Rgc Resources Stock Return On Equity
| RGCO Stock | USD 21.40 0.16 0.75% |
RGC Resources fundamentals help investors to digest information that contributes to RGC Resources' financial success or failures. It also enables traders to predict the movement of RGC Stock. The fundamental analysis module provides a way to measure RGC Resources' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to RGC Resources stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.13 | 0.10 |
RGC | Return On Equity |
RGC Resources Company Return On Equity Analysis
RGC Resources' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current RGC Resources Return On Equity | 0.11 |
Most of RGC Resources' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, RGC Resources is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
RGC Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for RGC Resources is extremely important. It helps to project a fair market value of RGC Stock properly, considering its historical fundamentals such as Return On Equity. Since RGC Resources' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of RGC Resources' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of RGC Resources' interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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RGC Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, RGC Resources has a Return On Equity of 0.1126. This is 98.07% lower than that of the Gas Utilities sector and significantly higher than that of the Utilities industry. The return on equity for all United States stocks is 136.32% lower than that of the firm.
RGC Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses RGC Resources' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of RGC Resources could also be used in its relative valuation, which is a method of valuing RGC Resources by comparing valuation metrics of similar companies.RGC Resources is currently under evaluation in return on equity category among its peers.
RGC Resources Current Valuation Drivers
We derive many important indicators used in calculating different scores of RGC Resources from analyzing RGC Resources' financial statements. These drivers represent accounts that assess RGC Resources' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of RGC Resources' important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 235.1M | 190.6M | 192.1M | 171.7M | 154.5M | 78.2M | |
| Enterprise Value | 336.8M | 314.1M | 322.9M | 311.3M | 280.2M | 294.2M |
RGC Resources ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, RGC Resources' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to RGC Resources' managers, analysts, and investors.Environmental | Governance | Social |
RGC Fundamentals
| Return On Equity | 0.11 | ||||
| Return On Asset | 0.0342 | ||||
| Profit Margin | 0.14 % | ||||
| Operating Margin | 0.02 % | ||||
| Current Valuation | 358.84 M | ||||
| Shares Outstanding | 10.22 M | ||||
| Shares Owned By Insiders | 19.88 % | ||||
| Shares Owned By Institutions | 38.70 % | ||||
| Number Of Shares Shorted | 47.24 K | ||||
| Price To Earning | 17.12 X | ||||
| Price To Book | 2.01 X | ||||
| Price To Sales | 2.56 X | ||||
| Revenue | 97.44 M | ||||
| Gross Profit | 26.15 M | ||||
| EBITDA | 27.06 M | ||||
| Net Income | 11.3 M | ||||
| Cash And Equivalents | 14.48 M | ||||
| Cash Per Share | 1.48 X | ||||
| Total Debt | 141.17 M | ||||
| Debt To Equity | 1.24 % | ||||
| Current Ratio | 1.69 X | ||||
| Book Value Per Share | 10.58 X | ||||
| Cash Flow From Operations | 23.8 M | ||||
| Short Ratio | 7.23 X | ||||
| Earnings Per Share | 1.16 X | ||||
| Target Price | 27.0 | ||||
| Beta | 0.16 | ||||
| Market Capitalization | 217.05 M | ||||
| Total Asset | 303.73 M | ||||
| Retained Earnings | 3.97 M | ||||
| Working Capital | (6.12 M) | ||||
| Current Asset | 12.57 M | ||||
| Current Liabilities | 23.01 M | ||||
| Annual Yield | 0.04 % | ||||
| Five Year Return | 2.74 % | ||||
| Net Asset | 303.73 M |
About RGC Resources Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze RGC Resources's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of RGC Resources using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of RGC Resources based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with RGC Resources
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if RGC Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RGC Resources will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to RGC Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RGC Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back RGC Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling RGC Resources to buy it.
The correlation of RGC Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as RGC Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RGC Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for RGC Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out RGC Resources Piotroski F Score and RGC Resources Altman Z Score analysis. To learn how to invest in RGC Stock, please use our How to Invest in RGC Resources guide.You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Is Gas Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RGC Resources. If investors know RGC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RGC Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.90) | Earnings Share 1.16 | Revenue Per Share 8.337 | Quarterly Revenue Growth 0.051 | Return On Assets 0.0342 |
The market value of RGC Resources is measured differently than its book value, which is the value of RGC that is recorded on the company's balance sheet. Investors also form their own opinion of RGC Resources' value that differs from its market value or its book value, called intrinsic value, which is RGC Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RGC Resources' market value can be influenced by many factors that don't directly affect RGC Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RGC Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if RGC Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RGC Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.