RGC Resources, Inc.
$22.27
+0.58%RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. The company also provides various unregulated services. It operates approximately 1,157 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates 6 metering stations. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 17.4).
Valuation inputs: P/E 17.4, earnings yield +5.7%, momentum +0.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +11.7%, ROIC +4.5%).
Profitability stack: net margin +13.9%, ROE +11.7%, ROIC +4.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +65.6%, momentum +0.6%, net margin +13.9%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
RGC Resources, Inc. Market vs Earnings Trajectory
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RGC Resources, Inc. Fair Value Envelope
RGC Resources, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Healthy operating margins demonstrate effective cost control and strong business fundamentals.
Net Profit Margin
Strong net margins indicate efficient operations and favorable tax/interest management.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
RGC Resources, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Capital-intensive growth: Heavy reinvestment limits current cash available but may drive future returns. Assess whether CapEx supports compelling growth opportunities with adequate ROI.
RGC Resources, Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
RGC Resources, Inc. Street Expectations Map
No Target Data
No analyst price targets available for rgco.
RGC Resources, Inc. Insider Positioning
During the last 12 months, insiders have purchased $150K and sold $6K worth of RGCO shares, resulting in $143K of net buying activity.
3 Months
37
846.00
0
0.00
+846
+$846
3-6 Months
97
2.12K
0
0.00
+2K
+$2K
6-9 Months
2.7K
59.27K
0
0.00
+59K
+$59K
9-12 Months
4.1K
87.29K
272
6.03K
+81K
+$81K
Top Buyers
Boxley Abney S Iii
Director
$34K
Agee Nancy H
Director
$31K
Williamson John B Iii
Director
$30K
Archer Jacqueline L.
Director
$26K
Crawford Thomas J
Director
$11K
Top Sellers
Furcron Thomas Patrick
Officer: Vp, Field Operations
$6K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $143K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
5 insider buyers vs. 1 sellers. Broad-based buying across management team suggests widespread confidence.
Insider Activity Insight
Strong confluence of bullish signals: High buy/sell ratio, multiple insiders participating, and recent buying momentum all point to significant insider confidence. This level of coordinated buying often precedes positive developments.
rgco Dividend History
Learning Layer
Related Guides
Build conviction on RGCO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.