Corporate Webpages RPC, Inc.
Rollins, Inc. is a termite and pest control company, famous
under the "Orkin" brand name. A major producer of fumigants, it
seems incredible, but RPC, Inc., (RES) an oilfield equipment and
services company, is a spinoff from Rollins. We guess Rollins
decided to focus on its "core business," but this was a pretty
big spinoff. But there is no mistake, as Randall Collins, CEO
of Rollins, also with his brother owns 67% of RPC, Inc. Prior
to the RPC spinoff Rollins was engaged in three major areas,
namely pest control, radio-TV station - cable operations, and
oilfield service equipment.
One of the first things we noted about this company was that Jim
Cramer on his website divides the entire stock market into three
categories of "buy", "hold," and "sell," with about 33% in each
group. It is sort of similar to what Value Line does. But
Cramer goes beyond what is shown in research reports on his
website and further separates companies into A+, A, A-, B+, B,
B-, and so on, all of which are "buys." RPC, Inc. gets an "A+"
from him, which makes this company sort of special, as very few
get that rating. We thought it might be interesting to see how
Cramer rates Rollins (ROL), a company influenced largely by the
same managers so we could "revel" if there was inconsistency,
but Cramer rates Rollins as an "A-" (which is also very good.)
The oilfield services industry (renting equipment and providing
consultation to oil exploration companies) is one of THE most
competitive industry groups you will find in the stock market.
This can be judged from the sheer number of companies listed on exchanges.
Standard & Poor's did not carry a stock report on RPC, Inc.
(RES), so we presented an S&P industry survey of oil exploration
in general in its place. There are many current regulatory problems.
Information on executive compensation and stock option
pequisites was not available for this company, for which we gave
it a negative rating. In other respects the company's management
reporting to shareholders is very good. Insider trading is very negative.
Institutions are net sellers. The company has a definite cash
flow problem, although due perhaps to spending on capital improvements.
The company indicates concern for shareholders on the one hand
by issuing a significant 1.4% dividend, but on the other hand
not so good with shareholder rights (poison pill) provisions to keep
management in place and prevent a takeover or stock share higher
price offering by another entity.
Adding up all the factors in attempting to rate this company,
Cramer appears to be in good company with other researchers, but
researchers in general appear to be out there relatively alone
by other standards of evaluation upon which we rely. We think the stock
is a "buy," but we wouldn't exactly go screaming across town about its prospects.
It's industry group is very strong at the moment and a white hope for increasing
employment in America, which is perhaps one thing Cramer is addressing. But while
the industry group is strong, so is the competition.
09-15-2011: RPC, Inc. (RPC): Attempts to Focus from a Diversified Management
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
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Comparison with Peers
Bond Issue
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Financial Statements
Financial Ratios
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Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
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Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
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Stock Report
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Moving Average Chart
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
RPC Inc. (RES ) Sector: Basic Materials
2801 Buford Highway Industry: Oil & Gas Equipment & Service
Suite 520 Exchange: NYSE
Atlanta, GA 30329
RPC, Inc. provides a range of oilfield services and equipment primarily to
independent oil and gas companies engaged in the exploration, production,
and development of oil and gas properties in the United States, Africa,
Canada, China, eastern Europe, Latin America, the Middle East, and New
Zealand. It operates in two segments, Technical Services and Support
Services. The Technical Services segment offers pressure pumping, coiled
tubing, snubbing, nitrogen pumping, well control consulting and
firefighting, wireline, and fluid pumping services, as well as downhole
tools and motors, and fishing tools. The Support Services segment offers
equipment and services, including drill pipe and related tools; pipe
handling, inspection, and storage services; and oilfield training
services. This segment also provides support services, such as the rental
of blowout preventors, high pressure manifolds and valves, Hevi-wate drill
pipe, production related rental tools, pumps, diverters, drill pipes,
drill collars, handling tools, and hoses that are used for onshore and
offshore oil and gas well drilling, completion, and workover activities.
RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.
Last Trade: 22.84 52-Week Range: 29.05 - 12.72
Trade Date: 09-13 Avg. Volume: 1,532,120 Shares
Index Membership: Employees: 2,500
Corporate Governance:
Board (Medium Concern), Audit (Low Concern), Compensation (Low
Concern), Shareholder Rights (High Concern).
EPS: 1.63 Dividend Amount: $ 0.32 Yield: 1.40%
Ex-Dividend Date: Aug 8, 201 Mkt Cap: $ 3,390,000K
Payout Ratio: 14.00%
Last Split Factor (new for old): 3:2 Split Date: Dec 13, 20
Key Statistics:
Enterprise Value: $ 4,010,000K Revenue (ttm) : $ 1,460,000K
Gross Profit: $ 490,290K
Earnings before Income Tax, Depreciation and Amortization: $ 537,350K
Enterprise Value/Revenue (ttm): 2.75 Revenue per Share: $ 10.03
Enterprise Value/EBITDA (ttm): 7.46 Qtrly Rev Growth (y to y): 75.20%
P/E Ratio (fwd projected): 8.65 P/E Ratio (current): 14.02
P/E Growth Ratio (5 yr expected): 0.64 Operating Margin: 26.47%
Price/Sales Ratio: 2.33 Profit Margin: 16.52%
Price/Book Value: 5.24 Book Value: $ 4.36/sh.
