Intrinsic value of RPC - RES

Previous Close

$22.64

  Intrinsic Value

$0.88

stock screener

  Rating & Target

str. sell

-96%

  Value-price divergence*

-37%

Previous close

$22.64

 
Intrinsic value

$0.88

 
Up/down potential

-96%

 
Rating

str. sell

 
Value-price divergence*

-37%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of RES stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 5.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -42.33
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  729
  1,166
  1,802
  2,695
  3,910
  5,517
  7,585
  10,181
  13,368
  17,201
  21,726
  26,979
  32,985
  39,758
  47,304
  55,621
  64,700
  74,529
  85,092
  96,371
  108,350
  121,012
  134,346
  148,339
  162,987
  178,287
  194,241
  210,856
  228,142
  246,116
  264,798
Variable operating expenses, $m
 
  984
  1,518
  2,269
  3,290
  4,641
  6,379
  8,561
  11,240
  14,463
  18,267
  22,679
  27,727
  33,421
  39,764
  46,755
  54,388
  62,650
  71,529
  81,011
  91,080
  101,724
  112,932
  124,696
  137,009
  149,870
  163,281
  177,248
  191,779
  206,888
  222,592
Fixed operating expenses, $m
 
  370
  379
  389
  398
  408
  419
  429
  440
  451
  462
  474
  486
  498
  510
  523
  536
  549
  563
  577
  592
  606
  621
  637
  653
  669
  686
  703
  721
  739
  757
Total operating expenses, $m
  968
  1,354
  1,897
  2,658
  3,688
  5,049
  6,798
  8,990
  11,680
  14,914
  18,729
  23,153
  28,213
  33,919
  40,274
  47,278
  54,924
  63,199
  72,092
  81,588
  91,672
  102,330
  113,553
  125,333
  137,662
  150,539
  163,967
  177,951
  192,500
  207,627
  223,349
Operating income, $m
  -239
  -187
  -95
  38
  222
  468
  787
  1,190
  1,688
  2,288
  2,998
  3,827
  4,772
  5,839
  7,030
  8,343
  9,777
  11,330
  13,000
  14,783
  16,678
  18,682
  20,792
  23,007
  25,326
  27,748
  30,274
  32,905
  35,643
  38,490
  41,449
EBITDA, $m
  -18
  6
  201
  479
  861
  1,368
  2,023
  2,849
  3,864
  5,088
  6,534
  8,213
  10,135
  12,304
  14,721
  17,387
  20,297
  23,448
  26,836
  30,453
  34,296
  38,358
  42,636
  47,127
  51,827
  56,737
  61,858
  67,190
  72,739
  78,508
  84,505
Interest expense (income), $m
  0
  0
  5
  12
  21
  35
  52
  75
  103
  138
  180
  229
  287
  353
  427
  509
  600
  699
  807
  922
  1,045
  1,176
  1,315
  1,460
  1,613
  1,773
  1,941
  2,115
  2,297
  2,485
  2,682
Earnings before tax, $m
  -239
  -187
  -100
  26
  200
  433
  735
  1,115
  1,584
  2,150
  2,818
  3,597
  4,485
  5,487
  6,603
  7,834
  9,177
  10,631
  12,193
  13,861
  15,633
  17,506
  19,477
  21,546
  23,712
  25,974
  28,333
  30,790
  33,346
  36,004
  38,767
Tax expense, $m
  -98
  0
  0
  7
  54
  117
  198
  301
  428
  580
  761
  971
  1,211
  1,481
  1,783
  2,115
  2,478
  2,870
  3,292
  3,743
  4,221
  4,727
  5,259
  5,818
  6,402
  7,013
  7,650
  8,313
  9,003
  9,721
  10,467
Net income, $m
  -141
  -187
  -100
  19
  146
  316
  536
  814
  1,157
  1,569
  2,057
  2,626
  3,274
  4,005
  4,820
  5,718
  6,699
  7,760
  8,901
  10,119
  11,412
  12,779
  14,218
  15,729
  17,310
  18,961
  20,683
  22,477
  24,343
  26,283
  28,300

