Rgc Resources Inc. (RGCO)
NASDAQ:RGCO
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Rgc Resources
(NASDAQ:RGCO)
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Rating:68Neutral
Price Target:
$24.00
▲(11.58% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by stable-to-improving financial performance (profitability and growth, but with leverage and cash-conversion risks) and an attractive valuation (low P/E and solid dividend yield). Technicals are mixed/neutral, and the latest earnings call added balanced but meaningful operational and refinancing uncertainties (volume declines, LNG facility outage, and a major customer headwind).
Positive Factors
Regulatory rate-base recovery
An active expedited rate case seeking meaningful incremental revenue and a 9.9% ROE supports durable cash flows and recovery of infrastructure investments. Interim rates effective Jan 1, 2026 provide near-term revenue support and strengthen the utility's long-term ability to pass costs to customers.
Negative Factors
Volume declines & customer concentration
A large industrial customer's idling materially lowers delivered volumes and highlights concentration risk. For a distribution utility, persistent lost industrial demand reduces fixed-cost recovery, increases volumetric sensitivity of earnings, and may pressure rates or margins until load is restored or replaced.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulatory rate-base recovery
An active expedited rate case seeking meaningful incremental revenue and a 9.9% ROE supports durable cash flows and recovery of infrastructure investments. Interim rates effective Jan 1, 2026 provide near-term revenue support and strengthen the utility's long-term ability to pass costs to customers.
Read all positive factors
Rgc Resources (RGCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.16M
Dividend Yield3.75%
Average Volume (3M)10.72K
Price to Earnings (P/E)6.4
Beta (1Y)0.55
Revenue Growth17.51%
EPS Growth5.98%
CountryUS
Employees104
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)1.37
Shares Outstanding10,407,156
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 Cap1.61
Enterprise Value/Revenue3.52
Enterprise Value/Gross Profit12.39
Enterprise Value/Ebitda10.96
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. The company also...
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:May 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Neutral
The call contained a mix of positive near-term financial performance and notable operational challenges. Highlights include a robust Q2 with 14% EPS growth, improved margins from new rates and affiliate earnings, steady construction activity, and active steps to refinance impending debt. Significant lowlights are a 5% decline in quarterly volumes (3% YTD), the idling of a top-five industrial customer that materially reduced industrial usage, and damage to the LNG peak-shaving facility that will be unavailable next winter with unknown repair costs. Given the combination of strong recent results and meaningful operational and regulatory risks, the tone is balanced.Positive Updates
Quarterly Net Income and EPS Growth
Net income for Q2 was $8.7 million, or $0.84 per diluted share, up from $7.4 million, or $0.74 per diluted share a year ago, a 14% increase in EPS.
Negative Updates
Decline in Delivered Gas Volumes (Quarter)
Total delivered volumes in the quarter were down 5% year-over-year; residential and commercial volumes were both down 5%. Heating degree days for the quarter were down 2% versus prior year.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Net Income and EPS Growth
Net income for Q2 was $8.7 million, or $0.84 per diluted share, up from $7.4 million, or $0.74 per diluted share a year ago, a 14% increase in EPS.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance with an updated EPS range of $1.31–$1.37 and a capital spending forecast of $22.0 million (YTD CapEx $9.8M, down ~8% vs. prior year), noted an expedited Roanoke Gas rate case seeking ~$4.3M of incremental annual revenue based on a 9.9% authorized ROE (interim rates effective 1/1/2026 subject to refund; hearing 7/15/2026; final resolution by year‑end), and flagged a $15.0M Roanoke note maturing in August that management expects to refinance; operational metrics included 2.7 main miles installed, 340 new service connections (vs. 359 in 2025), 1.5 miles of main renewed and 190 service renewals (service renewals up ~25%), delivered gas volumes down 5% in the quarter (residential and commercial down 5%; heating degree days down 2%) and down 3% year‑to‑date (HDDs +3%), while Q2 net income was $8.7M ($0.84 diluted, +14% y/y) and six‑month net income was $13.6M ($1.31 diluted, +5.3%); management also disclosed the LNG peak‑shaving facility will be unavailable next winter with remediation costs and potential regulatory asset treatment still undetermined.Rgc Resources Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 107.30M | 95.33M | 84.64M | 97.44M | 84.17M | 75.17M |
