Breaking Down Ranger Energy Services, Inc. (RNGR) Financial Health: Key Insights for Investors

Are you keeping a close watch on Ranger Energy Services, Inc. (RNGR) and wondering about its financial stability? Did you know that in 2024, the company generated revenue of $571.1 million and a net income of $18.4 million, translating to $0.81 per fully diluted share? How did their strategic focus on high-specification rigs and ancillary services impact their bottom line, leading to an adjusted EBITDA of $78.9 million with a 13.8% margin? Let's dive into the details and uncover key insights that can help you make informed decisions.

Ranger Energy Services, Inc. (RNGR) Revenue Analysis

A comprehensive understanding of Ranger Energy Services, Inc.'s revenue streams is crucial for investors seeking to gauge the company's financial health and future prospects. By dissecting the sources of revenue, growth rates, and segment contributions, stakeholders can develop a nuanced perspective on the company's performance. For further insights, you might find this resource helpful: Breaking Down Ranger Energy Services, Inc. (RNGR) Financial Health: Key Insights for Investors

Ranger Energy Services, Inc. generates revenue primarily through a range of oilfield services. These services encompass:

• Well services: This segment focuses on workover and well maintenance services, which are vital for maintaining and enhancing the production of existing wells.
• Wireline services: These services involve deploying specialized tools and equipment into oil and gas wells to gather data and perform various operations, such as perforating and logging.
• Other services: This includes a variety of support services related to oil and gas operations.

Analyzing the year-over-year revenue growth rate provides insights into the company's ability to expand its market presence and capitalize on industry trends. Examining historical trends reveals periods of growth, contraction, and stability, offering clues about the company's resilience and adaptability. Keep in mind that the oilfield services sector can be cyclical, influenced by commodity prices, drilling activity, and overall energy demand.

To fully understand Ranger Energy Services, Inc.'s revenue, it's important to look at how each business segment contributes to the overall revenue. Understanding the percentage of revenue that comes from each segment helps in assessing the diversification and stability of the company's income.

Changes in revenue streams can signal strategic shifts, market disruptions, or evolving customer preferences. Monitoring these changes is essential for investors looking to anticipate future performance and assess the company's long-term viability. Here's a sample table illustrating potential revenue contributions from different segments:

Ranger Energy Services, Inc. (RNGR) Profitability Metrics

Understanding Ranger Energy Services, Inc. (RNGR)'s profitability involves examining several key financial metrics. These metrics provide insights into the company's ability to generate profits from its revenue and manage its expenses effectively. A detailed look at gross profit, operating profit, and net profit margins, along with trends and comparisons, helps investors assess the company’s financial health. For additional background, see: Exploring Ranger Energy Services, Inc. (RNGR) Investor Profile: Who’s Buying and Why?

Analyzing gross profit, operating profit, and net profit margins is crucial for assessing a company's financial performance. The gross profit margin indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS), reflecting the efficiency of production and pricing strategies. The operating profit margin further refines this by including operating expenses, providing a clearer picture of profitability from core business operations. Finally, the net profit margin considers all revenues, expenses, and income, offering a comprehensive view of the company's overall profitability.

To fully evaluate Ranger Energy Services, Inc. (RNGR), it is essential to analyze these metrics over time, identify trends, and compare them against industry averages to benchmark performance and gain deeper insights into the company's financial strengths and weaknesses.

Here's a breakdown of the profitability metrics for Ranger Energy Services, Inc. (RNGR) based on the 2024 fiscal year:

• Gross Profit: For the year 2024, Ranger Energy Services, Inc. reported a gross profit of $79.4 million.
• Operating Income: The company's operating income for 2024 stood at $29.5 million.
• Net Income: Ranger Energy Services, Inc. reported a net income of $14.5 million for the year 2024.

Additionally, here are the profit margins for Ranger Energy Services, Inc. (RNGR) for the fiscal year 2024:

• Gross Profit Margin: The gross profit margin was approximately 25.8%.
• Operating Profit Margin: The operating profit margin was about 9.6%.
• Net Profit Margin: The net profit margin was approximately 4.7%.

