RPC (RES) AI Stock Analysis

• Market Cap: $988.36M
• Dividend Yield: 3.54%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.89
• Revenue Growth: -2.74%
• EPS Growth: -54.52%
• Country: US
• Employees: 2,597
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.08
• Shares Outstanding: 220,616,880
• 10 Day Avg. Volume: 1,222,947
• 30 Day Avg. Volume: 1,331,176
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.11
• Enterprise Value/Ebitda: 4.18
• 1Y Price Target: $4.58
• Price Target Upside: 1.33% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: $5.00 ▲(10.62% Upside)

RPC's overall stock score reflects strong financial performance and a balanced earnings call outlook, tempered by mixed technical indicators and moderate valuation. The company's robust balance sheet and cash position are significant strengths, while challenges in specific service lines and market conditions present risks.

Positive Factors

Strong Cash Position

A strong cash position with no debt enhances financial flexibility, enabling RPC to invest in growth opportunities and weather economic downturns.

Pintail Acquisition Impact

The acquisition significantly boosts revenue, indicating strategic growth and diversification, which can enhance long-term market competitiveness.

Growth in Non-Pressure Pumping Services

Expansion in non-pressure pumping services diversifies revenue streams and reduces reliance on volatile segments, supporting stable long-term growth.

Negative Factors

Pressure Pumping Challenges

Challenges in pressure pumping can impact revenue and profitability, highlighting the need for strategic adjustments to maintain competitiveness.

Pricing Pressure in Wireline Services

Pricing pressures in wireline services may erode margins, necessitating cost management and strategic pricing to sustain profitability.

High Effective Tax Rate

A higher effective tax rate reduces net income, impacting cash flow and financial planning, requiring efficient tax strategies to mitigate effects.

RPC Business Overview & Revenue Model

Company Description

RPC (RES) is a leading provider of support services and solutions to the energy and industrial sectors, specializing in a wide range of services including drilling, completions, and production support. The company operates across various regions, delivering innovative technologies and services that enhance operational efficiency and safety for its clients. RPC (RES) is known for its commitment to sustainability and its focus on developing environmentally friendly practices in the energy sector.

How the Company Makes Money

RPC (RES) generates revenue through multiple streams, primarily from service contracts in the energy sector, including oil and gas drilling services, completions, and production support. The company charges clients for the provision of equipment, technical expertise, and labor. Additionally, RPC (RES) leverages partnerships with major energy companies to secure long-term contracts, which provide a stable revenue base. The company also invests in research and development to innovate and enhance its service offerings, allowing it to command higher prices and improve margins. Further, RPC (RES) may explore opportunities in emerging markets or sectors, diversifying its revenue sources and reducing dependency on traditional energy markets.

RPC Financial Statement Overview

Summary

RPC demonstrates strong financial health with stable revenue and profitability metrics, a robust balance sheet, and solid operating cash flows. The company shows resilience despite challenges in revenue growth and free cash flow, maintaining a low leverage and strong equity position. Potential risks include pressure on EBIT margins and reduced free cash flow.

Income Statement

RPC's income statement shows a solid performance with a gross profit margin of 20.83% and a net profit margin of 3.77% for TTM (Trailing-Twelve-Months). Revenue growth has slowed recently, but stability in EBITDA margin at 15.49% indicates strong operational efficiency. However, the decline in EBIT margin from the previous year suggests some pressure on profitability.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05 and a healthy equity ratio of 74.54% for TTM, indicating financial stability. The return on equity (ROE) is moderate at 4.92%, suggesting efficient use of shareholder capital. There is a strong cash position, which enhances liquidity.

Cash Flow

RPC's cash flow statement reflects a robust operating cash flow, with an operating cash flow to net income ratio of 4.80 for TTM. However, the free cash flow decreased by approximately 30.18% compared to the previous year, indicating higher capital expenditures which could impact future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.41B	1.62B	1.60B	864.93M	598.30M
Gross Profit	297.06M	245.78M	419.83M	430.63M	128.98M	22.03M
EBITDA	220.82M	244.65M	364.71M	373.26M	91.06M	-213.53M
Net Income	53.74M	91.44M	195.11M	218.36M	7.22M	-212.19M
Balance Sheet
Total Assets	1.46B	1.39B	1.29B	1.13B	864.37M	790.50M
Cash, Cash Equivalents and Short-Term Investments	162.11M	325.98M	223.31M	126.42M	82.43M	84.50M
Total Debt	51.06M	32.91M	27.16M	30.25M	46.30M	30.28M
Total Liabilities	373.38M	308.20M	264.33M	271.28M	222.57M	158.94M
Stockholders Equity	1.09B	1.08B	1.02B	857.74M	641.79M	631.57M
Cash Flow
Free Cash Flow	90.39M	129.46M	213.76M	61.73M	-19.93M	12.89M
Operating Cash Flow	257.84M	349.39M	394.76M	201.29M	47.72M	77.96M
Investing Cash Flow	-314.12M	-201.55M	-241.71M	-123.72M	-47.63M	-42.66M
Financing Cash Flow	-43.13M	-45.17M	-56.16M	-33.58M	-2.15M	-826.00K

RPC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RES, the sentiment is Neutral. The current price of 4.52 is below the 20-day moving average (MA) of 4.59, below the 50-day MA of 4.60, and below the 200-day MA of 5.03, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.09 is Neutral, neither overbought nor oversold. The STOCH value of 60.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RES.

RPC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTI	82 Outperform	$952.95M	8.26	54.03%	―	-3.23%	1031.00%
NESR	74 Outperform	$1.09B	15.30	8.17%	―	―	―
HLX	70 Outperform	$948.06M	20.50	3.27%	―	-8.19%	―
RES	68 Neutral	$988.36M	18.01	4.92%	3.54%	-2.74%	-54.52%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GEOS	61 Neutral	$306.67M	―	-9.95%	―	-10.77%	-229.81%
MRC	54 Neutral	$1.15B	―	5.66%	―	-9.81%	-124.43%

RPC Corporate Events

RPC Inc. Reports Strong Revenue Growth Amid Challenges

RPC Inc., a diversified oilfield services company, provides specialized services and equipment to oil and gas companies primarily in the United States. The company operates in various regions, including the Gulf of Mexico and the Permian Basin, and is known for its diverse portfolio and strong customer base.

RPC Inc. Reports Mixed Sentiment in Earnings Call

The recent earnings call for RPC Inc. presented a mixed sentiment, highlighting both positive developments and ongoing challenges. The company reported significant revenue growth and successful integration of acquisitions, which contributed to a slightly positive overall sentiment. However, challenges in pressure pumping and market uncertainties were also noted, creating a nuanced outlook.