Rgc Resources AI Stock Analysis
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Rgc Resources (RGCO) AI Stock Analysis
Rgc Resources
(NASDAQ:RGCO)
The score is driven primarily by stable financial performance (healthy margins and earnings recovery) tempered by high leverage and uneven revenue/cash-flow history. Technicals are moderately supportive with price above major moving averages and positive momentum. Valuation is fair with a solid dividend, while earnings-call updates add both positives (narrowed guidance, rate case progress) and meaningful near-term operational risks (LNG facility outage and customer/volume headwinds).
Rgc Resources (RGCO) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $236.52M
- Dividend Yield
- 3.83%
- Average Volume (3M)
- 12.73K
- Price to Earnings (P/E)
- 16.6
- Beta (1Y)
- 0.29
- Revenue Growth
- 13.83%
- EPS Growth
- 3.21%
- Country
- US
- Employees
- 106
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Gas
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. It operates approxi...
How the Company Makes Money
RGC Resources primarily makes money through its regulated natural gas utility operations. Its core revenue stream is retail natural gas service to customers within its authorized service territory, which generally includes (1) charges for delivering...
Rgc Resources Earnings Call Summary
The call presented a mix of positive financial and operational developments (YTD EPS growth of 4.6%, narrowed EPS guidance, maintained CapEx plan, strong financing action, progressing MVP projects, and local economic tailwinds) alongside notable challenges (structural damage to the LNG facility requiring assessment and temporary replacement strategies, loss of a top-10 customer, softer residential/commercial volumes, and rising non-gas operating costs). On balance, the company demonstrated resilience — managing supply replacements, securing a constructive rate case settlement, and maintaining profitability and capital plans — while acknowledging near-term risks and uncertainties tied to the LNG asset and volume dynamics.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management narrowed FY2026 EPS guidance to $1.29–$1.32 (with a small Q4 loss expected), reiterated full‑year CapEx of $22.0M (YTD spend $16.1M, up ~2% vs. prior year), and expects on‑system LNG peak‑shaving capability restored for the 2027–2028 winter; they refinanced a $15M note (previously 2%) into a forward note and 3‑year swap fixed at 5.2%, invested just over $1M in Mountain Valley Pipeline projects (Boost to add ~30% capacity; Southgate in construction) while continuing to receive excess cash distributions, and established a regulatory asset for LNG costs; operational and financial metrics cited include 3.5 miles of new main and 464 new services YTD, 2.7 miles of renewed main and 322 renewed services (services +40%), delivered volumes YTD up ~1% (industrial +>25%, residential/commercial down despite HDDs +3%), Q3 net income ≈ $0.55M ($0.05/diluted share) and YTD net income $14.2M ($1.37/diluted share, +4.6% YoY), and a rate case that sought ~$4.3M incremental revenue but settled at $3.85M (rates effective Jan 1 subject to refund; $275k accrued for refunds as of June 30).
Rgc Resources Financial Statement Overview
Summary
Solid profitability and a clear recovery from the 2022 loss support the score, with healthy TTM margins and steadier earnings. Offsetting this are uneven revenue trends (TTM revenue down ~15%), elevated leverage (debt-to-equity ~1.21), and historically volatile free cash flow despite recent improvement and positive TTM FCF.
