RNGRRanger Energy Services, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (4.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Profits are tracking sales roughly one-for-one, limited operating leverage either way.
A balanced mix of margins, efficiency, and leverage. ROE 6% = 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 RNGR?
Ranger Energy Services, Inc. earns 4.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 4.2 points below what the capital costs: growth destroys value
- Operating margin
- 3.4%
Operating margin · Oil & Gas Equipment & Services median 10% · 12 months to Q1 2026
- Cash conversion
- 4.09×
Cash conversion · 3.88× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +4.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | −9.2% |
| FY2021 | −14% |
| FY2022 | 3.2% |
| FY2023 | 5.8% |
| FY2024 | 5.0% |
| FY2025 | 2.8% |
Details›
- Gross margin12 months to Q1 2026
- 17%
- Operating margin12 months to Q1 2026
- 3.4%
- Net margin12 months to Q1 2026
- 2.6%
- Free cash flow margin
- 3.1%
- Revenue, trailing twelve months
- $571M
- Free cash flow, trailing twelve months
- $18M
- Net income, trailing twelve months
- $15M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.