RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has only an average score on both its financial health and profitability. RRC has a correct valuation and a medium growth rate.
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
RRC has a Return On Assets (4.90%) which is in line with its industry peers.
RRC has a Return On Equity of 9.18%. This is comparable to the rest of the industry: RRC outperforms 54.46% of its industry peers.
The Return On Invested Capital of RRC (8.69%) is better than 68.08% 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 25.88%.
The last Return On Invested Capital (8.69%) 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 | 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
With a Profit Margin value of 11.27%, RRC perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
RRC's Profit Margin has been stable in the last couple of years.
RRC's Operating Margin of 20.85% is in line compared to the rest of the industry. RRC outperforms 53.05% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC has a Gross Margin of 90.05%. This is amongst the best in the industry. RRC outperforms 95.77% of its industry peers.
In the last couple of years the Gross Margin of RRC has grown nicely.
| 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
RRC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.03 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRC's Altman-Z score of 2.03 is fine compared to the rest of the industry. RRC outperforms 68.08% 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.
With a decent Debt to FCF ratio value of 5.45, RRC is doing good in the industry, outperforming 64.32% 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 64.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.85
WACC10.28%
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.
With a Current ratio value of 0.56, RRC is not doing good in the industry: 83.10% 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.
The Quick ratio of RRC (0.56) is worse than 76.53% of its industry peers.
| 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 24.04%, which is quite impressive.
Measured over the past years, RRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.73% on average per year.
Looking at the last year, RRC shows a small growth in Revenue. The Revenue has grown by 1.83% in the last year.
The Revenue has been decreasing by -1.92% on average over the past years.
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
Based on estimates for the next years, RRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.57% 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 12.81% on average per year.
EPS Next Y43.24%
EPS Next 2Y32.55%
EPS Next 3Y21.44%
EPS Next 5Y8.57%
Revenue Next Year22.47%
Revenue Next 2Y16.85%
Revenue Next 3Y12.81%
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
The Price/Earnings ratio is 15.22, which indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. RRC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.68, which indicates a very decent valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 68.08% of the companies 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 22.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 9.68 |
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.
RRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.15 | ||
| EV/EBITDA | 10.52 |
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 21.44% in the coming years.
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 0.89%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 7.05.
With a Dividend Yield of 0.89, RRC pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 31.95%!
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)31.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
22.02% 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.
DP22.02%
EPS Next 2Y32.55%
EPS Next 3Y21.44%
NYSE:RRC (5/21/2025, 3:25:05 PM)
39.279
-0.44 (-1.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.83%
Inst Owner Change-1.82%
Ins Owners1.01%
Ins Owner Change0.72%
Market Cap9.39B
Analysts70.97
Price Target41.23 (4.97%)
Short Float %5.96%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP22.02%
Div Incr Years1
Div Non Decr Years1
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)-3.99%
PT rev (3m)3.27%
EPS NQ rev (1m)-7.51%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)-3.51%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)-4.5%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.22 | ||
| Fwd PE | 9.68 | ||
| P/S | 2.92 | ||
| P/FCF | 30.15 | ||
| P/OCF | 9.96 | ||
| P/B | 2.38 | ||
| P/tB | 2.38 | ||
| EV/EBITDA | 10.52 |
EPS(TTM)2.58
EY6.57%
EPS(NY)4.06
Fwd EY10.33%
FCF(TTM)1.3
FCFY3.32%
OCF(TTM)3.94
OCFY10.04%
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 | 2.03 |
F-Score7
WACC10.28%
ROIC/WACC0.85
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 5Y8.57%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.67%
Revenue Next Year22.47%
Revenue Next 2Y16.85%
Revenue Next 3Y12.81%
Revenue Next 5YN/A
EBIT growth 1Y2.12%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year198.12%
EBIT Next 3Y51.1%
EBIT Next 5Y21.53%
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%