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RPC Inc (RES)
NYSE:RES
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RPC
(NYSE:RES)
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Rating:66Neutral
Price Target:
$7.00
▲(5.26% Upside)
The score reflects a strong balance sheet and constructive technical trend, offset by weakening profitability and free cash flow and a relatively high P/E. The latest earnings call was balanced, showing sequential improvement and strong liquidity but ongoing cost and segment headwinds.
Positive Factors
Strong balance sheet / low leverage
Very low leverage and a solid equity base give RPC durable financial flexibility. This reduces refinancing and interest risk, supports capital spending and M&A optionality, and lets the company weather oilfield cycles without immediate liquidity stress.
Diversified service revenue mix
A revenue mix where 72% comes from non-pressure-pumping services reduces dependence on one cyclical segment. Broad service exposure across regions and product lines improves demand stability and resilience through commodity and regional downturns.
Product innovation driving share gains
Successful new technology like the A10 motor creates a sustainable competitive edge by improving performance in longer laterals. Technical differentiation can win contracts, support premium pricing and higher utilization, aiding mid-term revenue and margin recovery.
Negative Factors
Falling profitability margins
Significant margin compression materially reduces earnings power and return on invested capital. If driven by structural cost inflation or pricing pressure, lower margins can persist, limiting the firm's ability to fund investments or rebuild profitability even if top-line growth resumes.
Weaker free cash flow conversion
Declining FCF conversion undermines the firm's capacity to internally fund capex, dividends and working capital. Even with operating cash to net income near 1.02, lower FCF limits financial flexibility, increasing reliance on cash reserves or external funding for strategic needs.
Pressure-pumping operational issues
Laydowns and staffing cuts indicate persistent returns problems in pressure pumping. Structural underperformance in a sizable segment can depress utilization, force asset write-downs or reconfigurations, and slow overall margin recovery even if other lines grow.
RPC (RES) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield2.94%
Average Volume (3M)1.77M
Price to Earnings (P/E)30.2
Beta (1Y)0.99
Revenue Growth4.20%
EPS Growth-59.96%
CountryUS
Employees2,597
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.09
Shares Outstanding220,574,480
10 Day Avg. Volume2,158,202
30 Day Avg. Volume1,765,030
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)1.16
Price to Sales (P/S)0.89
P/FCF Ratio9.70
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda6.22
Forecast
1Y Price Target
$5.67Price Target Upside-14.74% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 (RES) generates revenue primarily through its service contracts with clients in the oil and gas industry. Key revenue streams include fees for drilling services, equipment rentals, and maintenance contracts. The company may also earn income from the sale of specialized drilling tools and technology solutions. Significant partnerships with major oil and gas firms enhance its market position and provide a steady stream of contracts. Additionally, RPC (RES) benefits from fluctuations in oil prices, as increased exploration activities during price booms often lead to higher demand for its services.
RPC Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments including sequential revenue growth, successful introduction of new technologies, and a strong cash position. However, these were balanced by challenges such as increased costs, a high effective tax rate, and difficulties in the pressure pumping segment. The sentiment is neutral as positives and negatives are fairly balanced.Q3-2025 Updates
Positive Updates
Sequential Revenue Improvement
Third quarter results reflect a sequential revenue improvement with a 6% increase to $447.1 million compared to Q2, driven by increases across the majority of the company's service lines.
Growth in Key Service Lines
Service lines other than pressure pumping represented 72% of total revenues in the third quarter, generating a 3% sequential increase. Thru-Tubing Solutions' downhole tools revenues increased by 5% sequentially, with strong performance in the Rocky Mountain and Southeast regions.
Introduction of New Technologies
The company introduced the A10 downhole motor, which has proven effective in longer laterals, leading to market share gains. Additionally, Cudd Energy Services is testing a new 100% natural gas frac pump.
Strong Cash Position
At the quarter end, the company had over $163 million in cash, no outstanding debt on its $100 million revolving credit facility, and a free cash flow of $21.7 million.
Negative Updates
Increased Costs and Expenses
Cost of revenues increased to $335 million from $318 million in the previous quarter, primarily due to expenses that vary with increased activity. SG&A expenses also rose to $44.6 million from $40.8 million.
High Effective Tax Rate
The third quarter's effective tax rate was 42.6%, higher than the previous quarter, primarily due to nondeductible acquisition-related employment costs and a provision to tax return adjustment.
Challenges in Pressure Pumping Segment
Despite improvements in activity, a fleet was laid down in October, and staffing was reduced. The company continues to evaluate fleets from a return-based framework amid challenging conditions in the oilfield services market.
