RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
Overall RRC gets a fundamental rating of 5 out of 10. We evaluated RRC against 212 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has only an average score on both its financial health and profitability. 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.
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
RRC has a Return On Assets (4.85%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 9.06%, RRC is in line with its industry, outperforming 51.42% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.06%, RRC is in line with its industry, outperforming 48.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RRC is significantly below the industry average of 27.43%.
The last Return On Invested Capital (6.06%) 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 | 4.85% | ||
| ROE | 9.06% | ||
| ROIC | 6.06% |
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's Profit Margin of 12.05% is in line compared to the rest of the industry. RRC outperforms 58.49% of its industry peers.
RRC's Profit Margin has been stable in the last couple of years.
RRC has a Operating Margin (15.70%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC has a better Gross Margin (90.21%) than 95.75% of its industry peers.
In the last couple of years the Gross Margin of RRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 12.05% | ||
| GM | 90.21% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RRC has about the same amount of shares outstanding.
The number of shares outstanding for RRC has been reduced compared to 5 years ago.
RRC has a better debt/assets ratio than last year.
2.2 Solvency
RRC has an Altman-Z score of 1.68. This is a bad value and indicates that RRC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.68, RRC is in the better half of the industry, outperforming 60.85% of the companies in the same industry.
RRC has a debt to FCF ratio of 5.37. This is a neutral value as RRC would need 5.37 years to pay back of all of its debts.
RRC has a Debt to FCF ratio of 5.37. This is in the better half of the industry: RRC outperforms 63.21% 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 63.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.37 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.58
WACC10.38%
2.3 Liquidity
A Current Ratio of 0.57 indicates that RRC may have some problems paying its short term obligations.
RRC has a worse Current ratio (0.57) than 82.08% of its industry peers.
A Quick Ratio of 0.57 indicates that RRC may have some problems paying its short term obligations.
RRC has a worse Quick ratio (0.57) than 78.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
RRC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.94%.
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 very negative growth in Revenue. The Revenue has decreased by -12.24% in the last year.
The Revenue has been decreasing by -1.92% on average over the past years.
EPS 1Y (TTM)-2.94%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%7.94%
Revenue 1Y (TTM)-12.24%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%12.79%
3.2 Future
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.72% on average over the next years. This is quite good.
EPS Next Y52.96%
EPS Next 2Y33.61%
EPS Next 3Y23.78%
EPS Next 5Y8.57%
Revenue Next Year28.23%
Revenue Next 2Y17.65%
Revenue Next 3Y13.72%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.12 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 27.63, RRC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 9.23, the valuation of RRC can be described as reasonable.
RRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 67.45% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RRC to the average of the S&P500 Index (20.85), we can say RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRC indicates a slightly more expensive valuation: RRC is more expensive than 61.32% of the companies listed in the same industry.
RRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.79 | ||
| EV/EBITDA | 11.67 |
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 a very decent profitability rating, which may justify a higher PE ratio.
RRC's earnings are expected to grow with 23.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.33
EPS Next 2Y33.61%
EPS Next 3Y23.78%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.41, RRC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.51, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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.
The dividend of RRC decreased recently.
Dividend Growth(5Y)31.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RRC pays out 21.72% of its income as dividend. This is a sustainable payout ratio.
RRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.72%
EPS Next 2Y33.61%
EPS Next 3Y23.78%
32.62
-1.56 (-4.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.83%
Inst Owner Change0.05%
Ins Owners1.01%
Ins Owner Change0.85%
Market Cap7.83B
Analysts70.32
Price Target42.94 (31.64%)
Short Float %5.58%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP21.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.63%
Min EPS beat(2)11.44%
Max EPS beat(2)23.82%
EPS beat(4)4
Avg EPS beat(4)16.29%
Min EPS beat(4)10.88%
Max EPS beat(4)23.82%
EPS beat(8)8
Avg EPS beat(8)20.83%
EPS beat(12)10
Avg EPS beat(12)14.45%
EPS beat(16)12
Avg EPS beat(16)12.44%
Revenue beat(2)0
Avg Revenue beat(2)-7.83%
Min Revenue beat(2)-14.31%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-12.7%
Min Revenue beat(4)-20.29%
Max Revenue beat(4)-1.35%
Revenue beat(8)1
Avg Revenue beat(8)-10.97%
Revenue beat(12)5
Avg Revenue beat(12)14.56%
Revenue beat(16)9
Avg Revenue beat(16)16.92%
PT rev (1m)2.53%
PT rev (3m)16.39%
EPS NQ rev (1m)2.28%
EPS NQ rev (3m)12.85%
EPS NY rev (1m)7.01%
EPS NY rev (3m)19.15%
Revenue NQ rev (1m)2.07%
Revenue NQ rev (3m)6.28%
Revenue NY rev (1m)4.95%
Revenue NY rev (3m)11.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 9.23 | ||
| P/S | 2.65 | ||
| P/FCF | 24.79 | ||
| P/OCF | 8.29 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 11.67 |
EPS(TTM)2.31
EY7.08%
EPS(NY)3.53
Fwd EY10.83%
FCF(TTM)1.32
FCFY4.03%
OCF(TTM)3.93
OCFY12.06%
SpS12.32
BVpS16.39
TBVpS16.39
PEG (NY)0.27
PEG (5Y)0.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 9.06% | ||
| ROCE | 7.65% | ||
| ROIC | 6.06% | ||
| ROICexc | 6.38% | ||
| ROICexgc | 6.38% | ||
| OM | 15.7% | ||
| PM (TTM) | 12.05% | ||
| GM | 90.21% | ||
| FCFM | 10.68% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.37 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 175.41% | ||
| Cap/Sales | 21.24% | ||
| Interest Coverage | 4.09 | ||
| Cash Conversion | 114.76% | ||
| Profit Quality | 88.6% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 1.68 |
F-Score6
WACC10.38%
ROIC/WACC0.58
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)-2.94%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%7.94%
EPS Next Y52.96%
EPS Next 2Y33.61%
EPS Next 3Y23.78%
EPS Next 5Y8.57%
Revenue 1Y (TTM)-12.24%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%12.79%
Revenue Next Year28.23%
Revenue Next 2Y17.65%
Revenue Next 3Y13.72%
Revenue Next 5YN/A
EBIT growth 1Y-44.41%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year198.12%
EBIT Next 3Y51.1%
EBIT Next 5Y21.53%
FCF growth 1Y-14.83%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-3.41%
OCF growth 3Y6%
OCF growth 5Y6.74%