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Ranger Energy Services Inc (RNGR)
NYSE:RNGR
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Ranger Energy Services
(NYSE:RNGR)
70Outperform
Ranger Energy Services (RNGR) vs. S&P 500 (SPY)
Market Cap
$317.33M
Dividend Yield1.4%
Average Volume (3M)113.05K
Price to Earnings (P/E)17.7
Beta (1Y)0.42
Revenue Growth-10.29%
EPS Growth-14.30%
CountryUS
Employees1,950
SectorEnergy
Sector Strength85
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.81
Shares Outstanding22,252,947
10 Day Avg. Volume105,937
30 Day Avg. Volume113,050
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.55
Price to Cash Flow (P/CF)2.40
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ranger Energy Services Business Overview & Revenue Model
Company DescriptionRanger Energy Services, Inc. (RNGR) is a leading provider of well service rigs and associated services to the oil and gas industry. Headquartered in Houston, Texas, the company operates within the energy sector, primarily focusing on onshore upstream services. Ranger Energy Services offers a comprehensive range of services including well completion support, workover, and decommissioning, which are crucial for the maintenance and optimization of oil and gas production operations.
How the Company Makes MoneyRanger Energy Services generates revenue through the provision of well service rigs and associated services to oil and gas companies. Its primary revenue streams include fees from well completion support activities, such as rig-up and rig-down services, and maintenance operations. The company also earns income from workover services, which involve repairing and enhancing existing wells to improve production efficiency. Additionally, Ranger provides decommissioning services for the safe closure of wells, generating further revenue. The company's earnings are influenced by factors such as the demand for oil and gas exploration and production activities, the number of active rigs, and its strategic partnerships with major energy companies.
Ranger Energy Services Financial Statement Overview
Summary
Ranger Energy Services shows strong financial recovery with improved profitability and cash flow. Despite a slight revenue decline in 2024, strong profit margins and effective balance sheet management support a positive outlook.Income Statement
Ranger Energy Services has demonstrated strong revenue growth from 2021 to 2023, reflecting a significant recovery from earlier losses. The gross profit margin improved substantially from negative figures in 2021 to a positive and increasing trajectory in recent years, reaching 100% in 2024. The net profit margin has also turned positive, indicating improved profitability. However, a slight decline in revenue from 2023 to 2024 may be a concern if it continues.75
Positive
Balance Sheet
The balance sheet shows a healthy equity ratio, improving from prior years, with stockholders' equity representing a significant portion of total assets. The debt-to-equity ratio has decreased, reflecting better leverage management. The return on equity is positive, indicating effective use of equity to generate profits. However, the presence of debt, though reduced, and the need for continuous equity growth remain areas to monitor.70
Positive
Cash Flow
The cash flow statements reveal a strong operating cash flow and consistent positive free cash flow, indicating good cash generation capabilities. The free cash flow to net income ratio is favorable, showing efficient cash conversion from earnings. The company has shown a stable trend in cash flow, with significant improvements over the past years, though fluctuations in investing and financing activities warrant attention.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 571.10M | 636.60M | 608.50M | 293.10M | 187.80M | Gross Profit |
| 571.10M | 65.00M | 60.20M | -7.00M | 4.90M | EBIT |
| 28.60M | 36.90M | 19.70M | -3.50M | -15.10M | EBITDA |
| 72.70M | 74.40M | 67.70M | 33.30M | 19.90M | Net Income Common Stockholders |
| 18.40M | 23.80M | 15.10M | -2.10M | -15.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.90M | 15.70M | 3.70M | 600.00K | 2.80M | Total Assets |
| 381.60M | 378.00M | 381.60M | 393.10M | 240.60M | Total Debt |
| 14.10M | 33.90M | 28.00M | 68.30M | 33.50M | Net Debt |
| -26.80M | 18.20M | 24.30M | 67.70M | 30.70M | Total Liabilities |
| 107.80M | 106.20M | 115.40M | 144.40M | 55.80M | Stockholders Equity |
| 273.80M | 271.80M | 266.20M | 248.70M | 101.90M |
| Cash Flow | Free Cash Flow | |||
| 50.40M | 54.30M | 30.70M | -45.00M | 18.30M | Operating Cash Flow |
| 84.50M | 90.80M | 44.50M | -39.40M | 25.50M | Investing Cash Flow |
| -31.10M | -29.70M | 11.30M | -36.40M | -5.40M | Financing Cash Flow |
| -28.20M | -49.10M | -52.70M | 73.60M | -24.20M |
Ranger Energy Services Technical Analysis
Negative
14.19
Price Trends
16.09
Negative
15.86
Negative
13.68
Positive
Market Momentum
-0.46
Negative
37.68
Neutral
44.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RNGR, the sentiment is Negative. The current price of 14.19 is below the 20-day moving average (MA) of 14.53, below the 50-day MA of 16.09, and above the 200-day MA of 13.68, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 37.68 is Neutral, neither overbought nor oversold. The STOCH value of 44.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RNGR.
