RPC (RES) reported a net profit margin of 3%, down from 7.9% a year ago, signaling a notable drop in profitability. Revenue is projected to rise by 2.2% per year and earnings by 11.3% per year. Both growth rates lag behind the broader US market averages. Despite recent years of robust earnings momentum, the current slip in margins and slow top-line growth raises questions for investors about the quality of the recovery.
See our full analysis for RPC.
Next, we will see how these results compare to the leading narratives, highlighting the trends and tensions that matter most to investors.
See what the community is saying about RPC
-
The current share price stands at $5.20, while the official analyst price target (rounded per instruction) is $5.66. This means the market trades at about 8.8% below the analysts’ consensus projection.
-
Analysts’ consensus view emphasizes that future estimates hinge on RPC reaching $1.7 billion in revenue and $72.9 million in earnings by 2028, backed by an assumed PE ratio of 23.8x.
-
If these metrics are achieved, it would validate the analyst price target as fair or even conservative.
-
Yet, the consensus narrative also notes material risks around RPC’s ability to defend margins and sustain growth rates compared to industry averages. Current forecasts for revenue growth (2.2% annually) and margin improvement (3% currently, targeted to reach 4.4%) both trail broader sector expectations.
-
-
For investors, the degree of disagreement among analysts is notable: projections range from a bearish low of $4.75 to as high as $8.00, highlighting underlying debate about both upside and downside scenario likelihood.
To see if the full market narrative aligns with these targets and expectations, read the consensus view in detail. 📊 Read the full RPC Consensus Narrative.
-
RPC’s price-to-earnings ratio is 24.3x, considerably higher than the US Energy Services industry average of 16.8x and more than quadruple the peer average of 5.0x.
-
Analysts’ consensus view flags that paying such a premium may only be justified if RPC can deliver on technology-driven margin improvements and sustained top-line growth.
-
Consensus highlights recent investments in advanced tools and environmentally friendly offerings as catalysts, but warns that revenue growth (forecast at 2.2% per year) and profitability (current margin just 3%) may struggle to catch up with valuation expectations.
-
For value-focused investors, this high multiple introduces risk if competitive pressures or macro headwinds continue to cap margin and sales expansion.
-