Income Statement
72PositiveBalance Sheet
58NeutralCash Flow
64Positive| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.14M | 95.33M | 84.64M | 97.44M | 84.17M | 75.17M |
| Gross Profit | 33.78M | 32.85M | 30.29M | 29.77M | 26.15M | 25.49M |
| EBITDA | 36.48M | 35.39M | 32.48M | 30.40M | -29.46M | 26.03M |
| Net Income | 13.98M | 13.28M | 11.76M | 11.30M | -31.73M | 10.10M |
Balance Sheet | ||||||
| Total Assets | 339.66M | 329.84M | 320.70M | 303.73M | 290.31M | 310.11M |
| Cash, Cash Equivalents and Short-Term Investments | 2.47M | 2.32M | 894.18K | 1.51M | 4.90M | 1.52M |
| Total Debt | 148.80M | 148.96M | 148.64M | 141.17M | 137.00M | 140.47M |
| Total Liabilities | 216.78M | 216.29M | 212.56M | 203.00M | 197.22M | 210.41M |
| Stockholders Equity | 122.87M | 113.55M | 108.14M | 100.73M | 93.09M | 99.70M |
Cash Flow | ||||||
| Free Cash Flow | 2.02M | 8.22M | -4.66M | -1.51M | -9.91M | -8.40M |
| Operating Cash Flow | 23.08M | 28.95M | 17.43M | 23.80M | 15.55M | 11.57M |
| Investing Cash Flow | -22.04M | -20.73M | -22.03M | -27.40M | -30.62M | -25.85M |
| Financing Cash Flow | -701.56K | -6.79M | 3.98M | 218.94K | 18.44M | 15.51M |
Rgc Resources Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGCO, the sentiment is Neutral. The current price of 22.70 is below the 20-day moving average (MA) of 22.84, above the 50-day MA of 22.01, and above the 200-day MA of 22.09, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 37.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGCO.
Rgc Resources Risk Analysis
Rgc Resources disclosed 18 risk factors in its most recent earnings report. Rgc Resources reported the most risks in the "Production" category.
Latest Risks Added
2 New RisksRgc Resources Peers Comparison
Overall Rating
SPH78Outperform
SR69Neutral- RGCO67Neutral
NWN63Neutral
NFE43Neutral
OPAL40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SPH | 78Outperform | $1.18B | 8.94 | 19.49% | 7.52% | -2.48% | 31.10% |
| SR | 69Neutral | $5.29B | 9.82 | 15.87% | 3.74% | 4.12% | 93.82% |
| RGCO | 67Neutral | $236.52M | 16.57 | 11.73% | 3.83% | 13.83% | 3.21% |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| NWN | 63Neutral | $2.19B | 16.80 | 8.23% | 3.82% | 3.16% | 20.58% |
| NFE | 43Neutral | $58.43M | -0.01 | -1737.94% | ― | -37.46% | -77.39% |
| OPAL | 40Underperform | $227.10M | -14.88 | 134.08% | ― | 2.42% | -503.31% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RGCO | Rgc Resources | 22.70 | 1.70 | 8.07% | |
| SR | Spire Inc | 88.27 | 2.58 | 3.01% | |
| NWN | Northwest Natural Gas | 51.83 | 5.45 | 11.76% | |
| SPH | Suburban Propane Partners | 17.61 | -0.14 | -0.81% | |
| NFE | New Fortress Energy | 3.47 | -51.53 | -93.69% | |
| OPAL | Opal Fuels Inc. | 1.39 | -0.91 | -39.57% |
Rgc Resources Corporate Events
RGC Resources Extends Revolving Credit Facility Maturity Through 2029
PositiveRGC Resources, Inc. is the parent of Roanoke Gas Company, its utility subsidiary.On October 29, 2026, Roanoke Gas amended and restated its revolving promissory note and entered a fifth amendment to its loan agreement with Pinnacle Bank. The changes e...
RGC Resources Updates Investor Presentation Under Regulation FD
NeutralRGC Resources, Inc. updated the slide presentation used by management in meetings with analysts, investors and other financial community members. The refreshed materials were scheduled for use and posting on the company’s website in connection with a...
RGC Resources Reviews Third-Quarter 2026 Operating Results
NeutralRGC Resources, Inc. held a conference call with analysts to review and discuss its operating results for the third quarter ended June 30, 2026, providing the investment community with an update on the company’s recent financial performance. The mater...
RGC Resources Posts Slightly Higher Third-Quarter Earnings
PositiveOn August 5, 2026, RGC Resources reported consolidated earnings of $559,000, or $0.05 per diluted share, for the third quarter ended June 30, 2026, slightly above the $538,000, or $0.05 per diluted share, earned in the same period of 2025. Operating...
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.
Date of analysis: Nov 02, 2026