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REI

Ring Energy NYSEAM:REI Stock Report

Last Price

US$2.56

Market Cap

US$273.2m

7D

-17.2%

1Y

-13.5%

Updated

05 Jul, 2022

Data

Company Financials +
REI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance3/6
Financial Health2/6
Dividends0/6

REI Stock Overview

Ring Energy, Inc., an exploration and production company, engages in the acquisition, exploration, development, and production of oil and natural gas in Texas and New Mexico.

Ring Energy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ring Energy
Historical stock prices
Current Share PriceUS$2.56
52 Week HighUS$5.09
52 Week LowUS$1.81
Beta1.87
1 Month Change-45.42%
3 Month Change-34.86%
1 Year Change-13.51%
3 Year Change-22.19%
5 Year Change-80.12%
Change since IPO-50.00%

Recent News & Updates

Shareholder Returns

REIUS Oil and GasUS Market
7D-17.2%-1.7%-2.2%
1Y-13.5%28.8%-19.1%

Return vs Industry: REI underperformed the US Oil and Gas industry which returned 28.8% over the past year.

Return vs Market: REI exceeded the US Market which returned -19.1% over the past year.

Price Volatility

Is REI's price volatile compared to industry and market?
REI volatility
REI Average Weekly Movement10.8%
Oil and Gas Industry Average Movement8.9%
Market Average Movement8.1%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.3%

Stable Share Price: REI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: REI's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200453Paul McKinneyhttps://www.ringenergy.com

Ring Energy, Inc., an exploration and production company, engages in the acquisition, exploration, development, and production of oil and natural gas in Texas and New Mexico. As of December 31, 2021, the company's proved reserves consisted of approximately 77.8 million barrel of oil equivalent. It also had interests in 18,882 net developed acres and 1,406 net undeveloped acres in Andrews and Gaines counties, Texas; 18,437 net developed acres in Culberson and Reeves counties, Texas; and 13,662 net developed acres and 11,993 net undeveloped acres in Yoakum, Runnels, and Coke Counties, Texas and Lea County, New Mexico.

Ring Energy Fundamentals Summary

How do Ring Energy's earnings and revenue compare to its market cap?
REI fundamental statistics
Market CapUS$273.15m
Earnings (TTM)US$29.50m
Revenue (TTM)US$214.50m

9.3x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REI income statement (TTM)
RevenueUS$214.50m
Cost of RevenueUS$34.03m
Gross ProfitUS$180.47m
Other ExpensesUS$150.97m
EarningsUS$29.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin84.14%
Net Profit Margin13.75%
Debt/Equity Ratio90.6%

How did REI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is REI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REI?

Other financial metrics that can be useful for relative valuation.

REI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA6.6x
PEG Ratio0.1x

Price to Earnings Ratio vs Peers

How does REI's PE Ratio compare to its peers?

REI PE Ratio vs Peers
The above table shows the PE ratio for REI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6.1x
TGA TransGlobe Energy
2.4x-107.6%US$239.0m
EPM Evolution Petroleum
8.5xn/aUS$166.5m
EPSN Epsilon Energy
9.1xn/aUS$133.1m
GTE Gran Tierra Energy
4.3xn/aUS$405.3m
REI Ring Energy
9.3x65.9%US$273.2m

Price-To-Earnings vs Peers: REI is expensive based on its Price-To-Earnings Ratio (9.3x) compared to the peer average (6.1x).


Price to Earnings Ratio vs Industry

How does REI's PE Ratio compare vs other companies in the US Oil and Gas Industry?

Price-To-Earnings vs Industry: REI is good value based on its Price-To-Earnings Ratio (9.3x) compared to the US Oil and Gas industry average (11.8x)


Price to Earnings Ratio vs Fair Ratio

What is REI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.3x
Fair PE Ratio34.7x

Price-To-Earnings vs Fair Ratio: REI is good value based on its Price-To-Earnings Ratio (9.3x) compared to the estimated Fair Price-To-Earnings Ratio (34.7x).


Share Price vs Fair Value

What is the Fair Price of REI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REI ($2.56) is trading below our estimate of fair value ($33.81)

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


Price to Earnings Growth Ratio

PEG Ratio: REI is good value based on its PEG Ratio (0.1x)


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


65.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REI's forecast earnings growth (65.9% per year) is above the savings rate (1.9%).

Earnings vs Market: REI's earnings (65.9% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: REI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: REI's revenue (14.8% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: REI's revenue (14.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if REI's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Ring Energy performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-49.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REI has high quality earnings.

Growing Profit Margin: REI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: REI has become profitable over the past 5 years, growing earnings by -49.1% per year.

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

Earnings vs Industry: REI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (102.2%).


Return on Equity

High ROE: REI's Return on Equity (9.5%) is considered low.


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Financial Health

How is Ring Energy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: REI's short term assets ($39.4M) do not cover its short term liabilities ($97.8M).

Long Term Liabilities: REI's short term assets ($39.4M) do not cover its long term liabilities ($297.0M).


Debt to Equity History and Analysis

Debt Level: REI's net debt to equity ratio (89.9%) is considered high.

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

Debt Coverage: REI's debt is well covered by operating cash flow (29.1%).

Interest Coverage: REI's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


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Dividend

What is Ring Energy current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as REI has not reported any payouts.


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Management

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

1.6yrs

Average management tenure


CEO

Paul McKinney (63 yo)

1.75yrs

Tenure

US$3,493,117

Compensation

Mr. Paul D. McKinney serves as Chief Executive Officer and Chairman at Ring Energy, Inc since October 01, 2020 and serves as Director since joining on October 01, 2020. He serves on the Board of Directors...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD3.49M) is above average for companies of similar size in the US market ($USD1.85M).

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


Leadership Team

Experienced Management: REI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: REI's board of directors are not considered experienced ( 1.8 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 been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

Company Information

Ring Energy, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ring Energy, Inc.
  • Ticker: REI
  • Exchange: NYSEAM
  • Founded: 2004
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$273.154m
  • Shares outstanding: 106.70m
  • Website: https://www.ringenergy.com

Number of Employees


Location

  • Ring Energy, Inc.
  • 1725 Hughes Landing Boulevard
  • Suite 900
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.