RPC INC (RES) Stock Fundamental Analysis
NYSE:RES - New York Stock Exchange, Inc. - US7496601060 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RES. RES was compared to 63 industry peers in the Energy Equipment & Services industry. RES gets an excellent profitability rating and is at the same time showing great financial health properties. RES is not valued too expensively and it also shows a decent growth rate. These ratings could make RES a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year RES was profitable.
In the past year RES had a positive cash flow from operations.
Of the past 5 years RES 4 years were profitable.
In the past 5 years RES always reported a positive cash flow from operatings.
1.2 Ratios
RES has a better Return On Assets (7.56%) than 68.25% of its industry peers.
Looking at the Return On Equity, with a value of 9.40%, RES is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
RES has a Return On Invested Capital (6.54%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RES is significantly above the industry average of 8.44%.
The last Return On Invested Capital (6.54%) for RES is well below the 3 year average (15.58%), which needs to be investigated, but indicates that RES had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 9.4% | ||
| ROIC | 6.54% |
ROA(3y)13.49%
ROA(5y)2.89%
ROE(3y)17.4%
ROE(5y)3.95%
ROIC(3y)15.58%
ROIC(5y)N/A
1.3 Margins
RES's Profit Margin of 5.82% is in line compared to the rest of the industry. RES outperforms 49.21% of its industry peers.
RES's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 5.73%, RES is doing worse than 68.25% of the companies in the same industry.
In the last couple of years the Operating Margin of RES has grown nicely.
With a Gross Margin value of 26.74%, RES perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
RES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.73% | ||
| PM (TTM) | 5.82% | ||
| GM | 26.74% |
OM growth 3Y116.13%
OM growth 5YN/A
PM growth 3Y96.73%
PM growth 5YN/A
GM growth 3Y4.67%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
RES 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 RES remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RES has more shares outstanding
The debt/assets ratio for RES is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.75 indicates that RES is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.75, RES belongs to the top of the industry, outperforming 93.65% of the companies in the same industry.
The Debt to FCF ratio of RES is 0.03, which is an excellent value as it means it would take RES, only 0.03 years of fcf income to pay off all of its debts.
RES has a Debt to FCF ratio of 0.03. This is amongst the best in the industry. RES outperforms 98.41% of its industry peers.
RES has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
RES's Debt to Equity ratio of 0.00 is amongst the best of the industry. RES outperforms 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 5.75 |
ROIC/WACC0.7
WACC9.3%
2.3 Liquidity
A Current Ratio of 4.95 indicates that RES has no problem at all paying its short term obligations.
RES has a better Current ratio (4.95) than 96.83% of its industry peers.
A Quick Ratio of 4.18 indicates that RES has no problem at all paying its short term obligations.
RES has a Quick ratio of 4.18. This is amongst the best in the industry. RES outperforms 96.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.95 | ||
| Quick Ratio | 4.18 |
3. Growth
3.1 Past
RES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.57%.
RES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 142.91% yearly.
Looking at the last year, RES shows a quite strong growth in Revenue. The Revenue has grown by 15.09% in the last year.
The Revenue has been growing slightly by 2.97% on average over the past years.
EPS 1Y (TTM)-48.57%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-53.85%
Revenue 1Y (TTM)15.09%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%-11.9%
3.2 Future
The Earnings Per Share is expected to decrease by -2.97% on average over the next years.
RES is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.80% yearly.
EPS Next Y-23.01%
EPS Next 2Y-2.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year16.37%
Revenue Next 2Y13.8%
Revenue Next 3YN/A
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.
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
Based on the Price/Earnings ratio of 14.31, the valuation of RES can be described as correct.
Based on the Price/Earnings ratio, RES is valued a bit cheaper than 65.08% of the companies in the same industry.
RES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 12.72, the valuation of RES can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as RES.
RES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RES indicates a rather cheap valuation: RES is cheaper than 88.89% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RES is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.52 | ||
| EV/EBITDA | 3.46 |
4.3 Compensation for Growth
RES has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RES's earnings are expected to decrease with -2.97% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RES has a Yearly Dividend Yield of 3.09%.