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  132
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  1,035
  1,445
  2,233
  3,340
  4,846
  6,836
  9,398
  12,615
  16,565
  21,315
  26,922
  33,432
  40,873
  49,266
  58,617
  68,923
  80,174
  92,354
  105,443
  119,419
  134,263
  149,953
  166,475
  183,816
  201,967
  220,926
  240,695
  261,283
  282,704
  304,977
  328,126
Adjusted assets (=assets-cash), $m
  903
  1,445
  2,233
  3,340
  4,846
  6,836
  9,398
  12,615
  16,565
  21,315
  26,922
  33,432
  40,873
  49,266
  58,617
  68,923
  80,174
  92,354
  105,443
  119,419
  134,263
  149,953
  166,475
  183,816
  201,967
  220,926
  240,695
  261,283
  282,704
  304,977
  328,126
Revenue / Adjusted assets
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
  0.807
Average production assets, $m
  593
  948
  1,465
  2,191
  3,179
  4,485
  6,166
  8,277
  10,868
  13,985
  17,664
  21,934
  26,817
  32,323
  38,458
  45,220
  52,601
  60,592
  69,180
  78,350
  88,088
  98,383
  109,223
  120,600
  132,509
  144,948
  157,918
  171,426
  185,480
  200,092
  215,281
Working capital, $m
  378
  393
  607
  908
  1,318
  1,859
  2,556
  3,431
  4,505
  5,797
  7,322
  9,092
  11,116
  13,398
  15,941
  18,744
  21,804
  25,116
  28,676
  32,477
  36,514
  40,781
  45,274
  49,990
  54,927
  60,083
  65,459
  71,058
  76,884
  82,941
  89,237
Total debt, $m
  0
  136
  335
  614
  993
  1,495
  2,140
  2,951
  3,946
  5,143
  6,556
  8,197
  10,072
  12,187
  14,543
  17,141
  19,976
  23,045
  26,344
  29,866
  33,606
  37,560
  41,724
  46,094
  50,668
  55,445
  60,427
  65,615
  71,013
  76,626
  82,460
Total liabilities, $m
  229
  364
  563
  842
  1,221
  1,723
  2,368
  3,179
  4,174
  5,371
  6,784
  8,425
  10,300
  12,415
  14,771
  17,369
  20,204
  23,273
  26,572
  30,094
  33,834
  37,788
  41,952
  46,322
  50,896
  55,673
  60,655
  65,843
  71,241
  76,854
  82,688
Total equity, $m
  807
  1,081
  1,670
  2,498
  3,624
  5,114
  7,030
  9,436
  12,390
  15,944
  20,138
  25,007
  30,573
  36,851
  43,845
  51,554
  59,970
  69,081
  78,871
  89,326
  100,428
  112,165
  124,524
  137,494
  151,071
  165,253
  180,040
  195,440
  211,463
  228,123
  245,438
Total liabilities and equity, $m
  1,036
  1,445
  2,233
  3,340
  4,845
  6,837
  9,398
  12,615
  16,564
  21,315
  26,922
  33,432
  40,873
  49,266
  58,616
  68,923
  80,174
  92,354
  105,443
  119,420
  134,262
  149,953
  166,476
  183,816
  201,967
  220,926
  240,695
  261,283
  282,704
  304,977
  328,126
Debt-to-equity ratio
  0.000
  0.130
  0.200
  0.250
  0.270
  0.290
  0.300
  0.310
  0.320
  0.320
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.330
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
  0.340
Adjusted equity ratio
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748
  0.748