These figures suggest that Ranger Energy Services, Inc. (RNGR) is maintaining positive profitability. The gross profit margin indicates a solid ability to control production costs, while the operating profit margin demonstrates efficiency in managing operating expenses. The net profit margin, although lower than the others, still shows that the company is generating profit after all expenses are considered.

Here is a table summarizing Ranger Energy Services, Inc.'s profitability for 2024:

Analyzing operational efficiency involves examining key metrics such as cost management and gross margin trends. Effective cost management ensures that the company can control its expenses relative to its revenue, directly impacting profitability. Monitoring gross margin trends helps identify whether the company is improving its efficiency in production and pricing over time.

Ranger Energy Services, Inc. (RNGR) Debt vs. Equity Structure

Understanding how Ranger Energy Services, Inc. (RNGR) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity.

As of the end of 2024, Ranger Energy Services, Inc. (RNGR) has the following debt profile:

• Long-term debt: Specific figures for long-term debt would be detailed in their financial statements.
• Short-term debt: Details on short-term debt, including any current portions of long-term debt, are also essential.

The debt-to-equity ratio is a key metric to assess Ranger Energy Services, Inc.'s (RNGR) financial leverage. It's calculated by dividing total liabilities by shareholders' equity. A higher ratio indicates that the company relies more on debt financing compared to equity. The specific debt-to-equity ratio for 2024 should be compared against industry averages to determine if Ranger Energy Services, Inc. (RNGR) is more or less leveraged than its peers.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact Ranger Energy Services, Inc.'s (RNGR) financial health. For example, a debt refinancing might lower interest rates, improving cash flow. Any updates on credit ratings would provide insights into the perceived risk of lending to the company.

Balancing debt and equity is critical. Debt can provide leverage and potentially increase returns on equity, but it also introduces financial risk. Equity financing, on the other hand, dilutes ownership but strengthens the balance sheet. How Ranger Energy Services, Inc. (RNGR) manages this balance affects its financial stability and growth potential.

For more detailed insights into Ranger Energy Services, Inc.'s (RNGR) financial health, you can read the full analysis here: Breaking Down Ranger Energy Services, Inc. (RNGR) Financial Health: Key Insights for Investors

Ranger Energy Services, Inc. (RNGR) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Ranger Energy Services, Inc. (RNGR), assessing these metrics provides insights into its financial stability and risk profile.

Assessing Ranger Energy Services, Inc.'s Liquidity:

Analyzing RNGR's liquidity involves examining key ratios and working capital trends:

• Current and Quick Ratios: These ratios measure RNGR's ability to cover its short-term liabilities with its current assets. The current ratio, calculated as current assets divided by current liabilities, indicates the company's overall liquidity position. The quick ratio, which excludes inventories from current assets, provides a more conservative measure of immediate liquidity.
• Analysis of Working Capital Trends: Monitoring changes in working capital—the difference between current assets and current liabilities—helps identify potential liquidity issues. A decreasing working capital balance may signal challenges in managing short-term obligations.
• Cash Flow Statements Overview: Examining RNGR's cash flow statements offers insights into its cash generation and usage. Trends in operating, investing, and financing cash flows can reveal the company's ability to generate cash from its core operations, fund investments, and manage debt.

Cash Flow Statement Overview:

A review of Ranger Energy Services, Inc.'s cash flow statements reveals trends in its operating, investing, and financing activities. Analyzing these trends can provide insights into the company's ability to generate cash, fund investments, and manage debt.

For the fiscal year 2024, Ranger Energy Services, Inc. reported:

• Net cash provided by operating activities: $33.4 million compared to $27.7 million for the year 2023.
• Net cash used in investing activities: $7.5 million for the year 2024, compared to $11.9 million for the year 2023.
• Net cash used in financing activities: $19.9 million for the year 2024, compared to net cash provided of $6.3 million for the year 2023.

The following table summarizes the cash flow statement for the years 2024 and 2023 (in thousands):

Potential Liquidity Concerns or Strengths:

Based on available data, assess any potential liquidity concerns or strengths for Ranger Energy Services, Inc. Factors to consider include:

• The company's ability to generate sufficient cash flow from operations to cover its short-term obligations
• The availability of credit facilities or other sources of funding to meet unexpected cash needs
• Any upcoming debt maturities or other significant financial obligations that could strain liquidity

For further insights into Ranger Energy Services, Inc. and its investors, consider exploring: Exploring Ranger Energy Services, Inc. (RNGR) Investor Profile: Who’s Buying and Why?

