NYSE:RNGR

Stock Analysis Report

Ranger Energy Services

Executive Summary

Ranger Energy Services, Inc. provides well service rigs and related services in the United States.

Rewards

Trading at 66.1% below its fair value

Earnings are forecast to grow 10.63% per year

Became profitable this year

Risk Analysis

No risks detected for RNGR from our risk checks.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Ranger Energy Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RNGR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.3%

RNGR

-3.4%

US Energy Services

-1.1%

US Market


1 Year Return

-3.8%

RNGR

-32.2%

US Energy Services

17.8%

US Market

Return vs Industry: RNGR exceeded the US Energy Services industry which returned -32.2% over the past year.

Return vs Market: RNGR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

RNGRIndustryMarket
7 Day2.3%-3.4%-1.1%
30 Day-5.2%-6.9%1.5%
90 Dayn/a-6.5%6.6%
1 Year-3.8%-3.8%-30.0%-32.2%20.2%17.8%
3 Yearn/a-55.7%-61.3%47.5%38.1%
5 Yearn/a-57.6%-64.8%71.2%52.4%

Price Volatility Vs. Market

How volatile is Ranger Energy Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ranger Energy Services undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RNGR ($7) is trading below our estimate of fair value ($20.65)

Significantly Below Fair Value: RNGR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RNGR is poor value based on its PE Ratio (17.1x) compared to the Energy Services industry average (14.2x).

PE vs Market: RNGR is good value based on its PE Ratio (17.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: RNGR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: RNGR is good value based on its PB Ratio (0.5x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Ranger Energy Services forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RNGR's forecast earnings growth (10.6% per year) is above the savings rate (1.7%).

Earnings vs Market: RNGR's earnings (10.6% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: RNGR's earnings are forecast to grow, but not significantly.

Revenue vs Market: RNGR's revenue (0.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: RNGR's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RNGR's Return on Equity is forecast to be low in 3 years time (1.9%).


Next Steps

Past Performance

How has Ranger Energy Services performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RNGR has high quality earnings.

Growing Profit Margin: RNGR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RNGR has become profitable over the past 5 years, growing earnings by 48.8% per year.

Accelerating Growth: RNGR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RNGR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Energy Services industry (-32.9%).


Return on Equity

High ROE: RNGR's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ranger Energy Services's financial position?


Financial Position Analysis

Short Term Liabilities: RNGR's short term assets ($68.5M) exceed its short term liabilities ($58.9M).

Long Term Liabilities: RNGR's short term assets ($68.5M) exceed its long term liabilities ($47.0M).


Debt to Equity History and Analysis

Debt Level: RNGR's debt to equity ratio (26.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RNGR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: RNGR has a high level of physical assets or inventory.

Debt Coverage by Assets: RNGR's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: RNGR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: RNGR is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Ranger Energy Services's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RNGR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RNGR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RNGR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RNGR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RNGR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Darron Anderson (50yo)

2.9yrs

Tenure

US$1,264,716

Compensation

Mr. Darron M. Anderson has been Chief Executive Officer, President and Director of Ranger Energy Services, Inc. since March 2017. Mr. Anderson joined Ranger Energy Services, Inc. in March 2017. He evaluate ...


CEO Compensation Analysis

Compensation vs Market: Darron's total compensation ($USD1.26M) is above average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Darron's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Darron Anderson
President2.9yrsUS$1.26m1.26% $1.4m
John Blossman
Chief Financial Officer1.7yrsUS$407.34k0.51% $560.8k
Mario Hernandez
Chief Accounting Officer1.3yrsUS$367.38k0.31% $340.8k
J. Hooker
Senior Vice President1.3yrsUS$329.75kno data
Lance Perryman
Executive Vice President of Processing Solutions2.9yrsUS$195.27kno data

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: RNGR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darron Anderson
President2.9yrsUS$1.26m1.26% $1.4m
William Austin
Independent Director2.8yrsUS$256.46k0.43% $470.6k
Merrill Miller
Chairman of the Board2.9yrsUS$343.98k0.52% $564.5k
Michael Kearney
Independent Director1.6yrsUS$141.66k0.28% $302.3k
Richard Agee
Director2.9yrsno data1.57% $1.7m
Brett Agee
Director3yrsUS$257.82k0.30% $330.6k
Krishna Shivram
Independent Director2.8yrsUS$256.46k0.30% $330.6k
Charles Leykum
Independent Director2.9yrsno datano data
Gerald Cimador
Independent Director2.1yrsno datano data

2.9yrs

Average Tenure

57yo

Average Age

Experienced Board: RNGR's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ranger Energy Services, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ranger Energy Services, Inc.
  • Ticker: RNGR
  • Exchange: NYSE
  • Founded: 2017
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Implied Market Cap: US$109.490m
  • Market Cap: US$61.427m
  • Shares outstanding: 15.64m
  • Website: https://www.rangerenergy.com

Number of Employees


Location

  • Ranger Energy Services, Inc.
  • 800 Gessner Street
  • Suite 1000
  • Houston
  • Texas
  • 77024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RNGRNYSE (New York Stock Exchange)YesClass A Common StockUSUSDAug 2017

Biography

Ranger Energy Services, Inc. provides well service rigs and related services in the United States. It operates through three segments: High Specification Rigs, Completion and Other Services, and Processing Solutions. The company offers well completion support services, such as milling out composite plugs used during hydraulic fracturing, wireline, and snubbing services; workover services, including retrieval and replacement of existing production tubing; well maintenance services comprising replacement of downhole artificial lift components; and decommissioning services consisting of plugging and abandonment services. It also maintain well on production and primarily, including wireline services, such as well intervention, pipe recovery, plugging and abandonment; and snubbing services consisting well maintenance, workover, and well completion activities. In addition, the company rents equipment, such as power swivels, well control packages, hydraulic catwalks, frac tanks, pipe racks, pipe handling tools, and other equipment; and offers wireline, snubbing, and fluid management services. Further, it owns and operates a fleet of modular natural gas processing equipment that processes rich natural gas streams at the wellhead or central gathering points, as well as serves onshore exploration and production operators. The company was founded in 2017 and is headquartered in Houston, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:36
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.