RPC Stock Story

RES -  USA Stock  

USD 5.64  0.06  1.08%

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 month ago
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Will RPC (NYSE:RES) latest volatility force retail investors to buy in?
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. Please check the breakdown between RPC's total debt and its cash.

How RPC utilizes its cash?

To perform a cash flow analysis of RPC, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash RPC is receiving and how much cash it distributes out in a given period. The RPC cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
RPC Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. RPC reported last year Net Cash Flow from Operations of 77.96 Million

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 Bergesen Worldwide Offshore. You can also mitigate this risk by investing in the oil & gas equipment & services 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.