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -141
  -187
  -100
  19
  146
  316
  536
  814
  1,157
  1,569
  2,057
  2,626
  3,274
  4,005
  4,820
  5,718
  6,699
  7,760
  8,901
  10,119
  11,412
  12,779
  14,218
  15,729
  17,310
  18,961
  20,683
  22,477
  24,343
  26,283
  28,300
Depreciation, amort., depletion, $m
  221
  193
  296
  441
  639
  900
  1,236
  1,659
  2,177
  2,800
  3,536
  4,387
  5,363
  6,465
  7,692
  9,044
  10,520
  12,118
  13,836
  15,670
  17,618
  19,677
  21,845
  24,120
  26,502
  28,990
  31,584
  34,285
  37,096
  40,018
  43,056
Funds from operations, $m
  156
  6
  196
  460
  785
  1,216
  1,773
  2,473
  3,333
  4,369
  5,593
  7,013
  8,637
  10,470
  12,512
  14,762
  17,219
  19,879
  22,737
  25,789
  29,030
  32,456
  36,063
  39,849
  43,812
  47,951
  52,267
  56,762
  61,439
  66,302
  71,356
Change in working capital, $m
  54
  147
  214
  301
  410
  541
  697
  875
  1,074
  1,292
  1,525
  1,770
  2,024
  2,282
  2,543
  2,803
  3,060
  3,312
  3,560
  3,801
  4,037
  4,267
  4,493
  4,716
  4,936
  5,156
  5,376
  5,599
  5,826
  6,057
  6,296
Cash from operations, $m
  102
  -142
  -18
  159
  376
  675
  1,076
  1,598
  2,259
  3,077
  4,068
  5,242
  6,614
  8,187
  9,969
  11,960
  14,160
  16,567
  19,177
  21,988
  24,993
  28,188
  31,570
  35,133
  38,875
  42,795
  46,891
  51,163
  55,613
  60,244
  65,060
Maintenance CAPEX, $m
  0
  -119
  -190
  -293
  -438
  -636
  -897
  -1,233
  -1,655
  -2,174
  -2,797
  -3,533
  -4,387
  -5,363
  -6,465
  -7,692
  -9,044
  -10,520
  -12,118
  -13,836
  -15,670
  -17,618
  -19,677
  -21,845
  -24,120
  -26,502
  -28,990
  -31,584
  -34,285
  -37,096
  -40,018
New CAPEX, $m
  -34
  -356
  -517
  -726
  -988
  -1,306
  -1,681
  -2,111
  -2,591
  -3,116
  -3,679
  -4,271
  -4,882
  -5,506
  -6,135
  -6,762
  -7,382
  -7,991
  -8,587
  -9,170
  -9,739
  -10,295
  -10,840
  -11,377
  -11,909
  -12,439
  -12,971
  -13,508
  -14,054
  -14,613
  -15,188
Cash from investing activities, $m
  -21
  -475
  -707
  -1,019
  -1,426
  -1,942
  -2,578
  -3,344
  -4,246
  -5,290
  -6,476
  -7,804
  -9,269
  -10,869
  -12,600
  -14,454
  -16,426
  -18,511
  -20,705
  -23,006
  -25,409
  -27,913
  -30,517
  -33,222
  -36,029
  -38,941
  -41,961
  -45,092
  -48,339
  -51,709
  -55,206
Free cash flow, $m
  81
  -616
  -724
  -860
  -1,051
  -1,267
  -1,502
  -1,746
  -1,987
  -2,213
  -2,408
  -2,561
  -2,656
  -2,682
  -2,631
  -2,494
  -2,266
  -1,945
  -1,529
  -1,018
  -416
  276
  1,053
  1,911
  2,847
  3,854
  4,930
  6,072
  7,274
  8,536
  9,854
Issuance/(repayment) of debt, $m
  0
  136
  199
  279
  380
  502
  646
  811
  995
  1,197
  1,413
  1,640
  1,875
  2,115
  2,356
  2,597
  2,835
  3,069
  3,298
  3,522
  3,741
  3,954
  4,164
  4,370
  4,574
  4,778
  4,982
  5,188
  5,398
  5,613
  5,834
Issuance/(repurchase) of shares, $m
  -3
  593
  689
  809
  980
  1,173
  1,380
  1,592
  1,798
  1,984
  2,138
  2,243
  2,292
  2,272
  2,174
  1,991
  1,717
  1,350
  889
  336
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -3
  729
  888
  1,088
  1,360
  1,675
  2,026
  2,403
  2,793
  3,181
  3,551
  3,883
  4,167
  4,387
  4,530
  4,588
  4,552
  4,419
  4,187
  3,858
  3,741
  3,954
  4,164
  4,370
  4,574
  4,778
  4,982
  5,188
  5,398
  5,613
  5,834
Total cash flow (excl. dividends), $m
  78
  114
  163
  228
  309
  408
  524
  657
  806
  968
  1,142
  1,322
  1,512
  1,705
  1,900
  2,094
  2,286
  2,475
  2,659
  2,840
  3,325
  4,230
  5,217
  6,281
  7,421
  8,632
  9,912
  11,260
  12,672
  14,148
  15,687
Retained Cash Flow (-), $m
  145
  -593
  -689
  -828
  -1,126
  -1,489
  -1,916
  -2,406
  -2,954
  -3,553
  -4,194
  -4,869
  -5,566
  -6,278
  -6,994
  -7,709
  -8,416
  -9,110
  -9,790
  -10,455
  -11,103
  -11,737
  -12,358
  -12,971
  -13,577
  -14,181
  -14,788
  -15,400
  -16,023
  -16,660
  -17,316
Prev. year cash balance distribution, $m
 
