Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model
NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and disappointing return on equity.
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Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 77.85% to $178.18 million when compared to the same quarter last year. In addition, RANGE RESOURCES CORP has also vastly surpassed the industry average cash flow growth rate of -9.04%.
- The gross profit margin for RANGE RESOURCES CORP is rather high; currently it is at 69.20%. Regardless of RRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RRC's net profit margin of -18.20% significantly underperformed when compared to the industry average.
- The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, RANGE RESOURCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the acquisition, exploration, and development of natural gas and oil properties primarily in the Appalachian and southwestern regions of the United States. The company has a P/E ratio of 251.1, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Range has a market cap of $11.02 billion and is part of the basic materials sector and energy industry. Shares are up 9.5% year to date as of the close of trading on Thursday.
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-- Written by a member of TheStreet Ratings Staff
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