Rgc Resources (RGCO) AI Stock Analysis

• Market Cap: $213.04M
• Dividend Yield: 4.02%
• Average Volume (3M): 9.28K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.67
• Revenue Growth: 9.74%
• EPS Growth: -1.29%
• Country: US
• Employees: 104
• Sector: Utilities
• Sector Strength: 77
• Industry: Regulated Gas
• EPS (TTM): 0.74
• Shares Outstanding: 10,311,593
• 10 Day Avg. Volume: 10,569
• 30 Day Avg. Volume: 9,282
• PEG Ratio: 0.02
• Price to Book (P/B): 2.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.39
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 9.71
• Enterprise Value/Ebitda: 2.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: $22.00 ▲(7.84%Upside)

Rgc Resources receives a score of 67, reflecting solid financial performance and a strong earnings call. While technical analysis shows mixed signals, the company's valuation remains reasonable, supported by a healthy dividend yield. The main strengths are robust financials and strategic growth initiatives, tempered by technical indicators suggesting potential caution.

Rgc Resources Business Overview & Revenue Model

Company Description

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,157 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates 6 metering stations. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.

How the Company Makes Money

RGC Resources generates revenue predominantly through the sale and distribution of natural gas to its customers, which include residential, commercial, and industrial users. The company's revenue model is based on regulated utility rates approved by state regulatory bodies, ensuring a stable income stream. Key revenue streams include gas sales, delivery charges, and service fees. Additionally, RGC Resources benefits from infrastructure investment returns, which are often supported by regulatory mechanisms. The company's earnings are influenced by factors such as natural gas prices, consumption patterns, weather conditions, and regulatory changes.

Rgc Resources Financial Statement Overview

Summary

RGC Resources demonstrates solid financial performance with consistent revenue growth and strong profitability metrics, including a net profit margin of 14.5% and an EBIT margin of 21.38%. The balance sheet is well-managed with moderate leverage, and cash flow indicators show significant improvement, reflecting financial stability despite some risks due to liabilities.

Income Statement

Rgc Resources has demonstrated consistent revenue growth with a 7.9% increase from the previous period. The company maintains a solid gross profit margin of 36.41% for the TTM period. The net profit margin also showed improvement at 14.5%, indicating strong profitability. The EBIT and EBITDA margins are healthy at 21.38% and 38.31% respectively, reflecting efficient operations. However, the revenue has shown some fluctuations in prior periods, which could indicate market volatility.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.20, suggesting a balanced approach to leverage. The return on equity (ROE) stands at 11.24% for the TTM period, indicating effective management of shareholder funds. An equity ratio of 36.09% reflects a stable financial structure, although the company carries significant liabilities which could pose risks under adverse conditions.

Cash Flow

Rgc Resources exhibits strong cash flow from operations with an operating cash flow to net income ratio of 2.12, signifying robust cash generation relative to profits. The free cash flow growth rate has turned positive, showing a substantial improvement from the previous negative figures, which enhances financial flexibility. The free cash flow to net income ratio is 0.50, highlighting a positive but cautious cash flow position.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2019
Income Statement		Total Revenue
91.31M	84.64M	97.44M	84.17M	75.17M	68.03M
	Gross Profit
33.25M	30.29M	29.77M	26.15M	25.49M	21.12M
	EBIT
19.53M	17.08M	17.68M	7.26M	8.69M	7.37M
	EBITDA
34.98M	32.48M	30.40M	-29.46M	24.00M	19.19M
	Net Income Common Stockholders
13.24M	11.76M	11.30M	-31.73M	10.10M	8.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.15M	894.18K	1.51M	4.90M	1.52M	1.63M
	Total Assets
326.42M	320.70M	303.73M	290.31M	310.11M	258.35M
	Total Debt
141.83M	148.64M	141.17M	135.70M	133.47M	103.37M
	Net Debt
139.67M	147.74M	139.66M	130.80M	131.95M	101.74M
	Total Liabilities
208.59M	212.56M	203.00M	197.22M	210.41M	175.26M
	Stockholders Equity
117.83M	108.14M	100.73M	93.09M	99.70M	83.10M
Cash Flow		Free Cash Flow
6.56M	-4.66M	-1.51M	-9.91M	-8.40M	-7.19M
	Operating Cash Flow
28.07M	17.43M	23.80M	15.55M	11.57M	14.70M
	Investing Cash Flow
-21.46M	-22.03M	-27.40M	-30.62M	-25.85M	-42.83M
	Financing Cash Flow
-6.47M	3.98M	218.94K	18.44M	15.51M	29.52M

Rgc Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGCO, the sentiment is Positive. The current price of 20.4 is below the 20-day moving average (MA) of 20.76, below the 50-day MA of 21.12, and below the 200-day MA of 20.55, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGCO.

Rgc Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SR	73 Outperform	$4.25B	17.78	7.30%	4.36%	-7.10%	2.54%
NWN	71 Outperform	$1.60B	15.78	7.36%	4.93%	3.88%	11.80%
RGCO	67 Neutral	$213.04M	16.05	11.60%	4.02%	9.74%	-1.29%
CPK	67 Neutral	$2.78B	22.03	9.04%	2.30%	20.41%	13.64%
SPH	67 Neutral	$1.22B	13.02	14.42%	6.92%	4.02%	-14.66%
Sector *	64 Neutral	$8.56B	10.32	4.24%	4.82%	4.06%	-12.76%
OPAL	60 Neutral	$556.52M	132.92	-8.53%	―	16.30%	-96.72%

Rgc Resources Corporate Events

RGC Resources Updates Investor Presentation

RGC Resources, Inc. has updated the presentation it uses for meetings with analysts, investors, and the financial community. This updated slide presentation, which will be used in future meetings and is available on the company’s website, is intended to provide stakeholders with current insights into the company’s operations and strategic direction.

RGC Resources Hosts Q2 2025 Earnings Call

RGC Resources, Inc. is hosting a conference call with analysts to discuss the operating results of its second quarter ending March 31, 2025. The call aims to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

RGC Resources Reports Strong Q2 Earnings Growth

RGC Resources, Inc. reported a significant increase in earnings for the second quarter ended March 31, 2025, with net income rising to $7,676,208, or $0.74 per share, compared to $6,443,390, or $0.63 per share, in the same period of 2024. This growth was driven by higher base rates and increased volumes, although it was partially offset by lower earnings from an unconsolidated affiliate and higher interest expenses. The company’s utility margin benefited from cooler winter weather and strong utilization by a large industrial customer. Additionally, the State Corporation Commission made permanent the negotiated rates from a 2024 rate case filing, further solidifying RGC’s market position.