Rgc Resources (RGCO) AI Stock Analysis

• Market Cap: $215.29M
• Dividend Yield: 3.75%
• Average Volume (3M): 10.72K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.57
• Revenue Growth: 12.63%
• EPS Growth: 10.99%
• Country: US
• Employees: 104
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): -0.02
• Shares Outstanding: 10,350,531
• 10 Day Avg. Volume: 15,306
• 30 Day Avg. Volume: 10,721
• PEG Ratio: 11.11
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 2.71
• P/FCF Ratio: -49.17
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 4.02
• Enterprise Value/Gross Profit: 11.40
• Enterprise Value/Ebitda: 10.64
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $23.50 ▲(9.25% Upside)

RGC Resources' overall stock score reflects solid financial performance and a positive earnings call, highlighting strong growth and refinancing success. However, technical indicators suggest a neutral market sentiment, and valuation metrics indicate fair pricing. The anticipated fourth quarter loss and high leverage are potential risks to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business operations, supporting long-term financial stability.

Net Income Growth

Significant net income growth reflects improved profitability and efficient cost management, enhancing shareholder value over time.

Refinancing Success

Successful refinancing at favorable rates reduces interest expenses and enhances financial flexibility, supporting future investments.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and withstand economic downturns.

Anticipated Fourth Quarter Loss

Anticipated losses in the fourth quarter could signal operational challenges and impact investor confidence, affecting future financial performance.

Delayed Expansion Plans

Delays in expansion plans may hinder growth prospects and limit the company's ability to capitalize on new market opportunities in the near term.

Rgc Resources Business Overview & Revenue Model

Company Description

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,157 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates 6 metering stations. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.

How the Company Makes Money

Rgc Resources generates revenue primarily through the sale and distribution of natural gas to its customers. The company earns money by charging customers for the volume of natural gas consumed, with rates regulated by state authorities. Additionally, RGCO offers energy efficiency programs that may include incentives and rebates, enhancing customer loyalty and driving additional revenue. The company may also benefit from partnerships with local governments and organizations focused on renewable energy projects, which can contribute to its earnings through grants or collaborative projects aimed at enhancing energy efficiency and sustainability.

Rgc Resources Financial Statement Overview

Summary

RGC Resources demonstrates solid financial health with consistent revenue growth and strong profitability margins. The balance sheet shows improvement in leverage, though high debt levels remain a concern. Cash flow generation is improving, supporting operational stability. Overall, the company is well-positioned but should monitor leverage and cash flow to ensure long-term sustainability.

Income Statement

Rgc Resources shows a stable revenue growth with a 3.07% increase in TTM, indicating a positive trend compared to the previous year's decline. The company maintains healthy profitability margins with a gross profit margin of 31.4% and a net profit margin of 14.5% in TTM. EBIT and EBITDA margins are strong at 26.3% and 34.7% respectively, reflecting efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a moderate risk profile with a debt-to-equity ratio of 1.20, indicating a high leverage but an improvement from previous years. The return on equity is strong at 12.0%, showing effective use of equity to generate profits. However, the equity ratio of 35.8% suggests a reliance on debt financing, which could pose risks if interest rates rise.

Cash Flow

Cash flow analysis reveals a positive trend with a 12.6% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.38 suggests strong cash conversion from earnings. However, the free cash flow to net income ratio of 0.26 indicates limited free cash flow relative to net income, which could constrain reinvestment opportunities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.12M	84.64M	97.44M	84.17M	75.17M	68.62M
Gross Profit	33.22M	30.29M	29.77M	26.15M	25.49M	28.15M
EBITDA	35.57M	32.48M	30.40M	-29.46M	26.58M	20.74M
Net Income	13.63M	11.76M	11.30M	-31.73M	10.10M	10.37M
Balance Sheet
Total Assets	324.76M	320.70M	303.73M	290.31M	310.11M	281.68M
Cash, Cash Equivalents and Short-Term Investments	2.13M	894.18K	1.51M	4.90M	1.52M	291.07K
Total Debt	142.28M	148.64M	141.17M	137.00M	140.47M	123.82M
Total Liabilities	208.50M	212.56M	203.00M	197.22M	210.41M	192.79M
Stockholders Equity	116.26M	108.14M	100.73M	93.09M	99.70M	88.89M
Cash Flow
Free Cash Flow	7.39M	-4.66M	-1.51M	-9.91M	-8.40M	-10.09M
Operating Cash Flow	28.65M	17.43M	23.80M	15.55M	11.57M	12.82M
Investing Cash Flow	-21.25M	-22.03M	-27.40M	-30.62M	-25.85M	-30.72M
Financing Cash Flow	-7.82M	3.98M	218.94K	18.44M	15.51M	16.56M

Rgc Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGCO, the sentiment is Negative. The current price of 21.51 is below the 20-day moving average (MA) of 21.82, below the 50-day MA of 21.77, and above the 200-day MA of 21.38, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGCO.

Rgc Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWN	73 Outperform	$1.92B	18.31	7.20%	4.18%	11.27%	20.04%
SR	69 Neutral	$4.85B	18.65	8.20%	3.82%	-4.50%	2.49%
RGCO	68 Neutral	$215.29M	16.15	11.98%	3.75%	12.63%	10.99%
SPH	68 Neutral	$1.23B	11.63	18.60%	6.97%	7.94%	43.23%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
OPAL	47 Neutral	$440.42M	119.52	―	―	7.03%	-86.15%
NFE	39 Underperform	$358.54M	-0.26	-96.21%	―	-27.23%	-634.60%

Rgc Resources Corporate Events

RGC Resources Discusses Q4 and Fiscal Year Results

RGC Resources, Inc. held a conference call with analysts to discuss its fourth quarter and fiscal year results ending September 30, 2025. The call aimed to provide insights into the company’s financial performance and operational outcomes, although specific details of the results were not disclosed in the release.

The most recent analyst rating on (RGCO) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Rgc Resources stock, see the RGCO Stock Forecast page.

RGC Resources Reports Fiscal Year Earnings Rise

RGC Resources, Inc. reported a significant rise in earnings for the fiscal year ending September 30, 2025, with a net income of $13.3 million compared to $11.8 million the previous year. This increase was driven by record gas deliveries and higher operating margins, despite challenges such as inflationary costs and reduced equity earnings from the Mountain Valley Pipeline. The company also experienced a net loss of $204,000 in the fourth quarter of 2025, attributed to seasonal factors and increased expenses.

The most recent analyst rating on (RGCO) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Rgc Resources stock, see the RGCO Stock Forecast page.