RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
Overall RRC gets a fundamental rating of 4 out of 10. We evaluated RRC against 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 expensive valuation and it also scores bad on growth.
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.
In multiple years RRC reported negative net income over the last 5 years.
RRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RRC has a Return On Assets of 12.86%. This is in the better half of the industry: RRC outperforms 78.40% of its industry peers.
Looking at the Return On Equity, with a value of 24.77%, RRC is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
RRC has a Return On Invested Capital (7.93%) which is in line with its industry peers.
RRC had an Average Return On Invested Capital over the past 3 years of 22.91%. This is significantly below the industry average of 43.36%.
The last Return On Invested Capital (7.93%) for RRC is well below the 3 year average (22.91%), which needs to be investigated, but indicates that RRC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 24.77% | ||
| ROIC | 7.93% |
ROA(3y)11.78%
ROA(5y)-0.44%
ROE(3y)27.37%
ROE(5y)-6.9%
ROIC(3y)22.91%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 30.07%, RRC is doing good in the industry, outperforming 76.53% of the companies in the same industry.
The Operating Margin of RRC (20.79%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RRC has remained more or less at the same level.
With an excellent Gross Margin value of 88.81%, RRC belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.79% | ||
| PM (TTM) | 30.07% | ||
| GM | 88.81% |
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%
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.
The number of shares outstanding for RRC has been increased compared to 1 year ago.
Compared to 5 years ago, RRC has less shares outstanding
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
RRC has an Altman-Z score of 2.01. 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.
The Altman-Z score of RRC (2.01) is comparable to the rest of the industry.
The Debt to FCF ratio of RRC is 8.34, which is on the high side as it means it would take RRC, 8.34 years of fcf income to pay off all of its debts.
RRC has a Debt to FCF ratio of 8.34. This is comparable to the rest of the industry: RRC outperforms 44.60% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that RRC is not too dependend on debt financing.
RRC's Debt to Equity ratio of 0.46 is in line compared to the rest of the industry. RRC outperforms 50.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 8.34 | ||
| Altman-Z | 2.01 |
ROIC/WACC0.94
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.35 indicates that RRC should not have too much problems paying its short term obligations.
RRC has a Current ratio (1.35) which is comparable to the rest of the industry.
RRC has a Quick Ratio of 1.35. This is a normal value and indicates that RRC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.35, RRC is doing good in the industry, outperforming 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for RRC have decreased strongly by -57.81% in the last year.
RRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.06% yearly.
Looking at the last year, RRC shows a very negative growth in Revenue. The Revenue has decreased by -48.78% in the last year.
The Revenue has been decreasing by -5.20% on average over the past years.
EPS 1Y (TTM)-57.81%
EPS 3YN/A
EPS 5Y16.06%
EPS growth Q2Q-30.3%
Revenue 1Y (TTM)-48.78%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Revenue growth Q2Q-30.72%
3.2 Future
The Earnings Per Share is expected to grow by 5.64% on average over the next years.
RRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.40% yearly.
EPS Next Y-5.93%
EPS Next 2Y20.85%
EPS Next 3Y14.19%
EPS Next 5Y5.64%
Revenue Next Year-4.47%
Revenue Next 2Y5.09%
Revenue Next 3Y3.4%
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
With a Price/Earnings ratio of 18.16, RRC is valued on the expensive side.
65.73% of the companies in the same industry are cheaper than RRC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.60. RRC is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.87 indicates a reasonable valuation of RRC.
The rest of the industry has a similar Price/Forward Earnings ratio as RRC.
RRC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RRC is more expensive than 68.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RRC is valued a bit more expensive than the industry average as 63.38% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.52 | ||
| EV/EBITDA | 10.52 |
4.3 Compensation for Growth
The decent profitability rating of RRC may justify a higher PE ratio.
RRC's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y20.85%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 5.80.
Compared to an average S&P500 Dividend Yield of 2.32, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of RRC grows each year by 32.14%, which is quite nice.
RRC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of RRC decreased recently.
Dividend Growth(5Y)32.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RRC pays out 8.16% 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.
DP8.16%
EPS Next 2Y20.85%
EPS Next 3Y14.19%
RANGE RESOURCES CORP
NYSE:RRC (5/17/2024, 7:24:12 PM)
After market: 37.2001 -0.58 (-1.53%)37.78
+0.87 (+2.36%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 10.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.86% | ||
| ROE | 24.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.79% | ||
| PM (TTM) | 30.07% | ||
| GM | 88.81% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-57.81%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-48.78%
Revenue growth 3Y12.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y