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.
RGC Resources, Inc. (RGCO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.