RANGE RESOURCES CORP (RRC)
US75281A1097 - Common Stock
Overall RRC gets a fundamental rating of 4 out of 10. We evaluated RRC against 204 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has a medium profitability rating, but doesn't score so well on its financial health evaluation. RRC is valued correctly, but it does not seem to be growing.
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.
In multiple years RRC reported negative net income over the last 5 years.
RRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.84%, RRC is in the better half of the industry, outperforming 66.50% of the companies in the same industry.
RRC's Return On Equity of 14.69% is in line compared to the rest of the industry. RRC outperforms 59.11% of its industry peers.
With a Return On Invested Capital value of 6.29%, RRC perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is in line with the industry average of 22.54%.
The last Return On Invested Capital (6.29%) for RRC is well below the 3 year average (22.91%), which needs to be investigated, but indicates that RRC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 14.69% | ||
| ROIC | 6.29% |
ROA(3y)11.78%
ROA(5y)-0.44%
ROE(3y)27.37%
ROE(5y)-6.9%
ROIC(3y)22.91%
ROIC(5y)N/A
1.3 Margins
RRC has a better Profit Margin (19.39%) than 63.55% of its industry peers.
RRC has a Operating Margin (15.87%) which is comparable to the rest of the industry.
RRC's Operating Margin has been stable in the last couple of years.
RRC has a Gross Margin of 90.11%. This is amongst the best in the industry. RRC outperforms 94.58% of its industry peers.
RRC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.87% | ||
| PM (TTM) | 19.39% | ||
| GM | 90.11% |
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%
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.
The number of shares outstanding for RRC has been increased compared to 1 year ago.
RRC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
RRC has an Altman-Z score of 1.75. This is a bad value and indicates that RRC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.75, RRC perfoms like the industry average, outperforming 51.23% of the companies in the same industry.
The Debt to FCF ratio of RRC is 5.40, which is a neutral value as it means it would take RRC, 5.40 years of fcf income to pay off all of its debts.
RRC has a Debt to FCF ratio (5.40) which is comparable to the rest of the industry.
RRC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RRC (0.28) is better than 61.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.75
WACC8.42%
2.3 Liquidity
RRC has a Current Ratio of 0.54. This is a bad value and indicates that RRC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RRC (0.54) is worse than 87.19% of its industry peers.
RRC has a Quick Ratio of 0.54. 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 worse Quick ratio (0.54) than 83.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
RRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.90%.
Measured over the past years, RRC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.06% on average per year.
Looking at the last year, RRC shows a very negative growth in Revenue. The Revenue has decreased by -24.97% in the last year.
The Revenue has been decreasing by -5.20% on average over the past years.
EPS 1Y (TTM)-25.9%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%4.35%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%1.25%
3.2 Future
The Earnings Per Share is expected to grow by 5.64% on average over the next years.
Based on estimates for the next years, RRC will show a small growth in Revenue. The Revenue will grow by 2.22% on average per year.
EPS Next Y-9.7%
EPS Next 2Y12.27%
EPS Next 3Y11.09%
EPS Next 5Y5.64%
Revenue Next Year-11.87%
Revenue Next 2Y1.59%
Revenue Next 3Y2.22%
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 15.76 indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is in line with the industry average.
RRC is valuated rather cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.87, the valuation of RRC can be described as very reasonable.
RRC's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.82. RRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RRC is valued a bit more expensive than 66.01% of the companies in the same industry.
RRC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.18 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
RRC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.98
EPS Next 2Y12.27%
EPS Next 3Y11.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 6.45.
Compared to an average S&P500 Dividend Yield of 2.23, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
On average, the dividend of RRC grows each year by 32.14%, which is quite nice.
RRC has paid a dividend for at least 10 years, which is a reliable track record.
RRC has decreased its dividend recently.
Dividend Growth(5Y)32.14%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RRC pays out 13.63% 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.
DP13.63%
EPS Next 2Y12.27%
EPS Next 3Y11.09%
RANGE RESOURCES CORP
NYSE:RRC (11/22/2024, 11:20:03 AM)
35.61
+0.04 (+0.11%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.76 | ||
| Fwd PE | 11.87 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 14.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.87% | ||
| PM (TTM) | 19.39% | ||
| GM | 90.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-25.9%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-9.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y12.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y