RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - NYSE:RRC - US75281A1097 - Common Stock
39.03 USD
+0.88 (+2.31%)
39.03 USD
0 (0%)
RRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While RRC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. RRC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RRC had positive earnings in the past year.
RRC had a positive operating cash flow in the past year.
RRC had positive earnings in 4 of the past 5 years.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.95%, RRC is doing good in the industry, outperforming 79.05% of the companies in the same industry.
RRC has a better Return On Equity (13.62%) than 72.86% of its industry peers.
RRC has a Return On Invested Capital of 9.41%. This is in the better half of the industry: RRC outperforms 79.52% of its industry peers.
RRC had an Average Return On Invested Capital over the past 3 years of 17.56%. This is below the industry average of 21.71%.
The last Return On Invested Capital (9.41%) for RRC is well below the 3 year average (17.56%), which needs to be investigated, but indicates that RRC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 13.62% | ||
| ROIC | 9.41% |
ROA(3y)10.97%
ROA(5y)5.47%
ROE(3y)23.21%
ROE(5y)9.08%
ROIC(3y)17.56%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 19.82%, RRC is doing good in the industry, outperforming 72.86% of the companies in the same industry.
RRC's Profit Margin has been stable in the last couple of years.
RRC has a Operating Margin of 27.17%. This is in the better half of the industry: RRC outperforms 66.67% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC's Gross Margin of 90.24% is amongst the best of the industry. RRC outperforms 95.24% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.17% | ||
| PM (TTM) | 19.82% | ||
| GM | 90.24% |
OM growth 3Y-25.42%
OM growth 5Y27.63%
PM growth 3Y0.09%
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y2.52%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRC is creating value.
RRC has about the same amout of shares outstanding than it did 1 year ago.
RRC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
RRC has an Altman-Z score of 2.37. This is not the best score and indicates that RRC is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of RRC (2.37) is better than 72.86% of its industry peers.
The Debt to FCF ratio of RRC is 2.46, which is a good value as it means it would take RRC, 2.46 years of fcf income to pay off all of its debts.
RRC's Debt to FCF ratio of 2.46 is amongst the best of the industry. RRC outperforms 80.48% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
RRC's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. RRC outperforms 60.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.11
WACC8.51%
2.3 Liquidity
RRC has a Current Ratio of 0.56. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.56, RRC is not doing good in the industry: 82.86% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a Quick ratio of 0.56. This is in the lower half of the industry: RRC underperforms 78.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
RRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.99%, which is quite impressive.
Measured over the past years, RRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.73% on average per year.
Looking at the last year, RRC shows a decrease in Revenue. The Revenue has decreased by -1.44% in the last year.
Measured over the past years, RRC shows a decrease in Revenue. The Revenue has been decreasing by -1.92% on average per year.
EPS 1Y (TTM)26.99%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%18.75%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%14.67%
3.2 Future
Based on estimates for the next years, RRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
RRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.62% yearly.
EPS Next Y26.68%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
EPS Next 5Y11.94%
Revenue Next Year19.92%
Revenue Next 2Y15.91%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 13.60, RRC is valued correctly.
60.48% of the companies in the same industry are more expensive than RRC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.51, RRC is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.99 indicates a reasonable valuation of RRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 77.14% of the companies listed in the same industry.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
RRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RRC has a very decent profitability rating, which may justify a higher PE ratio.
RRC's earnings are expected to grow with 24.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.51
PEG (5Y)0.32
EPS Next 2Y30.02%
EPS Next 3Y24.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RRC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.89, RRC is paying slightly less dividend.
With a Dividend Yield of 0.95, RRC pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
RRC has paid a dividend for at least 10 years, which is a reliable track record.
RRC has decreased its dividend in the last 3 years.
Dividend Growth(5Y)31.95%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
14.64% of the earnings are spent on dividend by RRC. This is a low number and sustainable payout ratio.
