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:
We started the process of determining a valid price forecast for Rpc Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rpc Inc ranked in the 70th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 200.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Rpc Inc ended up being:
The company's balance sheet shows it gets 95% of its capital from equity, and 5% of its capital from debt. Its equity weight surpasses that of 91.48% of free cash flow generating stocks in the Energy sector.
The business' balance sheet reveals debt to be 5% of the company's capital (with equity being the remaining amount). Approximately just 15% 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 -957.46. This coverage rate is greater than that of just 0.64% 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
EURN, UGP, CCLP, TDW, and KMI can be thought of as valuation peers to RES, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
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
RPC, Inc. (RES) Q2 2020 Earnings Conference Call July 29, 2020 09:00 AM ET Company Participants Rick Hubbell - President and CEO Ben Palmer - Chief Financial Officer James Landers - Vice President of Corporate Finance Conference Call Participants John Daniel - Daniel Energy Partner Cameron Lochridge - Stephens, Inc....