Company Guidance
In the third quarter of 2025, RPC Inc. reported a sequential revenue increase of 6%, reaching $447.1 million, largely driven by growth in pressure pumping, coiled tubing, and downhole tools. Technical Services accounted for 94% of total revenues, rising by 6%, while Support Services saw a 4% increase, led by rental tools. Pressure pumping represented 27.9% of revenues, with wireline and downhole tools each contributing 23.5%. The company also noted a rise in adjusted EBITDA to $72.3 million, and adjusted EBITDA margins increased by 60 basis points to 16.2%. Cost of revenues, excluding depreciation and amortization, climbed to $335 million due to increased activity, while SG&A expenses rose to $44.6 million. The effective tax rate was unusually high at 42.6%, impacted by acquisition-related costs. RPC maintained a strong financial position with over $163 million in cash and no outstanding debt, and expects full year 2025 capital spending to range between $170 million and $190 million.RPC Financial Statement Overview
Summary
Mixed fundamentals: revenue is growing (7.67% TTM) and the balance sheet is strong with very low leverage (debt-to-equity 0.046), but profitability has weakened (gross margin down to 17.99% TTM; net margin down to 3.12% TTM) and free cash flow is declining (-16.59% TTM) with lower cash conversion (FCF to net income 0.35 TTM).Income Statement
RPC's income statement shows a moderate performance with a recent revenue growth rate of 7.67% TTM, indicating a positive trend. However, the gross profit margin has decreased from 26.74% in 2024 to 17.99% TTM, and the net profit margin has also declined from 6.46% to 3.12% TTM. The EBIT and EBITDA margins have similarly decreased, reflecting pressure on profitability.65
Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.046 TTM, indicating low leverage. The equity ratio is stable, and the return on equity, although decreased to 4.40% TTM, remains positive. The company maintains a solid equity base relative to its assets, suggesting financial stability.75
Positive
Cash Flow
Cash flow analysis reveals a decline in free cash flow growth by -16.59% TTM, indicating potential challenges in generating free cash. The operating cash flow to net income ratio is healthy at 1.02 TTM, but the free cash flow to net income ratio has decreased to 0.35 TTM, reflecting reduced cash conversion efficiency.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.54B | 1.41B | 1.62B | 1.60B | 864.93M | 598.30M |
| Gross Profit | 389.59M | 378.35M | 527.96M | 513.65M | 201.67M | 117.56M |
| EBITDA | 222.47M | 221.91M | 362.01M | 365.07M | 78.09M | -6.15M |
| Net Income | 47.90M | 91.44M | 195.11M | 218.36M | 7.22M | -212.19M |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.39B | 1.31B | 1.13B | 898.63M | 818.00M |
| Cash, Cash Equivalents and Short-Term Investments | 163.46M | 325.98M | 223.31M | 126.42M | 82.43M | 84.50M |
| Total Debt | 81.01M | 32.91M | 27.16M | 30.25M | 46.30M | 30.28M |
| Total Liabilities | 396.40M | 308.20M | 292.01M | 271.28M | 256.84M | 186.44M |
| Stockholders Equity | 1.10B | 1.08B | 1.02B | 857.74M | 641.79M | 631.57M |
Cash Flow | ||||||
| Free Cash Flow | 75.39M | 129.46M | 213.76M | 61.73M | -19.93M | 12.89M |
| Operating Cash Flow | 233.64M | 349.39M | 394.76M | 201.29M | 47.72M | 77.96M |
| Investing Cash Flow | -303.72M | -201.55M | -241.71M | -123.72M | -47.63M | -42.66M |
| Financing Cash Flow | -43.34M | -45.17M | -56.16M | -33.58M | -2.15M | -826.00K |
RPC Technical Analysis
Positive
6.65
Price Trends
5.77
Positive
5.28
Positive
4.99
Positive
Market Momentum
0.26
Negative
67.77
Neutral
66.52
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 6.65 is above the 20-day moving average (MA) of 6.15, above the 50-day MA of 5.77, and above the 200-day MA of 4.99, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 67.77 is Neutral, neither overbought nor oversold. The STOCH value of 66.52 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.52B | 12.40 | 53.71% | ― | 0.17% | 7307.20% | |
74 Outperform | $1.98B | 27.42 | 7.67% | ― | 0.31% | 33.08% | |
71 Outperform | $1.17B | 28.12 | 2.71% | ― | -1.95% | 530.91% | |
66 Neutral | $1.47B | 30.21 | 4.31% | 2.94% | 4.20% | -59.96% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $199.24M | -20.26 | -7.48% | ― | -18.29% | -43.05% |
* Energy Sector Average
RES
RPC
6.65
0.58
9.56%
HLX
Helix Energy
7.94
0.02
0.25%
GEOS
Geospace Technologies
15.46
6.54
73.32%
TTI
Tetra Technologies
11.40
7.22
172.73%
NESR
National Energy Services Reunited
19.68
10.43
112.76%
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 Director, chairman of the Human Capital Management and Compensation Committee and the Nominating and Corporate Governance Committee, and as a member of the Audit Committee; the company emphasized that his decision was not due to any disagreement over its operations, policies or practices, signaling an orderly board transition rather than governance turmoil. On January 28, 2026, RPC announced that its board declared a regular quarterly cash dividend of $0.04 per share, payable on March 10, 2026 to shareholders of record as of February 10, 2026, underscoring the company’s continuing capital return to investors and suggesting confidence in its ongoing financial position within the oilfield services sector.
The most recent analyst rating on (RES) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on RPC stock, see the RES Stock Forecast page.
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.