RPC Inc (RES, Financial), a prominent player in the Oil & Gas industry, has seen a significant surge in its stock price over the past three months. As of October 9, 2023, the company's stock price stands at $8.83, reflecting an 18.03% increase over the past quarter. However, the past week has seen a slight dip of 5.93%. With a market cap of $1.91 billion, the company's current GF Value is $10.49, indicating that it is modestly undervalued. This is a shift from three months ago when the GF Value was $11.06, suggesting a possible value trap.
Unveiling RPC Inc: A Leader in Oilfield Services
RPC Inc operates in the Oil & Gas industry, providing specialized oilfield services and equipment primarily to independent and major oil and gas companies. These companies are engaged in the exploration, production, and development of oil and gas properties throughout the United States. RPC Inc's operations are divided into two segments: Technical Services and Support Services. The Technical Services segment, which generates the majority of the company's revenue, offers a range of services including pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, and fishing. The Support Services segment provides drill pipe and related tools, pipe handling, pipe inspection and storage services, and oilfield training and consulting services.
Profitability Analysis: A Strong Contender in the Industry
RPC Inc's Profitability Rank stands at 6/10, indicating a relatively high level of profitability compared to other companies in the industry. The company's Operating Margin is 20.20%, better than 67.72% of the companies in the industry. Furthermore, the company's ROE is 34.43%, ROA is 26.31%, and ROIC is 32.88%, all of which are better than a majority of companies in the industry. Over the past 10 years, the company has had 6 profitable years, better than 59.18% of the companies.
Growth Prospects: A Slow but Steady Climb
Despite its strong profitability, RPC Inc's Growth Rank is 2/10, indicating low growth. However, the company's 3-year revenue growth rate per share is 9.20%, better than 47.09% of the companies in the industry. On the other hand, the 5-year revenue growth rate per share is -7.50%, which is better than 19.82% of the companies.
Top Holders of RPC Inc's Stock
The top three holders of RPC Inc's stock are Mario Gabelli (Trades, Portfolio), Chuck Royce (Trades, Portfolio), and First Eagle Investment (Trades, Portfolio). Mario Gabelli (Trades, Portfolio) holds 3,081,842 shares, accounting for 1.42% of the company's stock. Chuck Royce (Trades, Portfolio) holds 1,101,600 shares, representing 0.51% of the stock. First Eagle Investment (Trades, Portfolio) holds 281,499 shares, accounting for 0.13% of the stock.
Competitive Landscape: A Close Race in the Oil & Gas Industry
RPC Inc faces stiff competition from other companies in the Oil & Gas industry. Archrock Inc (AROC, Financial) has a market cap of $2 billion, Helix Energy Solutions Group Inc (HLX, Financial) has a market cap of $1.56 billion, and ProFrac Holding Corp (ACDC, Financial) has a market cap of $1.49 billion.
Conclusion: A Potential Investment Opportunity
In conclusion, RPC Inc's stock has shown a significant increase over the past three months, despite a slight dip in the past week. The company's strong profitability, as indicated by its Profitability Rank and various profitability ratios, makes it a strong contender in the Oil & Gas industry. However, its low Growth Rank suggests that the company's growth prospects may be limited. Despite this, the company's stock is held by top investors such as Mario Gabelli (Trades, Portfolio), Chuck Royce (Trades, Portfolio), and First Eagle Investment (Trades, Portfolio), indicating their confidence in the company's potential. Therefore, based on the analyzed data, RPC Inc's stock could be a potential investment opportunity for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
