Will RPC (NYSE:RES) latest volatility force retail investors to buy in?

36% of stocks are less volatile than RPC, and above 99% of all equities are expected to generate higher returns over the next 90 days. While some of us are excited about energy space, it makes sense to sum up RPC in greater detail to make a better estimate of its risk and reward. We will discuss why some retail investors are closely monitoring RPC's volatility. The latest above-average RPC's volatility may impact the value of the stock as we project RPC as currently overvalued. The real value, according to our calculations, is approaching 4.17 per share.
Published over a year ago
View all stories for RPC | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

RPC Inc has 27.68 M in debt with debt to equity (D/E) ratio of 0.04, which may show that RPC Inc is not taking advantage of profits from borrowing. The entity has a current ratio of 4.25, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Volatility is a rate at which the price of RPC or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of RPC may increase or decrease. In other words, similar to RPC's beta indicator, it measures the risk of RPC and helps estimate the fluctuations that may happen in a short period of time. So if prices of RPC fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is RPC's Liquidity

RPC financial leverage refers to using borrowed capital as a funding source to finance RPC Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RPC financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to RPC's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of RPC's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between RPC's total debt and its cash.

RPC Gross Profit

RPC Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing RPC previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show RPC Gross Profit growth over the last 10 years. Please check RPC's gross profit and other fundamental indicators for more details.

RPC Volatility Drivers

RPC unsystematic risk is unique to RPC Inc and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in RPC you can also buy Rand Capital Corp. You can also mitigate this risk by investing in the energy sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing RPC important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in RPC income statement and balance sheet. Here are more details about RPC volatility.
0.270.80.64-0.11-0.570.460.170.930.640.550.18-0.440.34-0.09-0.68-0.170.52
0.270.76-0.07-0.46-0.13-0.47-0.380.360.590.32-0.54-0.050.24-0.78-0.68-0.310.88
0.80.760.36-0.34-0.460.07-0.20.80.810.6-0.2-0.40.41-0.54-0.8-0.240.89
0.64-0.070.360.19-0.110.64-0.190.480.15-0.020.09-0.30.070.12-0.60.440.03
-0.11-0.46-0.340.19-0.130.23-0.16-0.28-0.6-0.54-0.01-0.05-0.540.260.230.5-0.46
-0.57-0.13-0.46-0.11-0.13-0.07-0.04-0.63-0.47-0.5-0.130.08-0.180.240.280.21-0.28
0.46-0.470.070.640.23-0.070.030.30.020.010.44-0.22-0.020.55-0.010.46-0.25
0.17-0.38-0.2-0.19-0.16-0.040.030.13-0.080.190.44-0.03-0.040.490.33-0.58-0.2
0.930.360.80.48-0.28-0.630.30.130.830.790.33-0.410.53-0.26-0.69-0.340.56
0.640.590.810.15-0.6-0.470.02-0.080.830.90.21-0.340.63-0.47-0.64-0.390.75
0.550.320.6-0.02-0.54-0.50.010.190.790.90.48-0.450.68-0.36-0.36-0.610.52
0.18-0.54-0.20.09-0.01-0.130.440.440.330.210.48-0.270.180.380.19-0.2-0.35
-0.44-0.05-0.4-0.3-0.050.08-0.22-0.03-0.41-0.34-0.45-0.27-0.370.240.320.26-0.26
0.340.240.410.07-0.54-0.18-0.02-0.040.530.630.680.18-0.37-0.26-0.26-0.290.32
-0.09-0.78-0.540.120.260.240.550.49-0.26-0.47-0.360.380.24-0.260.580.39-0.58
-0.68-0.68-0.8-0.60.230.28-0.010.33-0.69-0.64-0.360.190.32-0.260.580.08-0.67
-0.17-0.31-0.240.440.50.210.46-0.58-0.34-0.39-0.61-0.20.26-0.290.390.08-0.32
0.520.880.890.03-0.46-0.28-0.25-0.20.560.750.52-0.35-0.260.32-0.58-0.67-0.32
Click cells to compare fundamentals

What is driving RPC Investor Appetite?

The firm reported the last year's revenue of 537.13 M. Reported Net Loss for the year was (61.43 M) with profit before taxes, overhead, and interest of 117.56 M.

RPC implied volatility may change after the spike

Latest coefficient of variation indicator falls down to -1227.88. Possible price gain? RPC Inc exhibits very low volatility with skewness of 0.29 and kurtosis of 0.98. However, we advise investors to further study RPC Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure RPC's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact RPC's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

While some firms in the oil & gas equipment & services industry are either recovering or due for a correction, RPC may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of RPC as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to RPC.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of RPC Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com