RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
38.46 USD
+0.66 (+1.75%)
38.46 USD
0 (0%)
Taking everything into account, RRC scores 6 out of 10 in our fundamental rating. RRC was compared to 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.
Of the past 5 years RRC 4 years were profitable.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.95%, RRC belongs to the top of the industry, outperforming 80.48% of the companies in the same industry.
The Return On Equity of RRC (13.62%) is better than 73.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.41%, RRC is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is below the industry average of 21.41%.
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
Looking at the Profit Margin, with a value of 19.82%, RRC is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 27.17%, RRC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC has a better Gross Margin (90.24%) than 96.19% 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.
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.
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.35 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRC has a better Altman-Z score (2.35) than 72.86% 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.
The Debt to FCF ratio of RRC (2.46) is better than 80.48% of its industry peers.
RRC has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, RRC is doing good in the industry, outperforming 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.35 |
ROIC/WACC1.12
WACC8.38%
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 82.86% of its industry peers.
RRC has a Quick 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.
Looking at the Quick ratio, with a value of 0.56, RRC is doing worse than 79.52% of the companies in the same industry.
| 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.
RRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.73% yearly.
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
The Earnings Per Share is expected to grow by 11.94% on average over the next years. This is quite good.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.62% on average per year.
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.
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
Based on the Price/Earnings ratio of 13.40, the valuation of RRC can be described as correct.
RRC's Price/Earnings is on the same level as the industry average.
RRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.15.
With a Price/Forward Earnings ratio of 9.85, the valuation of RRC can be described as very reasonable.
RRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 75.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RRC to the average of the S&P500 Index (36.12), we can say RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 9.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRC is on the same level as its industry peers.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.52 | ||
| EV/EBITDA | 9 |
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 24.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)0.31
EPS Next 2Y30.02%
EPS Next 3Y24.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, RRC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.88, RRC is paying slightly less dividend.
With a Dividend Yield of 0.94, RRC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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.
RRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.64%
EPS Next 2Y30.02%
EPS Next 3Y24.55%
38.46
+0.66 (+1.75%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners99.07%
Inst Owner Change12.13%
Ins Owners0.9%
Ins Owner Change0.64%
Market Cap9.16B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts71.33
Price Target42.73 (11.1%)
Short Float %5.75%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
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)-0.58%
PT rev (3m)-1.85%
EPS NQ rev (1m)-13.35%
EPS NQ rev (3m)-25.9%
EPS NY rev (1m)-5.21%
EPS NY rev (3m)-11.56%
Revenue NQ rev (1m)-5.57%
Revenue NQ rev (3m)-8.29%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 9.85 | ||
| P/S | 3.17 | ||
| P/FCF | 18.52 | ||
| P/OCF | 8.09 | ||
| P/B | 2.18 | ||
| P/tB | 2.18 | ||
| EV/EBITDA | 9 |
EPS(TTM)2.87
EY7.46%
EPS(NY)3.91
Fwd EY10.15%
FCF(TTM)2.08
FCFY5.4%
OCF(TTM)4.75
OCFY12.35%
SpS12.12
BVpS17.65
TBVpS17.65
PEG (NY)0.5
PEG (5Y)0.31
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 | 2.35 |
F-Score7
WACC8.38%
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 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%.