Ring Energy, Inc. (REI) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+105.8%

$2.71

vs $1.32 price

Levered DCF

$2.78

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

-0.12

Distress zone

Rating

B-

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-5.12×	4×	2.65×	2.16×	76×	-0.19×	6×	33.87×
P/B	0.21×	0.31×	0.35×	0.45×	0.75×	0.16×	0.34×	0.65×
P/S	0.58×	0.73×	0.77×	0.86×	1.15×	0.43×	0.9×	2.52×
EV / EBITDA	6.26×	2.85×	2.98×	3.16×	9.39×	-1.81×	4.72×	6.52×
Gross margin	60.7%	44.7%	48.9%	63.3%	57.3%	24.6%	41.4%	39.7%
Operating margin	24.2%	36.3%	40.4%	55.2%	48.8%	-237.7%	30.7%	16.6%
Net margin	-11.3%	18.4%	29.0%	39.9%	1.7%	-224.2%	15.1%	7.5%
Current ratio	0.61×	0.48×	0.49×	0.45×	0.39×	0.56×	0.66×	0.32×
Debt / equity	0.51×	0.45×	0.55×	0.63×	0.97×	1.07×	0.7×	0.09×
Interest coverage	1.84×	3.07×	3.32×	8.28×	6.61×	-15.25×	4.34×	46.65×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-4.2%	7.9%	13.3%	21.0%	1.1%	-86.0%	5.6%	1.9%
Return on invested capital	4.3%	7.8%	11.5%	16.0%	15.3%	-41.8%	4.5%	2.8%
Return on assets	-2.3%	4.8%	7.6%	10.9%	0.5%	-38.2%	3.0%	1.6%
Free cash flow yield	29.5%	14.1%	15.4%	22.0%	8.6%	58.9%	-27.8%	-44.0%
Earnings yield	-19.3%	25.1%	37.7%	46.5%	1.5%	-526.8%	16.8%	3.0%
Enterprise value	$602M	$656.4M	$708M	$713.7M	$516.9M	$359.4M	$534.8M	$338.6M
Net debt / EBITDA	4.39×	1.68×	1.81×	1.84×	5.27×	-1.57×	3.17×	0.7×
Cash conversion cycle (days)	-240	-128	-152	-247	-152	-85	-18,866	-221