RPC (RES) AI Stock Analysis

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RPC

(NYSE:RES)

Rating:69Neutral

Price Target:

$5.00

▲(1.63%Upside)

RPC's overall stock score is primarily driven by its strong financial performance and strategic growth initiatives. The stock benefits from solid revenue growth and a robust balance sheet, but faces challenges in market uncertainties and operational inefficiencies. The technical analysis and valuation suggest a cautious outlook, while recent corporate changes are viewed positively.

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

Growth Limitations

Upside appears limited given potential U.S. activity reductions.

Market Activity

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

RPC (RES) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.09B

Dividend Yield3.35%

Average Volume (3M)1.95M

Price to Earnings (P/E)19.8

Beta (1Y)0.75

Revenue Growth-2.74%

EPS Growth-54.52%

CountryUS

Employees2,597

SectorEnergy

Sector Strength67

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.08

Shares Outstanding220,616,880

10 Day Avg. Volume2,029,174

30 Day Avg. Volume1,950,310

Financial Highlights & Ratios

PEG Ratio-0.68

Price to Book (P/B)0.96

Price to Sales (P/S)0.00

P/FCF Ratio11.70

Enterprise Value/Market Cap0.87

Enterprise Value/Revenue0.20

Enterprise Value/Gross Profit4.68

Enterprise Value/Ebitda2.19

Forecast

1Y Price Target

$5.00

Price Target Upside1.63% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering3

RPC Business Overview & Revenue Model

Company DescriptionRPC, Inc. (RES) is a prominent provider of specialized oilfield services and equipment to the oil and gas industry. Operating primarily in the United States, RPC offers a comprehensive range of solutions including pressure pumping, coiled tubing, nitrogen, and other related services that support the exploration, production, and completion of oil and gas wells. The company is committed to delivering high-quality, efficient services that enhance the productivity and operational capabilities of its clients.

How the Company Makes MoneyRPC, Inc. generates revenue primarily through the provision of its oilfield services to exploration and production companies. The company's revenue streams are largely derived from its pressure pumping services, which involve the application of high-pressure fluids to enhance oil and gas recovery from wells. Additionally, RPC's coiled tubing and nitrogen services contribute to its earnings by offering specialized solutions that improve well performance and maintenance. The company's financial performance is influenced by factors such as oil and gas prices, drilling activity levels, and its ability to maintain strategic partnerships with key clients in the energy sector.

RPC Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: -1.60%|

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a mix of positive developments such as significant revenue growth and successful acquisition integration, contrasted by challenges in pressure pumping and market uncertainties. The sentiment is slightly tilted towards the positive due to the overall revenue growth and strategic acquisitions.

Q2-2025 Updates

Positive Updates

Revenue Increase

Revenues increased 26% to $421 million, partly due to the Pintail acquisition. Non-pressure pumping service lines represented 74% of total revenues during the second quarter.

Growth in Non-Pressure Pumping Segments

Revenue growth was noted in downhole tools, coiled tubing, rental tools, and tubular services. Coiled tubing was up 12% sequentially, and rental tool revenues increased 17% versus the prior quarter.

Pintail Acquisition Impact

Pintail revenues contributed approximately $99 million in the second quarter or 23% of total revenues. The acquisition is expected to be accretive in 2025.

Adjusted EBITDA Growth

Adjusted EBITDA was $65.6 million, up from $48.9 million, with the margin increasing 90 basis points sequentially to 15.6%.

Negative Updates

Pressure Pumping Challenges

Pressure pumping experienced a challenging environment with lower industry activity, weather impacts, and customer delays, resulting in operational inefficiencies.

Pricing Pressure in Wireline Market

The wireline market faced pricing pressure, impacting expected EBITDA margins due to competitive pricing.

High Effective Tax Rate

The effective tax rate was unusually high at 41.3% due to acquisition-related employment costs, affecting pretax income.

Market Uncertainty

There is uncertainty around the economy, tariffs, and commodity markets, creating a challenging operating environment.

