RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - NYSE:RRC - US75281A1097 - Common Stock
34.5 USD
-0.79 (-2.24%)
33.8532 USD
-0.65 (-1.87%)
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. 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. This makes RRC very considerable for value investing!
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.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
RRC has a better Return On Assets (6.74%) than 73.33% of its industry peers.
RRC has a better Return On Equity (11.60%) than 65.24% of its industry peers.
The Return On Invested Capital of RRC (8.71%) is better than 74.29% of its industry peers.
RRC had an Average Return On Invested Capital over the past 3 years of 17.56%. This is below the industry average of 21.66%.
The last Return On Invested Capital (8.71%) 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 | 6.74% | ||
| ROE | 11.6% | ||
| ROIC | 8.71% |
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 17.10%, RRC is in the better half of the industry, outperforming 70.48% of the companies in the same industry.
RRC's Profit Margin has been stable in the last couple of years.
RRC's Operating Margin of 25.63% is fine compared to the rest of the industry. RRC outperforms 61.43% of its industry peers.
RRC's Operating Margin has improved in the last couple of years.
RRC has a better Gross Margin (90.46%) than 95.24% of its industry peers.
In the last couple of years the Gross Margin of RRC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.63% | ||
| PM (TTM) | 17.1% | ||
| GM | 90.46% |
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.
RRC has about the same amout of shares outstanding than it did 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 2.14. 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 2.14. This is in the better half of the industry: RRC outperforms 69.52% of its industry peers.
RRC has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as RRC would need 2.39 years to pay back of all of its debts.
RRC's Debt to FCF ratio of 2.39 is fine compared to the rest of the industry. RRC outperforms 80.00% 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.
RRC's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. RRC outperforms 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 2.14 |
ROIC/WACC1.02
WACC8.51%
2.3 Liquidity
A Current Ratio of 0.55 indicates that RRC may have some problems paying its short term obligations.
The Current ratio of RRC (0.55) is worse than 85.24% of its industry peers.
RRC has a Quick Ratio of 0.55. 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 Quick ratio of RRC (0.55) is worse than 79.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.11% over the past year.
Measured over the past years, RRC shows a very strong growth in Earnings Per Share. The EPS has been growing by 42.73% on average per year.
Looking at the last year, RRC shows a decrease in Revenue. The Revenue has decreased by -4.54% 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)24.11%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%43.48%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.33%
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 8.87% yearly.
The Revenue is expected to grow by 13.63% on average over the next years. This is quite good.
EPS Next Y43.24%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
EPS Next 5Y8.87%
Revenue Next Year22.35%
Revenue Next 2Y18.56%
Revenue Next 3Y13.63%
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.
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
Based on the Price/Earnings ratio of 12.41, the valuation of RRC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 63.81% of the companies listed in the same industry.
RRC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
With a Price/Forward Earnings ratio of 7.60, the valuation of RRC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RRC indicates a rather cheap valuation: RRC is cheaper than 81.90% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RRC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.23 | ||
| EV/EBITDA | 8.88 |
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 26.06% in the coming years.
PEG (NY)0.29
PEG (5Y)0.29
EPS Next 2Y40.18%
EPS Next 3Y26.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, RRC has a reasonable but not impressive dividend return.
In the last 3 months the price of RRC has falen by -20.19%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
RRC's Dividend Yield is slightly below the industry average, which is at 6.18.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
17.06% of the earnings are spent on dividend by RRC. This is a low number and sustainable payout ratio.
RRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP17.06%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
34.5
-0.79 (-2.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.68%
Inst Owner Change-12.12%
Ins Owners0.9%
Ins Owner Change-0.44%
Market Cap8.22B
Analysts71.33
Price Target43.36 (25.68%)
Short Float %5.75%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.32
Dividend Growth(5Y)31.95%
DP17.06%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.61%
Min EPS beat(2)3.45%
Max EPS beat(2)3.78%
EPS beat(4)4
Avg EPS beat(4)10.62%
Min EPS beat(4)3.45%
Max EPS beat(4)23.82%
EPS beat(8)8
Avg EPS beat(8)16.69%
EPS beat(12)11
Avg EPS beat(12)14.83%
EPS beat(16)12
Avg EPS beat(16)10.89%
Revenue beat(2)0
Avg Revenue beat(2)-4%
Min Revenue beat(2)-7.49%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-5.91%
Min Revenue beat(4)-14.31%
Max Revenue beat(4)-0.51%
Revenue beat(8)0
Avg Revenue beat(8)-10.42%
Revenue beat(12)3
Avg Revenue beat(12)-2.51%
Revenue beat(16)7
Avg Revenue beat(16)13.81%
PT rev (1m)-1.45%
PT rev (3m)2.89%
EPS NQ rev (1m)-8.35%
EPS NQ rev (3m)-9.72%
EPS NY rev (1m)-2.05%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.04%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 7.6 | ||
| P/S | 2.94 | ||
| P/FCF | 16.23 | ||
| P/OCF | 7.27 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)2.78
EY8.06%
EPS(NY)4.54
Fwd EY13.16%
FCF(TTM)2.13
FCFY6.16%
OCF(TTM)4.74
OCFY13.75%
SpS11.75
BVpS17.33
TBVpS17.33
PEG (NY)0.29
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 11.6% | ||
| ROCE | 11% | ||
| ROIC | 8.71% | ||
| ROICexc | 8.71% | ||
| ROICexgc | 8.71% | ||
| OM | 25.63% | ||
| PM (TTM) | 17.1% | ||
| GM | 90.46% | ||
| FCFM | 18.08% |
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
ROICexcg growth 3Y-36.92%
ROICexcg 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-Score5
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.12 | ||
| Cap/Depr | 170.61% | ||
| Cap/Sales | 22.29% | ||
| Interest Coverage | 6.31 | ||
| Cash Conversion | 104.34% | ||
| Profit Quality | 105.75% | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 2.14 |
F-Score5
WACC8.51%
ROIC/WACC1.02
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)24.11%
EPS 3Y4.57%
EPS 5Y42.73%
EPS Q2Q%43.48%
EPS Next Y43.24%
EPS Next 2Y40.18%
EPS Next 3Y26.06%
EPS Next 5Y8.87%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-12.97%
Revenue growth 5Y-1.92%
Sales Q2Q%39.33%
Revenue Next Year22.35%
Revenue Next 2Y18.56%
Revenue Next 3Y13.63%
Revenue Next 5YN/A
EBIT growth 1Y48.56%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year186.5%
EBIT Next 3Y51.76%
EBIT Next 5Y21.08%
FCF growth 1Y-57.15%
FCF growth 3Y-5.49%
FCF growth 5YN/A
OCF growth 1Y-34.87%
OCF growth 3Y6%
OCF growth 5Y6.74%