RANGE RESOURCES CORP (RRC)

US75281A1097 - Common Stock

33.47  -0.59 (-1.73%)

After market: 33.5 +0.03 (+0.09%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of RRC get a neutral evaluation. Nothing too spectacular is happening here. RRC is valued correctly, but it does not seem to be growing.



6

1. Profitability

1.1 Basic Checks

RRC had positive earnings in the past year.
RRC had a positive operating cash flow in the past year.
In multiple years RRC reported negative net income over the last 5 years.
RRC 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 12.86%, RRC belongs to the top of the industry, outperforming 80.09% of the companies in the same industry.
RRC has a better Return On Equity (24.77%) than 75.36% of its industry peers.
With a Return On Invested Capital value of 7.93%, RRC perfoms like the industry average, outperforming 49.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is significantly below the industry average of 30.73%.
The last Return On Invested Capital (7.93%) for RRC is well below the 3 year average (22.91%), which needs to be investigated, but indicates that RRC had better years and this may not be a problem.
Industry RankSector Rank
ROA 12.86%
ROE 24.77%
ROIC 7.93%
ROA(3y)11.78%
ROA(5y)-0.44%
ROE(3y)27.37%
ROE(5y)-6.9%
ROIC(3y)22.91%
ROIC(5y)N/A

1.3 Margins

RRC's Profit Margin of 30.07% is fine compared to the rest of the industry. RRC outperforms 77.73% of its industry peers.
RRC has a Operating Margin (20.79%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RRC has remained more or less at the same level.
RRC has a better Gross Margin (88.81%) than 94.31% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 20.79%
PM (TTM) 30.07%
GM 88.81%
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RRC is creating value.
Compared to 1 year ago, RRC has more shares outstanding
The number of shares outstanding for RRC has been reduced compared to 5 years ago.
RRC has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 1.85 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRC has a Altman-Z score (1.85) which is comparable to the rest of the industry.
The Debt to FCF ratio of RRC is 8.34, which is on the high side as it means it would take RRC, 8.34 years of fcf income to pay off all of its debts.
RRC has a Debt to FCF ratio of 8.34. This is comparable to the rest of the industry: RRC outperforms 45.50% of its industry peers.
RRC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
RRC's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. RRC outperforms 50.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 8.34
Altman-Z 1.85
ROIC/WACC0.96
WACC8.26%

2.3 Liquidity

A Current Ratio of 1.35 indicates that RRC should not have too much problems paying its short term obligations.
RRC has a Current ratio (1.35) which is comparable to the rest of the industry.
A Quick Ratio of 1.35 indicates that RRC should not have too much problems paying its short term obligations.
RRC has a Quick ratio of 1.35. This is in the better half of the industry: RRC outperforms 63.51% of its industry peers.
Industry RankSector Rank
Current Ratio 1.35
Quick Ratio 1.35

3

3. Growth

3.1 Past

RRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.81%.
RRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.06% yearly.
RRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -48.78%.
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.20% yearly.
EPS 1Y (TTM)-57.81%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%-30.3%
Revenue 1Y (TTM)-48.78%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%-30.72%

3.2 Future

Based on estimates for the next years, RRC will show a small growth in Earnings Per Share. The EPS will grow by 5.64% on average per year.
RRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.66% yearly.
EPS Next Y0.1%
EPS Next 2Y21.64%
EPS Next 3Y17%
EPS Next 5Y5.64%
Revenue Next Year-6.39%
Revenue Next 2Y3.77%
Revenue Next 3Y3.66%
Revenue Next 5YN/A

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 accelerating.

4

4. Valuation

4.1 Price/Earnings Ratio

RRC is valuated correctly with a Price/Earnings ratio of 16.09.
Compared to the rest of the industry, the Price/Earnings ratio of RRC indicates a slightly more expensive valuation: RRC is more expensive than 63.51% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RRC to the average of the S&P500 Index (28.63), we can say RRC is valued slightly cheaper.
A Price/Forward Earnings ratio of 9.50 indicates a reasonable valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 61.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.22. RRC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 16.09
Fwd PE 9.5

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit more expensive than 63.98% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRC is valued a bit more expensive than 62.09% of the companies in the same industry.
Industry RankSector Rank
P/FCF 38.56
EV/EBITDA 9.62

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RRC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RRC may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 17.00% in the coming years.
PEG (NY)163.13
PEG (5Y)1
EPS Next 2Y21.64%
EPS Next 3Y17%

3

5. Dividend

5.1 Amount

RRC has a yearly dividend return of 0.94%, which is pretty low.
Compared to an average industry Dividend Yield of 6.18, RRC is paying slightly less dividend.
With a Dividend Yield of 0.94, RRC pays less dividend than the S&P500 average, which is at 2.38.
Industry RankSector Rank
Dividend Yield 0.94%

5.2 History

On average, the dividend of RRC grows each year by 32.14%, which is quite nice.
RRC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RRC decreased recently.
Dividend Growth(5Y)32.14%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

RRC pays out 8.16% 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.
DP8.16%
EPS Next 2Y21.64%
EPS Next 3Y17%

RANGE RESOURCES CORP

NYSE:RRC (6/21/2024, 7:22:09 PM)

After market: 33.5 +0.03 (+0.09%)

33.47

-0.59 (-1.73%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.12B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.94%
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 16.09
Fwd PE 9.5
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)163.13
PEG (5Y)1
Profitability
Industry RankSector Rank
ROA 12.86%
ROE 24.77%
ROCE
ROIC
ROICexc
ROICexgc
OM 20.79%
PM (TTM) 30.07%
GM 88.81%
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 Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.35
Quick Ratio 1.35
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-57.81%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y0.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-48.78%
Revenue growth 3Y12.76%
Revenue growth 5Y
Sales 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