| Gross Profit | 30.49M | 21.38M | 30.29M | 29.77M | 26.15M | 25.49M |
| EBITDA | 34.47M | 35.39M | 32.48M | 30.40M | -29.46M | 26.58M |
| Net Income | 13.96M | 13.28M | 11.76M | 11.30M | -31.73M | 10.10M |
Balance Sheet | ||||||
| Total Assets | 337.10M | 329.84M | 320.70M | 303.73M | 290.31M | 310.11M |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 2.32M | 894.18K | 1.51M | 4.90M | 1.52M |
| Total Debt | 147.11M | 148.96M | 148.64M | 141.17M | 137.00M | 140.47M |
| Total Liabilities | 213.02M | 216.29M | 212.56M | 203.00M | 197.22M | 210.41M |
| Stockholders Equity | 124.08M | 113.55M | 108.14M | 100.73M | 93.09M | 99.70M |
Cash Flow | ||||||
| Free Cash Flow | 3.73M | 8.22M | -4.66M | -1.51M | -9.91M | -8.40M |
| Operating Cash Flow | 23.58M | 28.95M | 17.43M | 23.80M | 15.55M | 11.57M |
| Investing Cash Flow | -20.54M | -20.73M | -22.03M | -27.40M | -30.62M | -25.85M |
| Financing Cash Flow | -1.81M | -6.79M | 3.98M | 218.94K | 18.44M | 15.51M |
Rgc Resources Technical Analysis
Neutral
21.51
Price Trends
22.27
Positive
21.83
Positive
21.63
Positive
Market Momentum
0.14
Positive
48.21
Neutral
44.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGCO, the sentiment is Neutral. The current price of 21.51 is below the 20-day moving average (MA) of 22.92, below the 50-day MA of 22.27, and below the 200-day MA of 21.63, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 48.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.35B | 2.47 | 20.40% | 6.97% | -2.19% | 37.18% | |
68 Neutral | $234.16M | 6.42 | 11.87% | 3.75% | 17.51% | 5.98% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | $5.14B | 4.73 | 10.45% | 3.82% | 4.53% | 40.51% | |
52 Neutral | $2.10B | 5.58 | 8.27% | 4.18% | 5.90% | 16.54% | |
52 Neutral | $374.54M | 2.59 | -346.00% | ― | 4.01% | 163.93% | |
42 Neutral | $181.09M | -0.11 | -379.42% | ― | -41.65% | -234.82% |
* Utilities Sector Average
RGCO
Rgc Resources
22.50
2.44
12.17%
SR
Spire
86.99
15.30
21.35%
NWN
Northwest Gas
49.93
10.87
27.84%
SPH
Suburban Propane
20.29
2.39
13.33%
NFE
New Fortress Energy
0.63
-2.16
-77.28%
OPAL
OPAL Fuels
2.16
-0.97
-30.99%
Rgc Resources Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
RGC Resources Updates Investor Presentation for Market Transparency
Positive
May 18, 2026
RGC Resources, Inc. has updated the investor presentation used in meetings with analysts, investors and other members of the financial community, and will make the revised slide deck available on its corporate website. The move reflects an effort ...
Financial DisclosuresRegulatory Filings and Compliance
RGC Resources Schedules Second-Quarter 2026 Earnings Call
Neutral
May 8, 2026
RGC Resources, Inc. said it will host a conference call with analysts to review operating results for its second quarter ended March 31, 2026, signaling its regular practice of engaging the financial community around key reporting periods. The com...
Business Operations and StrategyFinancial Disclosures
RGC Resources Posts Strong Second-Quarter 2026 Earnings Growth
Positive
May 6, 2026
RGC Resources, Inc. reported stronger results for the second quarter ended March 31, 2026, with consolidated earnings rising to $8.7 million, or $0.84 per diluted share, from $7.7 million, or $0.74 per diluted share, a year earlier. The improvemen...
Business Operations and StrategyPrivate Placements and Financing
RGC Resources Extends Private Shelf Facility Borrowing Capacity
Positive
Apr 1, 2026
On March 30, 2026, Roanoke Gas Company, the utility subsidiary of RGC Resources, amended its long-standing private shelf facility with PGIM, Inc., extending its borrowing capacity for an additional three years through March 31, 2029, subject to ei...
Business Operations and StrategyPrivate Placements and Financing
RGC Resources Extends Revolving Credit Facility with Pinnacle Bank
Positive
Mar 19, 2026
On March 17, 2026, Roanoke Gas Company amended and restated its revolving promissory note and entered into a third amendment to its loan agreement with Pinnacle Bank, extending the maturity date of the revolving facility to March 31, 2028. The ame...
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.