Company Guidance

During RPC Inc.'s second quarter 2025 earnings call, the company provided guidance reflecting a challenging operating environment influenced by macro and geopolitical uncertainties. Revenues increased by 26% to $421 million, with a significant contribution from the Pintail acquisition, which added approximately $99 million or 23% of total revenues. Non-pressure pumping services accounted for 74% of total revenues, with notable growth in downhole tools (up 6%), coiled tubing (up 12%), and rental tools (up 17%). The company highlighted a 200% increase in third-party nonproductive time and operational inefficiencies due to customer delays. Adjusted EBITDA rose to $65.6 million, with a margin increase of 90 basis points to 15.6%. Free cash flow was reported at $17.6 million, with capital spending for 2025 projected between $165 million and $215 million. The effective tax rate for the quarter was unusually high at 41.3% due to acquisition-related employment costs. RPC plans to test 100% natural gas pressure pumping units in the third quarter as part of their strategy to evaluate alternative technologies. Despite the competitive market and pricing pressures, the company remains focused on strategic investments and selective acquisitions to drive growth and maintain a strong balance sheet.

RPC Financial Statement Overview

Summary

RPC demonstrates financial stability with strong cash flow and low leverage, despite a recent decline in revenue and profitability margins. The robust balance sheet and high equity ratio contribute to its 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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.62B	1.60B	864.93M	598.30M
Gross Profit	245.78M	419.83M	430.63M	128.98M	22.03M
EBITDA	244.65M	364.71M	373.26M	91.06M	-213.53M
Net Income	91.44M	195.11M	218.36M	7.22M	-212.19M
Balance Sheet
Total Assets	1.39B	1.29B	1.13B	864.37M	790.50M
Cash, Cash Equivalents and Short-Term Investments	325.98M	223.31M	126.42M	82.43M	84.50M
Total Debt	32.91M	27.16M	30.25M	46.30M	30.28M
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	129.46M	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

Positive

Last Price4.92

Price Trends

50DMA

4.83

Positive

100DMA

4.93

Negative

200DMA

5.49

Negative

Market Momentum

MACD

-0.01

Positive

RSI

51.07

Neutral

STOCH

75.37

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 4.92 is below the 20-day moving average (MA) of 4.96, above the 50-day MA of 4.83, and below the 200-day MA of 5.49, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 75.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RES.

RPC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (52)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XPRO	77 Outperform	$1.37B	17.90	4.78%	―	2.67%	―
INVX	76 Outperform	$1.22B	6.54	13.87%	―	72.10%	―
WTTR	72 Outperform	$1.18B	28.38	4.51%	2.86%	-4.91%	-46.51%
MRC	71 Outperform	$1.29B	41.18	8.29%	―	-9.84%	-111.71%
RES	69 Neutral	$1.09B	19.77	4.92%	3.35%	-2.74%	-54.52%
HLX	68 Neutral	$940.71M	19.33	3.27%	―	-8.19%	―
Sector *	52 Neutral	C$3.00B	-1.55	-3.48%	6.42%	2.66%	-49.31%

* Energy Sector Average

Performance Comparison

RES

RPC

4.77

-2.09

-30.47%

INVX

Innovex International

17.10

0.89

5.49%

HLX

Helix Energy

6.25

-4.99

-44.40%

MRC

MRC Global

14.80

0.84

6.02%

XPRO

Expro Group Holdings

10.88

-11.21

-50.75%

WTTR

Select Energy Services

9.44

-2.45

-20.61%

RPC Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

RPC Appoints Gary Kolstad as Independent Director

Positive

Jul 14, 2025

On July 14, 2025, RPC, Inc. appointed Gary Kolstad as an Independent Director to its Board of Directors. Kolstad, with a background in petroleum engineering and extensive experience in oilfield services, is expected to bring valuable insights to the board. His appointment is part of RPC’s strategy to strengthen its leadership team, potentially enhancing its industry positioning and operations.

The most recent analyst rating on (RES) stock is a Hold with a $5.50 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.Date of analysis: Jul 31, 2025