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Ranger Energy Services, Inc. (RNGR)

Company Dividend Discount ModelIndustry: Oil & Gas Equipment & ServicesSector: Energy

Valuation Snapshot

Stable Growth$4.64 - $6.68$5.64
Multi-Stage$7.58 - $8.32$7.95
Blended Fair Value$6.79
Current Price$14.04
Upside-51.63%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS0.00%0.00%0.200.110.000.000.000.000.000.000.130.00
YoY Growth--87.50%0.00%0.00%0.00%0.00%0.00%0.00%-100.00%0.00%0.00%
Dividend Yield--1.40%0.92%0.00%0.00%0.00%0.00%0.00%0.00%0.93%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)14.90
(-) Cash Dividends Paid (M)5.20
(=) Cash Retained (M)9.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)2.981.861.12
Cash Retained (M)9.709.709.70
(-) Cash Required (M)-2.98-1.86-1.12
(=) Excess Retained (M)6.727.848.58
(/) Shares Outstanding (M)22.6822.6822.68
(=) Excess Retained per Share0.300.350.38
LTM Dividend per Share0.230.230.23
(+) Excess Retained per Share0.300.350.38
(=) Adjusted Dividend0.530.570.61
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Fair Value$4.64$5.64$6.68
Upside / Downside-66.94%-59.86%-52.43%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)14.9014.7514.6014.4614.3114.1714.59
Payout Ratio34.90%45.92%56.94%67.96%78.98%90.00%92.50%
Projected Dividends (M)5.206.778.329.8311.3012.7513.50

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)6.156.216.27
Year 2 PV (M)6.856.997.13
Year 3 PV (M)7.347.577.80
Year 4 PV (M)7.667.988.31
Year 5 PV (M)7.848.258.68
PV of Terminal Value (M)136.15143.24150.62
Equity Value (M)171.99180.23188.80
Shares Outstanding (M)22.6822.6822.68
Fair Value$7.58$7.95$8.32
Upside / Downside-45.99%-43.40%-40.71%

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