Education
About Us
Working with TipRanks
Follow Us
Rgc Resources (RGCO)
:RGCO
Top Page
Rgc Resources
(NASDAQ:RGCO)
75Outperform
Rgc Resources (RGCO) vs. S&P 500 (SPY)
Market Cap
$223.44M
Dividend Yield3.75%
Average Volume (3M)14.66K
Price to Earnings (P/E)18.5
Beta (1Y)0.74
Revenue Growth-1.20%
EPS Growth-10.26%
CountryUS
Employees104
SectorUtilities
Sector Strength83
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.18
Shares Outstanding10,296,965
10 Day Avg. Volume11,330
30 Day Avg. Volume14,658
Financial Highlights & Ratios
PEG Ratio9.58
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 Cap1.61
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.91
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Rgc Resources Business Overview & Revenue Model
Company DescriptionRGC Resources, Inc. (RGCO) is a publicly-traded energy services company primarily engaged in the distribution of natural gas. The company operates through its subsidiary, Roanoke Gas Company, in southwestern Virginia, serving residential, commercial, and industrial customers. RGC Resources focuses on providing safe and reliable natural gas service to its customers, while also investing in infrastructure to support regional growth and energy needs.
How the Company Makes MoneyRGC Resources makes money primarily through the distribution and sale of natural gas to a diverse customer base, which includes residential, commercial, and industrial users. The company generates revenue by charging customers for the natural gas they consume, which is measured through metered usage. The rates charged are regulated by state utility commissions, ensuring that they are fair and competitive. Additionally, RGC Resources may earn income through investments in infrastructure enhancements and expansions, which can increase the customer base and lead to higher sales volumes. The company may also benefit from partnerships with local governments and organizations to promote the use of natural gas as a clean and efficient energy source.
Rgc Resources Financial Statement Overview
Summary
RGC Resources demonstrates robust profitability and healthy cash generation, with consistent net income growth. However, revenue growth volatility and moderate EBIT margins, along with potential leverage risks, suggest cautious optimism.Income Statement
The company demonstrates strong profitability with an improving gross profit margin and consistent net income growth. However, revenue growth has shown some volatility, and the EBIT margin remains moderate. Overall, profitability is stable with room for improvement.―
Balance Sheet
The balance sheet indicates a stable equity base with a moderate debt-to-equity ratio. The return on equity is improving, reflecting efficient use of equity. However, the equity ratio is on the lower side, suggesting potential leverage risks.68
Cash Flow
Operating cash flow remains strong, indicating healthy cash generation. However, free cash flow has been inconsistent due to high capital expenditures. The ratio of operating cash flow to net income is favorable, but the free cash flow to net income ratio shows room for improvement.―
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 84.64M | 97.44M | 84.17M | 75.17M | 68.03M | Gross Profit |
| 30.29M | 29.77M | 26.15M | 25.49M | 21.12M | EBIT |
| 17.08M | 17.68M | 7.26M | 8.69M | 7.37M | EBITDA |
| 32.48M | 30.40M | -29.46M | 24.00M | 19.19M | Net Income Common Stockholders |
| 11.76M | 11.30M | -31.73M | 10.10M | 8.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 894.18K | 1.51M | 4.90M | 1.52M | 1.63M | Total Assets |
| 320.70M | 303.73M | 290.31M | 310.11M | 258.35M | Total Debt |
| 148.64M | 141.17M | 135.70M | 133.47M | 103.37M | Net Debt |
| 147.74M | 139.66M | 130.80M | 131.95M | 101.74M | Total Liabilities |
| 212.56M | 203.00M | 197.22M | 210.41M | 175.26M | Stockholders Equity |
| 108.14M | 100.73M | 93.09M | 99.70M | 83.10M |
| Cash Flow | Free Cash Flow | |||
| -4.66M | -1.51M | -9.91M | -8.40M | -7.19M | Operating Cash Flow |
| 17.43M | 23.80M | 15.55M | 11.57M | 14.70M | Investing Cash Flow |
| -22.03M | -27.40M | -30.62M | -25.85M | -42.83M | Financing Cash Flow |
| 3.98M | 218.94K | 18.44M | 15.51M | 29.52M |
Rgc Resources Technical Analysis
Positive
21.70
Price Trends
20.74
Positive
20.49
Positive
20.44
Positive
Market Momentum
0.07
Positive
56.29
Neutral
69.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGCO, the sentiment is Positive. The current price of 21.7 is above the 20-day moving average (MA) of 21.33, above the 50-day MA of 20.74, and above the 200-day MA of 20.44, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 69.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGCO.
