Ring Energy Inc. Common Stock (REI)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Mr. Market asks $1.36 for Ring Energy, a $354.3M market cap. FairStock calculates a P/B of 0.47, a negative P/E of -1.33, an ROE of -26.68%, ROCE of 2.62%, D/E of 0.48, and FCF yield of 5.7%. That is superficially cheap, but I have learned to distinguish a bargain from a deteriorating asset. Ring is an oil and gas producer, selling commodities it does not price. Its filed results are erratic: FY2023 net income $104.9M; FY2024 $67.5M; FY2025 net loss $34.7M. In fiscal Q1 2026, ended 2026-03-31, it reported a net loss of $220.6M, then in fiscal Q2 2026, ended 2026-06-30, net income of $64.8M on revenue of $104.7M. That is not stable owner earnings; it is commodity-driven volatility. The Piotroski F-Score of 3/9 and FairStock Score of 43/100 suggest weak financial quality. The balance sheet has debt, though D/E of 0.48 is not extreme. The Lynch category is TURNAROUND because of a loss in the latest year after earlier profits. Turnarounds can pay off if asset values are real and cash flow covers debt, but they demand a margin of safety. Here the margin may exist in book value, but book value in E&P depends on oil and gas price assumptions and write-downs. I would want evidence of consistent free cash flow, debt reduction, and reserve strength before trusting the low price. Until then, this looks more like a speculative commodity bet than a durable business.

In plain English: Ring Energy is a small oil and gas producer in Texas and New Mexico. Its sales and profits have been very up and down: it lost money in fiscal 2025, had a huge loss in early 2026, then a profit in the latest quarter. The stock price looks low compared with the value of its assets minus debts on paper, but the business looks weak and risky, so the cheap price may not be a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer