RES:NYSERPC, Inc. Analysis
Data as of 2026-05-20 - not real-time
$7.16
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
RPC, Inc. (RES) is trading at $7.16, comfortably above its 20‑day ($7.42) and 50‑day ($7.08) SMAs, and the 200‑day SMA ($5.73) – a classic bullish alignment that the technical engine is reinforcing with a bullish trend direction and stable volume. However, the MACD has turned bearish and the RSI sits near the midpoint (≈50), suggesting short‑term momentum is waning.
Fundamentally, the company posted a 36.6% YoY revenue surge in Q1 2026, driven by improving demand across service lines, yet profitability remains thin (operating margin 1.8%, profit margin 1.2%) and free cash flow is negative. The PE ratio of 79.6 dwarfs the industry average of 22.3, and a payout ratio of 178% signals an unsustainable dividend despite the 2.27% yield. High 30‑day volatility (56%) and a modest beta (≈0.36) underscore a risk‑on environment, while the “Extreme Greed” sentiment index reflects market optimism that may be overstated.
Fundamentally, the company posted a 36.6% YoY revenue surge in Q1 2026, driven by improving demand across service lines, yet profitability remains thin (operating margin 1.8%, profit margin 1.2%) and free cash flow is negative. The PE ratio of 79.6 dwarfs the industry average of 22.3, and a payout ratio of 178% signals an unsustainable dividend despite the 2.27% yield. High 30‑day volatility (56%) and a modest beta (≈0.36) underscore a risk‑on environment, while the “Extreme Greed” sentiment index reflects market optimism that may be overstated.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Price above key SMAs indicating bullish bias
- Bearish MACD and neutral RSI temper momentum
- Stable volume but high short‑term volatility
Medium Term
1–3 yearsNeutral
Model confidence: 5/10
Key Factors
- Strong revenue growth but thin margins
- Negative free cash flow and high payout ratio
- Elevated PE relative to peers
Long Term
> 3 yearsNeutral
Model confidence: 4/10
Key Factors
- Potential upside if oilfield demand rebounds
- DCF fair value far above current price suggests undervaluation
- Persistent cash‑flow deficits and debt load raise sustainability concerns
Key Metrics & Analysis
Financial Health
Revenue Growth36.60%
Profit Margin1.20%
P/E Ratio79.6
ROE1.92%
ROA2.46%
Debt/Equity6.82
P/B Ratio1.4
Op. Cash Flow$192.6M
Free Cash Flow$-14818875
Industry P/E22.3
Technical Analysis
TrendBullish
RSI49.7
Support$6.79
Resistance$8.16
MA 20$7.42
MA 50$7.08
MA 200$5.73
MACDBearish
VolumeStable
Fear & Greed Index89.18
Valuation
Fair Value$22.08
Target Price$6.54
Upside/Downside-8.66%
GradeOvervalued
TypeBlend
Dividend Yield2.27%
Risk Assessment
Beta0.36
Volatility56.11%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.