  132
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -348
  -526
  -600
  -817
  -1,081
  -1,393
  -1,750
  -2,149
  -2,585
  -3,052
  -3,546
  -4,054
  -4,573
  -5,095
  -5,615
  -6,130
  -6,636
  -7,131
  -7,615
  -7,778
  -7,507
  -7,142
  -6,689
  -6,156
  -5,549
  -4,875
  -4,140
  -3,351
  -2,512
  -1,629
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  -334
  -482
  -522
  -673
  -838
  -1,011
  -1,182
  -1,343
  -1,485
  -1,600
  -1,684
  -1,730
  -1,739
  -1,710
  -1,649
  -1,558
  -1,444
  -1,313
  -1,172
  -988
  -776
  -593
  -438
  -314
  -216
  -142
  -89
  -52
  -27
  -12
Current shareholders' claim on cash, %
  100
  87.5
  79.3
  73.5
  69.1
  65.6
  62.9
  60.7
  58.8
  57.3
  56.1
  55.1
  54.3
  53.7
  53.2
  52.8
  52.5
  52.3
  52.2
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1
  52.1

RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets. The Company's segments are Technical Services and Support Services. The Technical Services segment consists primarily of pressure pumping, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline and fishing. Its Support Services include all of the services that provide equipment for customers' use on the well site without RPC personnel and services that are provided in support of customer operations off the well site, such as classroom and computer training, and other consulting services.

FINANCIAL RATIOS  of  RPC (RES)

Valuation Ratios
P/E Ratio -34.9
Price to Sales 6.8
Price to Book 6.1
Price to Tangible Book
Price to Cash Flow 48.3
Price to Free Cash Flow 72.4
Growth Rates
Sales Growth Rate -42.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -79.6%
Cap. Spend. - 3 Yr. Gr. Rate -30%
Financial Strength
Quick Ratio NaN
Current Ratio 0.1
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets -12.4%
Ret/ On Assets - 3 Yr. Avg. -1.1%
Return On Total Capital -16%
Ret/ On T. Cap. - 3 Yr. Avg. -1.3%
Return On Equity -16%
Return On Equity - 3 Yr. Avg. -0.6%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 16.6%
Gross Margin - 3 Yr. Avg. 24.9%
EBITDA Margin -2.5%
EBITDA Margin - 3 Yr. Avg. 11.5%
Operating Margin -32.8%
Oper. Margin - 3 Yr. Avg. -9.3%
Pre-Tax Margin -32.8%
Pre-Tax Margin - 3 Yr. Avg. -9.3%
Net Profit Margin -19.3%
Net Profit Margin - 3 Yr. Avg. -5.6%
Effective Tax Rate 41%
Eff/ Tax Rate - 3 Yr. Avg. 38.1%
Payout Ratio -7.8%

