RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
35.32 USD
+0.07 (+0.2%)
35.33 USD
+0.01 (+0.03%)
Overall RRC gets a fundamental rating of 6 out of 10. We evaluated RRC against 209 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an excellent profitability rating, but there are some minor concerns on its financial health. RRC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes RRC very considerable for value investing!
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
The Return On Assets of RRC (7.95%) is better than 81.43% of its industry peers.
RRC has a better Return On Equity (13.62%) than 75.71% of its industry peers.
RRC has a Return On Invested Capital of 9.41%. This is amongst the best in the industry. RRC outperforms 80.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRC is below the industry average of 21.18%.
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 74.76% of its industry peers.
RRC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.17%, RRC is in the better half of the industry, outperforming 67.14% of the companies in the same industry.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC's Gross Margin of 90.24% is amongst the best of the industry. RRC outperforms 95.71% 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
RRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
RRC has about the same amout of shares outstanding than it did 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
An Altman-Z score of 2.19 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of RRC (2.19) is better than 70.48% 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.
RRC has a Debt to FCF ratio of 2.46. This is in the better half of the industry: RRC outperforms 80.00% 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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.19 |
ROIC/WACC1.12
WACC8.41%
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 80.48% 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 76.67% 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.
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.
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.92% yearly.
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
The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.43% on average over the next years. This is quite good.
EPS Next Y25.86%
EPS Next 2Y29.85%
EPS Next 3Y24.31%
EPS Next 5Y11.94%
Revenue Next Year19.92%
Revenue Next 2Y15.96%
Revenue Next 3Y13.43%
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
A Price/Earnings ratio of 12.31 indicates a correct valuation of RRC.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than 65.71% of the companies in the same industry.
RRC is valuated cheaply when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.07, the valuation of RRC can be described as reasonable.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 79.52% of the companies in the same industry.
RRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 9.07 |
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 | 16.92 | ||
| EV/EBITDA | 8.32 |
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 excellent profitability rating of RRC may justify a higher PE ratio.
RRC's earnings are expected to grow with 24.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.29
EPS Next 2Y29.85%
EPS Next 3Y24.31%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.02%.
Compared to an average industry Dividend Yield of 3.93, RRC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.00, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
The dividend of RRC decreased 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 2Y29.85%
EPS Next 3Y24.31%
35.32
+0.07 (+0.2%)
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 Cap8.37B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.89 (21.43%)
Short Float %6.97%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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)-7.27%
Revenue beat(16)6
Avg Revenue beat(16)11.2%
PT rev (1m)0.38%
PT rev (3m)-1.08%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-23.19%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-11.03%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.31 | ||
| Fwd PE | 9.07 | ||
| P/S | 2.9 | ||
| P/FCF | 16.92 | ||
| P/OCF | 7.39 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)2.87
EY8.13%
EPS(NY)3.89
Fwd EY11.03%
FCF(TTM)2.09
FCFY5.91%
OCF(TTM)4.78
OCFY13.52%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.48
PEG (5Y)0.29
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 | 2.19 |
F-Score7
WACC8.41%
ROIC/WACC1.12
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 Y25.86%
EPS Next 2Y29.85%
EPS Next 3Y24.31%
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 2Y15.96%
Revenue Next 3Y13.43%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year166.62%
EBIT Next 3Y51.84%
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 25.86% in the next year.
Can you provide the dividend sustainability for RRC stock?
The dividend rating of RANGE RESOURCES CORP (RRC) is 4 / 10 and the dividend payout ratio is 14.64%.