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RPC Inc

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RPC Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-11

Snapshot

  • Revenue grew 32% YoY vs industry median of -0.1% - massive outperformance in declining sector[Total Revenue 1Y Growth]
  • Debt/equity of 0.07 vs capital-intensive peers; 163M cash covers 2x total debt of 81M[Debt to Equity]
  • EPS declined 39% over 3Y despite 32% revenue growth TTM - margin compression eroding gains[EPS Growth 3Y]

Watch Triggers

  • Gross Margin TTM: Rises above 18%Would signal pricing power returning; currently 15% vs 21% median
  • EPS TTM: Positive YoY growth3Y EPS decline of -39% must reverse to justify 25x P/E
  • Free Cash Flow TTM: Falls below 50M75M FCF on 158M capex is thin; deterioration signals overinvestment

Bull Case

Fortress balance sheet with 0.07 debt/equity and 163M cash enables opportunistic M&A or buybacks while competitors struggle with leverage

Debt to EquityCash and EquivalentsTotal Debt

Asset turnover of 1.09x is 2x industry median (0.52x) - superior capital efficiency converts to higher ROIC as margins normalize

Asset Turnover TTMROIC TTM

Bear Case

Net margin of 3.1% TTM is 44% below industry median (5.5%) despite revenue surge - structural cost issues may persist

Net Margin TTMOperating Margin TTM

P/E of 25x vs 17x median despite inferior profitability; valuation assumes margin recovery that hasn't materialized

P/E RatioNet Margin TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

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40%

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Forward Thesis

Margin recovery to drive EPS inflection as revenue growth normalizes

1-3ymed
  • Gross margin 15% TTM vs 21% industry - room to improve
  • Operating leverage on fixed cost base
  • Capex of 158M TTM building future capacity
Gross profit grew 24% YoY vs revenue 32%Asset turnover 1.09x vs 0.52x medianEBITDA margin 15% on 230M TTM

Valuation Context

Caveats

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Fundamental company data provided by Morningstar, updated daily.

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