, RGCO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, RGCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
The dividend of RGCO has a limited annual growth rate of 5.22%.
RGCO has been paying a dividend for at least 10 years, so it has a reliable track record.
RGCO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.22%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
60.40% of the earnings are spent on dividend by RGCO. This is not a sustainable payout ratio.
RGCO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP60.4%
EPS Next 2Y6.6%
EPS Next 3YN/A
RGC RESOURCES INC
NASDAQ:RGCO (5/16/2024, 7:14:20 PM)
After market: 20.75 0 (0%)20.75
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap210.82M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.2 | ||
| Fwd PE | 16.02 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)4.8
PEG (5Y)3.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.2% | ||
| ROE | 11.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.42% | ||
| PM (TTM) | 15.82% | ||
| GM | 57.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.56%
EPS 3Y-4.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y3.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.96%
Revenue growth 3Y15.57%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y