RES stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RES stock intrinsic value calculation we used $729 million for the last fiscal year's total revenue generated by RPC. The default revenue input number comes from 2016 income statement of RPC. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our RES stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for RES is calculated based on our internal credit rating of RPC, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of RPC.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of RES stock the variable cost ratio is equal to 84.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $361 million in the base year in the intrinsic value calculation for RES stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for RPC.

Corporate tax rate of 27% is the nominal tax rate for RPC. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the RES stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for RES are equal to 81.3%.

Life of production assets of 2.8 years is the average useful life of capital assets used in RPC operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for RES is equal to 33.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $807 million for RPC - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 219.369 million for RPC is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of RPC at the current share price and the inputted number of shares is $5.0 billion.

RELATED COMPANIES Price Int.Val. Rating
MPX Marine Product 15.40 9.08  sell
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SLB Schlumberger 65.91 25.39  str.sell
HAL Halliburton 43.77 114.92  str.buy
ENSV Enservco 0.540 7.79  str.buy

COMPANY NEWS

▶ Oilfield Services: Remember, You Have a Choice   [Oct-16-17 10:53AM  Barrons.com]
▶ RPC, Inc. Announces Third Quarter 2017 Share Repurchases   [Oct-02-17 04:30PM  PR Newswire]
▶ RPC Shows Rising Price Performance With Jump To 83 RS Rating   [Sep-14-17 03:00AM  Investor's Business Daily]
▶ RPC Gets Relative Strength Rating Upgrade   [Sep-12-17 03:00AM  Investor's Business Daily]
▶ Tidewater Clears Key Benchmark, Hitting 80-Plus RS Rating   [Sep-07-17 03:00AM  Investor's Business Daily]
▶ RPC Shows Improved Relative Strength; Still Shy Of Benchmark   [03:00AM  Investor's Business Daily]
▶ ETFs with exposure to RPC, Inc. : August 15, 2017   [Aug-15-17 04:56PM  Capital Cube]
▶ Oilfield Services: 'Stuck In A Rut'   [Aug-03-17 10:30AM  Barrons.com]
▶ ETFs with exposure to RPC, Inc. : August 1, 2017   [Aug-01-17 05:13PM  Capital Cube]
▶ RPC tops 2Q profit forecasts   [Jul-26-17 09:27PM  Associated Press]
▶ RPC, Inc. Announces Cash Dividend   [06:45AM  PR Newswire]
▶ RPC, Inc. Value Analysis (NYSE:RES) : June 26, 2017   [Jun-26-17 06:01PM  Capital Cube]
▶ ETFs with exposure to RPC, Inc. : May 15, 2017   [May-15-17 04:27PM  Capital Cube]
▶ ETFs with exposure to RPC, Inc. : May 4, 2017   [May-04-17 04:16PM  Capital Cube]
▶ RPC tops Street 1Q forecasts   [Apr-26-17 07:30AM  Associated Press]
▶ RPC, Inc. Value Analysis (NYSE:RES) : April 12, 2017   [Apr-12-17 01:29PM  Capital Cube]
▶ Should You Buy RPC, Inc. (RES)?   [Dec-08-16 12:32PM  at Insider Monkey]
▶ How Akorn, Inc. (AKRX) Stacks Up Against Its Peers   [Nov-26-16 05:49PM  at Insider Monkey]
Financial statements of RES
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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