Rgc Resources (RGCO) AI Stock Analysis

• Market Cap: $234.91M
• Dividend Yield: 3.62%
• Average Volume (3M): 18.98K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.81
• Revenue Growth: 12.04%
• EPS Growth: 5.89%
• Country: US
• Employees: 104
• Sector: Utilities
• Sector Strength: 62
• Industry: Regulated Gas
• EPS (TTM): 0.05
• Shares Outstanding: 10,325,514
• 10 Day Avg. Volume: 16,151
• 30 Day Avg. Volume: 18,984
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 11.18
• Enterprise Value/Ebitda: 10.62
• 1Y Price Target: $23.50
• Price Target Upside: 3.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $23.50 ▲(3.30% Upside)

RGC Resources' overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth and strategic investments. Technical analysis and valuation provide a stable outlook, though some risks remain due to liabilities and anticipated Q4 losses.

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 shows solid financial performance with consistent revenue growth and strong profitability metrics. The balance sheet is well-managed with moderate leverage, and cash flow indicators have improved significantly, enhancing financial stability. However, some risks are present due to liabilities.

Income Statement

Rgc Resources has demonstrated consistent revenue growth with a 7.9% increase from the previous period. The company maintains a solid gross profit margin of 36.41% for the TTM period. The net profit margin also showed improvement at 14.5%, indicating strong profitability. The EBIT and EBITDA margins are healthy at 21.38% and 38.31% respectively, reflecting efficient operations. However, the revenue has shown some fluctuations in prior periods, which could indicate market volatility.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.20, suggesting a balanced approach to leverage. The return on equity (ROE) stands at 11.24% for the TTM period, indicating effective management of shareholder funds. An equity ratio of 36.09% reflects a stable financial structure, although the company carries significant liabilities which could pose risks under adverse conditions.

Cash Flow

Rgc Resources exhibits strong cash flow from operations with an operating cash flow to net income ratio of 2.12, signifying robust cash generation relative to profits. The free cash flow growth rate has turned positive, showing a substantial improvement from the previous negative figures, which enhances financial flexibility. The free cash flow to net income ratio is 0.50, highlighting a positive but cautious cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2019
Income Statement
Total Revenue	91.31M	84.64M	97.44M	84.17M	75.17M	68.03M
Gross Profit	33.25M	30.29M	29.77M	26.15M	25.49M	21.12M
EBITDA	34.98M	32.48M	30.40M	-29.46M	24.00M	19.19M
Net Income	13.24M	11.76M	11.30M	-31.73M	10.10M	8.70M
Balance Sheet
Total Assets	326.42M	320.70M	303.73M	290.31M	310.11M	258.35M
Cash, Cash Equivalents and Short-Term Investments	2.15M	894.18K	1.51M	4.90M	1.52M	1.63M
Total Debt	141.83M	148.64M	141.17M	135.70M	133.47M	103.37M
Total Liabilities	208.59M	212.56M	203.00M	197.22M	210.41M	175.26M
Stockholders Equity	117.83M	108.14M	100.73M	93.09M	99.70M	83.10M
Cash Flow
Free Cash Flow	6.56M	-4.66M	-1.51M	-9.91M	-8.40M	-7.19M
Operating Cash Flow	28.07M	17.43M	23.80M	15.55M	11.57M	14.70M
Investing Cash Flow	-21.46M	-22.03M	-27.40M	-30.62M	-25.85M	-42.83M
Financing Cash Flow	-6.47M	3.98M	218.94K	18.44M	15.51M	29.52M

Rgc Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 22.75 is above the 20-day moving average (MA) of 22.02, above the 50-day MA of 21.73, and above the 200-day MA of 20.74, indicating a bullish trend. The MACD of 0.29 indicates Negative momentum. The RSI at 58.72 is Neutral, neither overbought nor oversold. The STOCH value of 60.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGCO.

Rgc Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGCO	71 Outperform	$234.91M	16.87	12.11%	3.62%	12.04%	5.89%
CPK	71 Outperform	$2.90B	21.97	9.25%	2.09%	19.02%	20.13%
SR	71 Outperform	$4.43B	16.19	8.37%	4.14%	-6.65%	11.47%
NWN	71 Outperform	$1.70B	16.37	7.36%	4.72%	8.40%	17.90%
SPH	68 Neutral	$1.21B	12.45	15.50%	7.05%	6.29%	-1.67%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
OPAL	52 Neutral	$384.94M	38.81	-8.53%	―	12.15%	-22.09%

Rgc Resources Corporate Events

RGC Resources Discusses Q3 2025 Operating Results

RGC Resources, Inc. held a conference call with analysts to discuss its third-quarter operating results for the period ending June 30, 2025. The call’s information was provided as Exhibit 99.1, and it was clarified that this information is not considered filed under the Securities Exchange Act of 1934, nor incorporated by reference under the Securities Act of 1933, unless explicitly stated.

RGC Resources Reports Strong Q3 Earnings Growth

RGC Resources, Inc. reported a significant increase in its third-quarter earnings for the period ending June 30, 2025, with consolidated earnings of $538,412, or $0.05 per share, compared to $156,692, or $0.02 per share, in the same quarter of the previous year. This growth was primarily driven by higher earnings from its investment in the Mountain Valley Pipeline, LLC, and improved operating margins. The company’s net income for the first nine months of fiscal 2025 rose by 16% compared to the previous year, highlighting the positive impact of strategic investments and operational performance.