RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
35.86 USD
+0.54 (+1.53%)
35.61 USD
-0.25 (-0.7%)
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. 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.
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
Looking at the Return On Assets, with a value of 7.95%, RRC belongs to the top of the industry, outperforming 81.34% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.62%, RRC is in the better half of the industry, outperforming 75.60% of the companies in the same industry.
The Return On Invested Capital of RRC (9.41%) is better than 80.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is below the industry average of 21.18%.
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
Looking at the Profit Margin, with a value of 19.82%, RRC is in the better half of the industry, outperforming 74.64% of the companies in the same industry.
RRC's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 27.17%, RRC is in the better half of the industry, outperforming 66.99% of the companies in the same industry.
RRC's Operating Margin has improved in the last couple of years.
RRC has a better Gross Margin (90.24%) than 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
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.
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
RRC has an Altman-Z score of 2.19. 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.
The Altman-Z score of RRC (2.19) is better than 70.33% 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.
RRC has a better Debt to FCF ratio (2.46) than 79.90% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RRC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, RRC is doing good in the industry, outperforming 61.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.19 |
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 has a worse Current ratio (0.56) than 80.38% 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 76.56% 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.
RRC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 42.73% yearly.
Looking at the last year, RRC shows a decrease in Revenue. The Revenue has decreased by -1.44% 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)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.
The Revenue is expected to grow by 13.43% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 12.49, RRC is valued correctly.
RRC's Price/Earnings ratio is a bit cheaper when compared to the industry. RRC is cheaper than 65.55% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. RRC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.21 indicates a reasonable valuation of RRC.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than 79.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RRC to the average of the S&P500 Index (23.40), we can say RRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 9.21 |
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 | 17.18 | ||
| EV/EBITDA | 8.32 |
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.
RRC has an outstanding profitability rating, which 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)0.48
PEG (5Y)0.29
EPS Next 2Y29.85%
EPS Next 3Y24.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, RRC has a reasonable but not impressive dividend return.
RRC's Dividend Yield is slightly below the industry average, which is at 3.93.
Compared to an average S&P500 Dividend Yield of 2.00, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
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.
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
14.64% 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.
DP14.64%
EPS Next 2Y29.85%
EPS Next 3Y24.31%
35.86
+0.54 (+1.53%)
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 Cap8.50B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.89 (19.6%)
Short Float %6.97%
Short Ratio5.29
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-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)-7.27%
Revenue beat(16)6
Avg Revenue beat(16)11.2%
PT rev (1m)0.38%
PT rev (3m)-1.08%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-23.19%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-11.03%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)-7.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.49 | ||
| Fwd PE | 9.21 | ||
| P/S | 2.94 | ||
| P/FCF | 17.18 | ||
| P/OCF | 7.51 | ||
| P/B | 2.02 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 8.32 |
EPS(TTM)2.87
EY8%
EPS(NY)3.89
Fwd EY10.86%
FCF(TTM)2.09
FCFY5.82%
OCF(TTM)4.78
OCFY13.32%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.48
PEG (5Y)0.29
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 | 2.19 |
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 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.
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 25.86% in the next year.
Can you provide the dividend sustainability for RRC stock?
The dividend rating of RANGE RESOURCES CORP (RRC) is 4 / 10 and the dividend payout ratio is 14.64%.