RPC, Inc. (RES)
Energy · NYQ · US
Fundamentals
Valuation and ratings
RPC, Inc. trades at USD5.84, close to the USD5.03 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 32 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 64.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About RPC, Inc.
RPC, Inc., together with its subsidiaries, engages provision of a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services segment offers pressure pumping, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, and fishing services that are used in the completion, production, and maintenance of wells, as well as well control training. The Support Services segment provides a range of rental tools drill pipe and related tools, as well as pipe handling, pipe inspection and storage services. It rents its tools for use with onshore and offshore oil and gas well drilling, completion, and workover activities. It operates in Africa, Canada, Argentina, Mexico, Latin America, and the Middle East. The company was incorporated in 1984 and is headquartered in Atlanta, Georgia.
RES passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Smart money ownership
5 of the funds we track reported a position in their latest SEC 13F filing. Largest first:
- Two Sigma, TWO SIGMA INVESTMENTS, LP$17.71M · 0.0% of book
- Ken Griffin, CITADEL ADVISORS LLC$2.76M · 0.0% of book
- First Eagle, First Eagle Investment Management, LLC$2.39M · 0.0% of book
- Cliff Asness, AQR CAPITAL MANAGEMENT LLC$2.04M · 0.0% of book
- Israel Englander, MILLENNIUM MANAGEMENT LLC$1.96M · 0.0% of book
A word of warning on reading these figures: a 13F reports the market value of a holding, so a fund that traded nothing at all still appears to have sold when the price fell. We found 102 companies where the standard reading gives the opposite answer. Only the share count is honest.
Common questions
Is RPC, Inc. (RES) undervalued?
Against our discounted cash flow estimate of USD5.03, RES at USD5.84 is 14% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
Which funds own RES?
5 of the institutions we track reported a position in RES in their most recent SEC 13F filing. A 13F is filed up to 45 days after quarter end, so it tells you what a fund held then, not what it holds now.
What is RES's P/E ratio?
RES trades at 64.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.