RGC Resources, Inc. (RGCO) AI Stock Analysis

RGC Resources, Inc. is an energy services company operating through subsidiaries to sell and distribute natural gas. Based in Roanoke, Virginia, it serves residential, commercial, and industrial customers across Roanoke and nearby areas, alongside select unregulated services. The company maintains an infrastructure network of approximately 1,168 miles of transmission and distribution pipelines. Its operations are supported by a liquefied natural gas storage facility and six metering stations, providing gas distribution across its regional footprint.

Between FY2021 and FY2025, revenue grew from $75.2M to $95.3M, delivering a 5-year revenue CAGR of 8.6%. Annual revenue expanded 12.6% in FY2025 after falling 13.1% in FY2024. Operating margin stood at 19.4% in FY2025, while net margin was 13.9% with net income of $13.3M and EPS of $1.28. Over the trailing twelve months ended June 30, 2026, revenue totaled $107.1M with a profit margin of 13.1% and operating margin of 7.9%. For the latest quarter ended June 30, 2026, quarterly revenue fell 0.9% year-over-year.

As of June 30, 2026, RGC Resources held $2.5M in cash and short-term investments against total debt of $148.8M, resulting in net debt of $146.3M. Shareholders' equity was $122.9M, producing a debt-to-equity ratio of 1.21 and a current ratio of 0.94. In FY2025, operating cash flow reached $28.9M, funding capital expenditures of $20.7M and yielding positive free cash flow of $8.2M. The company distributed $8.5M in dividends during FY2025, while its share count grew 24.1% over five years.

RGC Resources trades at a trailing P/E of 16.8x, lower than the 20.6x median of its US-listed Utilities peers. Its forward P/E is 18.1x compared to the peer median of 17.2x. The company's EV-to-EBITDA ratio of 10.1x and price-to-sales ratio of 2.2x sit below peer medians of 12.1x and 2.4x, respectively. Over the trailing year, the stock returned 10.6%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, its return of 24.0% lagged the S&P 500 return of 83.0%.

RGC Resources offers an annualized forward dividend of $0.87 per share, representing a 3.80% dividend yield with a payout ratio of 65.1%. The company pays quarterly dividends and has maintained consecutive dividend payments for 33 years. Over the past five years, its dividend grew at an annualized rate of 3.5%, with the most recent ex-dividend date on October 16, 2026.

One analyst covers RGC Resources, assigning a Hold rating. The mean price target is $23.00, representing a 1.6% premium over the October 16, 2026 closing price of $22.63. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $110.3M and EPS of $1.37. For the following fiscal year, estimates call for revenue of $115.2M and EPS of $1.40. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 18, 2026.

This page is an AI-written research summary of RGC Resources, Inc. (RGCO). 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.

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