RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an average financial health and profitability rating. RRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RRC was profitable.
RRC had a positive operating cash flow in the past year.
Of the past 5 years RRC 4 years were profitable.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
RRC has a Return On Assets (4.90%) which is in line with its industry peers.
RRC has a Return On Equity (9.18%) which is comparable to the rest of the industry.
The Return On Invested Capital of RRC (8.69%) is better than 70.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is significantly below the industry average of 23.70%.
The 3 year average ROIC (17.56%) for RRC is well above the current ROIC(8.69%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 9.18% | ||
| ROIC | 8.69% |
ROA(3y)10.97%
ROA(5y)5.47%
ROE(3y)23.21%
ROE(5y)9.08%
ROIC(3y)17.56%
ROIC(5y)N/A
1.3 Margins
RRC has a Profit Margin of 11.27%. This is in the better half of the industry: RRC outperforms 60.19% of its industry peers.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
RRC's Operating Margin of 20.85% is in line compared to the rest of the industry. RRC outperforms 52.61% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 90.05%, RRC belongs to the top of the industry, outperforming 96.21% of the companies in the same industry.
In the last couple of years the Gross Margin of RRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.85% | ||
| PM (TTM) | 11.27% | ||
| GM | 90.05% |
OM growth 3Y-25.42%
OM growth 5Y27.63%
PM growth 3Y0.09%
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRC is creating value.
The number of shares outstanding for RRC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RRC has less shares outstanding
RRC has a better debt/assets ratio than last year.
2.2 Solvency
RRC has an Altman-Z score of 1.98. This is not the best score and indicates that RRC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RRC (1.98) is better than 65.88% of its industry peers.
RRC has a debt to FCF ratio of 5.45. This is a neutral value as RRC would need 5.45 years to pay back of all of its debts.
RRC's Debt to FCF ratio of 5.45 is fine compared to the rest of the industry. RRC outperforms 62.09% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that RRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.28, RRC is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.01
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a worse Current ratio (0.56) than 82.94% of its industry peers.
RRC has a Quick Ratio of 0.56. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.56, RRC is not doing good in the industry: 77.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
RRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.04%, which is quite impressive.
RRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.73% yearly.
Looking at the last year, RRC shows a small growth in Revenue. The Revenue has grown by 1.83% in the last year.
Measured over the past years, RRC shows a decrease in Revenue. The Revenue has been decreasing by -1.92% on average per year.
EPS 1Y (TTM)24.04%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%39.13%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.67%
3.2 Future
RRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
RRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.57% yearly.
EPS Next Y45.06%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
EPS Next 5Y8.25%
Revenue Next Year22.27%
Revenue Next 2Y17.38%
Revenue Next 3Y12.57%
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
With a Price/Earnings ratio of 14.97, RRC is valued correctly.
RRC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. RRC is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.24, the valuation of RRC can be described as very reasonable.
RRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 70.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. RRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 9.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRC is on the same level as its industry peers.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.64 | ||
| EV/EBITDA | 10.26 |
4.3 Compensation for Growth
RRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 21.68% in the coming years.
PEG (NY)0.33
PEG (5Y)0.35
EPS Next 2Y34.53%
EPS Next 3Y21.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.88%, RRC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.66, RRC is paying slightly less dividend.
With a Dividend Yield of 0.88, RRC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
RRC has paid a dividend for at least 10 years, which is a reliable track record.
RRC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
RRC pays out 22.02% of its income as dividend. This is a sustainable payout ratio.
The dividend of RRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.02%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
38.62
-0.19 (-0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.44%
Inst Owner Change-1.77%
Ins Owners0.89%
Ins Owner Change1.41%
Market Cap9.23B
Analysts71.33
Price Target42.14 (9.11%)
Short Float %6.39%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP22.02%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)3.78%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.48%
Min EPS beat(4)3.78%
Max EPS beat(4)23.82%
EPS beat(8)8
Avg EPS beat(8)18.79%
EPS beat(12)10
Avg EPS beat(12)14.53%
EPS beat(16)12
Avg EPS beat(16)10.7%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-9.11%
Min Revenue beat(4)-20.29%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-11.67%
Revenue beat(12)4
Avg Revenue beat(12)12.46%
Revenue beat(16)8
Avg Revenue beat(16)15.46%
PT rev (1m)2.21%
PT rev (3m)-0.07%
EPS NQ rev (1m)-0.26%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)1.27%
EPS NY rev (3m)-2.65%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.97 | ||
| Fwd PE | 9.24 | ||
| P/S | 2.88 | ||
| P/FCF | 29.64 | ||
| P/OCF | 9.79 | ||
| P/B | 2.34 | ||
| P/tB | 2.34 | ||
| EV/EBITDA | 10.26 |
EPS(TTM)2.58
EY6.68%
EPS(NY)4.18
Fwd EY10.83%
FCF(TTM)1.3
FCFY3.37%
OCF(TTM)3.94
OCFY10.21%
SpS13.43
BVpS16.48
TBVpS16.48
PEG (NY)0.33
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 9.18% | ||
| ROCE | 10.97% | ||
| ROIC | 8.69% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 9.21% | ||
| OM | 20.85% | ||
| PM (TTM) | 11.27% | ||
| GM | 90.05% | ||
| FCFM | 9.7% |
ROA(3y)10.97%
ROA(5y)5.47%
ROE(3y)23.21%
ROE(5y)9.08%
ROIC(3y)17.56%
ROIC(5y)N/A
ROICexc(3y)17.72%
ROICexc(5y)N/A
ROICexgc(3y)17.72%
ROICexgc(5y)N/A
ROCE(3y)22.18%
ROCE(5y)N/A
ROICexcg growth 3Y-36.92%
ROICexcg growth 5Y26.34%
ROICexc growth 3Y-36.92%
ROICexc growth 5Y26.34%
OM growth 3Y-25.42%
OM growth 5Y27.63%
PM growth 3Y0.09%
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y2.52%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 174.5% | ||
| Cap/Sales | 19.67% | ||
| Interest Coverage | 5.85 | ||
| Cash Conversion | 91.43% | ||
| Profit Quality | 86.06% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.98 |
F-Score7
WACC8.58%
ROIC/WACC1.01
Cap/Depr(3y)162.28%
Cap/Depr(5y)138.73%
Cap/Sales(3y)19.85%
Cap/Sales(5y)19.14%
Profit Quality(3y)93.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.04%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%39.13%
EPS Next Y45.06%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
EPS Next 5Y8.25%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.67%
Revenue Next Year22.27%
Revenue Next 2Y17.38%
Revenue Next 3Y12.57%
Revenue Next 5YN/A
EBIT growth 1Y2.12%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year188.18%
EBIT Next 3Y48.54%
EBIT Next 5Y20.62%
FCF growth 1Y-77.91%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-51.24%
OCF growth 3Y6%
OCF growth 5Y6.74%