NASDAQ:RGNC
$21.99
(3/19 4:00PM)
-1.2%
| Open | $22.34 |
Mkt Cap | $2.0 Billion |
| High | $22.34 |
52Wk High | $23.50 |
| Low | $21.91 |
52Wk Low | $11.00 |
| Volume | 267,220 |
Avg Vol 10D | 275,300 |
RGNC Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at RGNC through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 5 years are 1.71x and 0.73x respectively.
Utilizing this range we can see that RGNC’s current Price to Sales per share ratio of 1.96x is significantly above its historical average. This places RGNC at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 60% merely to return RGNC to its historical average.
RGNC Cash Earnings
Looking at RGNC specifically in their Cash Earnings capabilities, Ockham views RGNC as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for RGNC, the current level of Cash Earnings compared to its historical levels helps identify where RGNC is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 24.40 and a historical low Cash Earnings per share ratio of 14.08, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for RGNC? From the Ockham perspective, we are looking specifically at RGNC to see if the market is recognizing the huge disparity between RGNC's past stock price to Cash Earnings ratio to today's levels. At a difference of 57% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at RGNC. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
RGNC Dividends
When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for RGNC to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.
The estimated annual dividend for RGNC is $1.78 producing a current dividend yield of 8.07%. Much like our evaluation of Sales and Cash Earnings per share, we review dividend yields from RGNC against the historic high and low levels over all available dividend history. Because dividends are a decision made exclusively by management, we view a healthy and rising dividend as a sign of confidence and strength. The highest dividend yield from RGNC over previous years was 34.52% while the lowest dividend yield was 3.41%. With that range in mind, RGNC’s current dividend yield is a full 57.45% below its median dividend yield historically. This is a negative from our perspective.
Dividends and Regency Energy Partners Limited Partnership Among the Topics Covered on Closing Bell
For income investors, dividend news is obviously important. RGNC's dividends were discussed recently on Closing Bell.
The Ockham valuation currently has a Fairly Valued stance on RGNC because it trades within the price range that we would expect given current market conditions and fundamentals. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. We have recently (Saturday, January 23, 2010) downgraded this stock due to deteriorating fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Regency Energy Partners Limited Partnership has actually sunk a bit in comparison to the others.
“… But regency, RGNC, a limited partnership. 8% dividend so you are paid to watch. This an absolute champ. Did not pull back last week but I think because of the 8% dividend and ... …”
Regency Energy Partners Limited Partnership (RGNC) Discussed on CNBC's Street Signs
Regency Energy Partners Limited Partnership is in the news. Find out how this impacts RGNC trading on Ockham Research.
Gas comes in the hot spot again. If you buy the commodity natural gas every time oil rallies you where you could make money is a company like rgmc which is REGENCY ENERGY PARTNERS. What they do is transport natural gas. Two states already have many california, new york both have cars that run on natural gas. Honda can't make that car fast enough. It's a reasonable and viable alternative. Whether or not it's good long term, doesn't make a difference. If crude goes to $90 a barrel all of a sudden people are going to look for the hot spots of
“… If you buy the commodity natural gas every time oil rallies you where you could make money is a company like rgmc which is REGENCY ENERGY PARTNERS. …”