RPC INC (RES) Stock Fundamental Analysis
USA - NYSE:RES - US7496601060 - Common Stock
4.6 USD
+0.12 (+2.68%)
4.6 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RES. RES was compared to 61 industry peers in the Energy Equipment & Services industry. RES is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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's Return On Assets of 3.61% is in line compared to the rest of the industry. RES outperforms 54.10% of its industry peers.
With a Return On Equity value of 4.85%, RES perfoms like the industry average, outperforming 40.98% of the companies in the same industry.
The Return On Invested Capital of RES (3.66%) is worse than 70.49% 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 8.01%.
The last Return On Invested Capital (3.66%) 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 | 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
RES's Profit Margin of 3.71% is on the low side compared to the rest of the industry. RES is outperformed by 62.30% of its industry peers.
In the last couple of years the Profit Margin of RES has grown nicely.
With a Operating Margin value of 3.98%, RES is not doing good in the industry: 73.77% of the companies in the same industry are doing better.
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
RES has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for RES is higher compared to a year ago.
2.2 Solvency
RES has an Altman-Z score of 4.08. This indicates that RES is financially healthy and has little risk of bankruptcy at the moment.
RES has a Altman-Z score of 4.08. This is amongst the best in the industry. RES outperforms 90.16% of its industry peers.
RES has a debt to FCF ratio of 0.61. This is a very positive value and a sign of high solvency as it would only need 0.61 years to pay back of all of its debts.
The Debt to FCF ratio of RES (0.61) is better than 85.25% 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.
With an excellent Debt to Equity ratio value of 0.03, RES belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.42
WACC8.68%
2.3 Liquidity
A Current Ratio of 2.64 indicates that RES has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.64, RES belongs to the top of the industry, outperforming 80.33% 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.
The Quick ratio of RES (2.16) is better than 81.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The earnings per share for RES have decreased strongly by -47.27% in the last year.
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 -22.66% in the past year. This is quite bad
RES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.97% yearly.
EPS 1Y (TTM)-47.27%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-46.67%
Revenue 1Y (TTM)-22.66%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%15.56%
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-36.5%
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
EPS Next 5Y-12.46%
Revenue Next Year10.73%
Revenue Next 2Y8.27%
Revenue Next 3Y5.78%
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
The Price/Earnings ratio is 15.86, which indicates a correct valuation of RES.
Based on the Price/Earnings ratio, RES is valued a bit cheaper than the industry average as 60.66% of the companies are valued more expensively.
RES is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
RES is valuated correctly with a Price/Forward Earnings ratio of 16.18.
RES's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, RES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 16.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RES is valued cheaper than 81.97% of the companies in the same industry.
67.21% of the companies in the same industry are more expensive than RES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.23 | ||
| EV/EBITDA | 4.43 |
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 -6.92% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, RES has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.34, RES pays a better dividend. On top of this RES pays more dividend than 86.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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.
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 65.65% of its income as dividend. 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-18.69%
EPS Next 3Y-6.92%
4.6
+0.12 (+2.68%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners42.51%
Inst Owner Change0.36%
Ins Owners4.51%
Ins Owner Change0.06%
Market Cap1.01B
Analysts70
Price Target5.94 (29.13%)
Short Float %18.71%
Short Ratio9.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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)-2.78%
PT rev (3m)-6.8%
EPS NQ rev (1m)-16.64%
EPS NQ rev (3m)-26.03%
EPS NY rev (1m)-17.53%
EPS NY rev (3m)-19.24%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-6.06%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-5.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.86 | ||
| Fwd PE | 16.18 | ||
| P/S | 0.71 | ||
| P/FCF | 11.23 | ||
| P/OCF | 3.94 | ||
| P/B | 0.93 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)0.29
EY6.3%
EPS(NY)0.28
Fwd EY6.18%
FCF(TTM)0.41
FCFY8.91%
OCF(TTM)1.17
OCFY25.41%
SpS6.47
BVpS4.95
TBVpS4.04
PEG (NY)N/A
PEG (5Y)N/A
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
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-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 | 4.08 |
F-Score4
WACC8.68%
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)-47.27%
EPS 3Y142.91%
EPS 5YN/A
EPS Q2Q%-46.67%
EPS Next Y-36.5%
EPS Next 2Y-18.69%
EPS Next 3Y-6.92%
EPS Next 5Y-12.46%
Revenue 1Y (TTM)-22.66%
Revenue growth 3Y17.83%
Revenue growth 5Y2.97%
Sales Q2Q%15.56%
Revenue Next Year10.73%
Revenue Next 2Y8.27%
Revenue Next 3Y5.78%
Revenue Next 5Y3.48%
EBIT growth 1Y-65.12%
EBIT growth 3Y154.67%
EBIT growth 5YN/A
EBIT Next Year127.35%
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%