Rgc Resources Inc (NASDAQ: RGCO)

Sector: Utilities Industry: Utilities - Regulated Gas CIK: 0001069533
Market Cap 153.11 Mn
P/B 3.05
P/E 33.86
P/S 2.21
ROIC (Qtr) 5.20
Div Yield % 3.03
Rev 1y % (Qtr) 10.89
Total Debt (Qtr) 155.84 Mn
Debt/Equity (Qtr) 1.34
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About

Investment thesis

Bull case

  • Operating cash flow of 29.20M provides strong 43.64x coverage of stock compensation 669178, indicating sustainable incentive practices.
  • Tangible assets of 341.04M provide robust 26.44x coverage of other current liabilities 12.90M, indicating strong asset backing.
  • Operating cash flow of 29.20M provides solid 0.73x coverage of current liabilities 40.10M, showing strong operational health.
  • Operating cash flow of 29.20M provides strong 3.23x coverage of inventory 9.05M, indicating efficient inventory management.
  • Operating cash flow of 29.20M provides strong 2.50x coverage of operating expenses 11.70M, showing operational efficiency.

Bear case

  • Operating cash flow of 29.20M barely covers its investment activities of (21.17M), with a coverage ratio of -1.38, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 2.66M against inventory of 9.05M, the 0.29 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Operating cash flow of 29.20M provides thin coverage of dividend payments of (8.56M) with a -3.41 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 2.66M provide limited coverage of acquisition spending of (601540), which is -4.42x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 8.63M provides weak coverage of capital expenditures of 20.57M, with a 0.42 ratio suggesting additional external financing needs for growth initiatives.

Regulation Status Breakdown of Revenue (2025)

Consolidation Items Breakdown of Revenue (2025)

Peer comparison

Companies in the Utilities - Regulated Gas
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ATO Atmos Energy Corp 28.99 Bn 23.20 5.95 9.63 Bn
2 NI Nisource Inc. 14.62 Bn 27.48 3.16 16.21 Bn
3 UGI Ugi Corp /Pa/ 8.33 Bn 13.88 1.13 7.21 Bn
4 NJR New Jersey Resources Corp 5.43 Bn 16.61 2.52 3.97 Bn
5 BKH Black Hills Corp /Sd/ 5.38 Bn 18.44 2.33 4.70 Bn
6 SR Spire Inc 5.36 Bn 19.83 2.09 5.35 Bn
7 SWX Southwest Gas Holdings, Inc. 5.04 Bn 19.06 1.48 3.51 Bn
8 OGS ONE Gas, Inc. 4.50 Bn 29.67 3.07 3.40 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.48 0.79
EV to Cash from Ops. EV/CFO 16.20 18.36
EV to Debt EV to Debt 1.04 1.86
EV to EBIT EV/EBIT 17.86 -126.33
EV to EBITDA EV/EBITDA 12.31 11.96
EV to Free Cash Flow [EV/FCF] EV/FCF 48.13 -73.99
EV to Market Cap EV to Market Cap 1.06 1.71
EV to Revenue EV/Rev 2.34 3.19
Price to Book Value [P/B] P/B 3.05 2.59
Price to Earnings [P/E] P/E 33.86 77.08
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.51 1.42
Dividend Payout Ratio % Div Payout % (Qtr) 66.40 47.06
Dividend per Basic Share Div per Share (Qtr) 0.84 1.78
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 100.72 54.25
Interest Coverage Int. cover (Qtr) 3.60 3.17
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.39 -16.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.58 44.73
Dividend Growth (1y) % Div 1y % (Qtr) 4.09 -0.03
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 4.51 6.88
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.56 113.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.42 26.96
EBT Growth (1y) % EBT 1y % (Qtr) 6.22 12.44
EPS Growth (1y) % EPS 1y % (Qtr) 6.84 24.35
FCF Growth (1y) % FCF 1y % (Qtr) 338.28 -146.22
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.69 10.16
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.29 0.36
Cash Payout Ratio Cash Payout (Qtr) 0.17 0.12
Cash Ratio Cash Ratio (Qtr) 0.07 0.15
Current Ratio Curr Ratio (Qtr) 0.80 0.94
Debt to Equity Ratio Debt/Equity (Qtr) 1.34 3.58
Interest Cover Ratio Int Coverage (Qtr) 3.60 3.17
Times Interest Earned Times Interest Earned (Qtr) 3.60 3.17
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 35.40 32.74
EBIT Margin % EBIT Margin % (Qtr) 23.54 21.43
EBT Margin % EBT Margin % (Qtr) 17.00 13.06
Gross Margin % Gross Margin % (Qtr) 50.70 43.32
Net Profit Margin % Net Margin % (Qtr) 13.10 9.98