RGC RESOURCES INC (RGCO)
US74955L1035 - Common Stock
We assign a fundamental rating of 4 out of 10 to RGCO. RGCO was compared to 14 industry peers in the Gas Utilities industry. While RGCO is still in line with the averages on profitability rating, there are concerns on its financial health. RGCO does not seem to be growing, but still is valued expensively. Finally RGCO also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RGCO was profitable.
RGCO had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: RGCO reported negative net income in multiple years.
Of the past 5 years RGCO 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.02%, RGCO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
RGCO's Return On Equity of 11.61% is fine compared to the rest of the industry. RGCO outperforms 71.43% of its industry peers.
RGCO's Return On Invested Capital of 4.50% is on the low side compared to the rest of the industry. RGCO is outperformed by 64.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RGCO is in line with the industry average of 6.27%.
The last Return On Invested Capital (4.50%) for RGCO is above the 3 year average (4.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 11.61% | ||
| ROIC | 4.5% |
ROA(3y)-1.31%
ROA(5y)0.64%
ROE(3y)-4.23%
ROE(5y)1.94%
ROIC(3y)4.38%
ROIC(5y)4.09%
1.3 Margins
RGCO has a better Profit Margin (15.03%) than 85.71% of its industry peers.
RGCO's Profit Margin has been stable in the last couple of years.
RGCO has a better Operating Margin (20.93%) than 64.29% of its industry peers.
RGCO's Operating Margin has been stable in the last couple of years.
RGCO's Gross Margin of 57.84% is on the low side compared to the rest of the industry. RGCO is outperformed by 71.43% of its industry peers.
RGCO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.93% | ||
| PM (TTM) | 15.03% | ||
| GM | 57.84% |
OM growth 3Y-2.83%
OM growth 5Y0.69%
PM growth 3Y-11.61%
PM growth 5Y0.81%
GM growth 3Y-8.69%
GM growth 5Y-1.28%
2. Health
2.1 Basic Checks
RGCO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RGCO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
RGCO has an Altman-Z score of 1.10. This is a bad value and indicates that RGCO is not financially healthy and even has some risk of bankruptcy.
RGCO has a Altman-Z score (1.10) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.32 is on the high side and indicates that RGCO has dependencies on debt financing.
The Debt to Equity ratio of RGCO (1.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC0.68
WACC6.64%
2.3 Liquidity
A Current Ratio of 1.07 indicates that RGCO should not have too much problems paying its short term obligations.
RGCO's Current ratio of 1.07 is amongst the best of the industry. RGCO outperforms 92.86% of its industry peers.
RGCO has a Quick Ratio of 1.07. This is a bad value and indicates that RGCO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.69, RGCO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
RGCO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.75%.
Measured over the past 5 years, RGCO shows a small growth in Earnings Per Share. The EPS has been growing by 1.44% on average per year.
EPS 1Y (TTM)1.75%
EPS 3Y-1.93%
EPS 5Y1.44%
EPS Q2Q%-90%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.11%
3.2 Future
RGCO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.50% yearly.
RGCO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.16% yearly.
EPS Next Y8.16%
EPS Next 2Y6.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.71%
Revenue Next 2Y5.16%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.32 indicates a rather expensive valuation of RGCO.
RGCO's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.54. RGCO is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.01, RGCO is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGCO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.99. RGCO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
RGCO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RGCO is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RGCO does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.12
PEG (5Y)12.03
EPS Next 2Y6.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
RGCO has a Yearly Dividend Yield of 4.22%, which is a nice return.
Compared to an average industry Dividend Yield of 4.25, RGCO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, RGCO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
5.2 History
The dividend of RGCO has a limited annual growth rate of 5.22%.
RGCO has paid a dividend for at least 10 years, which is a reliable track record.
RGCO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.22%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
63.56% of the earnings are spent on dividend by RGCO. This is not a sustainable payout ratio.
The dividend of RGCO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP63.56%
EPS Next 2Y6.5%
EPS Next 3YN/A
RGC RESOURCES INC
NASDAQ:RGCO (12/24/2024, 7:34:56 PM)
20.09
+0.25 (+1.29%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryGas Utilities
Earnings (Last)
Earnings (Next)
Inst Owners37.36%
Inst Owner Change4.7%
Ins Owners19.26%
Ins Owner Change0.81%
Market Cap206.12M
Analysts85.71
Price Target27.54 (37.08%)
Short Float %0.54%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Dividend Growth(5Y)5.22%
DP63.56%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.48%
Min EPS beat(2)-71.99%
Max EPS beat(2)-4.98%
EPS beat(4)2
Avg EPS beat(4)134.73%
Min EPS beat(4)-71.99%
Max EPS beat(4)590.2%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-2.3%
Min Revenue beat(2)-5.85%
Max Revenue beat(2)1.25%
Revenue beat(4)1
Avg Revenue beat(4)-11.47%
Min Revenue beat(4)-22.77%
Max Revenue beat(4)1.25%
Revenue beat(8)4
Avg Revenue beat(8)-0.47%
Revenue beat(12)7
Avg Revenue beat(12)3.76%
Revenue beat(16)9
Avg Revenue beat(16)4.89%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 16.01 | ||
| P/S | 2.45 | ||
| P/FCF | N/A | ||
| P/OCF | 11.97 | ||
| P/B | 1.9 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 11.97 |
EPS(TTM)1.16
EY5.77%
EPS(NY)1.25
Fwd EY6.24%
FCF(TTM)-0.51
FCFYN/A
OCF(TTM)1.68
OCFY8.36%
SpS8.19
BVpS10.6
TBVpS10.6
PEG (NY)2.12
PEG (5Y)12.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.02% | ||
| ROE | 11.61% | ||
| ROCE | 6.05% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.54% | ||
| ROICexgc | 4.54% | ||
| OM | 20.93% | ||
| PM (TTM) | 15.03% | ||
| GM | 57.84% | ||
| FCFM | N/A |
ROA(3y)-1.31%
ROA(5y)0.64%
ROE(3y)-4.23%
ROE(5y)1.94%
ROIC(3y)4.38%
ROIC(5y)4.09%
ROICexc(3y)4.42%
ROICexc(5y)4.13%
ROICexgc(3y)4.42%
ROICexgc(5y)4.13%
ROCE(3y)5.77%
ROCE(5y)5.38%
ROICexcg growth 3Y11.06%
ROICexcg growth 5Y1.89%
ROICexc growth 3Y11.06%
ROICexc growth 5Y1.89%
OM growth 3Y-2.83%
OM growth 5Y0.69%
PM growth 3Y-11.61%
PM growth 5Y0.81%
GM growth 3Y-8.69%
GM growth 5Y-1.28%
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.06 | ||
| Cap/Depr | 207.53% | ||
| Cap/Sales | 26.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.6% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.1 |
F-Score6
WACC6.64%
ROIC/WACC0.68
Cap/Depr(3y)253.68%
Cap/Depr(5y)266.17%
Cap/Sales(3y)27.59%
Cap/Sales(5y)30.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1.75%
EPS 3Y-1.93%
EPS 5Y1.44%
EPS Q2Q%-90%
EPS Next Y8.16%
EPS Next 2Y6.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.11%
Revenue Next Year4.71%
Revenue Next 2Y5.16%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1.15%
EBIT growth 3Y12.29%
EBIT growth 5Y9.01%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y3.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.63%
OCF growth 3Y22.9%
OCF growth 5Y12.01%