RANGE RESOURCES CORP (RRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RRC - US75281A1097 - Common Stock
33.45 USD
-0.45 (-1.33%)
33.4958 USD
+0.05 (+0.14%)
Overall RRC gets a fundamental rating of 6 out of 10. We evaluated RRC against 208 industry peers in the Oil, Gas & Consumable Fuels industry. RRC scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on RRC. 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.
In the past 5 years RRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of RRC (7.95%) is better than 81.25% of its industry peers.
Looking at the Return On Equity, with a value of 13.62%, RRC is in the better half of the industry, outperforming 75.48% of the companies in the same industry.
The Return On Invested Capital of RRC (9.41%) is better than 80.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RRC is below the industry average of 21.83%.
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
Looking at the Profit Margin, with a value of 19.82%, RRC is in the better half of the industry, outperforming 74.52% of the companies in the same industry.
In the last couple of years the Profit Margin of RRC has remained more or less at the same level.
The Operating Margin of RRC (27.17%) is better than 67.31% of its industry peers.
In the last couple of years the Operating Margin of RRC has grown nicely.
RRC has a Gross Margin of 90.24%. This is amongst the best in the industry. RRC outperforms 95.19% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RRC is creating value.
The number of shares outstanding for RRC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RRC has less shares outstanding
The debt/assets ratio for RRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that RRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.10, RRC is doing good in the industry, outperforming 70.19% of the companies in the same industry.
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 a decent Debt to FCF ratio value of 2.46, RRC is doing good in the industry, outperforming 79.81% 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.
With a decent Debt to Equity ratio value of 0.29, RRC is doing good in the industry, outperforming 62.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.46 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.14
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, RRC is doing worse than 80.29% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that RRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, RRC is not doing good in the industry: 76.44% of the companies in the same industry are doing better.
| 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.
The Revenue has decreased by -1.44% in the past year.
RRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.92% yearly.
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.
RRC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.
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
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.
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
The Price/Earnings ratio is 11.66, which indicates a very decent valuation of RRC.
Compared to the rest of the industry, the Price/Earnings ratio of RRC indicates a somewhat cheap valuation: RRC is cheaper than 73.08% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, RRC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.59, the valuation of RRC can be described as reasonable.
RRC's Price/Forward Earnings ratio is rather cheap when compared to the industry. RRC is cheaper than 83.17% of the companies in the same industry.
RRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RRC is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RRC is valued a bit cheaper than the industry average as 60.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.02 | ||
| EV/EBITDA | 7.93 |
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.
A more expensive valuation may be justified as RRC's earnings are expected to grow with 24.31% in the coming years.
PEG (NY)0.45
PEG (5Y)0.27
EPS Next 2Y29.85%
EPS Next 3Y24.31%
5. Dividend
5.1 Amount
RRC has a Yearly Dividend Yield of 1.06%.
Compared to an average industry Dividend Yield of 3.91, RRC is paying slightly less dividend.
With a Dividend Yield of 1.06, RRC pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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%
33.45
-0.45 (-1.33%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners98.86%
Inst Owner Change0.6%
Ins Owners0.9%
Ins Owner Change0%
Market Cap7.93B
Revenue(TTM)2.89B
Net Income(TTM)572.33M
Analysts69.33
Price Target42.89 (28.22%)
Short Float %6.92%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.06% |
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)0.19%
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 | 11.66 | ||
| Fwd PE | 8.59 | ||
| P/S | 2.75 | ||
| P/FCF | 16.02 | ||
| P/OCF | 7 | ||
| P/B | 1.89 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)2.87
EY8.58%
EPS(NY)3.89
Fwd EY11.64%
FCF(TTM)2.09
FCFY6.24%
OCF(TTM)4.78
OCFY14.28%
SpS12.18
BVpS17.74
TBVpS17.74
PEG (NY)0.45
PEG (5Y)0.27
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 | 2.1 |
F-Score7
WACC8.28%
ROIC/WACC1.14
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 11.66 and the Price/Book (PB) ratio is 1.89.
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.