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 5 out of 10 in our fundamental rating. RRC was compared to 213 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RRC had positive earnings in the past year.
RRC had a positive operating cash flow in the past year.
RRC had positive earnings in 4 of the past 5 years.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRC (4.90%) is comparable to the rest of the industry.
With a Return On Equity value of 9.18%, RRC perfoms like the industry average, outperforming 55.87% of the companies in the same industry.
RRC has a better Return On Invested Capital (8.69%) than 69.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRC is significantly below the industry average of 23.55%.
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 in line with 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 of 20.85%. This is comparable to the rest of the industry: RRC outperforms 51.64% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC's Gross Margin of 90.05% is amongst the best of the industry. RRC outperforms 95.77% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
RRC has a better debt/assets ratio than last year.
2.2 Solvency
RRC has an Altman-Z score of 1.99. 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 has a better Altman-Z score (1.99) than 66.20% 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.
Looking at the Debt to FCF ratio, with a value of 5.45, RRC is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
RRC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RRC (0.28) is better than 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.93
WACC9.33%
2.3 Liquidity
RRC has a Current 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 Current ratio, with a value of 0.56, RRC is doing worse than 82.63% of the companies in the same industry.
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.
RRC's Quick ratio of 0.56 is on the low side compared to the rest of the industry. RRC is outperformed by 77.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.04% 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.
The Revenue has been growing slightly by 1.83% in the past 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)24.04%
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
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.57% on average over the next years. This is quite good.
EPS Next Y43.24%
EPS Next 2Y32.55%
EPS Next 3Y21.44%
EPS Next 5Y8.25%
Revenue Next Year21.87%
Revenue Next 2Y17%
Revenue Next 3Y12.57%
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
The Price/Earnings ratio is 15.24, which indicates a correct valuation of RRC.
The rest of the industry has a similar Price/Earnings ratio as RRC.
The average S&P500 Price/Earnings ratio is at 26.55. RRC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.69, which indicates a very decent valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than the industry average as 68.08% of the companies are valued more expensively.
RRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 9.69 |
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.
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 | 30.19 | ||
| EV/EBITDA | 10.29 |
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 21.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)0.36
EPS Next 2Y32.55%
EPS Next 3Y21.44%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, RRC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.74, RRC is paying slightly less dividend.
With a Dividend Yield of 0.96, RRC pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
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 2Y32.55%
EPS Next 3Y21.44%
39.33
+0.6 (+1.55%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.83%
Inst Owner Change-1.77%
Ins Owners1.01%
Ins Owner Change1.42%
Market Cap9.40B
Analysts71.33
Price Target42.14 (7.14%)
Short Float %6.2%
Short Ratio4.8
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)1.11%
PT rev (3m)0.62%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)1.18%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)1.7%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 9.69 | ||
| P/S | 2.93 | ||
| P/FCF | 30.19 | ||
| P/OCF | 9.97 | ||
| P/B | 2.39 | ||
| P/tB | 2.39 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)2.58
EY6.56%
EPS(NY)4.06
Fwd EY10.32%
FCF(TTM)1.3
FCFY3.31%
OCF(TTM)3.94
OCFY10.03%
SpS13.43
BVpS16.48
TBVpS16.48
PEG (NY)0.35
PEG (5Y)0.36
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 | 1.99 |
F-Score7
WACC9.33%
ROIC/WACC0.93
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 Y43.24%
EPS Next 2Y32.55%
EPS Next 3Y21.44%
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 Year21.87%
Revenue Next 2Y17%
Revenue Next 3Y12.57%
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 5Y20.64%
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%