Ring Energy, Inc. Fundamental Analysis (AMEX: REI)
Ring Energy, Inc. (AMEX: REI) shows weak financial fundamentals with a PE ratio of -1.29, profit margin of -53.30%, and ROE of -25.11%. The company generates $0.3B in annual revenue with weak year-over-year growth of -16.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -59.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze REI's fundamental strength across five key dimensions:
Efficiency Score
WeakREI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentREI trades at attractive valuation levels.
Growth Score
WeakREI faces weak or negative growth trends.
Financial Health Score
ModerateREI shows balanced financial health with some risks.
Profitability Score
WeakREI struggles to sustain strong margins.
Key Financial Metrics
Is REI Expensive or Cheap?
P/E Ratio
REI trades at -1.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, REI's PEG of -0.02 indicates potential undervaluation.
Price to Book
The market values Ring Energy, Inc. at 0.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.51 times EBITDA. This is generally considered low.
How Well Does REI Make Money?
Net Profit Margin
For every $100 in sales, Ring Energy, Inc. keeps $-53.30 as profit after all expenses.
Operating Margin
Core operations generate 36.48 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-25.11 in profit for every $100 of shareholder equity.
ROA
Ring Energy, Inc. generates $-14.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ring Energy, Inc. generates strong operating cash flow of $174.43M, reflecting robust business health.
Free Cash Flow
Ring Energy, Inc. generates weak or negative free cash flow of $-12.60M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.05 in free cash annually.
FCF Yield
REI converts -4.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.004
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.25
vs 25 benchmark
ROA
Return on assets percentage
-0.14
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How REI Stacks Against Its Sector Peers
| Metric | REI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.29 | 20.60 | Better (Cheaper) |
| ROE | -25.11% | 1363.00% | Weak |
| Net Margin | -53.30% | 1351.00% | Weak |
| Debt/Equity | 0.00 | -1.64 (disorted) | Distorted |
| Current Ratio | 0.41 | 2.16 | Weak Liquidity |
| ROA | -14.06% | 2679.00% | Weak |
REI outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ring Energy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.08%
Industry Style: Cyclical, Value, Commodity
DecliningEPS CAGR
95.16%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
-26.22%
Industry Style: Cyclical, Value, Commodity
Declining