Ranger Energy Services Inc. Class A Common Stock (RNGR)

FairStock Score: 21/100 — RISKY

Key Financials

Strengths

• Generates $25 million in annual free cash flow (5.6% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.14, providing financial flexibility

Concerns

• Revenue declining at 0.6% year-over-year signals potential demand weakness or market share loss

AI Analysis

Ranger Energy Services Inc. Class A Common Stock is a micro-cap energy company valued at $442 million. The business generates $547 million in annual revenue with a 0.6% net margin and $25 million in free cash flow. From a quality standpoint, Ranger shows Altman Z-Score of 2.9 in the grey zone and modest 4% ROE. On valuation, the stock is trading at a premium 34.0x earnings, with trades above its Graham Number with a negative 48% margin. Growth dynamics show revenue growing at -0.6% and profit growth of -44.8%. The 1.3% dividend yield adds an income component for patient holders. Our composite FairStock Score of 21/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $25 million in annual free cash flow (5.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 34x 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