RPC, Inc., through its subsidiaries, provides 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 last earnings update was 38 days ago.
Discounted Cash Flow Calculation for DB:RLD using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
DB:RLD DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
RPC's share price is below the future cash flow value, and at a moderate discount (> 20%).
RPC's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
RPC's earnings available for a low price, and how does
this compare to other companies in the same industry?
RPC is not considered high growth as it is expected to be loss making for the next 1-3 years.
RPC's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
RPC's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Richard A. Hubbell has been the President and Chief Executive Officer of Atlanta, Georgia since March 3, 2009. Mr. Hubbell has been the Chief Executive Officer at RPC, Inc. since April 22, 2003 and has been its President since January 27, 1987. He has been the President and Chief Executive Officer of Marine Products Corporation since February 28, 2001 and its President of Chaparral Boats since May 4, 2016. He served as the Chief Operating Officer at RPC Inc., from 1987 to April 21, 2004. Mr. Hubbell has been a Director of RPC Inc. since January 27, 1987. He has been an Inside Director of Marine Products Corp. since 2001. Mr. Hubbell received a B.A. in Economics from Westminster College.
Richard's compensation has been consistent with company performance over the past year, both up more than 20%.
Richard's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure of the
management team in years:
The average tenure for the RPC management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO, President & Director
Vice President of Corporate Finance
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the RPC board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Chairman of the Board
CEO, President & Director
Lead Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
RPC, Inc., through its subsidiaries, provides 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 offers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.
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