RPC INC (RES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RES - US7496601060 - Common Stock
5.32 USD
+0.03 (+0.57%)
5.32 USD
0 (0%)
Taking everything into account, RES scores 5 out of 10 in our fundamental rating. RES was compared to 60 industry peers in the Energy Equipment & Services industry. RES has an excellent financial health rating, but there are some minor concerns on its profitability. RES has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
RES had positive earnings in the past year.
RES had a positive operating cash flow in the past year.
Of the past 5 years RES 4 years were profitable.
RES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RES's Return On Assets of 3.13% is in line compared to the rest of the industry. RES outperforms 51.67% of its industry peers.
RES's Return On Equity of 4.25% is on the low side compared to the rest of the industry. RES is outperformed by 60.00% of its industry peers.
The Return On Invested Capital of RES (3.98%) is worse than 60.00% of its industry peers.
RES had an Average Return On Invested Capital over the past 3 years of 15.58%. This is significantly above the industry average of 7.66%.
The 3 year average ROIC (15.58%) for RES is well above the current ROIC(3.98%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 4.25% | ||
| ROIC | 3.98% |
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
With a Profit Margin value of 3.05%, RES is not doing good in the industry: 61.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RES has grown nicely.
RES has a Operating Margin of 4.11%. This is in the lower half of the industry: RES underperforms 65.00% of its industry peers.
In the last couple of years the Operating Margin of RES has grown nicely.
With a Gross Margin value of 25.36%, RES perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
In the last couple of years the Gross Margin of RES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.11% | ||
| PM (TTM) | 3.05% | ||
| GM | 25.36% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RES is creating value.
RES has about the same amout of shares outstanding than it did 1 year ago.
RES has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RES has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.31 indicates that RES is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.31, RES belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
RES has a debt to FCF ratio of 0.73. This is a very positive value and a sign of high solvency as it would only need 0.73 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.73, RES belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
RES has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.03, RES belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.73 | ||
| Altman-Z | 4.31 |
ROIC/WACC0.46
WACC8.65%
2.3 Liquidity
RES has a Current Ratio of 2.78. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
RES has a Current ratio of 2.78. This is amongst the best in the industry. RES outperforms 81.67% of its industry peers.
RES has a Quick Ratio of 2.31. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
RES has a better Quick ratio (2.31) than 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.31 |
3. Growth
3.1 Past
RES shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.21%.
Measured over the past years, RES shows a very strong growth in Earnings Per Share. The EPS has been growing by 142.91% on average per year.
The Revenue for RES has decreased by -17.05% in the past year. This is quite bad
Measured over the past years, RES shows a small growth in Revenue. The Revenue has been growing by 2.97% on average per year.
EPS 1Y (TTM)-48.21%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-17.05%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%32.42%
3.2 Future
Based on estimates for the next years, RES will show a very negative growth in Earnings Per Share. The EPS will decrease by -12.46% on average per year.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y-41.44%
EPS Next 2Y-21.43%
EPS Next 3Y-7.52%
EPS Next 5Y-12.46%
Revenue Next Year10.3%
Revenue Next 2Y8.04%
Revenue Next 3Y5.8%
Revenue Next 5Y3.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 18.34, the valuation of RES can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of RES indicates a somewhat cheap valuation: RES is cheaper than 66.67% of the companies listed in the same industry.
RES is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
RES is valuated rather expensively with a Price/Forward Earnings ratio of 20.04.
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 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 20.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RES is valued cheaper than 81.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.57 | ||
| EV/EBITDA | 4.83 |
4.3 Compensation for Growth
A cheap valuation may be justified as RES's earnings are expected to decrease with -7.52% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-21.43%
EPS Next 3Y-7.52%
5. Dividend
5.1 Amount
RES has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.97, RES pays a better dividend. On top of this RES pays more dividend than 83.33% of the companies listed in the same industry.
RES's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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
RES pays out 74.59% of its income as dividend. This is not a sustainable payout ratio.