Return on Assets: 26.38% Net Income Avl to Common: $ 239,960K
Return on Equity: 43.93% Diluted Earnings/Share: $ 1.63
Qrtly Earnings Growth (yoy): 131.50%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 7,190K Operating Cash Flow:$ 291,680K
Total Debt: $ 173,280K Lvgd Free Cash Flow:$ -72,800K
Total Debt/Equity: 26.81
Total Cash/Share: $ 0.05
Current Ratio: 2.91
Share Statistics: Stock Price History:
Shares Outstanding: 148,290K Stk 52-Week Change: 72.94%
Float: 50,350K S&P 500 52-Wk Chng: 3.60%
Sh. Short % of Float: 17.70% 50-Day Moving Avg: 23.40
Short Ratio: 3.70 200-Day Moving Avg: 23.47
% Held by Institutions: 27.10% Beta: 1.74
% Held by Insiders: 72.50%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate 0.58 0.63 2.15 2.67
Average Revenue Estimate 92M 527M 1,840M 2,310M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 7.522 EPS Growth (Qrtly YoY): 19.222
PEG Ratio (ttm, 5 yr expected): 4.553 P/E Ratio (ttm): 12.335
Revenue Growth (Qrtly YoY): 9.105
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 1,096,384 587,863 876,977
Cost of Revenue 606,098 393,806 503,631
Gross Profit 490,286 194,057 373,346
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 118,081 96,529 117,140
Non-Recurring Expenses 0 0 -6,367
Other Operating Expenses 133,360 130,580 118,403
Total Operating Expenses 0 0 0
Operating Income or Loss 238,845 -33,052 144,170
Income from Continuing Operations:
Total Other Income/Expenses Net 1,349 1,729 -1,103
Earnings Before Interest & Taxes 240,194 -31,323 143,067
Interest Expense 2,662 2,176 5,282
Income Before Taxes 237,532 -33,499 137,785
Income Tax Expense 90,790 -10,754 54,382
Minority Interest 0 0 0
Net Income from Continuing Op.s 146,742 -22,745 83,403
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 146,742 -22,745 83,403
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 146,742 -22,745 83,403
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Total Revenue 443,029 381,761 328,144 302,200
Cost of Revenue 242,991 201,252 174,477 162,529
Gross Profit 200,038 180,509 153,667 139,671
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 35,956 36,057 27,671 33,095
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 44,893 39,537 34,624 33,091
Total Operating Expenses 0 0 0 0
Operating Income or Loss 119,267 106,326 89,798 74,390
Income from Continuing Operations:
Total Other Income/Expenses Net 71 1,749 -827 1,360
Earnings Before Int. & Taxes 119,260 106,664 90,545 74,845
Interest Expense 998 1,079 912 707
Income Before Taxes 118,262 105,585 89,633 74,138
Income Tax Expense 45,097 40,061 34,162 27,869
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 73,165 65,524 55,471 46,269
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 73,165 65,524 55,471 46,269
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 73,165 65,524 55,471 46,269
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 9,035 4,489 3,037
Short Term Investments 0 0 0
Net Receivables 318,679 153,697 232,166
Inventory 64,059 55,783 49,779
Other Current Assets 6,905 5,485 7,841
Total Current Assets 398,678 219,454 292,823
Long-Term Investments 0 0 0
Property, Plant & Equipt 453,017 396,222 470,115
Goodwill 24,093 24,093 24,093
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 12,083 9,274 6,430
Deferred Long Term Asset Charges 0 0 0
Total Assets 887,871 649,043 793,461
Current Liabilities:
Accounts Payable 117,504 67,773 92,329
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 0 0 0
Total Current Liabilities 117,504 67,773 92,329
Long Term Debt 121,250 90,300 174,450
Other Liabilities 29,334 25,082 23,203
Deferred LT Liability Charges 80,888 56,165 54,395
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 348,976 239,320 344,377
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 14,818 14,754 9,770
Retained Earnings 527,150 401,055 445,356
Treasury Stock 0 0 0
Capital Surplus 6,460 2,720 3,990
Other Stockholder Equity -9,533 -8,806 -10,032
Total Stockholder Equity 538,895 409,723 449,084
Net Tangible Assets 514,802 385,630 424,991
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 7,190 11,678 9,035 3,234
Short Term Investments 0 0 0 0
Net Receivables 408,636 365,294 318,679 287,597
Inventory 78,657 71,291 64,059 61,888
Other Current Assets 15,646 7,751 6,905 4,021
Total Current Assets 510,129 456,014 398,678 356,740
Long-Term Investments 0 0 0 0
Property, Plant & Equipt 568,112 504,776 453,017 410,265
Goodwill 24,093 24,093 24,093 24,093
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 12,458 12,240 12,083 11,767
Deferred LT Asset Charges 0 0 0 0
Total Assets 1,114,792 997,123 887,871 802,865
Current Liabilities:
Accounts Payable 175,610 157,914 117,504 125,740
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 0 0 0 0
Total Current Liabilities 175,610 157,914 117,504 125,740
Long Term Debt 173,100 149,800 121,250 108,300