Rgc Resources Risk Analysis
Rgc Resources disclosed 18 risk factors in its most recent earnings report. Rgc Resources reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Rgc Resources Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.06B | 25.24 | 9.00% | 1.93% | 17.72% | 11.33% | |
75 Outperform | $4.51B | 18.87 | 7.30% | 4.03% | -7.10% | 2.54% | |
75 Outperform | $223.44M | 18.45 | 11.16% | 3.75% | -1.20% | -10.26% | |
64 Neutral | $1.74B | 21.29 | 5.91% | 4.53% | -3.71% | -21.36% | |
63 Neutral | $8.46B | 11.23 | 5.23% | 4.34% | 3.05% | -11.76% | |
63 Neutral | $1.32B | 19.32 | 12.63% | 6.34% | -4.50% | -33.18% | |
46 Neutral | $315.29M | 85.85 | -8.53% | ― | 18.31% | -96.95% |
* Utilities Sector Average
Performance Comparison
RGCO
Rgc Resources
21.70
1.10
5.34%
CPK
Chesapeake Utilities
132.86
25.59
23.86%
SR
Spire
76.48
18.04
30.87%
NWN
Northwest Gas
43.20
7.11
19.70%
SPH
Suburban Propane
20.49
1.74
9.28%
OPAL
OPAL Fuels
1.82
-3.06
-62.70%
Rgc Resources Earnings Call Summary
Earnings Call Date:Feb 10, 2025
(Q1-2025)
| % Change Since: 2.12%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with notable achievements such as increased net income, strong gas volume growth, and successful operational performance during cold weather. However, challenges like decreased equity earnings from affiliates and higher interest expenses were also noted. Economic uncertainty was acknowledged as a potential concern.Q1-2025 Updates
Positive Updates
Strong Main Extensions and Renewals
Installed 1.1 main miles and connected 197 new services compared to 185 in the previous year, with 65 service renewals, indicating continued investment in safety and reliability.
Increased Gas Volumes
Total gas volumes increased by 16% compared to the first quarter of 2024, with residential and small commercial volumes up 4% due to a 10% increase in heating degree days.
Increased Net Income
Net income rose to $5.3 million or $0.51 per share, compared to $5 million or $0.50 per share in the same quarter a year ago.
Positive Customer Growth
Steady housing growth and new neighborhood developments are expected, leading to further main extensions and new service connections.
Successful System Performance During Cold Weather
The system performed without customer outages during the coldest January in over ten years, highlighting the effectiveness of modernization and renewal efforts.
Negative Updates
Lower Equity Earnings from Unconsolidated Affiliates
Equity in earnings of unconsolidated affiliates was $854,000 pre-tax, down from $1.5 million a year ago, primarily due to comparison between construction phase and operational phase of MVP.
Higher Interest Expenses
Interest expense increased by $143,000 compared to the same quarter a year ago, due to higher average balance on the Roanoke Gas line of credit and higher interest rates on midstream debt.
Economic Uncertainty Concerns
Acknowledgment of economic uncertainty and potential inflationary effects due to changes in presidential administration and Federal Reserve's cautious stance on interest rates.
Company Guidance
During the first quarter earnings call for RGC Resources, Inc., several key metrics and guidance were provided for the 2025 fiscal year. The company reported strong main extensions and renewal activity, with 1.1 main miles installed and 197 new services connected, an increase from 185 in the previous year. Additionally, 65 services were renewed. Total gas volumes delivered rose by 16% compared to the first quarter of 2024, driven by a 10% increase in heating degree days and higher consumption from a major transportation customer. Capital expenditures were $5.7 million, up 8.4% from the previous year. Financially, the company posted net income of $5.3 million or $0.51 per share, with a noted increase in Roanoke Gas margins due to higher rates implemented in July. Equity earnings from unconsolidated affiliates were $854,000 pre-tax, down from $1.5 million in the same quarter the previous year. The company reiterated its capital spending forecast of $21.5 to $22 million for the fiscal year and maintained its earnings per share guidance in the range of $1.18 to $1.25. The call concluded with an acknowledgment of the company's robust performance during a historically cold winter and optimism about growth opportunities in the Roanoke region.Rgc Resources Corporate Events
Financial Disclosures
RGC Resources to Host Q1 2024 Earnings Call
Neutral
Feb 11, 2025
RGC Resources, Inc. announced it will host a conference call with analysts to discuss its first-quarter operating results ending December 31, 2024. The company has presented its financial information during the call, marking an important update on its performance and potential implications for stakeholders.
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.