RING ENERGY INC (REI)
US76680V1089 - Common Stock
Overall REI gets a fundamental rating of 5 out of 10. We evaluated REI against 204 industry peers in the Oil, Gas & Consumable Fuels industry. While REI is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on REI.
1. Profitability
1.1 Basic Checks
In the past year REI was profitable.
REI had a positive operating cash flow in the past year.
REI had positive earnings in 4 of the past 5 years.
REI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
REI has a Return On Assets of 5.13%. This is comparable to the rest of the industry: REI outperforms 47.78% of its industry peers.
REI has a Return On Equity (8.72%) which is comparable to the rest of the industry.
REI has a Return On Invested Capital of 9.87%. This is in the better half of the industry: REI outperforms 63.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for REI is significantly below the industry average of 22.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 8.72% | ||
| ROIC | 9.87% |
ROA(3y)6.34%
ROA(5y)-3.23%
ROE(3y)11.8%
ROE(5y)-8.99%
ROIC(3y)11.66%
ROIC(5y)8.33%
1.3 Margins
With a decent Profit Margin value of 18.41%, REI is doing good in the industry, outperforming 61.58% of the companies in the same industry.
In the last couple of years the Profit Margin of REI has grown nicely.
With a decent Operating Margin value of 41.29%, REI is doing good in the industry, outperforming 79.80% of the companies in the same industry.
In the last couple of years the Operating Margin of REI has grown nicely.
With an excellent Gross Margin value of 93.44%, REI belongs to the best of the industry, outperforming 98.52% of the companies in the same industry.
REI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.29% | ||
| PM (TTM) | 18.41% | ||
| GM | 93.44% |
OM growth 3Y72.83%
OM growth 5Y7.27%
PM growth 3YN/A
PM growth 5Y31.11%
GM growth 3Y11.33%
GM growth 5Y5.2%
2. Health
2.1 Basic Checks
REI 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 REI has been increased compared to 1 year ago.
REI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, REI has an improved debt to assets ratio.
2.2 Solvency
REI has an Altman-Z score of 0.95. This is a bad value and indicates that REI is not financially healthy and even has some risk of bankruptcy.
REI has a worse Altman-Z score (0.95) than 60.59% of its industry peers.
REI has a debt to FCF ratio of 8.40. This is a slightly negative value and a sign of low solvency as REI would need 8.40 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.40, REI is in line with its industry, outperforming 45.81% of the companies in the same industry.
REI has a Debt/Equity ratio of 0.50. This is a neutral value indicating REI is somewhat dependend on debt financing.
REI has a Debt to Equity ratio (0.50) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 8.4 | ||
| Altman-Z | 0.95 |
ROIC/WACC1.06
WACC9.29%
2.3 Liquidity
A Current Ratio of 0.50 indicates that REI may have some problems paying its short term obligations.
REI's Current ratio of 0.50 is on the low side compared to the rest of the industry. REI is outperformed by 88.67% of its industry peers.
REI has a Quick Ratio of 0.50. This is a bad value and indicates that REI is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.45, REI is doing worse than 88.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
REI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.93%.
Measured over the past years, REI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.90% on average per year.
Looking at the last year, REI shows a small growth in Revenue. The Revenue has grown by 3.98% in the last year.
REI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.63% yearly.
EPS 1Y (TTM)-25.93%
EPS 3Y2%
EPS 5Y10.9%
EPS Q2Q%-46.15%
Revenue 1Y (TTM)3.98%
Revenue growth 3Y47.28%
Revenue growth 5Y24.63%
Sales Q2Q%-4.74%
3.2 Future
REI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.63% yearly.
Based on estimates for the next years, REI will show a small growth in Revenue. The Revenue will grow by 7.02% on average per year.
EPS Next Y-23.54%
EPS Next 2Y-10.22%
EPS Next 3Y8.63%
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y2.67%
Revenue Next 3Y7.02%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 3.85, the valuation of REI can be described as very cheap.
Based on the Price/Earnings ratio, REI is valued cheaply inside the industry as 92.61% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.81, REI is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.67, the valuation of REI can be described as very cheap.
Based on the Price/Forward Earnings ratio, REI is valued cheaply inside the industry as 96.06% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of REI to the average of the S&P500 Index (23.56), we can say REI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.85 | ||
| Fwd PE | 3.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of REI indicates a rather cheap valuation: REI is cheaper than 90.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of REI indicates a rather cheap valuation: REI is cheaper than 80.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 2.78 |
4.3 Compensation for Growth
REI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.35
EPS Next 2Y-10.22%
EPS Next 3Y8.63%
5. Dividend
5.1 Amount
REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RING ENERGY INC
NYSEARCA:REI (11/14/2024, 6:40:01 PM)
After market: 1.5 -0.04 (-2.6%)1.54
+0.02 (+1.32%)
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 Cap305.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 3.85 | ||
| Fwd PE | 3.67 | ||
| 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)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 8.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 41.29% | ||
| PM (TTM) | 18.41% | ||
| GM | 93.44% | ||
| 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 Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.5 | ||
| Quick Ratio | 0.45 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-25.93%
EPS 3Y2%
EPS 5Y
EPS Q2Q%
EPS Next Y-23.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.98%
Revenue growth 3Y47.28%
Revenue growth 5Y
Sales 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