RING ENERGY INC (REI) Stock Fundamental Analysis
NYSEARCA:REI - NYSE Arca - US76680V1089 - Common Stock - Currency: USD
Taking everything into account, REI scores 5 out of 10 in our fundamental rating. REI was compared to 212 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. REI may be a bit undervalued, certainly considering the very reasonable score on growth
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.
In the past 5 years REI always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.79%, REI perfoms like the industry average, outperforming 54.25% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.86%, REI is in line with its industry, outperforming 47.64% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.00%, REI is doing good in the industry, outperforming 69.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for REI is significantly below the industry average of 27.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.86% | ||
| ROIC | 9% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
1.3 Margins
REI has a Profit Margin of 18.42%. This is in the better half of the industry: REI outperforms 69.34% of its industry peers.
REI's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 36.28%, REI is doing good in the industry, outperforming 77.83% of the companies in the same industry.
In the last couple of years the Operating Margin of REI has grown nicely.
The Gross Margin of REI (93.26%) is better than 98.11% of its industry peers.
In the last couple of years the Gross Margin of REI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.28% | ||
| PM (TTM) | 18.42% | ||
| GM | 93.26% |
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so REI is still creating some value.
Compared to 1 year ago, REI has more shares outstanding
REI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for REI has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that REI is in the distress zone and has some risk of bankruptcy.
REI has a Altman-Z score of 0.78. This is comparable to the rest of the industry: REI outperforms 41.51% of its industry peers.
The Debt to FCF ratio of REI is 10.20, which is on the high side as it means it would take REI, 10.20 years of fcf income to pay off all of its debts.
REI has a Debt to FCF ratio (10.20) which is comparable to the rest of the industry.
REI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
REI's Debt to Equity ratio of 0.45 is in line compared to the rest of the industry. REI outperforms 50.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 10.2 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.83
WACC10.88%
2.3 Liquidity
REI has a Current Ratio of 0.48. 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 Current ratio, with a value of 0.48, REI is doing worse than 87.26% of the companies in the same industry.
A Quick Ratio of 0.44 indicates that REI may have some problems paying its short term obligations.
The Quick ratio of REI (0.44) is worse than 86.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
REI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -32.69%.
REI shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.37% yearly.
REI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.46%.
REI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.36% yearly.
EPS 1Y (TTM)-32.69%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-45.45%
Revenue 1Y (TTM)1.46%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.51%
3.2 Future
The Earnings Per Share is expected to grow by 26.44% on average over the next years. This is a very strong growth
REI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.22% yearly.
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.9%
Revenue Next 2Y14.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
REI is valuated cheaply with a Price/Earnings ratio of 2.60.
Based on the Price/Earnings ratio, REI is valued cheaply inside the industry as 97.64% of the companies are valued more expensively.
REI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
REI is valuated cheaply with a Price/Forward Earnings ratio of 2.20.
Based on the Price/Forward Earnings ratio, REI is valued cheaply inside the industry as 98.58% of the companies are valued more expensively.
REI is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.6 | ||
| Fwd PE | 2.2 |
4.2 Price Multiples
REI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. REI is cheaper than 89.62% of the companies in the same industry.
REI's Price/Free Cash Flow ratio is rather cheap when compared to the industry. REI is cheaper than 88.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 2.45 |
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.
REI has a very decent profitability rating, which may justify a higher PE ratio.
REI's earnings are expected to grow with 26.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y26.44%
EPS Next 3YN/A
5. Dividend
5.1 Amount
REI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
0.91
+0.03 (+3.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners33.67%
Inst Owner Change0.02%
Ins Owners10.28%
Ins Owner Change5.81%
Market Cap187.92M
Analysts74.29
Price Target2.81 (208.79%)
Short Float %8.06%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.97%
Min EPS beat(2)-6.2%
Max EPS beat(2)-3.74%
EPS beat(4)2
Avg EPS beat(4)-1.03%
Min EPS beat(4)-6.2%
Max EPS beat(4)4.52%
EPS beat(8)4
Avg EPS beat(8)1.85%
EPS beat(12)5
Avg EPS beat(12)-1.01%
EPS beat(16)8
Avg EPS beat(16)5.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.01%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)0.56%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)2.64%
Revenue beat(8)4
Avg Revenue beat(8)-1.29%
Revenue beat(12)8
Avg Revenue beat(12)5.88%
Revenue beat(16)12
Avg Revenue beat(16)8.51%
PT rev (1m)-8.33%
PT rev (3m)-8.33%
EPS NQ rev (1m)28.44%
EPS NQ rev (3m)-23.08%
EPS NY rev (1m)7.47%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)4.03%
Revenue NQ rev (3m)-3.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.6 | ||
| Fwd PE | 2.2 | ||
| P/S | 0.51 | ||
| P/FCF | 4.95 | ||
| P/OCF | 0.97 | ||
| P/B | 0.22 | ||
| P/tB | 0.22 | ||
| EV/EBITDA | 2.45 |
EPS(TTM)0.35
EY38.46%
EPS(NY)0.41
Fwd EY45.51%
FCF(TTM)0.18
FCFY20.19%
OCF(TTM)0.94
OCFY103.46%
SpS1.77
BVpS4.16
TBVpS4.16
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.79% | ||
| ROE | 7.86% | ||
| ROCE | 10.2% | ||
| ROIC | 9% | ||
| ROICexc | 9.02% | ||
| ROICexgc | 9.02% | ||
| OM | 36.28% | ||
| PM (TTM) | 18.42% | ||
| GM | 93.26% | ||
| FCFM | 10.36% |
ROA(3y)7.78%
ROA(5y)-2.88%
ROE(3y)14.05%
ROE(5y)-8.54%
ROIC(3y)11.4%
ROIC(5y)9.87%
ROICexc(3y)11.42%
ROICexc(5y)9.9%
ROICexgc(3y)11.42%
ROICexgc(5y)9.9%
ROCE(3y)12.92%
ROCE(5y)11.18%
ROICexcg growth 3Y-13.56%
ROICexcg growth 5Y7.52%
ROICexc growth 3Y-13.56%
ROICexc growth 5Y7.52%
OM growth 3Y-9.4%
OM growth 5Y2.02%
PM growth 3Y121.59%
PM growth 5Y4.09%
GM growth 3Y0.46%
GM growth 5Y5.74%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 10.2 | ||
| Debt/EBITDA | 1.67 | ||
| Cap/Depr | 158.54% | ||
| Cap/Sales | 42.72% | ||
| Interest Coverage | 3.39 | ||
| Cash Conversion | 83.95% | ||
| Profit Quality | 56.23% | ||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.78 |
F-Score5
WACC10.88%
ROIC/WACC0.83
Cap/Depr(3y)189.7%
Cap/Depr(5y)162.85%
Cap/Sales(3y)41.16%
Cap/Sales(5y)37.88%
Profit Quality(3y)48.21%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-32.69%
EPS 3Y4.13%
EPS 5Y-11.37%
EPS Q2Q%-45.45%
EPS Next Y18.31%
EPS Next 2Y26.44%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.46%
Revenue growth 3Y23.12%
Revenue growth 5Y13.36%
Sales Q2Q%-16.51%
Revenue Next Year4.9%
Revenue Next 2Y14.22%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.84%
EBIT growth 3Y11.55%
EBIT growth 5Y15.65%
EBIT Next Year69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.68%
FCF growth 3Y24.85%
FCF growth 5YN/A
OCF growth 1Y-1.89%
OCF growth 3Y38.79%
OCF growth 5Y12.77%