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RPC Inc (RES)
NYSE:RES
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RPC
(NYSE:RES)70Outperform
RPC (RES) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend Yield3.09%
Average Volume (3M)1.57M
Price to Earnings (P/E)12.2
Beta (1Y)0.49
Revenue Growth-12.52%
EPS Growth-52.79%
CountryUS
Employees2,691
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.42
Shares Outstanding216,052,630
10 Day Avg. Volume1,772,641
30 Day Avg. Volume1,569,657
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.79
Price to Cash Flow (P/CF)3.00
P/FCF Ratio3.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.25Price Target Upside15.53% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
RPC Business Overview & Revenue Model
Company DescriptionRPC, Inc. (RES) is a leading provider of specialized oilfield services and equipment to independent and major oilfield companies engaged in the exploration, production, and development of oil and gas properties. The company operates through its subsidiaries, offering a wide array of services including pressure pumping, coiled tubing, nitrogen services, and other rental tools. RPC is committed to delivering high-quality, innovative solutions and maintaining strong customer relationships across the United States and in selected international markets.
How the Company Makes MoneyRPC, Inc. generates revenue primarily through the provision of oilfield services and the rental and sale of equipment to the oil and gas industry. Its key revenue streams include pressure pumping services, which involve the use of high-pressure pumps to fracture rock formations and enhance the extraction of oil and gas. Additionally, RPC earns income from coiled tubing and nitrogen services, which are used for well intervention and maintenance operations. The company also rents out specialized tools and equipment necessary for drilling and production activities. RPC's earnings are significantly influenced by the level of oil and gas exploration and production activities, which are in turn affected by fluctuations in commodity prices. Strategic partnerships with major oil companies and long-term contracts also play a critical role in stabilizing and enhancing its revenue.
RPC Financial Statement Overview
Summary
RPC exhibits a strong financial position with consistent revenue growth and sound cash flow management. While net margins have faced pressure, the company maintains a healthy balance sheet with low leverage. Continued focus on improving profitability and maintaining cash flow efficiency could further enhance financial performance in the future.Income Statement
RPC has shown strong revenue recovery from the downturn in 2020, with a solid gross profit margin of 26.75% in 2024. However, the net profit margin decreased from 12.06% in 2023 to 6.46% in 2024, indicating some pressure on profitability. The EBIT and EBITDA margins also declined but remain positive, reflecting stable operational efficiency despite lower revenue.75
Positive
Balance Sheet
RPC maintains a robust balance sheet with a low debt-to-equity ratio of 0.03, indicating minimal reliance on debt financing. The equity ratio stands strong at 77.74%, showcasing substantial equity coverage for assets. Return on equity is healthy at 8.48%, although it has decreased from the previous year, suggesting potential areas for improving shareholder returns.82
Very Positive
Cash Flow
The company has demonstrated a strong free cash flow growth rate, with free cash flow increasing by 63.42% from 2023 to 2024. The operating cash flow to net income ratio is 3.82, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is 3.82, highlighting robust cash flow generation despite a decrease in net income.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.47B | 1.41B | 1.62B | 1.60B | 864.93M | 598.30M | Gross Profit |
| 281.59M | 378.35M | 419.83M | 430.63M | 128.98M | 22.03M | EBIT |
| 130.07M | 97.54M | 253.89M | 197.78M | -65.01M | -101.67M | EBITDA |
| 278.78M | 244.65M | 364.71M | 373.26M | 91.06M | -213.53M | Net Income Common Stockholders |
| 118.94M | 91.44M | 195.11M | 218.36M | 7.22M | -212.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 212.20M | 325.98M | 223.31M | 126.42M | 82.43M | 84.50M | Total Assets |
| 1.30B | 1.39B | 1.29B | 1.13B | 864.37M | 790.50M | Total Debt |
| 27.27M | 32.91M | 27.16M | 30.25M | 46.30M | 30.28M | Net Debt |
| -184.93M | -293.06M | -196.15M | -96.18M | -36.13M | -54.21M | Total Liabilities |
| 263.94M | 308.20M | 264.33M | 271.28M | 222.57M | 158.94M | Stockholders Equity |
| 1.03B | 1.08B | 1.02B | 857.74M | 641.79M | 631.57M |
| Cash Flow | Free Cash Flow | ||||
| 139.19M | 349.39M | 213.76M | 61.73M | -19.93M | 12.89M | Operating Cash Flow |
| 350.84M | 349.39M | 394.76M | 201.29M | 47.72M | 77.96M | Investing Cash Flow |
| -192.00M | -201.55M | -241.71M | -123.72M | -47.63M | -42.66M | Financing Cash Flow |
| -53.82M | -45.17M | -56.16M | -33.58M | -2.15M | -826.00K |
RPC Technical Analysis
Negative
5.41
Price Trends
6.07
Negative
6.09
Negative
6.19
Negative
Market Momentum
-0.25
Positive
30.68
Neutral
17.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RES, the sentiment is Negative. The current price of 5.41 is below the 20-day moving average (MA) of 5.78, below the 50-day MA of 6.07, and below the 200-day MA of 6.19, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 30.68 is Neutral, neither overbought nor oversold. The STOCH value of 17.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RES.
