REPXRiley Exploration Permian, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is REPX?
Riley Exploration Permian, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 7.3 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2027
- Cash conversion
- 1.67×
Cash conversion · 2.28× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.46%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2019 | −10% |
| FY2021 | 40% |
| FY2023 | 63% |
| FY2024 | 46% |
| FY2025 | 37% |
| FY2026 | 34% |
Details›
- Operating margin12 months to Q2 2027
- 38%
- Net margin12 months to Q2 2027
- 25%
- Free cash flow margin
- 19%
- Revenue, trailing twelve months
- $484M
- Free cash flow, trailing twelve months
- $94M
- Net income, trailing twelve months
- $119M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.