RPC, Inc. (RES) AI Stock Analysis
RES AI stock analysis summary
AI ResearchRPC, Inc. (RES) provides specialized oilfield services and equipment to the energy exploration and production industry. The company maintains a conservative balance sheet with $127.6M in net cash and generated $1.79B in trailing twelve-month revenue. However, operating margin stood at 4.5% over the trailing twelve months, down sharply from historical peaks.
- Market cap
- $1.34B
- Revenue (TTM)
- $1.79B
- P/E
- 55.0x fwd 16.3x
- 1Y return
- 43.6% S&P 500 16.8%
- Avg. target
- $6.40 5.8% vs last close
Bull case
- RPC maintains a clean balance sheet with $127.6M in net cash, a current ratio of 3.34, and a debt-to-equity ratio of 0.05 as of June 30, 2026.
- The stock generated a 43.6% one-year return, outpacing the 16.8% return of the S&P 500.
- Its EV to EBITDA of 5.5x and price-to-sales of 0.7x trade at discounts to the US-listed Energy peer medians of 8.0x and 1.8x, respectively.
Bear case
- Profitability has compressed significantly, with operating margin dropping from 18.0% in FY2022 to 3.5% in FY2025 and 4.5% over the trailing twelve months.
- The stock trades at an elevated trailing P/E of 55.0x, well above the US-listed Energy peer median of 15.0x.
- A high short interest of 39.1% of the float indicates substantial market skepticism.
What RPC does
RPC, Inc. provides oilfield services and equipment to support exploration, production, and development activities for oil and gas companies. The company operates through two segments: Technical Services and Support Services. Technical Services delivers pressure pumping, fracturing, acidizing, cementing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services. Support Services offers rental tools for onshore and offshore drilling, completion, and workover tasks, alongside oilfield pipe inspection, storage, and well control consulting. Headquartered in Atlanta, Georgia, RPC serves customers across the United States and international markets, including Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, and the Middle East.
Growth and profitability
RPC's revenue reached $1.63B in FY2025, recovering 15.0% after falling 12.5% to $1.41B in FY2024. Gross margin narrowed from 32.6% in FY2023 and 26.7% in FY2024 to 14.3% in FY2025. Operating margin dropped from 18.0% in FY2022 and 15.1% in FY2023 to 3.5% in FY2025, while net income totaled $32.1M compared to $218.4M in FY2022. For the trailing twelve months ended June 30, 2026, revenue stood at $1.79B with a net profit margin of 1.3%. In the latest quarter ended June 30, 2026, quarterly revenue grew 9.5% year-over-year and quarterly earnings rose 4.8%.
Balance sheet and cash flow
As of June 30, 2026, RPC held $179.5M in cash and short-term investments against $51.9M in total debt, leaving net cash of $127.6M. The company carries a current ratio of 3.34 and a debt-to-equity ratio of 0.05 on $1.11B of shareholders' equity. In FY2025, operating cash flow was $201.3M and free cash flow stood at $52.9M. Capital allocation in FY2025 included $148.4M in capital expenditures, $35.1M in dividends paid, and $2.9M used for share buybacks.
Valuation and performance
RPC trades at a trailing P/E of 55.0x and a forward P/E of 16.3x, compared to medians of 15.0x and 12.7x for its US-listed Energy peers. Its EV to EBITDA multiple is 5.5x, below the peer median of 8.0x, while its price-to-sales ratio is 0.7x against the peer median of 1.8x. At $6.05 per share, the stock has gained 43.6% over the past year, outperforming the 16.8% return of the S&P 500 (SPY). Over five years, the stock is up 18.6%, trailing the S&P 500's 83.0% gain.
RES dividend
RPC pays a forward annual dividend of $0.16 per share, representing a 2.64% dividend yield. The payout ratio stands at 66.7%, and dividends are distributed on a quarterly basis. The company has paid dividends for 5 consecutive years, with the last ex-dividend date occurring on August 10, 2026.
What analysts expect
Wall Street coverage includes 1 Buy, 3 Holds, and 1 Sell rating. The mean price target of $6.40 implies 5.8% upside from the last closing price of $6.05. For the fiscal year ending December 31, 2026, consensus estimates project $1.84B in revenue and EPS of $0.28, representing 13.0% EPS growth. RPC beat EPS estimates in 2 of the last 4 quarters, and the next earnings date is scheduled for October 29, 2026.
Key risks and what to watch
- Gross margin contraction from 32.6% in FY2023 to 14.3% in FY2025 highlights ongoing operational cost pressures.
- Short interest represents 39.1% of the float, pointing to elevated volatility risks.
- Full-year EPS declined from $1.02 in FY2022 to $0.27 in FY2025, leaving current trailing EPS at $0.11.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RES AI stock analysis
This page is an AI-written research summary of RPC, Inc. (RES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RES income statement, RES balance sheet, RES key metrics, RES analyst forecast, RES chart. See the RES stock overview for the latest quote and news.
RES AI stock analysis FAQ
What dividend does RPC pay?
RPC pays an annual forward dividend of $0.16 per share, which equates to a dividend yield of 2.64% and a payout ratio of 66.7%.
How leveraged is RPC's balance sheet?
RPC holds $179.5M in cash against $51.9M in total debt as of June 30, 2026, yielding a net cash position of $127.6M and a debt-to-equity ratio of 0.05.
What are analysts forecasting for RPC's earnings?
For the fiscal year ending December 31, 2026, analysts expect EPS of $0.28 on revenue of $1.84B, followed by FY2027 estimates of $0.29 in EPS and $1.86B in revenue.
Who owns most of RPC's stock?
Insiders own 57.6% of the company, while institutional investors hold 44.7%.