RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
RRC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an average financial health and profitability rating. RRC is not valued too expensively and it also shows a decent growth rate.
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.
RRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC's Return On Assets of 4.90% is in line compared to the rest of the industry. RRC outperforms 59.52% of its industry peers.
RRC has a Return On Equity (9.18%) which is comparable to the rest of the industry.
RRC has a Return On Invested Capital of 8.69%. This is in the better half of the industry: RRC outperforms 70.48% 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 23.80%.
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 (11.27%) which is comparable to the rest of the industry.
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 52.38% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC has a better Gross Margin (90.05%) than 96.19% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| 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
RRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
RRC has an Altman-Z score of 2.01. 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 (2.01) is better than 66.19% 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.
The Debt to FCF ratio of RRC (5.45) is better than 61.43% 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 66.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.94
WACC9.24%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
The Current ratio of RRC (0.56) is worse than 82.86% of its industry peers.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC's Quick ratio of 0.56 is on the low side compared to the rest of the industry. RRC is outperformed by 77.14% of its industry peers.
| 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.
Measured over the past years, RRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.73% on average per year.
RRC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.83%.
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
Based on estimates for the next years, RRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.25% on average per year.
RRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.49% yearly.
EPS Next Y46.24%
EPS Next 2Y38.53%
EPS Next 3Y24.71%
EPS Next 5Y8.25%
Revenue Next Year23.46%
Revenue Next 2Y18.07%
Revenue Next 3Y13.49%
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
A Price/Earnings ratio of 14.76 indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is in line with the industry average.
RRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 8.59 indicates a reasonable valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 70.48% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 8.59 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as RRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.23 | ||
| EV/EBITDA | 10.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RRC may justify a higher PE ratio.
RRC's earnings are expected to grow with 24.71% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)0.35
EPS Next 2Y38.53%
EPS Next 3Y24.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 6.41.
With a Dividend Yield of 0.96, RRC pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 31.95%!
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 2Y38.53%
EPS Next 3Y24.71%
38.08
-1.25 (-3.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.44%
Inst Owner Change0%
Ins Owners0.89%
Ins Owner Change1.41%
Market Cap9.10B
Analysts71.33
Price Target42.14 (10.66%)
Short Float %5.68%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)0%
PT rev (3m)-1.87%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-9.94%
EPS NY rev (1m)2.09%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)0.72%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 8.59 | ||
| P/S | 2.83 | ||
| P/FCF | 29.23 | ||
| P/OCF | 9.65 | ||
| P/B | 2.31 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 10.43 |
EPS(TTM)2.58
EY6.78%
EPS(NY)4.43
Fwd EY11.64%
FCF(TTM)1.3
FCFY3.42%
OCF(TTM)3.94
OCFY10.36%
SpS13.43
BVpS16.48
TBVpS16.48
PEG (NY)0.32
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 | 2.01 |
F-Score7
WACC9.24%
ROIC/WACC0.94
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 Y46.24%
EPS Next 2Y38.53%
EPS Next 3Y24.71%
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 Year23.46%
Revenue Next 2Y18.07%
Revenue Next 3Y13.49%
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%