RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
39.49 USD
+1.03 (+2.68%)
39.49 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RRC. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RRC was profitable.
In the past year RRC had a positive cash flow from operations.
Of the past 5 years RRC 4 years were profitable.
RRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RRC (7.95%) is better than 80.48% of its industry peers.
RRC has a better Return On Equity (13.62%) 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 21.49%.
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 Profit Margin of 19.82%. This is in the better half of the industry: RRC outperforms 73.81% of its industry peers.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
RRC has a Operating Margin of 27.17%. This is in the better half of the industry: RRC outperforms 66.67% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC has a Gross Margin of 90.24%. This is amongst the best in the industry. RRC outperforms 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
RRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for RRC remains at a similar level compared to 1 year ago.
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
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.
The Debt to FCF ratio of RRC is 2.46, which is a good value as it means it would take RRC, 2.46 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.46, RRC belongs to the top of the industry, outperforming 80.48% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, RRC is in the better half of 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
WACC8.41%
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's Current ratio of 0.56 is on the low side compared to the rest of the industry. RRC is outperformed by 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
The Earnings Per Share has grown by an impressive 26.99% over the past year.
The Earnings Per Share has been growing by 42.73% on average over the past years. This is a very strong growth
RRC shows a decrease in Revenue. In the last year, the revenue decreased by -1.44%.
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
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.
The Revenue is expected to grow by 13.62% on average over the next years. This is quite good.
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
RRC is valuated correctly with a Price/Earnings ratio of 13.76.
The rest of the industry has a similar Price/Earnings ratio as RRC.
The average S&P500 Price/Earnings ratio is at 26.31. RRC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.11, the valuation of RRC can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 75.71% of the companies listed in the same industry.
RRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RRC.
The rest of the industry has a similar Price/Free Cash Flow ratio as RRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.02 | ||
| EV/EBITDA | 9 |
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 decent profitability rating of RRC may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 24.55% in the coming years.
PEG (NY)0.52
PEG (5Y)0.32
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.
RRC's Dividend Yield is slightly below the industry average, which is at 5.93.
With a Dividend Yield of 0.94, RRC pays less dividend than the S&P500 average, which is at 2.34.
| 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 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 2Y30.02%
EPS Next 3Y24.55%
39.49
+1.03 (+2.68%)
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 Cap9.36B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts71.33
Price Target42.73 (8.2%)
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 | 13.76 | ||
| Fwd PE | 10.11 | ||
| P/S | 3.26 | ||
| P/FCF | 19.02 | ||
| P/OCF | 8.31 | ||
| P/B | 2.24 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 9 |
EPS(TTM)2.87
EY7.27%
EPS(NY)3.91
Fwd EY9.89%
FCF(TTM)2.08
FCFY5.26%
OCF(TTM)4.75
OCFY12.03%
SpS12.12
BVpS17.65
TBVpS17.65
PEG (NY)0.52
PEG (5Y)0.32
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
WACC8.41%
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 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%.