RPC INC (RES) Stock Fundamental Analysis
USA - NYSE:RES - US7496601060 - Common Stock
5.68 USD
+0.2 (+3.65%)
5.65 USD
-0.03 (-0.53%)
Overall RES gets a fundamental rating of 6 out of 10. We evaluated RES against 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year RES was profitable.
RES had a positive operating cash flow in the past year.
RES had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RES had a positive operating cash flow.
1.2 Ratios
RES has a Return On Assets (3.61%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.85%, RES is in line with its industry, outperforming 43.33% of the companies in the same industry.
With a Return On Invested Capital value of 3.66%, RES is not doing good in the industry: 68.33% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for RES is significantly above the industry average of 7.85%.
The 3 year average ROIC (15.58%) for RES is well above the current ROIC(3.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.85% | ||
| ROIC | 3.66% |
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
Looking at the Profit Margin, with a value of 3.71%, RES is in line with its industry, outperforming 41.67% of the companies in the same industry.
RES's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.98%, RES is doing worse than 71.67% of the companies in the same industry.
RES's Operating Margin has improved in the last couple of years.
The Gross Margin of RES (25.75%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of RES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.98% | ||
| PM (TTM) | 3.71% | ||
| GM | 25.75% |
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) just above the Cost of Capital (WACC), RES is creating some value.
RES has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for RES has been increased compared to 5 years ago.
RES has a worse debt/assets ratio than last year.
2.2 Solvency
RES has an Altman-Z score of 4.47. This indicates that RES is financially healthy and has little risk of bankruptcy at the moment.
RES has a Altman-Z score of 4.47. This is amongst the best in the industry. RES outperforms 88.33% of its industry peers.
The Debt to FCF ratio of RES is 0.61, which is an excellent value as it means it would take RES, only 0.61 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RES (0.61) is better than 85.00% of its industry peers.
RES has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
RES's Debt to Equity ratio of 0.03 is amongst the best of the industry. RES outperforms 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.47 |
ROIC/WACC0.42
WACC8.76%
2.3 Liquidity
A Current Ratio of 2.64 indicates that RES has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.64, RES is doing good in the industry, outperforming 80.00% of the companies in the same industry.
RES has a Quick Ratio of 2.16. This indicates that RES is financially healthy and has no problem in meeting its short term obligations.
RES has a Quick ratio of 2.16. This is in the better half of the industry: RES outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.16 |
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%.
RES shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 142.91% yearly.
The Revenue for RES has decreased by -12.52% in the past year. This is quite bad
The Revenue has been growing slightly by 2.97% on average over the past years.
EPS 1Y (TTM)-48.21%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-12.52%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%32.42%
3.2 Future
The Earnings Per Share is expected to decrease by -12.46% on average over the next years. This is quite bad
RES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.59 indicates a rather expensive valuation of RES.
Based on the Price/Earnings ratio, RES is valued a bit cheaper than the industry average as 65.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RES to the average of the S&P500 Index (26.35), we can say RES is valued slightly cheaper.
The Price/Forward Earnings ratio is 21.40, which indicates a rather expensive current valuation of RES.
RES's Price/Forward Earnings is on the same level as the industry average.
RES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 33.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 21.4 |
4.2 Price Multiples
71.67% of the companies in the same industry are more expensive than RES, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as RES.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.86 | ||
| EV/EBITDA | 5.59 |
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 -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 2.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.91, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of RES decreases each year by -19.34%.
RES has been paying a dividend for at least 10 years, so it has a reliable track record.
RES has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-19.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
65.65% of the earnings are spent on dividend by RES. This is not a 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.
DP65.65%
EPS Next 2Y-21.43%
EPS Next 3Y-7.52%
5.68
+0.2 (+3.65%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.48%
Inst Owner Change0.4%
Ins Owners4.51%
Ins Owner Change0.01%
Market Cap1.25B
Revenue(TTM)1.41B
Net Income(TTM)52.87M
Analysts70
Price Target5.77 (1.58%)
Short Float %19.45%
Short Ratio13.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Yearly Dividend0.16
Dividend Growth(5Y)-19.34%
DP65.65%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.99%
Min EPS beat(2)-13.27%
Max EPS beat(2)23.25%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-28.94%
Max EPS beat(4)23.25%
EPS beat(8)3
Avg EPS beat(8)-12.42%
EPS beat(12)5
Avg EPS beat(12)-3.77%
EPS beat(16)9
Avg EPS beat(16)443.19%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-1.05%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.63%
Min Revenue beat(4)-9.59%
Max Revenue beat(4)2.49%
Revenue beat(8)3
Avg Revenue beat(8)-3.02%
Revenue beat(12)5
Avg Revenue beat(12)-2.18%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)-2.86%
PT rev (3m)-5.56%
EPS NQ rev (1m)-17.77%
EPS NQ rev (3m)-31.45%
EPS NY rev (1m)-7.77%
EPS NY rev (3m)-23.94%
Revenue NQ rev (1m)-0.71%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.59 | ||
| Fwd PE | 21.4 | ||
| P/S | 0.88 | ||
| P/FCF | 13.86 | ||
| P/OCF | 4.86 | ||
| P/B | 1.15 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 5.59 |
EPS(TTM)0.29
EY5.11%
EPS(NY)0.27
Fwd EY4.67%
FCF(TTM)0.41
FCFY7.21%
OCF(TTM)1.17
OCFY20.58%
SpS6.47
BVpS4.95
TBVpS4.04
PEG (NY)N/A
PEG (5Y)N/A
Graham Number5.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 4.85% | ||
| ROCE | 4.65% | ||
| ROIC | 3.66% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 5.2% | ||
| OM | 3.98% | ||
| PM (TTM) | 3.71% | ||
| GM | 25.75% | ||
| FCFM | 6.34% |
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 Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0.15 | ||
| Cap/Depr | 112.99% | ||
| Cap/Sales | 11.74% | ||
| Interest Coverage | 59.13 | ||
| Cash Conversion | 125.76% | ||
| Profit Quality | 170.98% | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 4.47 |
F-Score4
WACC8.76%
ROIC/WACC0.42
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)-12.52%
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-65.12%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year131.04%
EBIT Next 3Y38.37%
EBIT Next 5Y24.57%
FCF growth 1Y-36.58%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.26%
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 6 / 10 to RES.
What is the valuation status of RPC INC (RES) stock?
ChartMill assigns a valuation rating of 4 / 10 to RPC INC (RES). This can be considered as Fairly Valued.
Can you provide the profitability details for RPC INC?
RPC INC (RES) has a profitability rating of 6 / 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 19.59 and the Price/Book (PB) ratio is 1.15.
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.