RPC (RES) AI Stock Analysis

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RPC

(NYSE:RES)

73Outperform

RPC's overall stock score reflects its strong financial stability and cash flow generation, despite recent revenue challenges. The acquisition of Pentel Completions is a strategic positive, countered by technical analysis concerns and market uncertainties. The stock's valuation is fair, with a decent dividend yield providing some attraction despite the broader market challenges.

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 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 (RES) vs. S&P 500 (SPY)

Market Cap

$1.07B

Dividend Yield3.38%

Average Volume (3M)2.03M

Price to Earnings (P/E)13.8

Beta (1Y)0.84

Revenue Growth-9.78%

EPS Growth-49.45%

CountryUS

Employees2,597

SectorEnergy

Sector Strength47

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.35

Shares Outstanding220,564,500

10 Day Avg. Volume1,723,222

30 Day Avg. Volume2,026,389

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.81

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit2.30

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$5.42

Price Target Upside11.52% Upside

Rating ConsensusHold

Number of Analyst Covering3

RPC Business Overview & Revenue Model

Company DescriptionRPC, 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 MoneyRPC, 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 with a strong recovery in recent years. Despite a decline in recent revenue and margins, the company's robust balance sheet and strong cash flow generation provide a solid foundation for future growth. Low leverage and high equity ratio further enhance its financial resilience.

Income Statement

Positive

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

Positive

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

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
1.41B	1.62B	1.60B	864.93M	598.30M
	Gross Profit
378.35M	419.83M	430.63M	128.98M	22.03M
	EBIT
97.54M	253.89M	197.78M	-65.01M	-101.67M
	EBITDA
244.65M	364.71M	373.26M	91.06M	-213.53M
	Net Income Common Stockholders
91.44M	195.11M	218.36M	7.22M	-212.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
325.98M	223.31M	126.42M	82.43M	84.50M
	Total Assets
1.39B	1.29B	1.13B	864.37M	790.50M
	Total Debt
32.91M	27.16M	30.25M	46.30M	30.28M
	Net Debt
-293.06M	-196.15M	-96.18M	-36.13M	-54.21M
	Total Liabilities
308.20M	264.33M	271.28M	222.57M	158.94M
	Stockholders Equity
1.08B	1.02B	857.74M	641.79M	631.57M
Cash Flow		Free Cash Flow
349.39M	213.76M	61.73M	-19.93M	12.89M
	Operating Cash Flow
349.39M	394.76M	201.29M	47.72M	77.96M
	Investing Cash Flow
-201.55M	-241.71M	-123.72M	-47.63M	-42.66M
	Financing Cash Flow
-45.17M	-56.16M	-33.58M	-2.15M	-826.00K

RPC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.86

Price Trends

50DMA

5.25

Negative

100DMA

5.71

Negative

200DMA

5.98

Negative

Market Momentum

MACD

-0.10

Negative

RSI

41.16

Neutral

STOCH

23.66

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 4.86 is above the 20-day moving average (MA) of 4.86, below the 50-day MA of 5.25, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.16 is Neutral, neither overbought nor oversold. The STOCH value of 23.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RES.

RPC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (56)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INVX	77 Outperform	$1.07B	8.43	10.07%	―	49.31%	10605.17%
RES	73 Outperform	$1.07B	13.80	7.06%	3.38%	-9.78%	-49.45%
MRC	68 Neutral	$1.00B	39.29	10.01%	―	-9.17%	-71.36%
XPRO	68 Neutral	$961.21M	18.88	3.73%	―	13.22%	―
HLX	66 Neutral	$950.10M	11.42	5.64%	―	0.34%	―
WTTR	63 Neutral	$1.04B	28.95	3.91%	3.05%	-8.41%	-58.49%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%

* Energy Sector Average

Performance Comparison

RES

RPC

4.86

-1.59

-24.65%

INVX

Innovex International

15.36

-3.18

-17.15%

HLX

Helix Energy

6.27

-4.56

-42.11%

MRC

MRC Global

11.69

0.26

2.27%

XPRO

Expro Group Holdings

8.33

-10.94

-56.77%

WTTR

Select Energy Services

8.72

-0.17

-1.91%

RPC Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -1.42%|

Next Earnings Date:Jul 23, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a balanced outlook. While the acquisition of Pentel Completions and strong financial metrics are significant positives, the market's uncertainty and flat revenue growth present challenges.

Q1-2025 Updates

Positive Updates

Pentel Completions Acquisition

RPC, Inc. acquired Pentel Completions for $245 million, adding over $400 million in revenue and significant scale in wireline services. The acquisition aligns with strategic imperatives to improve margins, increase operational scale, and strengthen customer mix.

EBITDA Growth

First-quarter EBITDA was $49.489 million, up from $46.1 million in the previous quarter, with an EBITDA margin increase of 100 basis points to 14.7%.

Strong Balance Sheet and Cash Position

RPC ended the quarter with $327 million in cash and no debt, maintaining a strong financial position to weather uncertainties and explore further opportunities.

Negative Updates

Flat Revenue Growth

Overall revenues decreased by 1% to $333 million, with pressure pumping revenues remaining flat and other service lines experiencing minor declines.

Challenging Market Conditions

The market is experiencing uncertainty due to tariffs and trade disputes, impacting oil prices and customer activities. This creates a challenging environment for maintaining pricing and utilization.

Visibility and Utilization Challenges

Visibility in the pressure pumping market remains limited, with competitive pricing pressures and potential shifts in customer activity towards lower CapEx projects.

Company Guidance

During RPC, Inc.'s first quarter of 2025 earnings call, guidance highlighted several key metrics. Revenues decreased by 1% sequentially, amounting to $333 million, with technical services contributing 94% and support services 6% of total revenues. Pressure pumping, which comprised 40.1% of revenues, remained flat, whereas downhole tools accounted for 28.2%, and rental tools experienced a notable 7% increase. EBITDA grew to $49.489 million, with a margin increase of 100 basis points to 14.7%. The company completed the acquisition of Pentel Completions for $245 million, which is expected to be accretive, projecting approximately $400 million in annual revenue with EBITDA margins around 20%. Capital expenditure for 2025 is estimated at $165 to $215 million, primarily for maintenance.

RPC Corporate Events

Executive/Board ChangesShareholder Meetings

RPC Announces Retirement of Key Board Members

Neutral

Feb 20, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.