RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
35.32 USD
+0.07 (+0.2%)
35.33 USD
+0.01 (+0.03%)
Taking everything into account, RRC scores 6 out of 10 in our fundamental rating. RRC was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an excellent profitability rating, but there are some minor concerns on its financial health. RRC may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, RRC could be worth investigating further 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.
Of the past 5 years RRC 4 years were profitable.
RRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RRC has a better Return On Assets (7.95%) than 82.38% of its industry peers.
RRC's Return On Equity of 13.62% is fine compared to the rest of the industry. RRC outperforms 75.24% of its industry peers.
RRC has a Return On Invested Capital of 9.41%. This is amongst the best in the industry. RRC outperforms 80.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRC is below the industry average of 21.09%.
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 has a better Profit Margin (19.82%) than 74.76% 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 of 27.17%. This is in the better half of the industry: RRC outperforms 67.14% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC has a Gross Margin of 90.24%. This is amongst the best in the industry. RRC outperforms 95.71% of its industry peers.
In the last couple of years the Gross Margin of RRC has grown nicely.
| 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
RRC has an Altman-Z score of 2.18. 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.
Looking at the Altman-Z score, with a value of 2.18, RRC is in the better half of the industry, outperforming 70.95% of the companies in the same industry.
The Debt to FCF ratio of RRC is 2.46, which is a good value as it means it would take RRC, 2.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.46, RRC is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
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 | 2.18 |
ROIC/WACC1.12
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a worse Current ratio (0.56) than 80.48% of its industry peers.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.56, RRC is doing worse than 76.67% of the companies in the same industry.
| 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 26.99% over the past year.
The Earnings Per Share has been growing by 42.73% on average over the past years. This is a very strong growth
The Revenue has decreased by -1.44% in the past year.
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.92% yearly.
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
RRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.94% yearly.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.50% on average per year.
EPS Next Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
EPS Next 5Y11.94%
Revenue Next Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
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.
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
A Price/Earnings ratio of 12.31 indicates a correct valuation of RRC.
66.19% of the companies in the same industry are more expensive than RRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. RRC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of RRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 78.57% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of RRC to the average of the S&P500 Index (24.04), we can say RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA is on the same level as the industry average.
RRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.92 | ||
| EV/EBITDA | 8.3 |
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 excellent profitability rating of RRC may justify a higher PE ratio.
RRC's earnings are expected to grow with 24.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.29
EPS Next 2Y29.3%
EPS Next 3Y24.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, RRC has a reasonable but not impressive dividend return.
RRC's Dividend Yield is slightly below the industry average, which is at 3.96.
With a Dividend Yield of 1.02, RRC pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
The dividend of RRC decreased in the last 3 years.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
RRC pays out 14.64% 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.
DP14.64%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
35.32
+0.07 (+0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change12.12%
Ins Owners0.9%
Ins Owner Change0%
Market Cap8.37B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.89 (21.43%)
Short Float %6.97%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-0.66%
PT rev (3m)-1.27%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-23.19%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 9.15 | ||
| P/S | 2.9 | ||
| P/FCF | 16.92 | ||
| P/OCF | 7.39 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)2.87
EY8.13%
EPS(NY)3.86
Fwd EY10.93%
FCF(TTM)2.09
FCFY5.91%
OCF(TTM)4.78
OCFY13.52%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.48
PEG (5Y)0.29
Graham Number33.85
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 | 2.18 |
F-Score7
WACC8.41%
ROIC/WACC1.12
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 Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
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 Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year166.43%
EBIT Next 3Y51.87%
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 7 / 10 to RANGE RESOURCES CORP (RRC). This can be considered as Undervalued.
Can you provide the profitability details for RANGE RESOURCES CORP?
RANGE RESOURCES CORP (RRC) has a profitability rating of 8 / 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 25.46% in the next year.
Can you provide the dividend sustainability for RRC stock?
The dividend rating of RANGE RESOURCES CORP (RRC) is 4 / 10 and the dividend payout ratio is 14.64%.