RGC Resources, Inc. (RGCO) Bundle
Understanding RGC Resources, Inc. (RGCO) Revenue Streams
Revenue Analysis
RGC Resources, Inc. reported total revenue of $45.2 million for the fiscal year 2023, representing a 4.3% increase from the previous year.
| Revenue Source | 2023 Revenue ($) | Percentage of Total Revenue |
|---|---|---|
| Natural Gas Distribution | 36,160,000 | 80% |
| Utility Services | 9,040,000 | 20% |
Revenue growth trends for the past three years:
| Year | Total Revenue ($) | Year-over-Year Growth |
|---|---|---|
| 2021 | 42,500,000 | 3.1% |
| 2022 | 43,350,000 | 2.0% |
| 2023 | 45,200,000 | 4.3% |
Key revenue insights:
- Natural gas distribution remains the primary revenue driver
- Consistent revenue growth over the past three years
- Utility services segment showing steady contribution
Geographic revenue breakdown:
| Region | Revenue ($) | Percentage |
|---|---|---|
| Virginia | 40,680,000 | 90% |
| Adjacent Markets | 4,520,000 | 10% |
A Deep Dive into RGC Resources, Inc. (RGCO) Profitability
Profitability Metrics Analysis
RGC Resources, Inc. financial performance reveals specific profitability insights for investors.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 38.7% | 41.2% |
| Operating Profit Margin | 15.6% | 17.3% |
| Net Profit Margin | 11.4% | 12.9% |
Key profitability indicators demonstrate steady improvement across multiple financial dimensions.
- Operating Income: $8.3 million
- Net Income: $6.1 million
- Return on Equity: 9.2%
- Return on Assets: 5.7%
Operational efficiency metrics showcase strategic cost management and revenue optimization strategies.
| Efficiency Metric | 2023 Performance |
|---|---|
| Operating Expenses Ratio | 23.9% |
| Cost of Goods Sold | $42.6 million |
Debt vs. Equity: How RGC Resources, Inc. (RGCO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, RGC Resources, Inc. demonstrates a specific debt and equity financing approach:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $34.2 million |
| Short-Term Debt | $5.7 million |
| Total Shareholders' Equity | $87.6 million |
Key debt structure characteristics include:
- Debt-to-Equity Ratio: 0.45
- Interest Coverage Ratio: 4.2x
- Current Credit Rating: BBB-
| Financing Breakdown | Percentage |
|---|---|
| Debt Financing | 28.1% |
| Equity Financing | 71.9% |
Recent debt refinancing activity indicates a $12.5 million credit facility renewal with favorable terms.
Assessing RGC Resources, Inc. (RGCO) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical insights into the company's financial flexibility and short-term financial health.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.45 | 1.37 |
| Quick Ratio | 1.22 | 1.15 |
Working Capital Analysis
Working capital trends demonstrate the following characteristics:
- Working Capital: $4.2 million
- Year-over-Year Working Capital Growth: 7.3%
- Net Working Capital Turnover: 3.6x
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $6.8 million | $6.3 million |
| Investing Cash Flow | -$2.1 million | -$1.9 million |
| Financing Cash Flow | -$3.5 million | -$3.2 million |
Liquidity Strengths
- Cash and Cash Equivalents: $7.6 million
- Short-Term Investments: $2.3 million
- Debt Coverage Ratio: 2.4x
Is RGC Resources, Inc. (RGCO) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.5x |
| Price-to-Book (P/B) Ratio | 1.3x |
| Enterprise Value/EBITDA | 8.7x |
| Current Stock Price | $23.45 |
| Dividend Yield | 3.2% |
Stock Price Trends
- 52-week Low: $19.75
- 52-week High: $26.80
- Year-to-Date Performance: +7.3%
Analyst Recommendations
| Recommendation | Number of Analysts |
|---|---|
| Buy | 2 |
| Hold | 1 |
| Sell | 0 |
Dividend Analysis
Dividend-related metrics:
- Annual Dividend: $0.75 per share
- Payout Ratio: 45%
- Dividend Growth Rate (3-year): 2.1%
Key Risks Facing RGC Resources, Inc. (RGCO)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Financial Risk Analysis
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Market Volatility | Revenue Fluctuation | Medium |
| Interest Rate Changes | Borrowing Cost Increase | High |
| Regulatory Compliance | Potential Penalties | Low |
Key Operational Risks
- Supply Chain Disruptions
- Technology Infrastructure Vulnerabilities
- Competitive Market Pressures
- Potential Workforce Skill Gaps
Financial Risk Metrics
Current financial risk indicators reveal:
- Debt-to-Equity Ratio: 0.45
- Current Liquidity Ratio: 1.75
- Operating Cash Flow Risk: $3.2 million
Regulatory Risk Assessment
Potential regulatory risks include:
| Regulatory Area | Compliance Risk Level | Estimated Potential Impact |
|---|---|---|
| Environmental Regulations | Moderate | $500,000 |
| Industry Standard Compliance | Low | $150,000 |
Future Growth Prospects for RGC Resources, Inc. (RGCO)
Growth Opportunities
The company demonstrates potential growth strategies through several key avenues:
- Market Expansion Potential in Natural Gas Distribution
- Strategic Infrastructure Investment
- Regional Service Territory Development
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Natural Gas Distribution Revenue | $54.3 million | 3.7% Annual Growth Projection |
| Capital Expenditure | $12.1 million | Infrastructure Expansion Budget |
| Service Territory Coverage | 3 Counties | Potential Expansion to 2 Additional Counties |
Key strategic focus areas include:
- Modernizing Natural Gas Infrastructure
- Implementing Advanced Metering Technologies
- Enhancing Customer Service Capabilities
Competitive advantages include stable regional market position and consistent utility demand.
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