RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 217 industry peers in the Oil, Gas & Consumable Fuels industry. While RRC has a great profitability rating, there are some minor concerns on its financial health. RRC has a valuation in line with the averages, but it does not seem to be growing.
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
RRC has a Return On Assets of 24.44%. This is amongst the best in the industry. RRC outperforms 83.41% of its industry peers.
RRC has a Return On Equity of 48.98%. This is amongst the best in the industry. RRC outperforms 85.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 25.53%, RRC belongs to the top of the industry, outperforming 83.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 48.98% | ||
| ROIC | 25.53% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 40.65%, RRC is doing good in the industry, outperforming 78.34% of the companies in the same industry.
RRC's Profit Margin has improved in the last couple of years.
RRC has a Operating Margin of 45.87%. This is in the better half of the industry: RRC outperforms 76.04% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
The Gross Margin of RRC (88.93%) is better than 91.71% of its industry peers.
In the last couple of years the Gross Margin of RRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 45.87% | ||
| PM | 40.65% | ||
| GM | 88.93% |
OM growth 3Y130.8%
OM growth 5Y28.41%
PM growth 3YN/A
PM growth 5Y9.52%
GM growth 3Y4.14%
GM growth 5Y1.47%
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.
RRC has less shares outstanding than it did 1 year ago.
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
RRC has an Altman-Z score of 2.37. 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.
RRC has a Altman-Z score (2.37) which is comparable to the rest of the industry.
The Debt to FCF ratio of RRC is 1.50, which is an excellent value as it means it would take RRC, only 1.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RRC (1.50) is better than 74.65% of its industry peers.
RRC has a Debt/Equity ratio of 0.52. This is a neutral value indicating RRC is somewhat dependend on debt financing.
RRC has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: RRC outperforms 51.15% of its industry peers.
Although RRC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.5 | ||
| Altman-Z | 2.37 |
ROIC/WACC2.89
WACC9.07%
2.3 Liquidity
RRC has a Current Ratio of 0.86. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RRC (0.86) is worse than 70.97% of its industry peers.
A Quick Ratio of 0.86 indicates that RRC may have some problems paying its short term obligations.
The Quick ratio of RRC (0.86) is worse than 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
RRC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.76%.
The Earnings Per Share has been growing by 54.59% on average over the past years. This is a very strong growth
The Revenue for RRC has decreased by -31.01% in the past year. This is quite bad
The Revenue has been growing by 17.35% on average over the past years. This is quite good.
EPS 1Y0.76%
EPS 3Y135.9%
EPS 5Y54.59%
EPS growth Q2Q-76.38%
Revenue growth 1Y-31.01%
Revenue growth 3Y27.06%
Revenue growth 5Y17.35%
Revenue growth Q2Q-80.14%
3.2 Future
The Earnings Per Share is expected to decrease by -13.75% on average over the next years. This is quite bad
The Revenue is expected to decrease by -1.07% on average over the next years.
EPS Next Y-55.23%
EPS Next 2Y-19.84%
EPS Next 3Y-5.67%
EPS Next 5Y-13.75%
Revenue Next Year-27.58%
Revenue Next 2Y-11.46%
Revenue Next 3Y-5.47%
Revenue Next 5Y-1.07%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.60, which indicates a rather cheap valuation of RRC.
The rest of the industry has a similar Price/Earnings ratio as RRC.
RRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.92.
The Price/Forward Earnings ratio is 9.15, which indicates a very decent valuation of RRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.01, RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
RRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RRC is cheaper than 72.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.15 | ||
| EV/EBITDA | 3.99 |
4.3 Compensation for Growth
The decent profitability rating of RRC may justify a higher PE ratio.
RRC's earnings are expected to decrease with -5.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.14
EPS Next 2Y-19.84%
EPS Next 3Y-5.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, RRC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.36, RRC is paying slightly less dividend.
With a Dividend Yield of 1.07, RRC pays less dividend than the S&P500 average, which is at 2.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 14.60%!
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)14.6%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
RRC pays out 4.66% of its income as dividend. This is a sustainable payout ratio.
