Investment Thesis
Ranger Energy Services exhibits deteriorating operational fundamentals with negative operating cash flow of -$3.4M and negative free cash flow of -$21.7M, indicating the company is burning cash despite being operationally profitable on an accrual basis. Revenue declined 4.2% YoY while diluted EPS fell 33.3% YoY, and with a thin net margin of 1.9% and minimal cash reserves of $6.9M, the company faces unsustainable capital requirements relative to cash generation.
Strengths
- Zero long-term debt provides financial flexibility and reduced bankruptcy risk
- Adequate liquidity position with current ratio of 1.66x and quick ratio of 1.63x
- Solid asset base of $459.2M with stockholders equity of $300.4M
Risks
- Negative operating cash flow of -$3.4M indicates core operations are not generating cash
- Negative free cash flow of -$21.7M unsustainable without external financing; depleting cash reserves rapidly
- Revenue declining 4.2% YoY and diluted EPS down 33.3% YoY reflecting deteriorating business performance
- Extremely thin net profit margin of 1.9% leaves minimal cushion for downturns in cyclical oil & gas sector
- Low returns on equity (1.0%) and assets (0.7%) indicate inefficient capital deployment
Key Metrics to Watch
- Operating cash flow trend and path to positive cash generation
- Cash burn rate relative to cash reserves and sustainability runway
- Revenue stabilization and margin expansion in oil & gas services cycle
- Capital expenditure efficiency and relationship to operating cash flow
Financial Metrics
Revenue
159.1M
Net Income
3.0M
EPS (Diluted)
$0.12
Free Cash Flow
-21.7M
Total Assets
459.2M
Cash
6.9M
Profitability Ratios
Gross Margin
N/A
Operating Margin
3.2%
Net Margin
1.9%
ROE
1.0%
ROA
0.7%
FCF Margin
-13.6%
Balance Sheet & Liquidity
Current Ratio
1.66x
Quick Ratio
1.63x
Debt/Equity
0.00x
Debt/Assets
34.6%
Interest Coverage
6.38x
Long-term Debt
0.0
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-29T15:55:12.985261 |
Data as of: 2026-03-31 |
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