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Should You Consider RPC, Inc. (NYSE:RES)?

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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on RPC, Inc. (NYSE:RES) due to its excellent fundamentals in more than one area. RES is a financially-sound company with a a strong track record of dividend payments and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on RPC here.

Flawless balance sheet with reasonable growth potential and pays a dividend

RES's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that RES has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. RES seems to have put its debt to good use, generating operating cash levels of 7.6x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NYSE:RES Past and Future Earnings, May 14th 2019
NYSE:RES Past and Future Earnings, May 14th 2019

For those seeking income streams from their portfolio, RES is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.

NYSE:RES Historical Dividend Yield, May 14th 2019
NYSE:RES Historical Dividend Yield, May 14th 2019

Next Steps:

For RPC, there are three fundamental aspects you should further research:

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  1. Historical Performance: What has RES's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Valuation: What is RES worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether RES is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of RES? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.