RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - NYSE:RRC - US75281A1097 - Common Stock
38.02 USD
-0.42 (-1.09%)
37.76 USD
-0.26 (-0.68%)
RRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 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 correct valuation and a medium 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.
RRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RRC's Return On Assets of 7.95% is fine compared to the rest of the industry. RRC outperforms 79.05% of its industry peers.
With a decent Return On Equity value of 13.62%, RRC is doing good in the industry, outperforming 72.86% of the companies in the same industry.
RRC's Return On Invested Capital of 9.41% is fine compared to the rest of the industry. RRC outperforms 79.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is below the industry average of 21.85%.
The 3 year average ROIC (17.56%) for RRC is well above the current ROIC(9.41%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 13.62% | ||
| ROIC | 9.41% |
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 19.82% is fine compared to the rest of the industry. RRC outperforms 72.86% of its industry peers.
RRC's Profit Margin has been stable in the last couple of years.
RRC has a Operating Margin of 27.17%. This is in the better half of the industry: RRC outperforms 66.19% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
Looking at the Gross Margin, with a value of 90.24%, RRC belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.17% | ||
| PM (TTM) | 19.82% | ||
| GM | 90.24% |
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.
Compared to 1 year ago, RRC has about the same amount of shares outstanding.
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 2.32 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 2.32, RRC is doing good in the industry, outperforming 73.33% of the companies in the same industry.
RRC has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as RRC would need 2.46 years to pay back of all of its debts.
RRC has a Debt to FCF ratio of 2.46. This is amongst the best in the industry. RRC outperforms 80.48% of its industry peers.
RRC has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
RRC has a better Debt to Equity ratio (0.29) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.32 |
ROIC/WACC1.15
WACC8.15%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
With a Current ratio value of 0.56, RRC is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
RRC has a Quick Ratio of 0.56. 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 0.56, RRC is doing worse than 78.10% of the companies in the same industry.
| 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 26.99%, 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 -1.44% 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)26.99%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%18.75%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%14.67%
3.2 Future
The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
RRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.62% yearly.
EPS Next Y26.68%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
EPS Next 5Y11.94%
Revenue Next Year19.92%
Revenue Next 2Y15.91%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
Based on the Price/Earnings ratio of 13.25, the valuation of RRC can be described as correct.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than 60.48% of the companies in the same industry.
RRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.91.
With a Price/Forward Earnings ratio of 9.74, the valuation of RRC can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 77.62% of the companies listed in the same industry.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 9.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRC.
RRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| EV/EBITDA | 8.91 |
4.3 Compensation for Growth
RRC's 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 24.55% in the coming years.
PEG (NY)0.5
PEG (5Y)0.31
EPS Next 2Y30.02%
EPS Next 3Y24.55%
5. Dividend
5.1 Amount
RRC has a yearly dividend return of 0.98%, which is pretty low.
RRC's Dividend Yield is slightly below the industry average, which is at 5.88.
With a Dividend Yield of 0.98, RRC pays less dividend than the S&P500 average, which is at 2.36.
| 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
14.64% of the earnings are spent on dividend by RRC. This is a low number and sustainable payout ratio.
The dividend of RRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.64%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
38.02
-0.42 (-1.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.07%
Inst Owner Change0.21%
Ins Owners0.9%
Ins Owner Change0.64%
Market Cap9.06B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts71.33
Price Target43.09 (13.34%)
Short Float %5.58%
Short Ratio4.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP14.64%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.09%
Min EPS beat(2)-5.63%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)3.26%
Min EPS beat(4)-5.63%
Max EPS beat(4)11.44%
EPS beat(8)7
Avg EPS beat(8)12.1%
EPS beat(12)11
Avg EPS beat(12)14.65%
EPS beat(16)12
Avg EPS beat(16)10.77%
Revenue beat(2)0
Avg Revenue beat(2)-10.13%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-7.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.53%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-10.32%
Revenue beat(12)2
Avg Revenue beat(12)-7.38%
Revenue beat(16)6
Avg Revenue beat(16)11.12%
PT rev (1m)0.27%
PT rev (3m)-2.05%
EPS NQ rev (1m)-22.9%
EPS NQ rev (3m)-26.98%
EPS NY rev (1m)-10.45%
EPS NY rev (3m)-13.38%
Revenue NQ rev (1m)-6.77%
Revenue NQ rev (3m)-8.78%
Revenue NY rev (1m)-1.5%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 9.74 | ||
| P/S | 3.14 | ||
| P/FCF | 18.31 | ||
| P/OCF | 8 | ||
| P/B | 2.15 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 8.91 |
EPS(TTM)2.87
EY7.55%
EPS(NY)3.91
Fwd EY10.27%
FCF(TTM)2.08
FCFY5.46%
OCF(TTM)4.75
OCFY12.5%
SpS12.12
BVpS17.65
TBVpS17.65
PEG (NY)0.5
PEG (5Y)0.31
Graham Number33.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 13.62% | ||
| ROCE | 11.88% | ||
| ROIC | 9.41% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.41% | ||
| OM | 27.17% | ||
| PM (TTM) | 19.82% | ||
| GM | 90.24% | ||
| FCFM | 17.13% |
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
ROICexgc growth 3Y-36.92%
ROICexgc 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 172.96% | ||
| Cap/Sales | 22.07% | ||
| Interest Coverage | 6.68 | ||
| Cash Conversion | 98.18% | ||
| Profit Quality | 86.42% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.32 |
F-Score7
WACC8.15%
ROIC/WACC1.15
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)26.99%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%18.75%
EPS Next Y26.68%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
EPS Next 5Y11.94%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%14.67%
Revenue Next Year19.92%
Revenue Next 2Y15.91%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year180.87%
EBIT Next 3Y50.97%
EBIT Next 5Y23.19%
FCF growth 1Y-38.47%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-17.06%
OCF growth 3Y6%
OCF growth 5Y6.74%
RANGE RESOURCES CORP / RRC FAQ
What is the ChartMill fundamental rating of RANGE RESOURCES CORP (RRC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RRC.
What is the valuation status of RANGE RESOURCES CORP (RRC) stock?
ChartMill assigns a valuation rating of 6 / 10 to RANGE RESOURCES CORP (RRC). This can be considered as Fairly Valued.
Can you provide the profitability details for RANGE RESOURCES CORP?
RANGE RESOURCES CORP (RRC) has a profitability rating of 7 / 10.
What is the expected EPS growth for RANGE RESOURCES CORP (RRC) stock?
The Earnings per Share (EPS) of RANGE RESOURCES CORP (RRC) is expected to grow by 26.68% in the next year.
Can you provide the dividend sustainability for RRC stock?
The dividend rating of RANGE RESOURCES CORP (RRC) is 3 / 10 and the dividend payout ratio is 14.64%.