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Rgc Resources
(NASDAQ:RGCO)
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Rating:62Neutral
Price Target:
$23.50
▲(6.82% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily supported by steady financial performance (healthy margins, recovery from the 2022 loss, and improving free cash flow) and reasonable valuation with a ~4% dividend yield. It is held back by elevated leverage and weak technical momentum (below key moving averages with negative MACD), while the earnings call was mixed: narrowed guidance and rate/financing progress offset by LNG facility uncertainty, customer loss, and cost pressures.
Positive Factors
Regulated Rate Base Support
Regulated pricing and approved infrastructure recovery provide recurring revenue visibility. The settlement increases the company’s supported revenue base and helps offset operating costs, while future investment can expand rate base over time.
Negative Factors
Elevated Leverage
A high debt load reduces the equity cushion and increases sensitivity to refinancing costs and interest rates. Although leverage is common in utilities, it can constrain financial flexibility when capital spending or operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated Rate Base Support
Regulated pricing and approved infrastructure recovery provide recurring revenue visibility. The settlement increases the company’s supported revenue base and helps offset operating costs, while future investment can expand rate base over time.
Read all positive factors
Rgc Resources (RGCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$228.61M
Dividend Yield3.91%
Average Volume (3M)10.72K
Price to Earnings (P/E)16.0
Beta (1Y)0.56
Revenue Growth13.83%
EPS Growth3.21%
CountryUS
Employees106
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.37
Shares Outstanding10,419,556
10 Day Avg. Volume15,306
30 Day Avg. Volume10,721
Financial Highlights & Ratios
PEG Ratio1.55
Price to Book (P/B)2.04
Price to Sales (P/S)2.43
P/FCF Ratio28.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.31
Revenue Forecast (FY)$97.00M
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. It operates appr...
How the Company Makes Money
RGC Resources makes money primarily through regulated natural gas distribution service provided by its utility subsidiary. The core revenue stream is customer billing under state-regulated tariffs, which generally includes (1) distribution (delive...
Rgc Resources Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Positive
The call presented a mix of positive financial and operational developments (YTD EPS growth of 4.6%, narrowed EPS guidance, maintained CapEx plan, strong financing action, progressing MVP projects, and local economic tailwinds) alongside notable challenges (structural damage to the LNG facility requiring assessment and temporary replacement strategies, loss of a top-10 customer, softer residential/commercial volumes, and rising non-gas operating costs). On balance, the company demonstrated resilience — managing supply replacements, securing a constructive rate case settlement, and maintaining profitability and capital plans — while acknowledging near-term risks and uncertainties tied to the LNG asset and volume dynamics.Positive Updates
Year-to-Date Net Income and EPS Growth
Net income for the first 9 months of fiscal 2026 was $14.2 million, or $1.37 per diluted share, up from $1.31 per diluted share in the first 9 months of fiscal 2025 — a 4.6% increase in EPS year-over-year.
Negative Updates
Structural Damage at LNG Facility
The on-system LNG storage tank (in service since 1972, ~200,000 gallons) experienced structural damage/metal stress during Winter Storm Fern; no leaks or unsafe conditions reported, but the company is still assessing repair vs replacement options and has established a regulatory asset for related costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Year-to-Date Net Income and EPS Growth
Net income for the first 9 months of fiscal 2026 was $14.2 million, or $1.37 per diluted share, up from $1.31 per diluted share in the first 9 months of fiscal 2025 — a 4.6% increase in EPS year-over-year.
