RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
Taking everything into account, RRC scores 4 out of 10 in our fundamental rating. RRC was compared to 209 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 expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
RRC had positive earnings in the past year.
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.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC has a better Return On Assets (7.84%) than 66.67% of its industry peers.
The Return On Equity of RRC (14.69%) is better than 61.76% of its industry peers.
RRC has a Return On Invested Capital (6.29%) which is comparable to the rest of the industry.
RRC had an Average Return On Invested Capital over the past 3 years of 22.91%. This is significantly below the industry average of 28.77%.
The last Return On Invested Capital (6.29%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 14.69% | ||
| ROIC | 6.29% |
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 (19.39%) is better than 65.20% of its industry peers.
RRC has a Operating Margin (15.87%) 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.
Looking at the Gross Margin, with a value of 90.11%, RRC belongs to the top of the industry, outperforming 94.61% of the companies in the same industry.
In the last couple of years the Gross Margin of RRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.87% | ||
| PM (TTM) | 19.39% | ||
| GM | 90.11% |
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.
RRC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RRC has less shares outstanding
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
RRC has an Altman-Z score of 1.86. 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's Altman-Z score of 1.86 is in line compared to the rest of the industry. RRC outperforms 52.94% of its industry peers.
RRC has a debt to FCF ratio of 5.40. This is a neutral value as RRC would need 5.40 years to pay back of all of its debts.
RRC has a Debt to FCF ratio (5.40) which is in line with its industry peers.
A Debt/Equity ratio of 0.28 indicates that RRC is not too dependend on debt financing.
RRC has a better Debt to Equity ratio (0.28) than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 1.86 |
ROIC/WACC0.7
WACC8.94%
2.3 Liquidity
RRC has a Current Ratio of 0.54. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.54, RRC is doing worse than 86.27% of the companies in the same industry.
RRC has a Quick Ratio of 0.54. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.54, RRC is doing worse than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The earnings per share for RRC have decreased strongly by -25.90% 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 -24.97% in the last year.
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.20% yearly.
EPS 1Y (TTM)-25.9%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%1.25%
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 5.84% on average per year.
The Revenue is expected to grow by 2.24% on average over the next years.
EPS Next Y-9.74%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y5.84%
Revenue Next Year-13.06%
Revenue Next 2Y0.64%
Revenue Next 3Y2.24%
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
With a Price/Earnings ratio of 17.03, RRC is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RRC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.91, RRC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 12.98, the valuation of RRC can be described as correct.
RRC's Price/Forward Earnings ratio is in line with the industry average.
RRC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit more expensive than 69.12% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.37 | ||
| EV/EBITDA | 12.95 |
4.3 Compensation for Growth
RRC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y11.63%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 6.60.
With a Dividend Yield of 0.85, RRC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 32.14%!
RRC has been paying a dividend for at least 10 years, so it has 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 13.63% 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.
DP13.63%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
RANGE RESOURCES CORP
NYSE:RRC (1/13/2025, 4:15:00 PM)
After market: 38.49 0 (0%)38.49
+0.32 (+0.84%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change-0.03%
Ins Owners1.01%
Ins Owner Change-0.29%
Market Cap9.29B
Analysts66.67
Price Target36.9 (-4.13%)
Short Float %7.04%
Short Ratio7.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Dividend Growth(5Y)32.14%
DP13.63%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.35%
Min EPS beat(2)10.88%
Max EPS beat(2)23.82%
EPS beat(4)4
Avg EPS beat(4)20.95%
Min EPS beat(4)10.88%
Max EPS beat(4)30.08%
EPS beat(8)8
Avg EPS beat(8)20.34%
EPS beat(12)9
Avg EPS beat(12)13.28%
EPS beat(16)11
Avg EPS beat(16)7.52%
Revenue beat(2)0
Avg Revenue beat(2)-17.3%
Min Revenue beat(2)-20.29%
Max Revenue beat(2)-14.31%
Revenue beat(4)0
Avg Revenue beat(4)-15.11%
Min Revenue beat(4)-20.29%
Max Revenue beat(4)-11%
Revenue beat(8)2
Avg Revenue beat(8)-8.3%
Revenue beat(12)6
Avg Revenue beat(12)16.67%
Revenue beat(16)10
Avg Revenue beat(16)17.14%
PT rev (1m)4.58%
PT rev (3m)3.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.12%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-5.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)-1.35%
Revenue NY rev (3m)-2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 12.98 | ||
| P/S | 3.17 | ||
| P/FCF | 29.37 | ||
| P/OCF | 9.75 | ||
| P/B | 2.4 | ||
| P/tB | 2.4 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)2.26
EY5.87%
EPS(NY)2.97
Fwd EY7.7%
FCF(TTM)1.31
FCFY3.4%
OCF(TTM)3.95
OCFY10.26%
SpS12.14
BVpS16.03
TBVpS16.03
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 14.69% | ||
| ROCE | 7.72% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 6.59% | ||
| OM | 15.87% | ||
| PM (TTM) | 19.39% | ||
| GM | 90.11% | ||
| FCFM | 10.8% |
ROA(3y)11.78%
ROA(5y)-0.44%
ROE(3y)27.37%
ROE(5y)-6.9%
ROIC(3y)22.91%
ROIC(5y)N/A
ROICexc(3y)23.25%
ROICexc(5y)N/A
ROICexgc(3y)23.25%
ROICexgc(5y)N/A
ROCE(3y)28.13%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.62%
ROICexc growth 3YN/A
ROICexc growth 5Y2.62%
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.4 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 178.38% | ||
| Cap/Sales | 21.73% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 115.97% | ||
| Profit Quality | 55.66% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.86 |
F-Score6
WACC8.94%
ROIC/WACC0.7
Cap/Depr(3y)142.09%
Cap/Depr(5y)112.75%
Cap/Sales(3y)14.87%
Cap/Sales(5y)19.57%
Profit Quality(3y)85.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.9%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%4.35%
EPS Next Y-9.74%
EPS Next 2Y11.63%
EPS Next 3Y11.58%
EPS Next 5Y5.84%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%1.25%
Revenue Next Year-13.06%
Revenue Next 2Y0.64%
Revenue Next 3Y2.24%
Revenue Next 5YN/A
EBIT growth 1Y-64.12%
EBIT growth 3YN/A
EBIT growth 5Y-4.02%
EBIT Next Year25.12%
EBIT Next 3Y18.52%
EBIT Next 5Y7.28%
FCF growth 1Y-71.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.31%
OCF growth 3Y53.82%
OCF growth 5Y-0.26%