RPC Inc (RES)
NYSE:RES
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RPC
(NYSE:RES)
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Rating:66Neutral
Price Target:
$8.00
▲(14.78% Upside)
Action:ReiteratedDate:03/29/26
Score is driven primarily by strong financial resilience (low leverage and ample liquidity), tempered by weaker recent profitability/free-cash-flow momentum and cautious near-term outlook from the latest call. Technicals are positive but overbought, while valuation is a notable headwind due to the high P/E despite a moderate dividend yield.
Positive Factors
Balance-sheet strength & liquidity
RPC's low leverage and roughly $210M cash on hand provide durable financial flexibility across oilfield cycles. That liquidity plus an unused revolver supports maintenance capex, selective M&A, and shareholder distributions without forcing asset sales, reducing refinancing and solvency risk over the next 2–6 months.
Negative Factors
Margin compression and lower profitability
A 230-bp margin contraction and a reduction in net margin to about 2% signal structural pressure on pricing and/or cost structure. If pricing weakness or higher input and labor costs persist, return on invested capital may remain subdued and constrain durable earnings power across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength & liquidity
RPC's low leverage and roughly $210M cash on hand provide durable financial flexibility across oilfield cycles. That liquidity plus an unused revolver supports maintenance capex, selective M&A, and shareholder distributions without forcing asset sales, reducing refinancing and solvency risk over the next 2–6 months.
Read all positive factors
RPC (RES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.54B
Dividend Yield2.94%
Average Volume (3M)1.77M
Price to Earnings (P/E)37.2
Beta (1Y)0.83
Revenue Growth4.20%
EPS Growth-59.96%
CountryUS
Employees2,597
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding221,639,270
10 Day Avg. Volume2,158,202
30 Day Avg. Volume1,765,030
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.09
Price to Sales (P/S)0.73
P/FCF Ratio22.55
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit5.87
Enterprise Value/Ebitda6.24
Forecast
1Y Price Target
$6.00Price Target Upside-13.92% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.21
Revenue Forecast (FY)$1.69B
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 Servi...
How the Company Makes Money
RPC makes money by providing oilfield services and renting/operating specialized equipment for E&P customers, generating revenue primarily from service fees tied to field activity levels. Its key revenue streams are derived from (1) completion-ori...
RPC Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Negative
The call reported meaningful operational and seasonal headwinds: sequential revenue declines across most service lines, margin compression (adjusted EBITDA decline and a 230 bp margin contraction), higher SG&A as a percent of revenue, an accounting change increasing cost of revenues, and lost activity from winter storms and idled fleets. Offsetting factors include a strong balance sheet (≈$210M cash, no revolver borrowings), positive adjusted EBITDA and free cash flow, ongoing product innovation (A-10 motor, Metal Max, UnPlug) driving share gains, and selective service-line strength (snubbing +13%, Cudd Pressure Control +1%). Overall, negatives around revenue, margins and near-term activity visibility outweigh the positives from liquidity, product wins and disciplined capital allocation.Positive Updates
Strong liquidity and cash generation
Quarter-end cash of approximately $210 million, no borrowings on $100 million revolver, $50 million seller-finance note payable; operating cash flow of $201.3 million and free cash flow of $52.9 million in FY2025; continued dividend payments totaling $35.1 million YTD (including $8.8 million in Q4).
Negative Updates
Sequential revenue decline
Total revenues decreased 5% sequentially to $426 million; majority of service lines and months (December) showed weakness versus Q3 2025.
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Q4-2025 Updates
Positive
Negative
Strong liquidity and cash generation
Quarter-end cash of approximately $210 million, no borrowings on $100 million revolver, $50 million seller-finance note payable; operating cash flow of $201.3 million and free cash flow of $52.9 million in FY2025; continued dividend payments totaling $35.1 million YTD (including $8.8 million in Q4).
