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RGC Resources, Inc (RGCO) Fair Value & Analysis

Utilities · US · Market cap $251M

RR RGC Resources, Inc logo RGC Resources, Inc RGCO · US
Price$21.87
Fair Value$18.17
Upside-16.9%
Quality46/100
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Expensive Growth
Solidly profitable · 13.0% net margin
Moderate debt · generates free cash flow
3.47% dividend yield
Mixed vs. peers (7/15)
Moderate moat 60/100
Evidence: High Range $12.75 – $18.17 Share as image

Fair value as of: Jul 21, 2026

From 18 valuation models · updated 20 days ago

Share price −9.0% over the past month.

Below-average quality, and screening another 17% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($18.17). The favourable scenario is already priced in.
  • Solid but not exceptional quality (46/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

$26.54 $13.99 Fair Value $18.17 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range $13.99 – $26.54 · fair‑value band $12.75 – $18.17 · the $21.87 price screens above the $18.17 fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

RGC Resources, Inc (RGCO) currently trades at $21.87, while our model-based Fair Value estimate is $18.17, implying the stock looks roughly 16.9% overvalued today. The Quality Score stands at 46/100 (below-average quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, RGC Resources, Inc generated revenue of $107M at a net margin of 13.0%. Revenue grew 24.7% year over year. It earns a return on equity of 11.5%. Net debt stands at $147M. Fundamentals as of Jul 21, 2026

Our scenario range runs from $12.75 (bear case) to $18.17 (bull case); at $21.87, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 14% above its 52-week low, currently below its 200-day average. For context, the median of 10 Utilities peers we cover trades at -19% fair-value upside, at -17%, RGCO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income $9.01 $9.89 $12.60 76
Rev-Margin DCF $3.36 $9.85 74
Growth-Adj P/E $12.75 $18.21 $23.68 68
All 18 models by family
DCF Models
5Y Revenue Exit $3.31 $10.95 39
5Y EBITDA Exit $6.92 $15.50 41
5Y P/E Exit $3.35 $9.47 38
10Y Revenue Exit $4.53 36
10Y EBITDA Exit $1.06 $7.31 37
10Y P/E Exit $3.62 35
Earnings-Based
Graham-Dodd $8.68 $18.17 $22.99 54
PEG = 1.0 $2.71 $3.87 $5.03 46
Multiples
P/E Multiple $17.23 $22.97 $28.71 63
P/S Multiple $16.27 $21.69 $27.12 58
P/B Multiple $14.73 $19.64 $24.55 55
EV/EBIT $6.16 $12.81 $19.45 53
EV/EBITDA $7.78 $14.96 $22.15 54
EV/Revenue $2.25 $9.12 $15.99 43
Asset-Based
NCAV (Graham) $5.46 $7.31 $10.91 50
Growth DCF
Rev-Margin DCF $3.36 $9.85 74
Economic Profit
Residual Income $9.01 $9.89 $12.60 76
Growth Earnings
Growth-Adj P/E $12.75 $18.21 $23.68 68

Widest divergence: Growth Earnings ($18.21) versus DCF Models ($3.31). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) $107M
Revenue growth (YoY) +24.7%
Net margin 13.0%
Return on equity 11.5%
Free cash flow $8.2M FY2025
P/E ratio 18.0
More key figures
Operating margin 25.2%
EPS (TTM) $1.34
Dividend yield 3.5%
EPS growth (YoY) +13.5%
Net debt $147M FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 44 · Market factors (momentum, volatility) 55

Profitability 36
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 21
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 49
Distance to the 52-week high (market factor)
Net Issuance 53
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities.

Full company description

RGC Resources, Inc., through its subsidiaries, operates as an energy services company. It sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and the surrounding localities. It operates approximately 1,184 miles of transmission and distribution pipeline; and a liquefied natural gas storage facility, as well as owns and operates eleven metering stations. The company also produces biogas. RGC Resources, Inc. was founded in 1883 and is based in Roanoke, Virginia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

RGC Resources, Inc reported revenue of $95.3M in FY2025 versus $75.2M in FY2021, a compound +6.1%/yr. Reported net income was $13.3M in FY2025, compounding +7.1%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$95.3M
Latest YoY
+12.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.8%
Avg. growth/yr (31Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.6%
Revenue +6.1%/yr
FY21 $75.2M
FY22 $84.2M
FY23 $97.4M
FY24 $84.6M
FY25 $95.3M
Net income +7.1%/yr
FY21 $10.1M
FY22 −$31.7M
FY23 $11.3M
FY24 $11.8M
FY25 $13.3M
Character of growth · EPS growth decomposed (2014-2025) +5.6 % p.a.
Revenue per share −0.4 pp

of which total revenue +3.6 pp · buybacks/dilution −4.0 pp

EBIT margin +2.6 pp
Tax rate +2.4 pp
Residual (interest, one-offs) +1.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

RGCO screens 17% overvalued. Compare with Naturgy Energy Group →

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Cite: Fair Value Calculator (2026). "RGC Resources, Inc Fair Value". https://www.fairvalue-calculator.com/stock/RGCO

Peer Group

Utilities - Regulated Gas · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Below median
Fair Value upside −17% · Below median
Return on equity (TTM) 12% · Above median
Return on assets 4% · Above median
Net margin (TTM) 13% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth 25% · Top 25%
Dividend yield (TTM) 3.5% · Above median
Debt / equity 1.28× · Higher than 75% of peers

Valuation Multiples vs Utilities - Regulated Gas median · lower = cheaper

P/E (TTM) 18.0× · Pricier than median
P/B 2.21× · Pricier than 75% of peers
P/S (TTM) 2.34× · Pricier than median
P/FCF 30.5× · Pricier than 75% of peers
EV/EBITDA 12.7× · Pricier than 75% of peers
PEG 1.29× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 11 · sector 22
FUTURE 100 · sector 0
PAST 46 · sector 34
HEALTH 36 · sector 85
DIVIDEND 69 · sector 67

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Regulated Gas stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
Naturgy Energy Group NTGY €28.84 €35.80 +24%
Atmos Energy Corporation ATO $177.68 $85.67 -52%
NiSource Inc NI $47.07 $28.59 -39%
Uniper SE UN0 €42.80 €49.13 +15%
The Hong Kong and China Gas Company 0003 HK$7.03 HK$5.08 -28%
Italgas S.p.A IG €9.98 €8.11 -19%
GAIL (India) Limited GAIL ₹171.71 ₹147.74 -14%
Adani Total Gas Limited ATGL ₹723.90 ₹101.36 -86%
ENN Natural Gas Co 600803 ¥17.30 ¥25.71 +49%
UGI Corporation UGI $35.84 $27.13 -24%

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Frequently asked questions

Is RGC Resources, Inc (RGCO) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of $18.17 versus a price of $21.87, about −17% (overvalued).
What is the fair value of RGCO?
Our model-based fair value for RGC Resources, Inc is $18.17 (as of Jul 21, 2026), built from audited fundamentals. The current price is $21.87.
What is the quality score of RGCO?
RGC Resources, Inc has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of RGC Resources, Inc (RGCO)?
RGC Resources, Inc reported trailing-twelve-month revenue of about $107M (latest available figure, as of Jul 21, 2026).
What is the net profit margin of RGCO?
The net profit margin of RGC Resources, Inc is about 13.0%, meaning it keeps roughly 13.0% of revenue as net income. Based on the latest reported figures.
Does RGC Resources, Inc pay a dividend?
RGC Resources, Inc currently shows a dividend yield of about 3.47% relative to its recent price (as of Jul 21, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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