DP4.66%
EPS Next 2Y-19.84%
EPS Next 3Y-5.67%
RANGE RESOURCES CORP
NYSE:RRC (9/22/2023, 7:23:27 PM)
After market: 30.11 0 (0%)30.11
+0.13 (+0.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)07-24 2023-07-24/amc
Earnings (Next)10-23 2023-10-23/amc
Inst Owners94.45%
Inst Owner Change5.81%
Ins Owners1.52%
Ins Owner Change11.46%
Market Cap7.27B
Analysts74.48
Price Target35.23 (17%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Dividend Growth(5Y)14.6%
DP4.66%
Div Incr Years0
Div Non Decr Years1
Ex-Date09-14 2023-09-14 (0.08)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.18%
Min EPS beat(2)20.07%
Max EPS beat(2)20.29%
EPS beat(4)3
Avg EPS beat(4)11.1%
Min EPS beat(4)-3.48%
Max EPS beat(4)20.29%
Revenue beat(2)2
Avg Revenue beat(2)97640.9%
Min Revenue beat(2)90286.5%
Max Revenue beat(2)104995%
Revenue beat(4)4
Avg Revenue beat(4)115176%
Min Revenue beat(4)90286.5%
Max Revenue beat(4)145513%
PT rev (1m)3.5%
PT rev (3m)7.07%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-26.92%
EPS NY rev (1m)0.37%
EPS NY rev (3m)-7.88%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.91%
Revenue NY rev (1m)4.69%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.6 | ||
| Fwd PE | 9.15 | ||
| P/S | 1.78 | ||
| P/FCF | 6.15 | ||
| P/OCF | 4.19 | ||
| P/B | 2.15 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 3.99 |
EPS(TTM)3.96
EY13.15%
EPS(NY)3.29
Fwd EY10.93%
FCF(TTM)4.89
FCFY16.26%
OCF(TTM)7.19
OCFY23.88%
SpS16.91
BVpS14.04
TBVpS14.04
PEG (NY)N/A
PEG (5Y)0.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.44% | ||
| ROE | 48.98% | ||
| ROCE | 30.5% | ||
| ROIC | 25.53% | ||
| ROICexc | 26.22% | ||
| ROICexgc | 26.22% | ||
| OM | 45.87% | ||
| PM | 40.65% | ||
| GM | 88.93% | ||
| FCFM | 28.94% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y200.72%
ROICexcg growth 5Y66.86%
ROICexc growth 3Y200.72%
ROICexc growth 5Y72.36%
OM growth 3Y130.8%
OM growth 5Y28.41%
PM growth 3YN/A
PM growth 5Y9.52%
GM growth 3Y4.14%
GM growth 5Y1.47%
F-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.5 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 156.92% | ||
| Cap/Sales | 13.57% | ||
| Profit Quality | 71.2% | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 2.37 |
F-Score8
WACC9.07%
ROIC/WACC2.89
Cap/Depr(3y)114.97%
Cap/Depr(5y)109.17%
Cap/Sales(3y)15.09%
Cap/Sales(5y)20.95%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
Growth
EPS 1Y0.76%
EPS 3Y135.9%
EPS 5Y54.59%
EPS growth Q2Q-76.38%
EPS Next Y-55.23%
EPS Next 2Y-19.84%
EPS Next 3Y-5.67%
EPS Next 5Y-13.75%
Revenue growth 1Y-31.01%
Revenue growth 3Y27.06%
Revenue growth 5Y17.35%
Revenue growth Q2Q-80.14%
Revenue Next Year-27.58%
Revenue Next 2Y-11.46%
Revenue Next 3Y-5.47%
Revenue Next 5Y-1.07%
EBIT growth 1Y-35.07%
EBIT growth 3Y193.25%
EBIT growth 5Y50.68%
EBIT Next Year-28.99%
EBIT Next 3Y0.91%
EBIT Next 5Y-6.88%
FCF growth 1Y3164.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y397.42%
OCF growth 3Y39.85%
OCF growth 5Y17.97%