RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
Taking everything into account, RRC scores 6 out of 10 in our fundamental rating. RRC was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. RRC scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RRC. These ratings could make RRC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year RRC was profitable.
RRC had a positive operating cash flow in the past year.
Of the past 5 years RRC 4 years were profitable.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.74%, RRC is doing good in the industry, outperforming 70.19% of the companies in the same industry.
RRC has a Return On Equity of 11.60%. This is in the better half of the industry: RRC outperforms 64.90% 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 70.67% 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 23.62%.
The 3 year average ROIC (17.56%) for RRC is well above the current ROIC(8.71%). The reason for the recent decline needs to be investigated.
| 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
RRC's Profit Margin of 17.10% is fine compared to the rest of the industry. RRC outperforms 68.75% of its industry peers.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
RRC has a Operating Margin (25.63%) which is in line with its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC has a Gross Margin of 90.46%. This is amongst the best in the industry. RRC outperforms 96.15% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RRC is creating value.
RRC has about the same amout of shares outstanding than it did 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 2.13 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.13, RRC is doing good in the industry, outperforming 71.15% of the companies in the same industry.
The Debt to FCF ratio of RRC is 2.39, which is a good value as it means it would take RRC, 2.39 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.39, RRC belongs to the best of the industry, outperforming 80.29% of the companies in the same industry.
RRC has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, RRC is in the better half of the industry, outperforming 64.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.97
WACC8.94%
2.3 Liquidity
A Current Ratio of 0.55 indicates that RRC may have some problems paying its short term obligations.
With a Current ratio value of 0.55, RRC is not doing good in the industry: 83.65% of the companies in the same industry are doing better.
RRC has a Quick Ratio of 0.55. 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 Quick ratio of RRC (0.55) is worse than 78.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
RRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.11%, which is quite impressive.
The Earnings Per Share has been growing by 42.73% on average over the past years. This is a very strong growth
Looking at the last year, RRC shows a decrease in Revenue. The Revenue has decreased by -4.54% in the last year.
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)24.11%
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 8.25% on average per year.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.57% on average per year.
EPS Next Y46.24%
EPS Next 2Y38.53%
EPS Next 3Y24.71%
EPS Next 5Y8.25%
Revenue Next Year23.02%
Revenue Next 2Y18.74%
Revenue Next 3Y13.57%
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.
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
Based on the Price/Earnings ratio of 12.61, the valuation of RRC can be described as correct.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than 60.10% of the companies in the same industry.
RRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
A Price/Forward Earnings ratio of 7.91 indicates a rather cheap valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 75.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.36. RRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA ratio is in line with the industry average.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.49 | ||
| EV/EBITDA | 8.83 |
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)0.27
PEG (5Y)0.3
EPS Next 2Y38.53%
EPS Next 3Y24.71%
5. Dividend
5.1 Amount
RRC has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 6.31, RRC is paying slightly less dividend.
With a Dividend Yield of 0.98, RRC pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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
17.06% of the earnings are spent on dividend by RRC. This is a low number and sustainable payout ratio.
RRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.06%
EPS Next 2Y38.53%
EPS Next 3Y24.71%
35.05
-0.19 (-0.54%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.44%
Inst Owner Change-0.66%
Ins Owners0.89%
Ins Owner Change1.41%
Market Cap8.35B
Analysts71.33
Price Target43.74 (24.79%)
Short Float %5.31%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)3.8%
PT rev (3m)4.95%
EPS NQ rev (1m)-5.19%
EPS NQ rev (3m)-2.01%
EPS NY rev (1m)0.81%
EPS NY rev (3m)-4.4%
Revenue NQ rev (1m)-1.82%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)-2.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 7.91 | ||
| P/S | 2.98 | ||
| P/FCF | 16.49 | ||
| P/OCF | 7.39 | ||
| P/B | 2.02 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)2.78
EY7.93%
EPS(NY)4.43
Fwd EY12.65%
FCF(TTM)2.13
FCFY6.06%
OCF(TTM)4.74
OCFY13.54%
SpS11.75
BVpS17.33
TBVpS17.33
PEG (NY)0.27
PEG (5Y)0.3
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 | 2.13 |
F-Score5
WACC8.94%
ROIC/WACC0.97
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 Y46.24%
EPS Next 2Y38.53%
EPS Next 3Y24.71%
EPS Next 5Y8.25%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.33%
Revenue Next Year23.02%
Revenue Next 2Y18.74%
Revenue Next 3Y13.57%
Revenue Next 5YN/A
EBIT growth 1Y48.56%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year188.18%
EBIT Next 3Y48.54%
EBIT Next 5Y20.62%
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%