RES's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP74.59%
EPS Next 2Y-21.43%
EPS Next 3Y-7.52%
5.32
+0.03 (+0.57%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.48%
Inst Owner Change-3.07%
Ins Owners4.51%
Ins Owner Change0.01%
Market Cap1.17B
Revenue(TTM)1.54B
Net Income(TTM)46.85M
Analysts70
Price Target6.03 (13.35%)
Short Float %17.9%
Short Ratio10.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP74.59%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)22.46%
Min EPS beat(2)-13.27%
Max EPS beat(2)58.19%
EPS beat(4)2
Avg EPS beat(4)16.39%
Min EPS beat(4)-13.27%
Max EPS beat(4)58.19%
EPS beat(8)4
Avg EPS beat(8)3.18%
EPS beat(12)5
Avg EPS beat(12)-2.71%
EPS beat(16)9
Avg EPS beat(16)13.81%
Revenue beat(2)1
Avg Revenue beat(2)4.35%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)9.75%
Revenue beat(4)3
Avg Revenue beat(4)3.2%
Min Revenue beat(4)-1.05%
Max Revenue beat(4)9.75%
Revenue beat(8)4
Avg Revenue beat(8)-0.12%
Revenue beat(12)5
Avg Revenue beat(12)-2.58%
Revenue beat(16)8
Avg Revenue beat(16)0.39%
PT rev (1m)1.43%
PT rev (3m)1.43%
EPS NQ rev (1m)33.84%
EPS NQ rev (3m)3.71%
EPS NY rev (1m)4.4%
EPS NY rev (3m)-7.77%
Revenue NQ rev (1m)7.5%
Revenue NQ rev (3m)5.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.34 | ||
| Fwd PE | 20.04 | ||
| P/S | 0.76 | ||
| P/FCF | 15.57 | ||
| P/OCF | 5.02 | ||
| P/B | 1.06 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)0.29
EY5.45%
EPS(NY)0.27
Fwd EY4.99%
FCF(TTM)0.34
FCFY6.42%
OCF(TTM)1.06
OCFY19.91%
SpS6.96
BVpS5
TBVpS4.19
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.13% | ||
| ROE | 4.25% | ||
| ROCE | 5.06% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 5.49% | ||
| OM | 4.11% | ||
| PM (TTM) | 3.05% | ||
| GM | 25.36% | ||
| FCFM | 4.91% |
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
ROICexgc growth 3Y132.45%
ROICexgc 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-Score4
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.73 | ||
| Debt/EBITDA | 0.14 | ||
| Cap/Depr | 100.62% | ||
| Cap/Sales | 10.3% | ||
| Interest Coverage | 35.74 | ||
| Cash Conversion | 106.01% | ||
| Profit Quality | 160.91% | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.31 | ||
| Altman-Z | 4.31 |
F-Score4
WACC8.65%
ROIC/WACC0.46
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)-48.21%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y-41.44%
EPS Next 2Y-21.43%
EPS Next 3Y-7.52%
EPS Next 5Y-12.46%
Revenue 1Y (TTM)-17.05%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%32.42%
Revenue Next Year10.3%
Revenue Next 2Y8.04%
Revenue Next 3Y5.8%
Revenue Next 5Y3.48%
EBIT growth 1Y-60.41%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year131.04%
EBIT Next 3Y38.37%
EBIT Next 5Y24.57%
FCF growth 1Y-71.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.15%
OCF growth 3Y94.18%
OCF growth 5Y10.81%
RPC INC / RES FAQ
What is the fundamental rating for RES stock?
ChartMill assigns a fundamental rating of 5 / 10 to RES.
What is the valuation status of RPC INC (RES) stock?
ChartMill assigns a valuation rating of 3 / 10 to RPC INC (RES). This can be considered as Overvalued.
Can you provide the profitability details for RPC INC?
RPC INC (RES) has a profitability rating of 5 / 10.
What is the valuation of RPC INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RPC INC (RES) is 18.34 and the Price/Book (PB) ratio is 1.06.
What is the earnings growth outlook for RPC INC?
The Earnings per Share (EPS) of RPC INC (RES) is expected to decline by -41.44% in the next year.