Read all positive updates
Company Guidance
RPC did not give specific Q1 revenue guidance but provided clear forward-looking parameters: full-year 2026 capital expenditures are expected to be $150–180 million (after $148 million in FY2025 CapEx and approximately $15 million of spend delayed into 2026), and management will adjust spend based on activity levels; they reiterated they will not reactivate idled pressure‑pumping fleets until returns meaningfully improve and warned that winter storms early in Q1 caused lost operating days that are not fully recoverable and will pressure near‑term profitability. Key liquidity and cash‑return metrics cited include approximately $210 million of cash on hand, a $50 million seller‑financed note payable, no borrowings on the $100 million revolver, $201.3 million of operating cash flow to date, $148.4 million of CapEx in Q4/FY25, and $52.9 million of free cash flow; dividends totaled $35.1 million year‑to‑date (including $8.8 million in Q4), buybacks remain a potential but non‑immediate option, and management emphasized maintaining financial flexibility while pursuing selective M&A and less capital‑intensive growth.RPC Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
84
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.63B | 1.41B | 1.62B | 1.60B | 864.93M |
| Gross Profit | 232.49M | 378.35M | 527.96M | 513.65M | 201.67M |
| EBITDA | 220.77M | 221.91M | 362.01M | 365.07M | 78.09M |
| Net Income | 32.08M | 91.44M | 195.11M | 218.36M | 7.22M |
Balance Sheet | |||||
| Total Assets | 1.47B | 1.39B | 1.31B | 1.13B | 898.63M |
| Cash, Cash Equivalents and Short-Term Investments | 209.97M | 325.98M | 223.31M | 126.42M | 82.43M |
| Total Debt | 95.15M | 32.91M | 27.16M | 30.25M | 46.30M |
| Total Liabilities | 369.21M | 308.20M | 292.01M | 271.28M | 256.84M |
| Stockholders Equity | 1.10B | 1.08B | 1.02B | 857.74M | 641.79M |
Cash Flow | |||||
| Free Cash Flow | 52.92M | 129.46M | 213.76M | 61.73M | -19.93M |
| Operating Cash Flow | 201.33M | 349.39M | 394.76M | 201.29M | 47.72M |
| Investing Cash Flow | -273.70M | -201.55M | -241.71M | -123.72M | -47.63M |
| Financing Cash Flow | -43.63M | -45.17M | -56.16M | -33.58M | -2.15M |
RPC Technical Analysis
Positive
6.97
Price Trends
6.33
Positive
5.97
Positive
5.32
Positive
Market Momentum
0.20
Positive
57.32
Neutral
37.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RES, the sentiment is Positive. The current price of 6.97 is above the 20-day moving average (MA) of 6.85, above the 50-day MA of 6.33, and above the 200-day MA of 5.32, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 57.32 is Neutral, neither overbought nor oversold. The STOCH value of 37.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RES.
RPC Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.19B | 30.15 | 5.41% | ― | 0.31% | 33.08% | |
67 Neutral | $1.45B | 30.17 | 1.97% | ― | -1.95% | 530.91% | |
66 Neutral | $1.54B | 37.20 | 2.93% | 2.94% | 4.20% | -59.96% | |
66 Neutral | $1.09B | -19.01 | 1.05% | ― | 0.17% | 7307.20% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $126.62M | -5.56 | -21.91% | ― | -18.29% | -43.05% |
* Energy Sector Average
RES
RPC
6.97
2.22
46.83%
HLX
Helix Energy
9.86
2.98
43.31%
GEOS
Geospace Technologies
9.83
3.21
48.64%
TTI
Tetra Technologies
8.15
5.81
248.29%
NESR
National Energy Services Reunited
21.68
15.46
248.55%
RPC Corporate Events
Executive/Board ChangesDividends
RPC Board Director Plans Exit as Dividend Declared
Positive
Jan 28, 2026
On January 27, 2026, RPC, Inc. director Jerry W. Nix informed the board that he will not stand for reelection at the company’s 2026 annual meeting of stockholders, though he will continue to serve through the meeting as Lead Independent Dire...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.