RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - US75281A1097 - Common Stock
33.83 USD
-0.14 (-0.41%)
33.83 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RRC. RRC was compared to 208 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make RRC suitable for value investing!
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
With a decent Return On Assets value of 6.74%, RRC is doing good in the industry, outperforming 72.12% of the companies in the same industry.
The Return On Equity of RRC (11.60%) is better than 65.38% of its industry peers.
RRC has a Return On Invested Capital of 8.71%. This is in the better half of the industry: RRC outperforms 73.08% of its industry peers.
RRC had an Average Return On Invested Capital over the past 3 years of 17.56%. This is significantly below the industry average of 23.39%.
The last Return On Invested Capital (8.71%) for RRC is well below the 3 year average (17.56%), which needs to be investigated, but indicates that RRC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 11.6% | ||
| ROIC | 8.71% |
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
With a decent Profit Margin value of 17.10%, RRC is doing good in the industry, outperforming 69.71% of the companies in the same industry.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
The Operating Margin of RRC (25.63%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC's Gross Margin of 90.46% is amongst the best of the industry. RRC outperforms 95.67% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.63% | ||
| PM (TTM) | 17.1% | ||
| GM | 90.46% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRC is creating value.
The number of shares outstanding for RRC remains at a similar level compared to 1 year ago.
The number of shares outstanding for RRC has been reduced compared to 5 years ago.
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRC's Altman-Z score of 2.08 is fine compared to the rest of the industry. RRC outperforms 69.23% of its industry peers.
RRC has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as RRC would need 2.39 years to pay back of all of its debts.
RRC's Debt to FCF ratio of 2.39 is fine compared to the rest of the industry. RRC outperforms 79.81% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
The Debt to Equity ratio of RRC (0.29) is better than 63.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.95
WACC9.21%
2.3 Liquidity
A Current Ratio of 0.55 indicates that RRC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.55, RRC is doing worse than 86.06% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that RRC may have some problems paying its short term obligations.
The Quick ratio of RRC (0.55) is worse than 79.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.11% over the past year.
RRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.73% yearly.
RRC shows a decrease in Revenue. In the last year, the revenue decreased by -4.54%.
The Revenue has been decreasing by -1.92% on average over the past years.
EPS 1Y (TTM)24.11%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%43.48%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.33%
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 8.87% on average per year.
The Revenue is expected to grow by 13.65% on average over the next years. This is quite good.
EPS Next Y43.24%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
EPS Next 5Y8.87%
Revenue Next Year22.39%
Revenue Next 2Y18.59%
Revenue Next 3Y13.65%
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
The Price/Earnings ratio is 12.17, which indicates a correct valuation of RRC.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than 63.94% of the companies in the same industry.
RRC is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.45 indicates a rather cheap valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued cheaply inside the industry as 82.69% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.80. RRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 7.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.92 | ||
| EV/EBITDA | 8.59 |
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.
RRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 26.06% in the coming years.
PEG (NY)0.28
PEG (5Y)0.28
EPS Next 2Y40.18%
EPS Next 3Y26.06%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.08%.
RRC's Dividend Yield is slightly below the industry average, which is at 6.33.
With a Dividend Yield of 1.08, RRC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
RRC has been paying a dividend for at least 10 years, so it has 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 17.06% 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.
DP17.06%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
33.83
-0.14 (-0.41%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.68%
Inst Owner Change-12.12%
Ins Owners0.9%
Ins Owner Change1.41%
Market Cap8.06B
Analysts72
Price Target43.53 (28.67%)
Short Float %5.86%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP17.06%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)3.45%
Max EPS beat(2)3.78%
EPS beat(4)4
Avg EPS beat(4)10.62%
Min EPS beat(4)3.45%
Max EPS beat(4)23.82%
EPS beat(8)8
Avg EPS beat(8)16.69%
EPS beat(12)11
Avg EPS beat(12)14.83%
EPS beat(16)12
Avg EPS beat(16)10.89%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-7.49%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-5.91%
Min Revenue beat(4)-14.31%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-10.42%
Revenue beat(12)3
Avg Revenue beat(12)-2.51%
Revenue beat(16)7
Avg Revenue beat(16)13.81%
PT rev (1m)-0.49%
PT rev (3m)5.58%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)-5.01%
EPS NY rev (1m)-2.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.24%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.17 | ||
| Fwd PE | 7.45 | ||
| P/S | 2.88 | ||
| P/FCF | 15.92 | ||
| P/OCF | 7.13 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)2.78
EY8.22%
EPS(NY)4.54
Fwd EY13.42%
FCF(TTM)2.13
FCFY6.28%
OCF(TTM)4.74
OCFY14.02%
SpS11.75
BVpS17.33
TBVpS17.33
PEG (NY)0.28
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 11.6% | ||
| ROCE | 11% | ||
| ROIC | 8.71% | ||
| ROICexc | 8.71% | ||
| ROICexgc | 8.71% | ||
| OM | 25.63% | ||
| PM (TTM) | 17.1% | ||
| GM | 90.46% | ||
| FCFM | 18.08% |
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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 170.61% | ||
| Cap/Sales | 22.29% | ||
| Interest Coverage | 6.31 | ||
| Cash Conversion | 104.34% | ||
| Profit Quality | 105.75% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.08 |
F-Score5
WACC9.21%
ROIC/WACC0.95
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)24.11%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%43.48%
EPS Next Y43.24%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
EPS Next 5Y8.87%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.33%
Revenue Next Year22.39%
Revenue Next 2Y18.59%
Revenue Next 3Y13.65%
Revenue Next 5YN/A
EBIT growth 1Y48.56%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year186.5%
EBIT Next 3Y51.76%
EBIT Next 5Y21.08%
FCF growth 1Y-57.15%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-34.87%
OCF growth 3Y6%
OCF growth 5Y6.74%