The dividend of RRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.64%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
39.03
+0.88 (+2.31%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.07%
Inst Owner Change12.12%
Ins Owners0.9%
Ins Owner Change0.99%
Market Cap9.30B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts71.33
Price Target43.09 (10.4%)
Short Float %5.75%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP14.64%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.09%
Min EPS beat(2)-5.63%
Max EPS beat(2)3.45%
EPS beat(4)3
Avg EPS beat(4)3.26%
Min EPS beat(4)-5.63%
Max EPS beat(4)11.44%
EPS beat(8)7
Avg EPS beat(8)12.1%
EPS beat(12)11
Avg EPS beat(12)14.65%
EPS beat(16)12
Avg EPS beat(16)10.77%
Revenue beat(2)0
Avg Revenue beat(2)-10.13%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-7.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.53%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-10.32%
Revenue beat(12)2
Avg Revenue beat(12)-7.38%
Revenue beat(16)6
Avg Revenue beat(16)11.12%
PT rev (1m)0.27%
PT rev (3m)-2.05%
EPS NQ rev (1m)-16.25%
EPS NQ rev (3m)-26.96%
EPS NY rev (1m)-10.45%
EPS NY rev (3m)-13.38%
Revenue NQ rev (1m)-6.23%
Revenue NQ rev (3m)-8.78%
Revenue NY rev (1m)-1.5%
Revenue NY rev (3m)-2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 9.99 | ||
| P/S | 3.22 | ||
| P/FCF | 18.8 | ||
| P/OCF | 8.21 | ||
| P/B | 2.21 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 9.12 |
EPS(TTM)2.87
EY7.35%
EPS(NY)3.91
Fwd EY10.01%
FCF(TTM)2.08
FCFY5.32%
OCF(TTM)4.75
OCFY12.17%
SpS12.12
BVpS17.65
TBVpS17.65
PEG (NY)0.51
PEG (5Y)0.32
Graham Number33.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 13.62% | ||
| ROCE | 11.88% | ||
| ROIC | 9.41% | ||
| ROICexc | 9.41% | ||
| ROICexgc | 9.41% | ||
| OM | 27.17% | ||
| PM (TTM) | 19.82% | ||
| GM | 90.24% | ||
| FCFM | 17.13% |
ROA(3y)10.97%
ROA(5y)5.47%
ROE(3y)23.21%
ROE(5y)9.08%
ROIC(3y)17.56%
ROIC(5y)N/A
ROICexc(3y)17.72%
ROICexc(5y)N/A
ROICexgc(3y)17.72%
ROICexgc(5y)N/A
ROCE(3y)22.18%
ROCE(5y)N/A
ROICexgc growth 3Y-36.92%
ROICexgc growth 5Y26.34%
ROICexc growth 3Y-36.92%
ROICexc growth 5Y26.34%
OM growth 3Y-25.42%
OM growth 5Y27.63%
PM growth 3Y0.09%
PM growth 5YN/A
GM growth 3Y1.21%
GM growth 5Y2.52%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 172.96% | ||
| Cap/Sales | 22.07% | ||
| Interest Coverage | 6.68 | ||
| Cash Conversion | 98.18% | ||
| Profit Quality | 86.42% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.37 |
F-Score7
WACC8.51%
ROIC/WACC1.11
Cap/Depr(3y)162.28%
Cap/Depr(5y)138.73%
Cap/Sales(3y)19.85%
Cap/Sales(5y)19.14%
Profit Quality(3y)93.91%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.99%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%18.75%
EPS Next Y26.68%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
EPS Next 5Y11.94%
Revenue 1Y (TTM)-1.44%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%14.67%
Revenue Next Year19.92%
Revenue Next 2Y15.91%
Revenue Next 3Y13.62%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year180.87%
EBIT Next 3Y50.97%
EBIT Next 5Y23.19%
FCF growth 1Y-38.47%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-17.06%
OCF growth 3Y6%
OCF growth 5Y6.74%
RANGE RESOURCES CORP / RRC FAQ
What is the ChartMill fundamental rating of RANGE RESOURCES CORP (RRC) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RRC.
What is the valuation status of RANGE RESOURCES CORP (RRC) stock?
ChartMill assigns a valuation rating of 6 / 10 to RANGE RESOURCES CORP (RRC). This can be considered as Fairly Valued.
Can you provide the profitability details for RANGE RESOURCES CORP?
RANGE RESOURCES CORP (RRC) has a profitability rating of 7 / 10.
What is the expected EPS growth for RANGE RESOURCES CORP (RRC) stock?
The Earnings per Share (EPS) of RANGE RESOURCES CORP (RRC) is expected to grow by 26.68% in the next year.
Can you provide the dividend sustainability for RRC stock?
The dividend rating of RANGE RESOURCES CORP (RRC) is 3 / 10 and the dividend payout ratio is 14.64%.