One-glance verdict
Within fair range
$8.53 our estimate vs market $6.73
Wall Street consensus: $6.40 (-25.0% lower than our fair-value estimate)
21% below our estimate
Fundamentals snapshot
RPC, Inc.
RES · NYQ · Energy · Oil & Gas Equipment & Services
Current price
$6.73
52-week range
$4.81 - $8.16
Market cap
$1.49B
Balance sheet
Healthy
18.77x Strong cushion
Net cash $127.59M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 2.1% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 265.4% above its 5-year average P/E.
- Risk Operating margin compressed from 17.6% to 4.5% over 3 years.
What this company does
RPC, Inc.
RPC, Inc. provides essential services and equipment to oil and gas companies, like renting out specialized tools and offering expertise to help them drill and maintain wells. The money they make primarily comes from these oilfield services, which is important because their success is directly tied to how much oil and gas exploration and production is happening.
How the company got here
RPC, Inc. was established in 1984 as a holding company for various oilfield service businesses. [2] It was spun off from Rollins, Inc. in the same year, following a significant downturn in the oilfield services sector. [2] Initially, RPC was a diversified company with interests in waste management and recreational powerboats, in addition to oil services. [2] However, starting in 1999, RPC began to divest its non-core businesses, eventually becoming a pure-play oil and gas services company. [2] The company's history is marked by adaptation to the cyclical nature of the energy industry, benefiting from the U.S. shale expansion and facing challenges during industry downturns. [1] RPC has grown through strategic acquisitions, integrating specialized oilfield service businesses into its portfolio. [2]
What it actually does
RPC, Inc. provides specialized services and equipment to companies involved in exploring, producing, and developing oil and gas properties. [3, 5] Essentially, they are a service provider for the oil and gas industry, offering solutions that help in the process of extracting oil and natural gas. [3, 5] Their services are crucial for drilling new wells, maintaining existing ones, and improving their efficiency. [10] The company operates primarily in the United States, with a focus on major oil and gas producing regions. [3, 10]
Technical Services
This segment is the largest part of RPC's business and involves services performed directly at the well site. [6, 11] These services are closely tied to the completion and production phases of oil and gas wells. [6] Key offerings include pressure pumping (which involves fracturing or acidizing rock formations to stimulate oil and gas flow), downhole tools, coiled tubing, nitrogen services, well control, and wireline services. [5, 6, 8] Pressure pumping, in particular, has been a significant area of investment and growth for RPC, especially with the rise of shale production. [6] These services are capital-intensive, requiring specialized equipment and skilled personnel. [6]
Support Services
The Support Services segment provides services and equipment that are often used off the well site, supporting the drilling activities of oil and gas companies. [6] This segment includes the rental of tools and equipment used in drilling, completion, and workover activities (which are tasks performed on existing wells to maintain or improve production). [5, 6] It also offers services like oilfield pipe inspection, pipe management, and storage, as well as well control training. [5] The demand for these services is largely influenced by the level of drilling activity. [6]
What management is betting on now
RPC's management is focused on creating long-term shareholder value through a conservative financial approach. [3, 9] A key strategy involves pursuing acquisitions that bring in profitable operations with strong customer bases. [12] The company is also investing in innovation and expanding its technology offerings, particularly in areas like downhole tools. [11, 12] RPC emphasizes maintaining a strong balance sheet with low debt levels to navigate the cyclical nature of the oilfield services industry and ensure financial flexibility. [1, 12] They are selectively investing in growth opportunities that are expected to yield high returns on invested capital over time. [9, 11]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$19.07M
FY2024 Q4
$53.70M
FY2025 Q1
$7.59M
FY2025 Q2
$10.03M
FY2025 Q3
$4.07M
FY2025 Q4
$31.24M
FY2026 Q1
$-932.00K
FY2026 Q2
$4.70M
Revenue
—
Net income
$12.07M
Diluted EPS
0.05
Operating cash flow
$43.43M
Free cash flow
$4.70M
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Sources
Revenue
—
Net income
$855.00K
Diluted EPS
0.00
Operating cash flow
$31.17M
Free cash flow
$-932.00K
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Sources
Revenue
—
Net income
$-3.06M
Diluted EPS
-0.02
Operating cash flow
$61.86M
Free cash flow
$31.24M
Fetching…
Sources
Revenue
—
Net income
$12.96M
Diluted EPS
0.06
Operating cash flow
$46.52M
Free cash flow
$4.07M
Fetching…
Sources
Revenue
—
Net income
$10.15M
Diluted EPS
0.05
Operating cash flow
$53.08M
Free cash flow
$10.03M
Fetching…
Sources
Revenue
—
Net income
$12.03M
Diluted EPS
0.06
Operating cash flow
$39.87M
Free cash flow
$7.59M
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Sources
Revenue
—
Net income
$12.76M
Diluted EPS
0.06
Operating cash flow
$94.17M
Free cash flow
$53.70M
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Sources
Revenue
—
Net income
$18.80M
Diluted EPS
0.09
Operating cash flow
$70.73M
Free cash flow
$19.07M
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Sources
Is it cheap or expensive?
Fair value $8.53 vs current price $6.73
Wall Street consensus is the average analyst price target: $6.40 (-25.0% lower than our fair-value estimate).
Our most-likely fair value is $8.53 a share — about 26.8% away from today's price of $6.73, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $127.6M - more cash than debt. Interest coverage 18.8x.
Net debt
$-127.59M
Interest coverage
18.77x
RPC, Inc.'s profit covers its interest bill about 18.8 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RES
BASELINE
RPC, Inc.
Total debt $51.88M Interest coverage 18.77x This is the baseline the peer rows are being compared against.
Total debt $857.89M Interest coverage 2.25x -88% vs RES Carries about 8.3x less debt cushion than RES.
Total debt $1.22B Interest coverage -0.96x -100% vs RES This peer has almost no interest-payment cushion compared with RES.
Total debt $291.95M Interest coverage 1.54x -92% vs RES Carries about 12.2x less debt cushion than RES.
Total debt $36.22M Interest coverage 0.30x -98% vs RES Carries about 61.6x less debt cushion than RES.
Total debt $128.87M Interest coverage 0.01x -100% vs RES Carries about 2490.9x less debt cushion than RES.
What you should know
The case for and against RES
3 Rewards
2 Risks
Rewards
-
Returns 2.1% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
-
Trades at 61.2x P/E vs peer median 70.8x (13.6% cheaper).
Risks
-
Stock trades 265.4% above its 5-year average P/E.
-
Operating margin compressed from 17.6% to 4.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
61.18x
Forward P/E
23.01x
P/B
1.32x
P/S
0.83x
EV/EBITDA
5.94x
PEG ratio
16.77x
Profitability
How much profit each dollar creates
Gross margin
23.3%
Operating margin
4.5%
Net margin
1.3%
ROE
2.1%
ROA
2.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.05x
Current ratio
3.34x
Quick ratio
2.58x
Total debt
$51.88M
Total cash
$179.47M
Growth
How the business has been compounding
Revenue TTM
$1.62B
Revenue 5Y CAGR
-7.4%
EPS TTM
0.11
EPS 5Y CAGR
-47.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$183.00M
Free CF TTM
$52.92M
FCF margin
3.3%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
145.4%
Last ex-div date
2026-08-10