Ranger Energy Services, Inc. (RNGR) Valuation Analysis

Determining whether Ranger Energy Services, Inc. (RNGR) is overvalued or undervalued requires a comprehensive look at several key financial metrics. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Here's a breakdown based on available data:

• Price-to-Earnings (P/E) Ratio:
• The trailing P/E ratio as of December 31, 2024, is 14.78.
• Another source indicates a P/E ratio (TTM) of 15.58 as of April 5, 2025.
• Yet another source mentions a P/E ratio of 15.12 as of April 2025.
• A different source states a P/E ratio of 14.0 as of April 8, 2025.
• The forward P/E ratio is 26.39 as of December 31, 2024.
• Price-to-Book (P/B) Ratio:
• The P/B ratio as of December 31, 2024, is 1.00.
• Another source indicates a Price/Book (mrq) of 1.06 as of April 5, 2025.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:
• The EV/EBITDA ratio is 3.53 as of December 31, 2024.
• Another source indicates an EV/EBITDA of 3.74 as of April 5, 2025.

These valuation ratios provide a snapshot of how the market values Ranger Energy Services, Inc. (RNGR) relative to its earnings, book value, and cash flow. Comparing these ratios to industry averages and historical data can offer insights into whether the stock is undervalued or overvalued.

Stock Price Trends:

• Over the last year, Ranger Energy Services, Inc. (RNGR) has shown a 13.18% increase.
• However, the stock experienced a -12.06% fall over the last month.
• The stock reached its all-time high on February 17, 2025, at $18.45 and its all-time low on September 23, 2020, at $2.27.

Recent news indicates a 17% drop in the stock price over the past week. As of April 20, 2025, the current price of RNGR is $12.62, a 1.94% increase in the past 24 hours.

Dividend Yield and Payout Ratios:

• Ranger Energy Services, Inc. (RNGR) pays dividends quarterly.
• The last dividend per share was $0.060 USD.
• The dividend yield (TTM)% is 1.66%.
• The dividend yield was 1.29% in 2024, and the payout ratio reached 24.84%.
• The dividend yield is 1.89%.

Analyst Consensus:

• Based on 2 Wall Street analysts, the consensus rating for Ranger Energy Services, Inc. (RNGR) is 'Hold.'
• The average price target is $12.50, representing a forecasted downside of -1.13% from the current price of $12.64.
• Analysts' price estimates range from a minimum of $20.00 to a maximum of $20.00.

Here is a table summarizing key valuation measures for Ranger Energy Services, Inc. (RNGR):

For further insights, consider exploring Breaking Down Ranger Energy Services, Inc. (RNGR) Financial Health: Key Insights for Investors.

Ranger Energy Services, Inc. (RNGR) Risk Factors

Ranger Energy Services, Inc. (RNGR) faces a variety of risks that could significantly impact its financial health. These risks can be broadly categorized into internal and external factors, each posing unique challenges to the company's operations and profitability.

External Risks:

Industry Competition: The energy services sector is highly competitive. RNGR competes with numerous companies, some of which may have greater financial and technical resources. Increased competition could lead to pricing pressures, reduced market share, and decreased profitability. The company's ability to innovate and differentiate its services is crucial for maintaining a competitive edge.

Regulatory Changes: The oil and gas industry is subject to extensive regulations regarding environmental protection, safety, and operational standards. Changes in these regulations can increase compliance costs, delay projects, and potentially limit RNGR's operational scope. Monitoring and adapting to evolving regulatory landscapes are essential for mitigating these risks.

Market Conditions: RNGR's performance is closely tied to the cyclical nature of the oil and gas industry. Fluctuations in commodity prices, drilling activity, and overall economic conditions can significantly impact demand for its services. Downturns in the energy market can lead to reduced revenue, project cancellations, and financial strain. Diversifying services and maintaining financial flexibility are key strategies for navigating market volatility.

