RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RRC. RRC was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an average financial health and profitability rating. RRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RRC was profitable.
In the past year RRC had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 4.90%, RRC is in line with its industry, outperforming 59.72% of the companies in the same industry.
With a Return On Equity value of 9.18%, RRC perfoms like the industry average, outperforming 55.92% of the companies in the same industry.
RRC has a Return On Invested Capital of 8.69%. This is in the better half of the industry: RRC outperforms 70.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is significantly below the industry average of 23.79%.
The last Return On Invested Capital (8.69%) 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 | 4.9% | ||
| ROE | 9.18% | ||
| ROIC | 8.69% |
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
The Profit Margin of RRC (11.27%) is better than 60.19% of its industry peers.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
With a Operating Margin value of 20.85%, RRC perfoms like the industry average, outperforming 52.61% of the companies in the same industry.
In the last couple of years the Operating Margin of RRC has grown nicely.
The Gross Margin of RRC (90.05%) is better than 96.21% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.85% | ||
| PM (TTM) | 11.27% | ||
| GM | 90.05% |
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
RRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for RRC remains at a similar level compared to 1 year ago.
The number of shares outstanding for RRC has been reduced compared to 5 years ago.
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
RRC has an Altman-Z score of 1.94. 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 (1.94) than 64.93% of its industry peers.
The Debt to FCF ratio of RRC is 5.45, which is a neutral value as it means it would take RRC, 5.45 years of fcf income to pay off all of its debts.
RRC has a Debt to FCF ratio of 5.45. This is in the better half of the industry: RRC outperforms 62.09% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that RRC is not too dependend on debt financing.
The Debt to Equity ratio of RRC (0.28) is better than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Altman-Z | 1.94 |
ROIC/WACC0.94
WACC9.23%
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.
RRC has a Current ratio of 0.56. This is amonst the worse of the industry: RRC underperforms 82.94% of its industry peers.
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 77.25% 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 24.04% over the past year.
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.
RRC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.83%.
The Revenue has been decreasing by -1.92% on average over the past years.
EPS 1Y (TTM)24.04%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%39.13%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.67%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.57% on average over the next years. This is quite good.
EPS Next Y45.06%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
EPS Next 5Y8.25%
Revenue Next Year22.27%
Revenue Next 2Y17.38%
Revenue Next 3Y12.57%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 14.83 indicates a correct valuation of RRC.
The rest of the industry has a similar Price/Earnings ratio as RRC.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RRC is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.15 indicates a reasonable valuation of RRC.
71.09% of the companies in the same industry are more expensive than RRC, based on the Price/Forward Earnings ratio.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 9.15 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRC.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.36 | ||
| EV/EBITDA | 10.04 |
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.
The decent profitability rating of RRC may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 21.68% in the coming years.
PEG (NY)0.33
PEG (5Y)0.35
EPS Next 2Y34.53%
EPS Next 3Y21.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 6.51.
With a Dividend Yield of 0.93, RRC pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 31.95%!
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
RRC pays out 22.02% 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.
DP22.02%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
38.26
+0.6 (+1.59%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.44%
Inst Owner Change0%
Ins Owners0.89%
Ins Owner Change1.41%
Market Cap9.14B
Analysts71.33
Price Target42.14 (10.14%)
Short Float %6.39%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP22.02%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)3.78%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.48%
Min EPS beat(4)3.78%
Max EPS beat(4)23.82%
EPS beat(8)8
Avg EPS beat(8)18.79%
EPS beat(12)10
Avg EPS beat(12)14.53%
EPS beat(16)12
Avg EPS beat(16)10.7%
Revenue beat(2)0
Avg Revenue beat(2)-0.93%
Min Revenue beat(2)-1.35%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-9.11%
Min Revenue beat(4)-20.29%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-11.67%
Revenue beat(12)4
Avg Revenue beat(12)12.46%
Revenue beat(16)8
Avg Revenue beat(16)15.46%
PT rev (1m)2.21%
PT rev (3m)-1.87%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)1.27%
EPS NY rev (3m)-2.65%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)-3.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 9.15 | ||
| P/S | 2.85 | ||
| P/FCF | 29.36 | ||
| P/OCF | 9.7 | ||
| P/B | 2.32 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 10.04 |
EPS(TTM)2.58
EY6.74%
EPS(NY)4.18
Fwd EY10.93%
FCF(TTM)1.3
FCFY3.41%
OCF(TTM)3.94
OCFY10.31%
SpS13.43
BVpS16.48
TBVpS16.48
PEG (NY)0.33
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 9.18% | ||
| ROCE | 10.97% | ||
| ROIC | 8.69% | ||
| ROICexc | 9.21% | ||
| ROICexgc | 9.21% | ||
| OM | 20.85% | ||
| PM (TTM) | 11.27% | ||
| GM | 90.05% | ||
| FCFM | 9.7% |
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
ROICexcg growth 3Y-36.92%
ROICexcg 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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.45 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 174.5% | ||
| Cap/Sales | 19.67% | ||
| Interest Coverage | 5.85 | ||
| Cash Conversion | 91.43% | ||
| Profit Quality | 86.06% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 1.94 |
F-Score7
WACC9.23%
ROIC/WACC0.94
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)24.04%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%39.13%
EPS Next Y45.06%
EPS Next 2Y34.53%
EPS Next 3Y21.68%
EPS Next 5Y8.25%
Revenue 1Y (TTM)1.83%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.67%
Revenue Next Year22.27%
Revenue Next 2Y17.38%
Revenue Next 3Y12.57%
Revenue Next 5YN/A
EBIT growth 1Y2.12%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year188.18%
EBIT Next 3Y48.54%
EBIT Next 5Y20.62%
FCF growth 1Y-77.91%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-51.24%
OCF growth 3Y6%
OCF growth 5Y6.74%