RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
34.45 USD
-1.28 (-3.58%)
34.86 USD
+0.41 (+1.19%)
RRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 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 valued quite cheap, while showing a decent growth score. This is a good combination! This makes RRC very considerable for value investing!
1. Profitability
1.1 Basic Checks
RRC had positive earnings in the past year.
In the past year RRC had a positive cash flow from operations.
RRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC has a better Return On Assets (7.95%) than 82.21% of its industry peers.
RRC's Return On Equity of 13.62% is fine compared to the rest of the industry. RRC outperforms 75.00% of its industry peers.
The Return On Invested Capital of RRC (9.41%) is better than 80.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is below the industry average of 21.00%.
The 3 year average ROIC (17.56%) for RRC is well above the current ROIC(9.41%). The reason for the recent decline needs to be investigated.
| 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
RRC has a better Profit Margin (19.82%) than 74.52% of its industry peers.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
RRC has a Operating Margin of 27.17%. This is in the better half of the industry: RRC outperforms 66.83% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
With an excellent Gross Margin value of 90.24%, RRC belongs to the best of the industry, outperforming 95.67% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RRC is creating value.
RRC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RRC has less shares outstanding
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
RRC has an Altman-Z score of 2.15. 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.
RRC has a better Altman-Z score (2.15) than 71.15% of its industry peers.
RRC has a debt to FCF ratio of 2.46. This is a good value and a sign of high solvency as RRC would need 2.46 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.46, RRC is doing good in the industry, outperforming 79.81% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, RRC is doing good in the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.11
WACC8.46%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a Current ratio of 0.56. This is amonst the worse of the industry: RRC underperforms 81.73% of its industry peers.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
The Quick ratio of RRC (0.56) is worse than 77.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.99% over the past year.
The Earnings Per Share has been growing by 42.73% on average over the past years. This is a very strong growth
Looking at the last year, RRC shows a decrease in Revenue. The Revenue has decreased by -1.44% in the last year.
The Revenue has been decreasing by -1.92% on average over the past years.
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.
The Revenue is expected to grow by 13.50% on average over the next years. This is quite good.
EPS Next Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
EPS Next 5Y11.94%
Revenue Next Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.00, which indicates a correct valuation of RRC.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than the industry average as 66.35% of the companies are valued more expensively.
RRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.43.
The Price/Forward Earnings ratio is 8.92, which indicates a very decent valuation of RRC.
RRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 79.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.66, RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 8.92 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA ratio is in line with the industry average.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.5 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RRC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 24.36% in the coming years.
PEG (NY)0.47
PEG (5Y)0.28
EPS Next 2Y29.3%
EPS Next 3Y24.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.99%, RRC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.83, RRC is paying slightly less dividend.
With a Dividend Yield of 0.99, RRC pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
RRC has been paying a dividend for at least 10 years, so it has 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
RRC pays out 14.64% of its income as dividend. This is a 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 2Y29.3%
EPS Next 3Y24.36%
34.45
-1.28 (-3.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.01%
Inst Owner Change12.12%
Ins Owners0.9%
Ins Owner Change0%
Market Cap8.16B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.81 (24.27%)
Short Float %6.97%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
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)-0.66%
PT rev (3m)-1.27%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-23.84%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 8.92 | ||
| P/S | 2.83 | ||
| P/FCF | 16.5 | ||
| P/OCF | 7.21 | ||
| P/B | 1.94 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 8.14 |
EPS(TTM)2.87
EY8.33%
EPS(NY)3.86
Fwd EY11.21%
FCF(TTM)2.09
FCFY6.06%
OCF(TTM)4.78
OCFY13.86%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.47
PEG (5Y)0.28
Graham Number33.85
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 | 2.15 |
F-Score7
WACC8.46%
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 Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
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 Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year166.43%
EBIT Next 3Y51.87%
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 7 / 10 to RANGE RESOURCES CORP (RRC). This can be considered as Undervalued.
Can you provide the profitability details for RANGE RESOURCES CORP?
RANGE RESOURCES CORP (RRC) has a profitability rating of 8 / 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 25.46% 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%.