Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas driller Range Resources (NYSE: RRC ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at Range's business and see what CAPS investors are saying about the stock right now.
Range Resources facts
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Headquarters (Founded)
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Fort Worth, Texas (1975)
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Market Cap
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$7.6 billion
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Industry
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Oil and gas exploration and production
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Trailing-12-Month Revenue
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$840.4 million
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Management
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CEO John Pinkerton (since 1992)
CFO Roger Manny (since 2003)
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Trailing-12-Month Return on Equity
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(2.2%)
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Cash/Debt
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$767,000 / $1.7 billion
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1-Year Return
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17%
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Competitors
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BP (NYSE: BP )
EQT (NYSE: EQT )
ExxonMobil (NYSE: XOM )
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Highly Rated Oil and Gas Alternatives
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CNOOC (NYSE: CEO )
Suncor (NYSE: SU )
Canadian Natural Resources (NYSE: CNQ )
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Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.
On CAPS, 5.5% of the 487 members who have rated Range believe the stock will underperform the S&P 500 going forward. These bears include hammyttu and All-Star mrindependent, who is ranked in the top 1% of our community.
Early last month, hammyttu brought the company's more troubling statistics to our community's attention:
Negative [3-Year Average FCF], LT Debt has increased by 4x in 10 yrs, Outstanding shares have tripled in 10 years. Using [long term] debt and issuing shares to fund growth.
In a pitch from just last week, mrindependent expanded on that bearish sentiment:
Range Resources Corp came to my attention because it appeared on my overvalued stocks screen. ... Probing deeper, I found that this company has an unhealthy amount of debt. Debtholders and shareholders are betting too heavily on the value of this company's oil and natural gas reserves. Current p/bv 3.38.
What do you think about Range, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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