RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
37.68 USD
-1.92 (-4.85%)
37.6 USD
-0.08 (-0.21%)
Taking everything into account, RRC scores 6 out of 10 in our fundamental rating. RRC was compared to 209 industry peers in the Oil, Gas & Consumable Fuels industry. While RRC has a great profitability rating, 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. These ratings could make RRC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
RRC had positive earnings in the past year.
In the past year RRC had a positive cash flow from operations.
RRC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC's Return On Assets of 7.95% is amongst the best of the industry. RRC outperforms 82.30% of its industry peers.
RRC has a Return On Equity of 13.62%. This is in the better half of the industry: RRC outperforms 75.12% of its industry peers.
With an excellent Return On Invested Capital value of 9.41%, RRC belongs to the best of the industry, outperforming 80.38% of the companies in the same industry.
RRC had an Average Return On Invested Capital over the past 3 years of 17.56%. This is below the industry average of 20.87%.
The last Return On Invested Capital (9.41%) 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 | 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
With a decent Profit Margin value of 19.82%, RRC is doing good in the industry, outperforming 74.64% 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.
RRC has a better Operating Margin (27.17%) than 66.99% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC's Gross Margin of 90.24% is amongst the best of the industry. RRC outperforms 95.69% 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.
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.
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
RRC has an Altman-Z score of 2.39. 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 Altman-Z score of 2.39. This is in the better half of the industry: RRC outperforms 72.25% 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.
With a decent Debt to FCF ratio value of 2.46, RRC is doing good in the industry, outperforming 79.90% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
RRC has a Debt to Equity ratio of 0.29. This is in the better half of the industry: RRC outperforms 61.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.12
WACC8.42%
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 81.82% 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 worse Quick ratio (0.56) than 77.99% 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 26.99% over the past year.
RRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.73% yearly.
RRC shows a decrease in Revenue. In the last year, the revenue decreased by -1.44%.
The Revenue has been decreasing by -1.92% on average over the past years.
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
RRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.94% yearly.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.50% on average per year.
EPS Next Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
EPS Next 5Y11.94%
Revenue Next Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
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
The Price/Earnings ratio is 13.13, which indicates a correct valuation of RRC.
RRC's Price/Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 60.77% of the companies in the same industry.
RRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 9.76, 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 74.64% of the companies in the same industry.
RRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 9.76 |
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 | 18.05 | ||
| EV/EBITDA | 9.19 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
RRC's earnings are expected to grow with 24.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)0.31
EPS Next 2Y29.3%
EPS Next 3Y24.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 5.71.
With a Dividend Yield of 0.91, RRC pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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 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 2Y29.3%
EPS Next 3Y24.36%
37.68
-1.92 (-4.85%)
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 Cap8.93B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.81 (13.61%)
Short Float %6.5%
Short Ratio5.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-0.66%
PT rev (3m)-1.47%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-23.92%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-7.08%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 9.76 | ||
| P/S | 3.09 | ||
| P/FCF | 18.05 | ||
| P/OCF | 7.89 | ||
| P/B | 2.12 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 9.19 |
EPS(TTM)2.87
EY7.62%
EPS(NY)3.86
Fwd EY10.25%
FCF(TTM)2.09
FCFY5.54%
OCF(TTM)4.78
OCFY12.68%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.52
PEG (5Y)0.31
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 | 2.39 |
F-Score7
WACC8.42%
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 Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
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 Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year166.43%
EBIT Next 3Y51.87%
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 25.46% 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%.