Ranger Energy Services Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $272.02M | 15.79 | 7.02% | ― | 29.36% | 261.48% | |
71 Outperform | $250.26M | 24.77 | 9.73% | ― | -0.55% | -74.83% | |
70 Outperform | $317.33M | 17.71 | 6.74% | 1.40% | -10.29% | -14.30% | |
58 Neutral | $9.08B | 5.25 | -7.99% | 7.51% | 0.47% | -64.07% | |
57 Neutral | $249.77M | ― | -36.95% | ― | 10.50% | -493.15% | |
57 Neutral | $323.11M | ― | -1.62% | ― | -11.47% | -187.17% | |
49 Neutral | $362.24M | ― | -11.54% | ― | -2.19% | 16.69% |
* Energy Sector Average
Performance Comparison
RNGR
Ranger Energy Services
14.19
2.89
25.58%
CLNE
Clean Energy Fuels
1.55
-1.06
-40.61%
FTK
Flotek
8.33
4.55
120.37%
FET
Forum Energy Tech
20.11
0.55
2.81%
NGS
Natural Gas Services Group
21.97
1.72
8.49%
OIS
Oil States International
5.15
-1.02
-16.53%
Ranger Energy Services Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -11.75% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
Ranger Energy Services, Inc. showed strong financial and operational performance in 2024, with significant achievements in high-spec rigs and ancillary services. However, challenges remain in the wireline segment, and adverse weather conditions impacted the start of 2025. Despite these challenges, the overall sentiment leans towards a positive outlook due to strategic dividend increases and financial flexibility.Highlights
Strong Year-End Performance
Ranger Energy Services closed out 2024 with strong performance, delivering outperformance in operational execution, disciplined cost management, and capital allocation. The company reported revenue of $143.1 million and adjusted EBITDA of $21.9 million with a margin of 15.3%, marking the best profitability on record for the fourth quarter period.
Dividend Increase
Announced an increase in the regular quarterly dividend from $0.05 per share to $0.06 per share, demonstrating confidence in business stability and commitment to shareholder returns.
High-Spec Rigs Business Success
The high-spec rigs business achieved record quarterly revenue of $87 million and adjusted EBITDA of $19 million, up 21% over the same period last year. For the full year, high-spec rigs had revenues of $336.1 million and adjusted EBITDA of $70.5 million, with year-over-year growth of 7% and 10% respectively.
Ancillary Services Growth
Ancillary services reported its best year, with revenue of $124.8 million and adjusted EBITDA of $26.6 million, increases of 1% and 18% respectively year-over-year. This was driven by plug-in abandonment, rentals, and Torrent service lines.
Strong Balance Sheet
The company ended the year with $40.9 million in cash and zero long-term debt, highlighting strong financial flexibility and the ability to pursue strategic opportunities.
Lowlights
Wireline Segment Challenges
Wireline revenue dropped by nearly half in 2024, with margins falling to single digits due to decreased demand and pricing deterioration. Fourth quarter revenue was 26% lower than the prior quarter with breakeven margin.
Revenue Decline
Full year revenue was $571.1 million, down 10% from the previous year, primarily due to lower activity levels and wireline completions.
Weather Impact on 2025 Start
Two polar vortex events significantly reduced activity levels in January and February 2025, impacting the start of the year and making it unlikely that total company EBITDA will reach $20 million in Q1.
Company Guidance
In the fourth quarter of 2024, Ranger Energy Services, Inc. reported revenue of $143.1 million and adjusted EBITDA of $21.9 million, achieving a notable margin of 15.3%, a 320 basis point improvement over the previous year. High-spec rigs set a quarterly revenue record at $87 million, contributing to a full-year revenue of $336.1 million and adjusted EBITDA of $70.5 million, up 7% and 10% respectively. Ancillary services also reached new heights with $124.8 million in revenue and $26.6 million in adjusted EBITDA, marking an 18% increase. Despite challenges in the wireline segment, where revenue dropped by 50% year-over-year, the company achieved a full-year free cash flow of $50.4 million, representing 64% of adjusted EBITDA. Looking ahead to 2025, Ranger anticipates stable activity levels, with high-spec rigs and ancillary services projected for modest growth, while wireline revenues may slightly decline. The company plans to maintain maintenance CapEx at 4-6% of revenue, reflecting a continued focus on disciplined capital allocation and shareholder returns, including a 20% increase in the regular quarterly dividend to $0.06 per share.Ranger Energy Services Corporate Events
Business Operations and StrategyFinancial Disclosures
Ranger Energy Services Showcases Growth at Noble Conference
Positive
Dec 3, 2024
Ranger Energy Services, Inc. is set to present at the Noble Capital Markets 20th Annual Emerging Growth Equity Conference, highlighting its robust performance and promising outlook. With a focus on high-spec rigs and production services, Ranger has demonstrated financial resilience and growth, achieving a 36% compound annual growth rate in revenue since 2020. The company emphasizes its strong balance sheet and efficient operations as key drivers of its success, appealing to investors interested in stable returns and strategic growth opportunities.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Ranger Energy Services Achieves Strong Q3 Performance
Positive
Oct 28, 2024
Ranger Energy Services reported a robust third quarter in 2024 with a revenue of $153 million, marking an 11% increase from the previous quarter. Despite a slight year-over-year decline, net income surged by 85% from the prior quarter, highlighting the company’s strong operational execution. The company maintained its focus on strategic growth in high-spec rigs and ancillary services, while continuing its commitment to returning capital to shareholders through dividends and share buybacks, exceeding its free cash flow return target.
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.