RGC Resources Inc.
Find Ratings ReportsRGC RESOURCES INC's gross profit margin for the first quarter of its fiscal year 2024 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. RGC RESOURCES INC has very weak liquidity. Currently, the Quick Ratio is 0.18 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 9.12% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q1 FY24 | Q1 FY23 |
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Net Sales ($mil) | 24.42 | 33.28 |
EBITDA ($mil) | 9.35 | 7.96 |
EBIT ($mil) | 6.65 | 5.54 |
Net Income ($mil) | 5.02 | 3.26 |
Balance Sheet | Q1 FY24 | Q1 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 2.87 | 3.23 |
Total Assets ($mil) | 314.7 | 307.95 |
Total Debt ($mil) | 149.56 | 147.38 |
Equity ($mil) | 103.55 | 94.89 |
Profitability | Q1 FY24 | Q1 FY23 |
---|---|---|
Gross Profit Margin | 38.29 | 23.93 |
EBITDA Margin | 38.28 | 23.92 |
Operating Margin | 27.24 | 16.66 |
Sales Turnover | 0.28 | 0.31 |
Return on Assets | 4.15 | -10.41 |
Return on Equity | 12.62 | -33.79 |
Debt | Q1 FY24 | Q1 FY23 |
---|---|---|
Current Ratio | 0.54 | 0.8 |
Debt/Capital | 0.59 | 0.61 |
Interest Expense | 1.64 | 1.37 |
Interest Coverage | 4.07 | 4.05 |
Share Data | Q1 FY24 | Q1 FY23 |
---|---|---|
Shares outstanding (mil) | 10.06 | 9.85 |
Div / share | 0.2 | 0.2 |
EPS | 0.5 | 0.33 |
Book value / share | 10.29 | 9.63 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 17936.0 | 24830.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 18.74 for the Utilities subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.98 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The price-to-sales ratio is below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, RGC RESOURCES INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RGCO 15.53 | Peers 18.74 | RGCO 7.93 | Peers 8.50 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. RGCO is trading at a discount to its peers. |
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RGCO is trading at a valuation on par to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RGCO 16.02 | Peers 14.78 | RGCO 8.87 | Peers 1.44 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. RGCO is trading at a premium to its peers. |
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. RGCO trades at a significant premium to its peers. |
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Price/Book |
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Earnings Growth |
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RGCO 1.98 | Peers 1.98 | RGCO 135.79 | Peers 132.20 | |||||||||||||||||||||
Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RGCO is trading at a valuation on par with its peers. |
Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. RGCO is expected to keep pace with its peers on the basis of earnings growth. |
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Price/Sales |
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Sales Growth |
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RGCO 2.31 | Peers 2.49 | RGCO -5.96 | Peers 1.95 | |||||||||||||||||||||
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RGCO is trading at a valuation on par with its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RGCO significantly trails its peers on the basis of sales growth. |
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