Other Liabilities 30,442 28,705 29,334 25,576
Deferred LT Liab. Charges 89,376 78,992 80,888 53,009
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 468,528 415,411 348,976 312,625
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 14,829 14,804 14,818 9,876
Retained Earnings 640,562 576,112 527,150 478,560
Treasury Stock 0 0 0 0
Capital Surplus 0 0 6,460 10,235
Other Stockholder Equity -9,127 -9,204 -9,533 -8,431
Total Stockholder Equity 646,264 581,712 538,895 490,240
Net Tangible Assets 622,171 557,619 514,802 466,147
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 146,742 65,524 83,403
Operating Activites:
Depreciation 133,253 130,581 118,444
Adjustments to Net Income 22,762 3,545 23,718
Changes in Accounts Recv'bls -163,162 80,035 -34,508
Changes in Liabilities 37,380 -15,697 11,353
Changes in Inventories -8,130 -5,798 -20,377
Changes in Other Op'ing Actv's 0 -1,181 -4,713
Total Cash Flow fr Operations 168,657 168,740 177,320
Investing Activities:
Capital Expenditures -187,486 -67,830 -170,318
Investments 0 0 0
Other Cash Flows fr Investing 0 6,686 11,365
Total Cash Flows fr Investing -171,769 -61,144 -158,953
Financing Acitivies:
Dividends Paid -20,647 -21,556 -23,328
Sale or Purchase of Stock -1,410 -1,625 -17,142
Net Borrowings 30,950 -84,150 17,956
Other Cash Flows fr Financing 0 0 846
Total Cash Flows fr Financing 7,658 -106,144 -21,668
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 4,546 1,452 -3,301
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Net Income 73,165 65,524 55,471 46,269
Operating Activites:
Depreciation 44,908 39,249 34,575 33,071
Adjustments to Net Income 10,593 -3,684 26,563 4,246
Changes in Accounts Recv'bls -43,311 -62,909 -13,849 -61,538
Changes in Liabilities 13,907 36,937 -5,163 27,159
Changes in Inventories -7,349 -7,218 -2,073 -4,212
Changes in Other Oper'g Acts 0 17,733 -19,497 -169
Total Cash Flow f Operations 85,193 85,632 76,027 44,826
Investing Activities:
Capital Expenditures -111,445 -92,318 -81,380 -49,263
Investments 0 0 0 0
Other Cash Flows fr Investing 0 6,030 4,966 4,218
Total Cash Flows fr Investing -102,271 -86,288 -76,414 -45,045
Financing Acitivies:
Dividends Paid -10,326 -10,354 -6,881 -5,899
Sale or Purchase of Stock -1,110 -17,175 110 59
Net Borrowings 23,300 28,550 12,950 7,450
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 12,590 3,299 6,188 -230
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -4,488 2,643 5,801 -449
RES RPC Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.9971 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: -0.0800 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.9871 Inventory/Sales < 5%? 0.8558
Sales < $1 billion? 0.9121 Operating Margin < 7.5%? 0.2833
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0149 Long-Term Debt Service: 3.0000
LTD Being Reduced? 0.6000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 1.4550 Working Capital >= 1.5? 0.6885
Leverage Ratio < 20%? 1.1160 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 2.3679 Inventory Turnover > 1? 0.9729
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 0.4425
Profit Margin > 7.5%? 2.2026
Income Tests:
Dividend Yield > 2.0%? 3.0000 EPS Annual Growth > 10%? 3.0000
Enterprise Value/Revenue: 1.8333 EPS 5-yr Growth > 20%? 3.0000
Enterprise Value/EBITDA: 1.0657 EPS Growth Consistent? 2.4000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.4242
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 3.0000 Borrowing Int. Rate< 6%? 3.0000
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.0690
Beta > 1.25? 1.3920 % Held by Institut. < 50? 1.8450
50 Da MA > 200 Da MA? -0.0092 % Held by Institut. > 30? 0.9033
52-Wk Change vs. S&P 500: 0.2400 Short Ratio > 5? 0.7400
Price/Book Value < 3? -1.2400 Short % of Float > 20? 0.8850
Return on Assets > 17%? 1.5518 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 3.0000 Positive Free Cash Flow? 0.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: -3.0000
Cash Flow / Assets >.10? -0.6530
RES RPC Inc. Overall Zenith Index: 1.4462
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for RPC Inc.:
Symbol? RES
Total Months Available: 57
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
22.58 12.15 29.05 16.26 27.31 18.43
RANGE = 29.05 TO 12.15 Close = 23.26
CHANNEL = 22.58 TO 18.43 Degree = 2
Volatility = 17.84% Index = 3
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | + 1 |
| Cash Flow | - 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | - 1 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | - 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | 0 |
| Moving Average | - 1 |
| Right Time Study | + 1 |
| Stock Fetcher | + 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | 0 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 3 |
Place 1,300 shares of RPC, Inc. (RES) on the Active List.
