RGC Resources Inc. Common Stock (RGCO)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

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

I look for durable local monopolies, and RGC Resources is a small regulated gas distributor in Roanoke, Virginia, with about 1,184 miles of pipeline, LNG storage, and metering stations. That franchise gives it a narrow moat: customers need gas, and regulators allow a reasonable return, though 106 employees and a $236.8M market cap mean it lacks scale. The filed numbers show modest progress. In FY2025, the year ended 2025-09-30, revenue was $93.9M and net income $13.3M, or $1.29 per diluted share, versus FY2024 revenue of $80.5M and net income of $11.8M, or $1.16 per diluted share. In fiscal Q3 2026, the quarter ended 2026-06-30, revenue was $16.7M and net income $558,900, or $0.05 per diluted share, a slight improvement over fiscal Q3 2025. Still, the balance sheet and cash flow give me pause. FairStock calculations show debt-to-equity of 1.21, ROCE of only 3.61%, TTM free cash flow of $2.0M, and a free cash flow yield of 0.9%. The Altman Z-Score is 0.79, pointing to financial stress, and the Piotroski F-Score is 4/9. Valuation is not compelling: at the 2026-10-13 close of $22.73, the P/E is 16.84, P/B is 1.93, dividend yield is 4.03%, and the Graham Number of $18.92 leaves a negative margin of safety of -20.14%. I see a stable utility, but not a bargain.

In plain English: RGC Resources sells natural gas to homes and businesses in and around Roanoke, Virginia, and owns local pipelines and storage. The business is steady and pays a 4.03% dividend, but it has a lot of debt and very little spare cash. At $22.73, the shares look a bit pricey compared with the company's profits and net assets.

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

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

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