📊 RES Key Takeaways
Is RES a Good Investment? Thesis Analysis
RPC Inc exhibits a financially stable fortress balance sheet with zero debt and strong liquidity, but underlying operational fundamentals are deeply concerning with razor-thin 2.0% net margins and weak 2.9% ROE despite 15% revenue growth. The 65% dilution in EPS despite positive net income growth signals shareholder value destruction and suggests the company struggles with pricing power and cost control in a commoditized market.
Why Buy RES? Key Strengths
- Fortress balance sheet with $0 debt and $210M cash provides financial flexibility
- Strong revenue growth of 15% YoY demonstrates market activity in oil & gas services
- Excellent liquidity ratios (Current 3.24x, Quick 2.70x) provide operational buffer
RES Investment Risks to Consider
- Critically thin operating margin of 2.8% and net margin of 2.0% indicate severe cost management or pricing power issues
- Massive EPS dilution of 65% YoY despite positive net income growth destroys shareholder value significantly
- Weak returns on capital (ROE 2.9%, ROA 2.2%) suggest inefficient capital deployment in low-return commodity services business
- Capital-intensive model with $148.4M capex reduces free cash flow to only 3.3% margin
Key Metrics to Watch
- Operating margin trajectory - need to see expansion above 3.5% to signal operational improvement
- Free cash flow yield and absolute FCF growth relative to capex investments
- Return on equity trend - critical to reverse 2.9% toward peer benchmarks of 8%+
RES Financial Metrics
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.24x current ratio provides a solid financial cushion.
RES Profitability Ratios
RES vs Energy Sector
How RPC INC compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is RES Overvalued or Undervalued?
Based on fundamental analysis, RPC INC has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
RES Balance Sheet & Liquidity
RES 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: RPC INC's revenue has grown significantly by 33% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.90 reflects profitable operations.
RES Growth Metrics (YoY)
RES Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $337.7M | $10.1M | $0.06 |
| Q2 2025 | $364.2M | $10.1M | $0.05 |
| Q1 2025 | $332.9M | $12.0M | $0.06 |
| Q3 2024 | $330.4M | $18.3M | $0.08 |
| Q2 2024 | $364.2M | $27.5M | $0.15 |
| Q1 2024 | $377.8M | $27.5M | $0.13 |
| Q3 2023 | $330.4M | $15.1M | $0.08 |
| Q2 2023 | $375.5M | $15.1M | $0.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
RES Capital Allocation
RES SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for RPC INC (CIK: 0000742278)
📋 Recent SEC Filings
❓ Frequently Asked Questions about RES
What is the AI rating for RES?
RPC INC (RES) has an AI rating of SELL with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are RES's key strengths?
Claude: Fortress balance sheet with $0 debt and $210M cash provides financial flexibility. Strong revenue growth of 15% YoY demonstrates market activity in oil & gas services.
What are the risks of investing in RES?
Claude: Critically thin operating margin of 2.8% and net margin of 2.0% indicate severe cost management or pricing power issues. Massive EPS dilution of 65% YoY despite positive net income growth destroys shareholder value significantly.
What is RES's revenue and growth?
RPC INC reported revenue of $1.6B.
Does RES pay dividends?
RPC INC pays dividends, with $35.1M distributed to shareholders in the trailing twelve months.
Where can I find RES SEC filings?
Official SEC filings for RPC INC (CIK: 0000742278) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is RES's EPS?
RPC INC has a diluted EPS of $0.15.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is RES a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, RPC INC has a SELL rating with 68% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is RES stock overvalued or undervalued?
Valuation metrics for RES: ROE of 2.9% (sector avg: 14%), net margin of 2.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy RES stock in 2026?
Our dual AI analysis gives RPC INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is RES's free cash flow?
RPC INC's operating cash flow is $201.3M, with capital expenditures of $148.4M. FCF margin is 3.3%.
How does RES compare to other Energy stocks?
Vs Energy sector averages: Net margin 2.0% (avg: 12%), ROE 2.9% (avg: 14%), current ratio 3.24 (avg: 1.3).