RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
Overall RRC gets a fundamental rating of 4 out of 10. We evaluated RRC against 210 industry peers in the Oil, Gas & Consumable Fuels industry. There are concerns on the financial health of RRC while its profitability can be described as average. RRC has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year RRC was profitable.
In the past year RRC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RRC reported negative net income in multiple years.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRC (6.53%) is comparable to the rest of the industry.
RRC has a Return On Equity (12.30%) which is in line with its industry peers.
RRC has a Return On Invested Capital of 5.08%. This is in the lower half of the industry: RRC underperforms 65.24% of its industry peers.
RRC had an Average Return On Invested Capital over the past 3 years of 22.91%. This is significantly below the industry average of 30.77%.
The 3 year average ROIC (22.91%) for RRC is well above the current ROIC(5.08%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 12.3% | ||
| ROIC | 5.08% |
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
Looking at the Profit Margin, with a value of 20.35%, RRC is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
With a Operating Margin value of 16.12%, RRC perfoms like the industry average, outperforming 43.81% of the companies in the same industry.
RRC's Operating Margin has been stable in the last couple of years.
RRC has a Gross Margin of 89.42%. This is amongst the best in the industry. RRC outperforms 94.29% of its industry peers.
In the last couple of years the Gross Margin of RRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.12% | ||
| PM (TTM) | 20.35% | ||
| GM | 89.42% |
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%
2. Health
2.1 Basic Checks
RRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, RRC has more shares outstanding
RRC has less shares outstanding than it did 5 years ago.
RRC has a better debt/assets ratio than last year.
2.2 Solvency
RRC has an Altman-Z score of 1.45. This is a bad value and indicates that RRC is not financially healthy and even has some risk of bankruptcy.
RRC has a Altman-Z score (1.45) which is comparable to the rest of the industry.
The Debt to FCF ratio of RRC is 7.61, which is on the high side as it means it would take RRC, 7.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.61, RRC is in line with its industry, outperforming 50.95% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that RRC is not too dependend on debt financing.
RRC's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. RRC outperforms 63.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 7.61 | ||
| Altman-Z | 1.45 |
ROIC/WACC0.62
WACC8.25%
2.3 Liquidity
RRC has a Current Ratio of 0.58. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
RRC's Current ratio of 0.58 is on the low side compared to the rest of the industry. RRC is outperformed by 83.81% of its industry peers.
RRC has a Quick Ratio of 0.58. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
RRC has a worse Quick ratio (0.58) than 79.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The earnings per share for RRC have decreased strongly by -43.43% in the last year.
The Earnings Per Share has been growing by 16.06% on average over the past years. This is quite good.
Looking at the last year, RRC shows a very negative growth in Revenue. The Revenue has decreased by -52.38% in the last year.
Measured over the past years, RRC shows a decrease in Revenue. The Revenue has been decreasing by -5.20% on average per year.
EPS 1Y (TTM)-43.43%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%53.33%
Revenue 1Y (TTM)-52.38%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%36.92%
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
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.
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 14.19 indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.41. RRC is valued slightly cheaper when compared to this.
RRC is valuated reasonably with a Price/Forward Earnings ratio of 9.02.
RRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 64.76% of the companies in the same industry.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit more expensive than 71.90% of the companies in the same industry.
RRC's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. RRC is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.32 | ||
| EV/EBITDA | 12.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 17.00% in the coming years.
PEG (NY)143.83
PEG (5Y)0.88
EPS Next 2Y21.64%
EPS Next 3Y17%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.01%.
RRC's Dividend Yield is slightly below the industry average, which is at 5.93.
Compared to an average S&P500 Dividend Yield of 2.30, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 32.14%!
RRC has paid a dividend for at least 10 years, which is 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 16.32% of its income as dividend. This is a sustainable payout ratio.
RRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.32%
EPS Next 2Y21.64%
EPS Next 3Y17%
RANGE RESOURCES CORP
NYSE:RRC (7/26/2024, 7:04:00 PM)
After market: 31.78 0 (0%)31.78
+0.2 (+0.63%)
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 Cap7.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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)
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Min EPS beat(4)
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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)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 9.02 | ||
| 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)143.83
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 12.3% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.12% | ||
| PM (TTM) | 20.35% | ||
| GM | 89.42% | ||
| 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.58 | ||
| 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)-43.43%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y0.1%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-52.38%
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