RGC Resources, Inc.
RGC Resources, Inc. Fundamental Analysis
RGC Resources, Inc. (RGCO) shows moderate financial fundamentals with a PE ratio of 17.38, profit margin of 13.12%, and ROE of 11.11%. The company generates $0.1B in annual revenue with weak year-over-year growth of -13.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RGCO's fundamental strength across five key dimensions:
Efficiency Score
WeakRGCO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRGCO trades at attractive valuation levels.
Growth Score
WeakRGCO faces weak or negative growth trends.
Financial Health Score
WeakRGCO carries high financial risk with limited liquidity.
Profitability Score
WeakRGCO struggles to sustain strong margins.
Key Financial Metrics
Is RGCO Expensive or Cheap?
P/E Ratio
RGCO trades at 17.38 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RGCO's PEG of -7.47 indicates potential undervaluation.
Price to Book
The market values RGC Resources, Inc. at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.15 times EBITDA. This is generally considered low.
How Well Does RGCO Make Money?
Net Profit Margin
For every $100 in sales, RGC Resources, Inc. keeps $13.12 as profit after all expenses.
Operating Margin
Core operations generate 17.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.11 in profit for every $100 of shareholder equity.
ROA
RGC Resources, Inc. generates $3.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RGC Resources, Inc. generates strong operating cash flow of $29.70M, reflecting robust business health.
Free Cash Flow
RGC Resources, Inc. produces free cash flow of $8.72M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.84 in free cash annually.
FCF Yield
RGCO converts 3.79% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-7.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How RGCO Stacks Against Its Sector Peers
| Metric | RGCO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.38 | 19.72 | Better (Cheaper) |
| ROE | 11.11% | 908.00% | Weak |
| Net Margin | 13.12% | 8804.00% | Weak |
| Debt/Equity | 1.34 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 0.80 | 1.50 | Weak Liquidity |
| ROA | 3.78% | -6152.00% (disorted) | Weak |
RGCO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RGC Resources, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.48%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
7.06%
Industry Style: Defensive, Dividend, Income
GrowingFCF CAGR
-6.08%
Industry Style: Defensive, Dividend, Income
Declining