Ranger Energy Services (RNGR) closed out FY 2025 with fourth quarter revenue of US$142.2 million and basic EPS of US$0.14, alongside net income excluding extra items of US$3.2 million, giving investors a clean snapshot of its latest run rate. The company has seen quarterly revenue move between US$128.9 million and US$153 million over the past six reported periods, while basic EPS has ranged from US$0.03 to US$0.39, setting a clear track record of how revenue and EPS have paired up through the cycle. With trailing 12 month net margins sitting in the low single digits and off their prior level, this print keeps the focus squarely on how efficiently Ranger can turn its top line into lasting profitability.
See our full analysis for Ranger Energy Services.With the latest numbers on the table, the next step is to see how these results line up against the prevailing market narratives, highlighting where the story around Ranger Energy Services gets reinforced and where it might need a rethink.
See what the community is saying about Ranger Energy Services
Margins Slip To 2.2% On TTM Basis
- Over the last 12 months, Ranger converted US$546.9 million of revenue into US$12.3 million of net income excluding extra items, which works out to a 2.2% net margin compared with 3.2% a year earlier.
- Bulls point to forecasts of roughly 53.6% annual earnings growth, and this margin picture both helps and tests that view:
- On one hand, the company has been profitable over the past five years with earnings growing 33.2% per year, so the bullish call leans on that track record plus expected margin expansion from 2.7% to around 9.8% to 10.5% over the next few years.
- On the other hand, the recent move from a 3.2% to 2.2% trailing net margin shows that, right now, the business is earning relatively thin profits on more than US$540 million of revenue. As a result, the bullish margin ramp assumes a clear turnaround from what the latest numbers show.
Bulls argue that this low 2.2% margin is a temporary phase before a bigger earnings ramp. If you want to see how that story is built out over multiple years, check out the full bull case at 🐂 Ranger Energy Services Bull Case
P/E Of 32.5x With Mixed Signals
- At a share price of US$17.00, Ranger is trading on a trailing P/E of 32.5x, which sits above the US Energy Services industry average of 27.1x but below the peer group average of 47x, while also being shown as well below a DCF fair value of about US$63.61.
- Bears focus on this higher than industry P/E to argue the stock is already demanding, and the data both supports and pushes back on that claim:
- The premium to the 27.1x industry average lines up with the cautious view that investors are paying more today even though trailing net margin has eased to 2.2%. Recent profitability does not obviously justify a discount multiple.
- At the same time, the stock is described as trading materially below the US$63.61 DCF fair value and below peer P/E levels of 47x. This challenges the idea that valuation is stretched if earnings and margins move anywhere close to the analyst forecasts.
Skeptics point to the rich multiple and thin margins. If you want to see how that cautious angle is framed against the forecasts, it is worth reading through the bear case at 🐻 Ranger Energy Services Bear Case
Quarterly EPS Swings Around A Profitable Trend
- Across the last six reported quarters, basic EPS has ranged from US$0.03 to US$0.39, with FY 2025 quarters coming in at US$0.14, US$0.06, US$0.33 and US$0.03 and trailing 12 month EPS at US$0.55, versus US$0.82 a year earlier.
- The consensus narrative builds on this choppy but positive EPS record, and the numbers give you both support and friction for that middle ground:
- Consensus expects revenue to grow about 9.2% a year and earnings to reach roughly US$75.3 million by around 2029, compared with US$14.9 million on the latest trailing view, which is a big step up from the current US$12.3 million trailing net income.
- At the same time, the drop in trailing EPS from US$0.82 to US$0.55 and the move in quarterly net income from US$8.7 million in 2024 Q3 to US$1.2 million in 2025 Q3 show that recent momentum is uneven. The balanced view treats the current run rate as a starting point rather than proof that those long term targets are already on track.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Ranger Energy Services on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If this mix of bullish targets and recent softness has you on the fence, take a moment to weigh the evidence yourself. Then look at the balance of 2 key rewards and 1 important warning sign to round out your view.
See What Else Is Out There
Ranger Energy Services is working with thin 2.2% margins, choppy EPS and a relatively high P/E, so recent results leave plenty of question marks.
If that mix of tight profitability and valuation risk feels uncomfortable, compare it with companies in our 73 resilient stocks with low risk scores that prioritize resilience and more stable fundamentals right now.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com