Internal Risks:

Operational Risks: RNGR's operations involve inherent risks, including equipment failures, accidents, and logistical challenges. These risks can result in project delays, increased costs, and potential liabilities. Implementing robust safety protocols, investing in reliable equipment, and maintaining efficient supply chains are critical for minimizing operational disruptions.

Financial Risks: Maintaining adequate liquidity and managing debt are crucial for RNGR's financial stability. Factors such as reduced revenue, increased expenses, or unfavorable financing terms can strain the company's financial resources. Prudent financial management, cost control measures, and strategic capital allocation are essential for mitigating financial risks.

Strategic Risks: Strategic decisions related to market positioning, service offerings, and expansion initiatives can impact RNGR's long-term success. Misjudgments in these areas can lead to missed opportunities, inefficient resource allocation, and decreased competitiveness. Thorough market analysis, strategic planning, and adaptability are vital for navigating strategic risks.

Mitigation Strategies:

While specific mitigation strategies may vary depending on the nature and severity of the risk, RNGR can employ several general approaches:

• Diversification: Expanding service offerings and geographic presence can reduce reliance on specific markets or customers.
• Cost Management: Implementing cost control measures and improving operational efficiency can enhance profitability and financial resilience.
• Risk Management: Establishing comprehensive risk management frameworks and protocols can help identify, assess, and mitigate potential threats.
• Compliance: Maintaining strict compliance with all applicable regulations and standards can minimize legal and financial liabilities.
• Innovation: Investing in research and development to develop innovative technologies and services can enhance competitiveness and create new revenue streams.

Recent earnings reports and filings may provide further details on specific risks and mitigation strategies identified by Ranger Energy Services, Inc. (RNGR). For instance, companies often disclose information about potential environmental liabilities, ongoing litigation, or changes in regulatory requirements in their 10-K and 10-Q filings with the Securities and Exchange Commission (SEC).

Here is a comprehensive table summarizing key risk factors and potential mitigation strategies:

Understanding and addressing these risk factors is crucial for investors seeking to assess the financial health and long-term prospects of Ranger Energy Services, Inc. (RNGR).

Read more about RNGR: Exploring Ranger Energy Services, Inc. (RNGR) Investor Profile: Who’s Buying and Why?

Ranger Energy Services, Inc. (RNGR) Growth Opportunities

Ranger Energy Services, Inc. (RNGR) faces a dynamic landscape of growth prospects, influenced by factors ranging from technological advancements to strategic market positioning. Analyzing these drivers provides insights into the company's potential trajectory.

Key growth drivers for Ranger Energy Services, Inc. (RNGR) include:

• Technological Innovation: Embracing and implementing advanced technologies in well service operations can lead to increased efficiency and cost savings.
• Market Expansion: Identifying and penetrating new geographical markets or service areas can broaden the company's revenue base.
• Strategic Acquisitions: Acquiring complementary businesses or technologies can expand Ranger Energy Services, Inc. (RNGR)'s service offerings and market share.

Future revenue growth projections and earnings estimates for Ranger Energy Services, Inc. (RNGR) will depend significantly on its ability to capitalize on these growth drivers. While specific figures are subject to market conditions and company performance, a focus on innovation, expansion, and strategic partnerships will be crucial.

Several strategic initiatives and partnerships could drive future growth for Ranger Energy Services, Inc. (RNGR):

• Partnerships with technology providers: Collaborating to integrate cutting-edge solutions into their service offerings.
• Joint ventures with other oilfield service companies: Expanding geographical reach and service capabilities.
• Strategic alliances with exploration and production companies: Securing long-term contracts and ensuring a steady stream of business.

Ranger Energy Services, Inc. (RNGR)'s competitive advantages play a vital role in positioning the company for growth. These advantages may include:

• Specialized Expertise: Possessing unique skills and knowledge in specific well service areas.
• Strong Customer Relationships: Maintaining long-standing relationships with key clients.
• Operational Efficiency: Demonstrating superior efficiency in service delivery, leading to cost advantages.

For further insights into Ranger Energy Services, Inc. (RNGR)'s financial health, you can explore this comprehensive analysis: Breaking Down Ranger Energy Services, Inc. (RNGR) Financial Health: Key Insights for Investors.