RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
34.51 USD
+0.15 (+0.44%)
34.61 USD
+0.1 (+0.29%)
RRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 210 industry peers in the Oil, Gas & Consumable Fuels industry. While RRC belongs to the best of the industry regarding profitability, 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. These ratings could make RRC a good candidate 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.
Each year in the past 5 years RRC had a positive operating cash flow.
1.2 Ratios
RRC has a Return On Assets of 7.95%. This is amongst the best in the industry. RRC outperforms 82.46% of its industry peers.
With a decent Return On Equity value of 13.62%, RRC is doing good in the industry, outperforming 75.36% of the companies in the same industry.
RRC's Return On Invested Capital of 9.41% is amongst the best of the industry. RRC outperforms 80.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RRC is below the industry average of 21.09%.
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
The Profit Margin of RRC (19.82%) is better than 74.88% of its industry peers.
RRC's Profit Margin has been stable in the last couple of years.
The Operating Margin of RRC (27.17%) is better than 67.30% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
The Gross Margin of RRC (90.24%) is better than 95.73% 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.
RRC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RRC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.15 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
RRC has a Altman-Z score of 2.15. This is in the better half of the industry: RRC outperforms 71.09% 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.
With an excellent Debt to FCF ratio value of 2.46, RRC belongs to the best of the industry, outperforming 80.09% of the companies in the same industry.
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 62.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.15 |
ROIC/WACC1.12
WACC8.43%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a Current ratio of 0.56. This is amonst the worse of the industry: RRC underperforms 80.57% of its industry peers.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
RRC has a Quick ratio of 0.56. This is in the lower half of the industry: RRC underperforms 76.78% of its industry peers.
The current and quick ratio evaluation for RRC is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
RRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.99%, which is quite impressive.
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 -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.
Based on estimates for the next years, RRC will show a quite strong growth in Revenue. The Revenue will grow by 13.50% on average per year.
EPS Next Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
EPS Next 5Y11.94%
Revenue Next Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
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 12.02.
Compared to the rest of the industry, the Price/Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 66.35% 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 26.39.
RRC is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
Based on the Price/Forward Earnings ratio, RRC is valued a bit cheaper than the industry average as 78.20% of the companies are valued more expensively.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 8.94 |
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 | 16.53 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
The 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 24.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.28
EPS Next 2Y29.3%
EPS Next 3Y24.36%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.05%.
RRC's Dividend Yield is slightly below the industry average, which is at 3.95.
Compared to an average S&P500 Dividend Yield of 1.87, RRC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of RRC grows each year by 31.95%, which is quite nice.
RRC has been paying a dividend for at least 10 years, so it has 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
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 2Y29.3%
EPS Next 3Y24.36%
34.51
+0.15 (+0.44%)
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 Cap8.18B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts70
Price Target42.81 (24.05%)
Short Float %6.97%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-0.66%
PT rev (3m)-1.27%
EPS NQ rev (1m)0.47%
EPS NQ rev (3m)-23.19%
EPS NY rev (1m)-0.96%
EPS NY rev (3m)-12.41%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 8.94 | ||
| P/S | 2.83 | ||
| P/FCF | 16.53 | ||
| P/OCF | 7.23 | ||
| P/B | 1.95 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)2.87
EY8.32%
EPS(NY)3.86
Fwd EY11.19%
FCF(TTM)2.09
FCFY6.05%
OCF(TTM)4.78
OCFY13.84%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.47
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 | 2.15 |
F-Score7
WACC8.43%
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 Y25.46%
EPS Next 2Y29.3%
EPS Next 3Y24.36%
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 Year20.28%
Revenue Next 2Y15.72%
Revenue Next 3Y13.5%
Revenue Next 5YN/A
EBIT growth 1Y68.8%
EBIT growth 3Y-35.09%
EBIT growth 5Y25.17%
EBIT Next Year166.43%
EBIT Next 3Y51.87%
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 25.46% 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%.