RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
34.16 USD
-0.54 (-1.56%)
34.16 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to RRC. RRC was compared to 208 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. With these ratings, RRC could be worth investigating further for value investing!.
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.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
RRC has a Return On Assets of 7.95%. This is amongst the best in the industry. RRC outperforms 81.25% of its industry peers.
RRC's Return On Equity of 13.62% is fine compared to the rest of the industry. RRC outperforms 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.41%, RRC belongs to the best of the industry, outperforming 80.29% 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 21.28%.
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's Profit Margin of 19.82% is fine compared to the rest of the industry. RRC outperforms 74.52% 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 67.31% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
Looking at the Gross Margin, with a value of 90.24%, RRC belongs to the top of the industry, outperforming 95.67% of the companies in the same industry.
In the last couple of years the Gross Margin of RRC has grown nicely.
| 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 2.16. 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's Altman-Z score of 2.16 is fine compared to the rest of the industry. RRC outperforms 70.67% 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.
Looking at the Debt to FCF ratio, with a value of 2.46, RRC is in the better half of the industry, outperforming 79.81% 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's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. RRC outperforms 62.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.16 |
ROIC/WACC1.13
WACC8.29%
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.
The Current ratio of RRC (0.56) is worse than 80.29% 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 76.44% 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.
The Revenue has decreased by -1.44% in the past 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
Based on estimates for the next years, RRC will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.94% on average per year.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.43% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 11.90, which indicates a very decent valuation of RRC.
Based on the Price/Earnings ratio, RRC is valued a bit cheaper than 66.83% 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 27.17.
RRC is valuated reasonably with a Price/Forward Earnings ratio of 8.77.
RRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. RRC is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.79. RRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 8.77 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA is on the same level as the industry average.
RRC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.36 | ||
| EV/EBITDA | 8.19 |
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)0.46
PEG (5Y)0.28
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 3.96, RRC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 1.94, 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 been paying a dividend for at least 10 years, so it has 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
14.64% of the earnings are spent on dividend by RRC. This is a low number and 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%
34.16
-0.54 (-1.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change0%
Ins Owners0.9%
Ins Owner Change0%
Market Cap8.09B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.89 (25.56%)
Short Float %6.92%
Short Ratio5.24
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-DateN/A
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)-0.2%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-22.54%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-11.03%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-6.32%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 8.77 | ||
| P/S | 2.8 | ||
| P/FCF | 16.36 | ||
| P/OCF | 7.15 | ||
| P/B | 1.93 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)2.87
EY8.4%
EPS(NY)3.89
Fwd EY11.4%
FCF(TTM)2.09
FCFY6.11%
OCF(TTM)4.78
OCFY13.98%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.46
PEG (5Y)0.28
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 | 2.16 |
F-Score7
WACC8.29%
ROIC/WACC1.13
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.
Can you provide the valuation status for RANGE RESOURCES CORP?
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 valuation of RANGE RESOURCES CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RANGE RESOURCES CORP (RRC) is 11.9 and the Price/Book (PB) ratio is 1.93.
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.