Rgc Resources Inc. (RGCO)
NASDAQ:RGCO
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Rgc Resources
(NASDAQ:RGCO)
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Rating:65Neutral
Price Target:
$23.50
▲(9.25% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by mid-range financial performance—solid utility-like profitability but constrained by leverage and modest cash-flow conversion. Valuation is a key positive with a reasonable P/E and attractive dividend yield, while technicals and recent corporate updates point to a steady but not strongly accelerating setup.
Positive Factors
Regulated local distribution utility model
As a regulated local distribution company, revenues are earned from tariffed delivery charges and customer fees with an allowed return on invested capital. This model yields predictable, utility-like cash flows, limited commodity exposure, and durable recovery mechanisms for prudently incurred costs.
Negative Factors
Elevated leverage limits flexibility
Sustained debt around 1.2x equity constrains financial flexibility, raising refinancing and covenant risk during adverse conditions. Higher leverage increases interest obligations and reduces headroom for discretionary investment, making the company more reliant on external funding for capex or unexpected cash needs.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated local distribution utility model
As a regulated local distribution company, revenues are earned from tariffed delivery charges and customer fees with an allowed return on invested capital. This model yields predictable, utility-like cash flows, limited commodity exposure, and durable recovery mechanisms for prudently incurred costs.
Read all positive factors
Rgc Resources (RGCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.02M
Dividend Yield3.75%
Average Volume (3M)10.72K
Price to Earnings (P/E)11.1
Beta (1Y)0.62
Revenue Growth12.63%
EPS Growth10.99%
CountryUS
Employees104
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.47
Shares Outstanding10,394,487
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 Cap1.63
Enterprise Value/Revenue4.03
Enterprise Value/Gross Profit13.72
Enterprise Value/Ebitda11.45
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 its regulated natural gas distribution business. Revenue is generated by delivering natural gas to end-use customers and billing them based on tariffed rate schedules approved by its state regulator, whi...
Rgc Resources Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The earnings call reflected a strong performance for fiscal 2025 with record gas delivery and increased net income, alongside strategic debt refinancing. However, there were challenges such as a seasonal loss in the fourth quarter and inflationary cost pressures. While the highlights indicate robust operational achievements, the presence of non-recurring gains and cost challenges balance out the sentiment.Positive Updates
Record Gas Delivery
Achieved a new gas delivery record with heating degree days up 18% and total volumes increased by 14% compared to last year.
Negative Updates
Seasonal Loss in Fourth Quarter
Experienced a net loss of $204,000 or $0.02 per share due to traditionally weaker fourth quarter and higher expenses from inflation.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Gas Delivery
Achieved a new gas delivery record with heating degree days up 18% and total volumes increased by 14% compared to last year.
Read all positive updates
Company Guidance
During the RGC Resources' 2025 Fourth Quarter and Year-end Results call, the guidance for the fiscal year 2026 was detailed with several key metrics and projections. The company plans to maintain a capital expenditure (CapEx) budget of $22 million, similar to previous years, focusing on system enhancements and renewals. Customer growth remains steady, averaging over 660 new customers per year, and the company expects the customer count to reach approximately 65,000 by the end of the second quarter of 2026. The fiscal year 2025 saw record gas deliveries, with total volumes increasing by 14% due to colder weather and higher consumption by an industrial customer, but these record volumes are not anticipated to recur in 2026. A new rate case filed in December seeks a $4.3 million increase in annual revenues, with new rates expected to take effect on January 1, 2026, although these are subject to future adjustments. Additionally, the company refinanced its debt related to the Mountain Valley Pipeline, extending maturity to 2032, and authorized a dividend increase to $0.87 per share, reflecting confidence in strong future performance.Rgc Resources Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 98.31M | 95.33M | 84.64M | 97.44M | 84.17M | 75.17M |
| Gross Profit | 28.90M | 21.38M | 30.29M | 29.77M | 26.15M | 25.49M |
| EBITDA | 34.64M | 35.39M | 32.48M | 30.40M | -29.46M | 26.58M |
| Net Income | 12.89M | 13.28M | 11.76M | 11.30M | -31.73M | 10.10M |
Balance Sheet | ||||||
| Total Assets | 341.04M | 329.84M | 320.70M | 303.73M | 290.31M | 310.11M |
| Cash, Cash Equivalents and Short-Term Investments | 2.66M | 2.32M | 894.18K | 1.51M | 4.90M | 1.52M |
| Total Debt | 156.19M | 148.96M | 148.64M | 141.17M | 137.00M | 140.47M |
| Total Liabilities | 224.61M | 216.29M | 212.56M | 203.00M | 197.22M | 210.41M |
| Stockholders Equity | 116.43M | 113.55M | 108.14M | 100.73M | 93.09M | 99.70M |
Cash Flow | ||||||
| Free Cash Flow | 8.58M | 8.22M | -4.66M | -1.51M | -9.91M | -8.40M |
| Operating Cash Flow | 29.20M | 28.95M | 17.43M | 23.80M | 15.55M | 11.57M |
| Investing Cash Flow | -21.17M | -20.73M | -22.03M | -27.40M | -30.62M | -25.85M |
| Financing Cash Flow | -7.48M | -6.79M | 3.98M | 218.94K | 18.44M | 15.51M |
Rgc Resources Technical Analysis
Positive
21.51
Price Trends
21.79
Positive
21.73
Positive
21.55
Positive
Market Momentum
0.10
Negative
67.17
Neutral
61.42
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 21.51 is below the 20-day moving average (MA) of 21.67, below the 50-day MA of 21.79, and below the 200-day MA of 21.55, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 61.42 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.29B | 16.85 | 7.78% | 4.18% | 11.27% | 20.04% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $243.02M | 11.15 | 11.11% | 3.75% | 12.63% | 10.99% | |
65 Neutral | $5.55B | 12.84 | 8.27% | 3.82% | -4.50% | 2.49% | |
65 Neutral | $1.34B | 6.81 | 20.91% | 6.97% | 7.94% | 43.23% | |
56 Neutral | $431.77M | 4.50 | -40.95% | ― | 7.03% | -86.15% | |
43 Neutral | $189.23M | -0.52 | -87.35% | ― | -27.23% | -634.60% |
* Utilities Sector Average
RGCO
Rgc Resources
23.38
1.78
8.26%
SR
Spire
93.90
22.27
31.10%
NWN
Northwest Gas
55.06
16.42
42.51%
SPH
Suburban Propane
20.22
1.64
8.83%
NFE
New Fortress Energy
0.67
-6.02
-90.04%
OPAL
OPAL Fuels
2.49
1.04
71.72%
Rgc Resources Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
RGC Resources Schedules Q1 2025 Results Conference Call
Neutral
Feb 10, 2026
RGC Resources, Inc. plans to host a conference call with analysts to review its operating results for the first quarter ended December 31, 2025, providing the investment community with direct commentary from management on recent financial performa...
Business Operations and StrategyFinancial Disclosures
RGC Resources Reports Lower Q1 Earnings Amid Cost Pressures
Negative
Feb 5, 2026
On February 5, 2026, RGC Resources, Inc. reported first-quarter 2026 consolidated earnings of $4.9 million, or $0.47 per share, for the period ended December 31, 2025, down from $5.3 million, or $0.51 per share, a year earlier, as flat margins and...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
RGC Resources refreshes board and appoints new leadership
Positive
Jan 28, 2026
At its annual shareholders meeting held on January 26, 2026, RGC Resources, Inc. shareholders elected Jacqueline L. Archer, Frank Russell Ellett and Robert B. Johnston as Class B directors for three-year terms ending in 2029, ratified Deloitte To...
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.