RPC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $41.90B | 14.22 | 18.47% | 2.03% | 9.10% | 55.56% | |
78 Outperform | $53.62B | 12.69 | 21.59% | 2.81% | 9.58% | 6.53% | |
77 Outperform | $11.17B | 13.88 | 27.06% | 0.75% | 16.23% | 1403.29% | |
76 Outperform | $5.43B | 8.89 | 10.12% | 1.93% | 3.42% | -35.98% | |
75 Outperform | $21.00B | 8.54 | 25.14% | 2.81% | -0.32% | -3.41% | |
70 Outperform | $1.12B | 12.18 | 8.55% | 3.09% | -12.52% | -52.79% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
RES
RPC
5.41
-1.95
-26.49%
BKR
Baker Hughes Company
42.89
12.99
43.44%
FTI
TechnipFMC
26.67
4.82
22.06%
HAL
Halliburton
25.00
-10.38
-29.34%
NOV
NOV
14.96
-2.42
-13.92%
SLB
Schlumberger
41.37
-7.73
-15.74%
RPC Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -15.20% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted improvements in pressure pumping revenues and successful new product launches, along with strong cash flow and financial position. However, overall revenue declined slightly, and there were increased costs and margin pressures. The sentiment is balanced, with notable achievements countered by ongoing challenges and cost pressures.Highlights
Pressure Pumping Revenue Improvement
Pressure pumping generated higher revenues in Q4, up 3% sequentially, showing signs of improvement after a difficult Q3.
Non-pressure Pumping Service Lines
Coiled tubing was up by low double-digits, and cementing increased with strong revenues and operational execution.
New Product Launch Success
The recently launched 3.5-inch downhole motor and unplug system are gaining traction, with the unplug system completing hundreds of stages in full commercial deployment.
Strong Cash Flow and Financial Position
Operating cash flow of $94.2 million for Q4, free cash flow of $53.7 million, and a strong balance sheet with $326 million in cash and no debt at year-end.
Capital Returns to Investors
Paid $8.6 million in dividends in Q4, totaling over $34 million for 2024, along with nearly $10 million in stock repurchases.
Lowlights
Overall Revenue Decline
Revenues decreased 1% in Q4 to $335 million, primarily due to lower non-pressure pumping activity.
Insurance and Employee Costs Increase
Higher insurance and employee costs increased cost of revenues by $2.7 million, impacting margins.
EBITDA Margin Decline
EBITDA was $46.1 million, down from $55.2 million with margins decreasing 270 basis points sequentially to 13.7%.
Pressure on Legacy Diesel Equipment
Demand for legacy diesel equipment remains a headwind, resulting in more aggressive pricing.
Company Guidance
During RPC, Inc.'s fourth-quarter and year-end 2024 conference call, the company provided specific guidance and insights into its performance and strategic outlook. Pressure pumping revenues increased by 3% sequentially, although they were down 24% year-over-year. Non-pumping services showed a 3% decline sequentially but only a 2% decrease year-over-year. The company reported fourth-quarter revenues of $335 million, marking a 1% decrease from the previous quarter, with Technical Services accounting for 94% of these revenues. EBITDA for the fourth quarter was $46.1 million, with a margin of 13.7%. The company maintained $326 million in cash and no debt. For 2025, RPC anticipates capital expenditures between $150 million and $200 million, excluding the addition of a new Tier 4 DGB fleet, while continuing to explore M&A opportunities to enhance growth and diversify its service lines.RPC Corporate Events
Executive/Board ChangesShareholder Meetings
RPC Announces Retirement of Key Board Members
Neutral
Feb 20, 2025
On February 18, 2025, Gary W. Rollins and Pamela R. Rollins announced their retirement from the Board of Directors of RPC, Inc., effective at the company’s 2025 Annual Meeting of Stockholders. Their decision to retire was amicable, and there was no disagreement with the company regarding its operations, policies, or practices.
Executive/Board ChangesBusiness Operations and Strategy
RPC Announces Board Restructuring and Bylaws Amendment
Neutral
Jan 30, 2025
On January 28, 2025, RPC, Inc. announced the resignation of its Board of Directors members to facilitate the declassification of the board, allowing for annual elections starting at the 2025 Annual Meeting. The company also adopted amended and restated bylaws to include provisions such as director removal by majority stockholder vote, exclusive federal court jurisdiction for certain proceedings, and enhanced procedural requirements for stockholder director nominations, reflecting a significant restructuring of its governance practices.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.