Read all positive updates
Company Guidance
Management narrowed FY2026 EPS guidance to $1.29–$1.32 (with a small Q4 loss expected), reiterated full‑year CapEx of $22.0M (YTD spend $16.1M, up ~2% vs. prior year), and expects on‑system LNG peak‑shaving capability restored for the 2027–2028 winter; they refinanced a $15M note (previously 2%) into a forward note and 3‑year swap fixed at 5.2%, invested just over $1M in Mountain Valley Pipeline projects (Boost to add ~30% capacity; Southgate in construction) while continuing to receive excess cash distributions, and established a regulatory asset for LNG costs; operational and financial metrics cited include 3.5 miles of new main and 464 new services YTD, 2.7 miles of renewed main and 322 renewed services (services +40%), delivered volumes YTD up ~1% (industrial +>25%, residential/commercial down despite HDDs +3%), Q3 net income ≈ $0.55M ($0.05/diluted share) and YTD net income $14.2M ($1.37/diluted share, +4.6% YoY), and a rate case that sought ~$4.3M incremental revenue but settled at $3.85M (rates effective Jan 1 subject to refund; $275k accrued for refunds as of June 30).Rgc Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.14M | 95.33M | 84.64M | 97.44M | 84.17M | 75.17M |
| Gross Profit | 33.78M | 32.85M | 30.29M | 29.77M | 26.15M | 25.49M |
| EBITDA | 36.48M | 35.39M | 32.48M | 30.40M | -29.46M | 26.03M |
| Net Income | 13.98M | 13.28M | 11.76M | 11.30M | -31.73M | 10.10M |
Balance Sheet | ||||||
| Total Assets | 339.66M | 329.84M | 320.70M | 303.73M | 290.31M | 310.11M |
| Cash, Cash Equivalents and Short-Term Investments | 2.47M | 2.32M | 894.18K | 1.51M | 4.90M | 1.52M |
| Total Debt | 148.80M | 148.96M | 148.64M | 141.17M | 137.00M | 140.47M |
| Total Liabilities | 216.78M | 216.29M | 212.56M | 203.00M | 197.22M | 210.41M |
| Stockholders Equity | 122.87M | 113.55M | 108.14M | 100.73M | 93.09M | 99.70M |
Cash Flow | ||||||
| Free Cash Flow | 2.02M | 8.22M | -4.66M | -1.51M | -9.91M | -8.40M |
| Operating Cash Flow | 23.08M | 28.95M | 17.43M | 23.80M | 15.55M | 11.57M |
| Investing Cash Flow | -22.04M | -20.73M | -22.03M | -27.40M | -30.62M | -25.85M |
| Financing Cash Flow | -701.56K | -6.79M | 3.98M | 218.94K | 18.44M | 15.51M |
Rgc Resources Technical Analysis
Negative
22.00
Price Trends
23.00
Negative
22.79
Negative
22.04
Negative
Market Momentum
-0.27
Negative
47.06
Neutral
70.79
Neutral
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 22 is above the 20-day moving average (MA) of 21.76, below the 50-day MA of 23.00, and below the 200-day MA of 22.04, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.18B | 8.99 | 19.49% | 7.00% | -2.48% | 31.10% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $228.61M | 16.05 | 11.73% | 3.91% | 13.83% | 3.21% | |
60 Neutral | $2.10B | 16.44 | 8.34% | 3.81% | 4.41% | 19.03% | |
55 Neutral | $4.92B | 9.31 | 21.42% | 3.95% | 4.12% | 93.82% | |
55 Neutral | $372.23M | -162.69 | 256.80% | ― | 3.38% | -124.91% | |
40 Underperform | $81.92M | -0.04 | -1737.94% | ― | -37.46% | -77.39% |
* Utilities Sector Average
RGCO
Rgc Resources
21.99
0.56
2.62%
SR
Spire
83.66
9.72
13.14%
NWN
Northwest Gas
50.39
10.54
26.43%
SPH
Suburban Propane
17.72
0.28
1.59%
NFE
New Fortress Energy
0.29
-2.31
-88.88%
OPAL
OPAL Fuels
2.18
-0.13
-5.63%
Rgc Resources Corporate Events
Financial DisclosuresRegulatory Filings and Compliance
RGC Resources Reviews Third-Quarter 2026 Operating Results
Neutral
Aug 7, 2026
RGC Resources, Inc. held a conference call with analysts to review and discuss its operating results for the third quarter ended June 30, 2026, providing the investment community with an update on the company’s recent financial performance. ...
Business Operations and StrategyFinancial Disclosures
RGC Resources Posts Slightly Higher Third-Quarter Earnings
Positive
Aug 5, 2026
On August 5, 2026, RGC Resources reported consolidated earnings of $559,000, or $0.05 per diluted share, for the third quarter ended June 30, 2026, slightly above the $538,000, or $0.05 per diluted share, earned in the same period of 2025. Operati...
Business Operations and StrategyPrivate Placements and Financing
RGC Resources Establishes New $15 Million Term Loan
Positive
Jun 4, 2026
On June 2, 2026, Roanoke Gas Company entered into an unsecured delayed-draw $15 million promissory note with Pinnacle Bank under an existing loan agreement, allowing draws through Sept. 20, 2026, with the company planning a full draw on Aug. 20, 2...
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.