RGC Resources Profitability Analysis
| RGCO Stock | USD 20.30 0.52 2.50% |
Net Income | First Reported 1993-12-31 | Previous Quarter 5 M | Current Value 6.4 M | Quarterly Volatility 3.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.3 | 0.27 |
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| Operating Profit Margin | 0.088 | 0.16 |
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For RGC Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RGC Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RGC Resources utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RGC Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RGC Resources over time as well as its relative position and ranking within its peers.
RGC |
RGC Resources' Revenue Breakdown by Earning Segment
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Is Gas Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of RGC Resources. If investors know RGC will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about RGC Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.01) | Dividend Share 0.795 | Earnings Share 1.3 | Revenue Per Share 8.29 | Quarterly Revenue Growth (0.14) |
The market value of RGC Resources is measured differently than its book value, which is the value of RGC that is recorded on the company's balance sheet. Investors also form their own opinion of RGC Resources' value that differs from its market value or its book value, called intrinsic value, which is RGC Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because RGC Resources' market value can be influenced by many factors that don't directly affect RGC Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between RGC Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if RGC Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, RGC Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
RGC Resources Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining RGC Resources's current stock value. Our valuation model uses many indicators to compare RGC Resources value to that of its competitors to determine the firm's financial worth. RGC Resources is rated second in return on equity category among its peers. It is rated third in return on asset category among its peers reporting about 0.28 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for RGC Resources is roughly 3.54 . At this time, RGC Resources' Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the RGC Resources' earnings, one of the primary drivers of an investment's value.RGC Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
RGC Resources |
| = | 0.12 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
RGC Resources |
| = | 0.0353 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
RGC Return On Asset Comparison
RGC Resources is currently under evaluation in return on asset category among its peers.
RGC Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in RGC Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, RGC Resources will eventually generate negative long term returns. The profitability progress is the general direction of RGC Resources' change in net profit over the period of time. It can combine multiple indicators of RGC Resources, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 2.6 M | 2.7 M | |
| Operating Income | 20.3 M | 21.3 M | |
| Income Before Tax | 17 M | 17.9 M | |
| Total Other Income Expense Net | 2.5 M | 2.6 M | |
| Net Income | 13 M | 13.6 M | |
| Income Tax Expense | 4 M | 4.2 M | |
| Net Loss | -28.6 M | -27.1 M | |
| Net Income From Continuing Ops | 10.2 M | 10.7 M | |
| Non Operating Income Net Other | -48.2 M | -45.8 M | |
| Interest Income | 538.4 K | 1.1 M | |
| Net Interest Income | -5.1 M | -5.3 M | |
| Change To Netincome | 54.4 M | 57.1 M | |
| Net Income Per Share | 1.31 | 1.38 | |
| Income Quality | 2.42 | 2.30 | |
| Net Income Per E B T | 0.88 | 0.86 |
RGC Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on RGC Resources. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of RGC Resources position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the RGC Resources' important profitability drivers and their relationship over time.
RGC Resources Profitability Trends
RGC Resources profitability trend refers to the progression of profit or loss within a business. An upward trend means that RGC Resources' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is RGC Resources' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
RGC Resources Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between RGC Resources different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards RGC Resources in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down RGC Resources' future profitability.
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Use RGC Resources in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if RGC Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RGC Resources will appreciate offsetting losses from the drop in the long position's value.RGC Resources Pair Trading
RGC Resources Pair Trading Analysis
The ability to find closely correlated positions to RGC Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace RGC Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back RGC Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling RGC Resources to buy it.
The correlation of RGC Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as RGC Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if RGC Resources moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for RGC Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your RGC Resources position
In addition to having RGC Resources in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Government Funds
Funds or Etfs that invest in fixed income securities issued by national government to finance government spending or to facilitate Federal Reserve monetary policies. The Government Funds theme has 40 constituents at this time.
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Additional Information and Resources on Investing in RGC Stock
When determining whether RGC Resources offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of RGC Resources' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Rgc Resources Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Rgc Resources Stock:Check out Your Equity Center. To learn how to invest in RGC Stock, please use our How to Invest in RGC Resources guide.You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
To fully project RGC Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of RGC Resources at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include RGC Resources' income statement, its balance sheet, and the statement of cash flows.