RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 214 industry peers in the Oil, Gas & Consumable Fuels industry. RRC scores excellent on profitability, but there are some minor concerns on its financial health. 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
With an excellent Return On Assets value of 18.42%, RRC belongs to the best of the industry, outperforming 82.63% of the companies in the same industry.
RRC has a better Return On Equity (35.23%) than 82.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.28%, RRC is in line with its industry, outperforming 58.69% 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 45.80%.
The 3 year average ROIC (22.91%) for RRC is well above the current ROIC(10.28%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.42% | ||
| ROE | 35.23% | ||
| ROIC | 10.28% |
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
The Profit Margin of RRC (39.35%) is better than 83.10% of its industry peers.
With a Operating Margin value of 24.79%, RRC perfoms like the industry average, outperforming 48.83% of the companies in the same industry.
In the last couple of years the Operating Margin of RRC has remained more or less at the same level.
The Gross Margin of RRC (88.34%) is better than 92.96% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.79% | ||
| PM (TTM) | 39.35% | ||
| GM | 88.34% |
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
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
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 2.12. 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.
With a Altman-Z score value of 2.12, RRC perfoms like the industry average, outperforming 58.22% of the companies in the same industry.
The Debt to FCF ratio of RRC is 4.78, which is a neutral value as it means it would take RRC, 4.78 years of fcf income to pay off all of its debts.
RRC's Debt to FCF ratio of 4.78 is in line compared to the rest of the industry. RRC outperforms 56.34% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that RRC is not too dependend on debt financing.
RRC has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: RRC outperforms 50.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 4.78 | ||
| Altman-Z | 2.12 |
ROIC/WACC1.19
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.49 indicates that RRC should not have too much problems paying its short term obligations.
RRC has a Current ratio of 1.49. This is in the better half of the industry: RRC outperforms 65.26% of its industry peers.
A Quick Ratio of 1.49 indicates that RRC should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.49, RRC is doing good in the industry, outperforming 70.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The earnings per share for RRC have decreased strongly by -53.52% in the last year.
RRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.06% yearly.
The Revenue for RRC has decreased by -47.77% in the past year. This is quite bad
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)-53.52%
EPS 3YN/A
EPS 5Y16.06%
EPS growth Q2Q-51.54%
Revenue 1Y (TTM)-47.77%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Revenue growth Q2Q-44.99%
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 7.01% on average per year.
The Revenue is expected to grow by 3.40% on average over the next years.
EPS Next Y-5.93%
EPS Next 2Y20.85%
EPS Next 3Y14.19%
EPS Next 5Y7.01%
Revenue Next Year-4.47%
Revenue Next 2Y5.09%
Revenue Next 3Y3.4%
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.87 indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is a bit more expensive when compared to the industry. RRC is more expensive than 63.85% of the companies in the same industry.
RRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
A Price/Forward Earnings ratio of 16.87 indicates a correct valuation of RRC.
The rest of the industry has a similar Price/Forward Earnings ratio as RRC.
RRC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 16.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit more expensive than 61.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRC is valued a bit more expensive than the industry average as 61.03% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.7 | ||
| EV/EBITDA | 8.8 |
4.3 Compensation for Growth
RRC has a very decent profitability rating, which may justify a higher PE ratio.
RRC's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y20.85%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
RRC has a yearly dividend return of 0.89%, which is pretty low.
RRC's Dividend Yield is slightly below the industry average, which is at 5.79.
With a Dividend Yield of 0.89, RRC pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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.
RRC has decreased its dividend recently.
Dividend Growth(5Y)32.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RRC pays out 5.82% 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.
DP5.82%
EPS Next 2Y20.85%
EPS Next 3Y14.19%
RANGE RESOURCES CORP
NYSE:RRC (4/24/2024, 7:26:51 PM)
After market: 37.77 0 (0%)37.77
+1.19 (+3.25%)
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 Cap9.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
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)
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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 | 15.87 | ||
| Fwd PE | 16.87 | ||
| 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)N/A
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.42% | ||
| ROE | 35.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.79% | ||
| PM (TTM) | 39.35% | ||
| GM | 88.34% | ||
| 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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.49 | ||
| Quick Ratio | 1.49 | ||
| 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)-53.52%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-47.77%
Revenue growth 3Y12.76%
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