The long-term trend of the EPS is an important number as it indicates the present value of Ring Energy. The EPS growth rate, as it is typically called, is usually expressed as a percentage, which at this time is hard to estimate, but revenue growth has been 83.00 % over the last twelve months. Growth in EPS is an important measure of administration performance because it shows how much money Ring Energy is making for it’s investors or shareholders.



Ring Energy trades as part of the oil and gas exploration and production industry and trades as part of the energy sector. The company CEO is Kelly Hoffman. Ring Energy Inc is a Midland-based exploration and production company that is engaged in oil and natural gas acquisition, exploration, development and production activities. Its exploration and production interests are in Texas.

Previous Intraday Performance:

The REI shares had a previous change of 4.32% which opened at 7.68 and closed at 7.72. It moved to an intraday high of 8.23 and a low of 7.27.

SeekingAlpha:  Ring Energy’s (REI) CEO Kelly Hoffman on Q3 2018 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, REI shares returned 2.25% and in the past 30 trading days it returned -21.70%. Over three months, it changed -33.96%. In one year it has changed -43.85% and within that year its 52-week high was 17.35 and its 52-week low was 6.75. REI stock is 14.37% above its 52 Week Low.

Our calculations result in a 200 day moving average of 12.79 and a 50 day moving average of 9.31. Right now, REI stock is trading -39.63% below its 200 day moving average and may not be a great opportunity to buy as it may continue to trend down.

SeekingAlpha:  Ring Energy beats by $0.05, beats on revenue

Liquidity:

The company has a market cap of $466.2m with 60.4m shares outstanding and a float of 56.4m shares. Trading volume was 810,476 shares and has experienced an average volume of 1,081,936 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Ring Energy was 0.04 which ended on 31st of December 2017, which according to the previous close, that is a PE of 193.00. Based on 8 analyst estimates, the consensus EPS for the next quarter is 0.11. The trailing twelve month EPS is 0.43, which comes to a trailing twelve month PE of 17.95.

Below was the last reported quarterly earnings per share:
09-30-2018:  0.14
06-30-2018:  0.09
03-31-2018:  0.11
12-31-2017:  0.09



Base on our calculations, the intrinsic value per share is 9.07, which means it might be undervalued and has a margin of safety of 14.85%

Indicators Also to Watch:

Based on the latest filings, there is 54.80% of institutional ownership. Short-interest was 6,569,599, which was 10.88% of shares outstanding. The short-interest ratio or days-to-cover ratio was 5.68. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

I calculated the beta to be 0.86

Business Wire:  Ring Energy Releases Third Quarter and Nine Month 2018 Financial and Operational Results

Fundamental Numbers:

Based on last reported financials, the company’s return on equity is 2.37%, return on assets is 2.13%, profit margin is 7.18%, price-to-sales is 5.38 and price-to-book is 0.99.

Company Score Card:

Results are out of six:
 5  : Growth Expectations Result
 3  : Financial Safety Result
 2  : Past Performance Result
 2  : Valuation Result
 0  : Dividend Safety Result
 3  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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