RGC Resources, Inc. (RGCO) 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

-281.9%

-$41.92

vs $23.04 price

Levered DCF

$53.63

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.29

Distress zone

Rating

A-

Overall 4 / 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	17.4×	19.46×	15.18×	-6.05×	18.44×	17.9×	27.07×	27.68×
P/B	2.04×	2.12×	1.7×	2.06×	1.86×	2.15×	2.83×	2.53×
P/S	2.43×	2.71×	1.76×	2.28×	2.47×	3.03×	3.46×	3.07×
EV / EBITDA	10.68×	11.6×	10.24×	-11×	12.47×	12.06×	14.92×	13.74×
Gross margin	34.5%	35.8%	30.5%	31.1%	33.9%	35.8%	31.0%	31.0%
Operating margin	19.4%	20.2%	18.1%	17.7%	19.7%	19.8%	17.0%	17.5%
Net margin	13.9%	13.9%	11.6%	-37.7%	13.4%	16.7%	12.8%	11.1%
Current ratio	1.03×	0.87×	0.81×	1.59×	0.97×	0.87×	0.76×	0.65×
Debt / equity	1.31×	1.37×	1.4×	1.47×	1.41×	1.39×	1.24×	0.88×
Interest coverage	2.82×	2.63×	3.15×	3.32×	3.65×	3.05×	3.2×	4.66×
Dividend yield	3.7%	3.5%	4.5%	3.7%	3.2%	2.9%	2.2%	2.3%
Payout ratio	63.8%	68.8%	69.1%	-22.1%	59.5%	53.1%	60.0%	63.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.7%	10.9%	11.2%	-34.1%	10.1%	11.9%	10.5%	9.2%
Return on invested capital	4.5%	4.3%	4.7%	4.1%	3.9%	3.6%	3.8%	4.2%
Return on assets	4.0%	3.7%	3.7%	-10.9%	3.3%	3.8%	3.4%	3.3%
Free cash flow yield	3.6%	-2.0%	-0.9%	-5.2%	-4.5%	-5.3%	-3.1%	-4.9%
Earnings yield	5.7%	5.1%	6.6%	-16.5%	5.4%	5.5%	3.7%	3.6%
Enterprise value	$377.9M	$376.9M	$311.3M	$324.2M	$324.6M	$314.8M	$336.8M	$271.2M
Net debt / EBITDA	4.14×	4.55×	4.59×	-4.48×	5.34×	4.73×	4.51×	3.55×
Cash conversion cycle (days)	36	52	54	83	33	40	44	48