RPC Inc. Common Stock (RES)
Fast GrowerFairStock Score: 32/100 — RISKY
Key Financials
| Current Price | $6.92 |
| Market Cap | $1.7B |
| P/E Ratio | 76.89 |
| ROE | 1.92% |
| Dividend Yield | 2.35% |
| Sector | Energy |
Strengths
- Conservative balance sheet with debt-to-equity of just 0.07, providing financial flexibility
- Altman Z-Score of 4.5 confirms minimal bankruptcy risk and strong solvency
- Revenue growth of 27.0% demonstrates strong top-line momentum
- Attractive 2.1% dividend yield providing steady income returns
Concerns
- Trades significantly above Graham Number ($4) with negative 90% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
AI Analysis
RPC Inc. Common Stock is a micro-cap energy company valued at $1.7 billion. Revenue stands at $1.6 billion, though the company is currently unprofitable. From a quality standpoint, RPC shows healthy Altman Z-Score of 4.5 and modest 3% ROE. On valuation, the stock is commanding a steep 51.3x multiple, with trades above its Graham Number with a negative 90% margin. Growth dynamics show revenue growing at 27.0% and profit growth of -124.0%. The 2.1% dividend yield adds an income component for patient holders. Our composite FairStock Score of 32/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
RPC's 27% revenue growth trajectory could accelerate as it captures additional market share in the energy sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
At 51x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer