RPC Stock Story

RES -  USA Stock  

USD 8.62  0.18  2.05%

It looks like Schlumberger will continue to recover much faster as its share price surged up 5.98% today to RPC's 7.5%. As many baby boomers are still indifferent towards energy space, we will concentrate on both RPC Inc as well as Schlumberger NV. We are going to discuss some of the competitive aspects of both RPC and Schlumberger.
Published over three months ago
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Will Schlumberger retail investors switch to RPC (NYSE:RES)?
By analyzing existing technical and fundamental indicators between RPC and Schlumberger, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Schlumberger with a short position in RPC. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RPC has an asset utilization ratio of 60.25 percent. This connotes that the company is making $0.6 for each dollar of assets. An increasing asset utilization means that RPC Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as RPC or Prosafe is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

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. Please check the breakdown between RPC's total debt and its cash.

Correlation Between RPC and Prosafe Se Cyprus

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding RPC together with similar or unrelated positions with a negative correlation. For example, you can also add Prosafe Se to your portfolio. If Prosafe Se is not perfectly correlated to RPC it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When RPC for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between RES and PRSEF for more information.

Note

Are you currently holding both RPC and Prosafe Se in your portfolio?
Please note if you are using this as a pair-trade strategy between RPC and Prosafe Se, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving RPC Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check RPC revenue. Based on the latest financial disclosure, RPC Inc reported 745.31 M of revenue. This is 98.49% lower than that of the Energy sector and 76.46% lower than that of the Oil & Gas Equipment & Services industry. The revenue for all United States stocks is 92.1% higher than that of the entity. As for Schlumberger we see revenue of 22.24 B, which is much higher than that of the Oil & Gas Equipment & Services

SLB
22.2 B
RES745.31 Million2.85
Sector3.17 Billion12.11
SLB22.24 Billion85.04

Another 3 percent spike for RPC

Mean deviation is down to 2.83. It may connote a possible volatility fall.
As of the 26th of January, RPC owns the semi deviation of 3.29, and Market Risk Adjusted Performance of 0.1065. In relation to fundamental indicators, the technical analysis model allows you to check practical technical drivers of RPC Inc, as well as the relationship between them. Strictly speaking, you can use this information to find out if the company will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for RPC, which can be compared to its peers in the sector. Please check RPC Inc variance, as well as the relationship between the value at risk and skewness to decide if RPC Inc is priced fairly, providing market reflects its prevailing price of 6.02 per share. Given that RPC Inc has jensen alpha of 0.3303, we recommend you to check out RPC's latest market performance to make sure the company can sustain itself at some point in the future.

While some other companies under the oil & gas equipment & services industry are still a bit expensive, RPC may offer a potential longer-term growth to retail investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to exit some or all of your RPC holdings as it seems the potential growth was already fully factored into the current price. 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.

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 Vlad Skutelnik do not own shares of RPC Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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