RPC Inc. provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest, Appalachian and Rocky Mountain regions, and in selected international markets. The company was founded in 1984 and is based in Atlanta, Georgia.
RES Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RES, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Rpc Inc ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 1094.5%. In terms of the factors that were most noteworthy in this DCF analysis for RES, they are:
The company's balance sheet shows it gets 95% of its capital from equity, and 5% of its capital from debt. Notably, its equity weight is greater than 90.43% of US equities in the Energy sector yielding a positive free cash flow.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately merely 14.84% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Rpc Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -1,427.94. This coverage rate is greater than that of only 0.37% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RES, try GPRK, NINE, MRC, GEL, and REGI.
ATLANTA, Aug. 26, 2020 /PRNewswire/ -- RPC, Inc. (NYSE: RES) today announced yesterday's appointment of Gary W. Rollins as Chairman of its Board of Directors. Rollins, who joined the RPC, Inc. Board in 1984, succeeds R. Randall Rollins, who served as Chairman since inception of the…
RES Lacks Growth At the start of Q3, RPC, Inc.'s (RES) management has turned slightly more optimistic. As the U.S. onshore activity moves past its worst, the company can now take an expansive view of the market and stabilize its pressure pumping fleet. With indications coming that production is likely...
Badsha Chowdhury on Seeking Alpha | August 21, 2020
With deep sadness, RPC, Inc. (NYSE: RES) announced today the passing of R. Randall Rollins, the Company's Chairman of the Board, who died peacefully following a short illness on August 17, 2020 in the presence of his family. Mr. Rollins was 88 years old. Long-standing Board Member Henry B. Tippie, who serves as Lead Director, and Richard A. Hubbell, Chief Executive Officer and Board Member, will continue in their respective leadership roles until succession plans are announced.