RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
NYSE:RRC - New York Stock Exchange, Inc. - US75281A1097 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RRC. RRC was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. RRC has an average financial health and profitability rating. RRC has a valuation in line with the averages, 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.
The reported net income has been mixed in the past 5 years: RRC reported negative net income in multiple years.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC's Return On Assets of 7.84% is fine compared to the rest of the industry. RRC outperforms 66.99% of its industry peers.
The Return On Equity of RRC (14.69%) is better than 62.14% of its industry peers.
RRC has a Return On Invested Capital (6.29%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is significantly below the industry average of 28.73%.
The 3 year average ROIC (22.91%) for RRC is well above the current ROIC(6.29%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of RRC (19.39%) is better than 66.50% of its industry peers.
RRC has a Operating Margin (15.87%) which is in line with its industry peers.
In the last couple of years the Operating Margin of RRC has remained more or less at the same level.
RRC has a better Gross Margin (90.11%) than 94.66% 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
An Altman-Z score of 1.83 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, RRC is in line with its industry, outperforming 54.37% of the companies in the same industry.
RRC has a debt to FCF ratio of 5.40. This is a neutral value as RRC would need 5.40 years to pay back of all of its debts.
RRC has a Debt to FCF ratio of 5.40. This is comparable to the rest of the industry: RRC outperforms 58.25% of its industry peers.
RRC has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.28, RRC is in the better half of the industry, outperforming 61.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.73
WACC8.56%
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 86.41% 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's Quick ratio of 0.54 is on the low side compared to the rest of the industry. RRC is outperformed by 82.52% 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.
The Revenue for RRC has decreased by -24.97% in the past year. This is quite bad
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.20% yearly.
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
Based on estimates for the next years, RRC will show a small growth in Earnings Per Share. The EPS will grow by 5.84% on average per year.
Based on estimates for the next years, RRC will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y-7.07%
EPS Next 2Y15.02%
EPS Next 3Y13.54%
EPS Next 5Y5.84%
Revenue Next Year-12.12%
Revenue Next 2Y1.64%
Revenue Next 3Y2.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 16.70, the valuation of RRC can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of RRC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of RRC to the average of the S&P500 Index (28.47), we can say RRC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 11.99, the valuation of RRC can be described as very reasonable.
61.65% of the companies in the same industry are more expensive than RRC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 11.99 |
4.2 Price Multiples
RRC's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RRC is more expensive than 67.48% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RRC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.8 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
RRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 13.54% in the coming years.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y15.02%
EPS Next 3Y13.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, RRC is not a good candidate for dividend investing.
RRC's Dividend Yield is slightly below the industry average, which is at 6.57.
Compared to an average S&P500 Dividend Yield of 2.28, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of RRC is nicely growing with an annual growth rate of 32.14%!
RRC has been paying a dividend for at least 10 years, so it has 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.
The dividend of RRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.63%
EPS Next 2Y15.02%
EPS Next 3Y13.54%
RANGE RESOURCES CORP
NYSE:RRC (2/4/2025, 8:05:33 PM)
After market: 37.71 -0.03 (-0.08%)37.74
+0.3 (+0.8%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change-0.06%
Ins Owners1.01%
Ins Owner Change-0.29%
Market Cap9.11B
Analysts66.67
Price Target39.92 (5.78%)
Short Float %6.26%
Short Ratio6.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend0.32
Dividend Growth(5Y)32.14%
DP13.63%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.35%
Min EPS beat(2)10.88%
Max EPS beat(2)23.82%
EPS beat(4)4
Avg EPS beat(4)20.95%
Min EPS beat(4)10.88%
Max EPS beat(4)30.08%
EPS beat(8)8
Avg EPS beat(8)20.34%
EPS beat(12)9
Avg EPS beat(12)13.28%
EPS beat(16)11
Avg EPS beat(16)7.52%
Revenue beat(2)0
Avg Revenue beat(2)-17.3%
Min Revenue beat(2)-20.29%
Max Revenue beat(2)-14.31%
Revenue beat(4)0
Avg Revenue beat(4)-15.11%
Min Revenue beat(4)-20.29%
Max Revenue beat(4)-11%
Revenue beat(8)2
Avg Revenue beat(8)-8.3%
Revenue beat(12)6
Avg Revenue beat(12)16.67%
Revenue beat(16)10
Avg Revenue beat(16)17.14%
PT rev (1m)8.21%
PT rev (3m)13.89%
EPS NQ rev (1m)4.3%
EPS NQ rev (3m)2.37%
EPS NY rev (1m)2.97%
EPS NY rev (3m)3.01%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.7 | ||
| Fwd PE | 11.99 | ||
| P/S | 3.11 | ||
| P/FCF | 28.8 | ||
| P/OCF | 9.56 | ||
| P/B | 2.35 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)2.26
EY5.99%
EPS(NY)3.15
Fwd EY8.34%
FCF(TTM)1.31
FCFY3.47%
OCF(TTM)3.95
OCFY10.46%
SpS12.14
BVpS16.03
TBVpS16.03
PEG (NY)N/A
PEG (5Y)1.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.84% | ||
| ROE | 14.69% | ||
| ROCE | 7.72% | ||
| ROIC | 6.29% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 6.59% | ||
| OM | 15.87% | ||
| PM (TTM) | 19.39% | ||
| GM | 90.11% | ||
| FCFM | 10.8% |
ROA(3y)11.78%
ROA(5y)-0.44%
ROE(3y)27.37%
ROE(5y)-6.9%
ROIC(3y)22.91%
ROIC(5y)N/A
ROICexc(3y)23.25%
ROICexc(5y)N/A
ROICexgc(3y)23.25%
ROICexgc(5y)N/A
ROCE(3y)28.13%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.62%
ROICexc growth 3YN/A
ROICexc growth 5Y2.62%
OM growth 3YN/A
OM growth 5Y1.24%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.13%
GM growth 5Y2.11%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 5.4 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 178.38% | ||
| Cap/Sales | 21.73% | ||
| Interest Coverage | 4 | ||
| Cash Conversion | 115.97% | ||
| Profit Quality | 55.66% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.83 |
F-Score6
WACC8.56%
ROIC/WACC0.73
Cap/Depr(3y)142.09%
Cap/Depr(5y)112.75%
Cap/Sales(3y)14.87%
Cap/Sales(5y)19.57%
Profit Quality(3y)85.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.9%
EPS 3YN/A
EPS 5Y16.06%
EPS Q2Q%4.35%
EPS Next Y-7.07%
EPS Next 2Y15.02%
EPS Next 3Y13.54%
EPS Next 5Y5.84%
Revenue 1Y (TTM)-24.97%
Revenue growth 3Y12.76%
Revenue growth 5Y-5.2%
Sales Q2Q%1.25%
Revenue Next Year-12.12%
Revenue Next 2Y1.64%
Revenue Next 3Y2.84%
Revenue Next 5YN/A
EBIT growth 1Y-64.12%
EBIT growth 3YN/A
EBIT growth 5Y-4.02%
EBIT Next Year24.67%
EBIT Next 3Y19.21%
EBIT Next 5Y7.28%
FCF growth 1Y-71.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-39.31%
OCF growth 3Y53.82%
OCF growth 5Y-0.26%