RES's Dividend Yield is rather good when compared to the industry average which is at 3.54. RES pays more dividend than 80.95% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, RES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of RES decreases each year by -19.34%.
RES has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of RES decreased in the last 3 years.
Dividend Growth(5Y)-19.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
33.88% of the earnings are spent on dividend by RES. This is a low number and sustainable payout ratio.
The Dividend Rate of RES has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP33.88%
EPS Next 2Y-2.97%
EPS Next 3YN/A
5.15
-0.05 (-0.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.42%
Inst Owner Change0%
Ins Owners4.51%
Ins Owner Change0.26%
Market Cap1.14B
Analysts71.11
Price Target6.38 (23.88%)
Short Float %18.46%
Short Ratio11.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP33.88%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.32%
Min EPS beat(2)-2.61%
Max EPS beat(2)23.25%
EPS beat(4)2
Avg EPS beat(4)1.09%
Min EPS beat(4)-28.94%
Max EPS beat(4)23.25%
EPS beat(8)3
Avg EPS beat(8)-12.99%
EPS beat(12)6
Avg EPS beat(12)6.39%
EPS beat(16)10
Avg EPS beat(16)450.27%
Revenue beat(2)2
Avg Revenue beat(2)2.06%
Min Revenue beat(2)1.63%
Max Revenue beat(2)2.49%
Revenue beat(4)2
Avg Revenue beat(4)-2.67%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-4.93%
Revenue beat(12)6
Avg Revenue beat(12)-0.99%
Revenue beat(16)8
Avg Revenue beat(16)-0.31%
PT rev (1m)0%
PT rev (3m)-3.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.8%
EPS NY rev (1m)-2.08%
EPS NY rev (3m)13.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)24.6%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)23.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 12.72 | ||
| P/S | 0.65 | ||
| P/FCF | 8.52 | ||
| P/OCF | 3.41 | ||
| P/B | 1.05 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 3.46 |
EPS(TTM)0.36
EY6.99%
EPS(NY)0.4
Fwd EY7.86%
FCF(TTM)0.6
FCFY11.73%
OCF(TTM)1.51
OCFY29.29%
SpS7.92
BVpS4.9
TBVpS4.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 9.4% | ||
| ROCE | 8.32% | ||
| ROIC | 6.54% | ||
| ROICexc | 8.98% | ||
| ROICexgc | 9.69% | ||
| OM | 5.73% | ||
| PM (TTM) | 5.82% | ||
| GM | 26.74% | ||
| FCFM | 7.62% |
ROA(3y)13.49%
ROA(5y)2.89%
ROE(3y)17.4%
ROE(5y)3.95%
ROIC(3y)15.58%
ROIC(5y)N/A
ROICexc(3y)18.93%
ROICexc(5y)N/A
ROICexgc(3y)20.05%
ROICexgc(5y)N/A
ROCE(3y)19.82%
ROCE(5y)N/A
ROICexcg growth 3Y132.45%
ROICexcg growth 5YN/A
ROICexc growth 3Y130.46%
ROICexc growth 5YN/A
OM growth 3Y116.13%
OM growth 5YN/A
PM growth 3Y96.73%
PM growth 5YN/A
GM growth 3Y4.67%
GM growth 5Y1.54%
F-Score7
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 144.31% | ||
| Cap/Sales | 11.41% | ||
| Interest Coverage | 585.96 | ||
| Cash Conversion | 139.56% | ||
| Profit Quality | 131.02% | ||
| Current Ratio | 4.95 | ||
| Quick Ratio | 4.18 | ||
| Altman-Z | 5.75 |
F-Score7
WACC9.3%
ROIC/WACC0.7
Cap/Depr(3y)166.7%
Cap/Depr(5y)132.34%
Cap/Sales(3y)11.82%
Cap/Sales(5y)10.83%
Profit Quality(3y)94.67%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-48.57%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-53.85%
EPS Next Y-23.01%
EPS Next 2Y-2.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.09%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%-11.9%
Revenue Next Year16.37%
Revenue Next 2Y13.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-44.31%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year149.89%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y2.19%
OCF growth 3Y94.18%
OCF growth 5Y10.81%