RPC (RES) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 3.54%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.79
• Revenue Growth: -9.78%
• EPS Growth: -49.45%
• Country: US
• Employees: 2,597
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.06
• Shares Outstanding: 220,564,500
• 10 Day Avg. Volume: 1,047,885
• 30 Day Avg. Volume: 1,275,188
• PEG Ratio: -0.80
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.42
• Price Target Upside: 18.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: $5.50 ▲(20.61%Upside)

RPC, Inc. demonstrates financial stability with strong cash flow and a robust balance sheet, contributing to a solid foundation for growth. The acquisition of Pentel Completions and EBITDA growth are positive developments, yet flat revenue growth and challenging market conditions present risks. The stock's valuation is reasonable, and the dividend yield adds attractiveness. However, technical indicators suggest caution with bearish trends in place.

Positive Factors

Acquisition Impact

The Pintail Acquisition is estimated to contribute significant revenue and EBITDA per quarter.

Financial Stability

The company carries no long-term debt and still has cash for future acquisitions.

Negative Factors

Market Activity

The stock has been down significantly due to the drop in U.S. activity and rate concession in pressure pumping.

Market Volatility

RES’s exposure to spot market pricing for pressure pumping results in less visibility and more volatility in earnings relative to contracted work.

Oil Price Sensitivity

RPC tends to serve Private operators, who are more sensitive to swings in oil prices which generally leads to larger swings in demand.

RPC Business Overview & Revenue Model

Company Description

RPC, Inc., through its subsidiaries, provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services, as well as well control training and consulting services. The company operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

RPC, Inc. generates revenue primarily through the provision of oilfield services and the rental and sale of equipment to the oil and gas industry. Its key revenue streams include pressure pumping services, which involve the use of high-pressure pumps to fracture rock formations and enhance the extraction of oil and gas. Additionally, RPC earns income from coiled tubing and nitrogen services, which are used for well intervention and maintenance operations. The company also rents out specialized tools and equipment necessary for drilling and production activities. RPC's earnings are significantly influenced by the level of oil and gas exploration and production activities, which are in turn affected by fluctuations in commodity prices. Strategic partnerships with major oil companies and long-term contracts also play a critical role in stabilizing and enhancing its revenue.

RPC Financial Statement Overview

Summary

RPC is financially stable and shows a strong recovery in financial performance over recent years. Despite a recent decline in revenue and profitability margins, the company maintains a healthy balance sheet and strong cash flow generation, providing a solid foundation for future growth. The low leverage and high equity ratio contribute to its financial resilience.

Income Statement

The company has demonstrated strong recovery and growth in revenue since 2020. However, recent TTM data shows a decline in both revenue and margins. Gross Profit Margin in TTM is 19.23%, and Net Profit Margin is 5.55%, indicating moderate profitability. The EBIT Margin is 5.42%, and EBITDA Margin is 16.94%, showing stable operational efficiency.

Balance Sheet

The company maintains a robust balance sheet with a low Debt-to-Equity Ratio of 0.03 and a high Equity Ratio of 80.38% in TTM. This reflects financial stability and low leverage. Return on Equity is 7.03%, indicating moderate profitability relative to shareholder's equity.

Cash Flow

The cash flow statement is strong with significant Operating Cash Flow and positive Free Cash Flow. The Operating Cash Flow to Net Income Ratio in TTM is 4.38, indicating strong cash generation capability. Despite a decline in Free Cash Flow, the company shows good cash flow management.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.37B	1.41B	1.62B	1.60B	864.93M	598.30M
	Gross Profit
227.91M	245.78M	419.83M	430.63M	128.98M	22.03M
	EBIT
74.24M	97.54M	253.89M	197.78M	-65.01M	-101.67M
	EBITDA
232.04M	244.65M	364.71M	373.26M	91.06M	-213.53M
	Net Income Common Stockholders
76.01M	91.44M	195.11M	218.36M	7.22M	-212.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
212.20M	325.98M	223.31M	126.42M	82.43M	84.50M
	Total Assets
1.30B	1.39B	1.29B	1.13B	864.37M	790.50M
	Total Debt
27.27M	32.91M	27.16M	30.25M	46.30M	30.28M
	Net Debt
-184.93M	-293.06M	-196.15M	-96.18M	-36.13M	-54.21M
	Total Liabilities
263.94M	308.20M	264.33M	271.28M	222.57M	158.94M
	Stockholders Equity
1.03B	1.08B	1.02B	857.74M	641.79M	631.57M
Cash Flow		Free Cash Flow
133.27M	129.46M	213.76M	61.73M	-19.93M	12.89M
	Operating Cash Flow
332.69M	349.39M	394.76M	201.29M	47.72M	77.96M
	Investing Cash Flow
-179.99M	-201.55M	-241.71M	-123.72M	-47.63M	-42.66M
	Financing Cash Flow
-38.18M	-45.17M	-56.16M	-33.58M	-2.15M	-826.00K

RPC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RES, the sentiment is Negative. The current price of 4.56 is below the 20-day moving average (MA) of 4.76, below the 50-day MA of 4.95, and below the 200-day MA of 5.78, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 21.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RES.

RPC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RES	76 Outperform	$1.01B	12.95	7.06%	3.54%	-9.78%	-49.45%
INVX	75 Outperform	$982.95M	5.45	13.87%	―	72.10%	―
WTTR	69 Neutral	$1.00B	24.17	4.51%	3.19%	-4.91%	-46.51%
XPRO	68 Neutral	$953.13M	14.12	4.91%	―	10.48%	―
HLX	66 Neutral	$930.40M	11.18	5.64%	―	0.34%	―
MRC	65 Neutral	$1.09B	41.18	8.29%	―	-9.84%	-111.71%
Sector *	57 Neutral	$7.06B	3.04	-3.49%	5.80%	0.53%	-50.39%

RPC Corporate Events

RPC Announces Retirement of Key Board Members

On February 18, 2025, Gary W. Rollins and Pamela R. Rollins announced their retirement from the Board of Directors of RPC, Inc., effective at the company’s 2025 Annual Meeting of Stockholders. Their decision to retire was amicable, and there was no disagreement with the company regarding its operations, policies, or practices.