Stock fact sheet · data as of
RGC Resources, Inc. (RGCO): fair value, margin of safety and Wheel Score
Utilities · Regulated Gas · United States · Defensive
Is RGCO undervalued?
At 23.01 (close of 16 Oct 2026), RGCO trades 52% over the GLS average fair value of 15.14, with 2 of 8 models above the price. The stock earns none of the Wheel Score's Value points at this price. That is a statement about price against trailing fundamentals, not about the company's prospects - the Wall Street View and the Growth tab on the Quote page carry the forward numbers.
There is a wide gap between Lynch (2.85) and GLS Growth (25.05). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files RGCO under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for RGCO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 19.13 | -17% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 16.89 | -27% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.85 | -88% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 25.05 | +9% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 24.01 | +4% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 5.41 | -76% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 12.65 | -45% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 15.12 | -34% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18.52 | -180% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
RGC Resources, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 4.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.1%, ROE 11.7%, ROA 4.0% - with debt at 1.31 times equity and a free-cash-flow yield of 0.8%.
The dividend yield is 3.74% at a payout ratio of 63%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Oil and Gas 99%, Product and Service, Other 1%, Non utility 0% (quarter Q2 FY2026).
Institutional ownership scores 5/10, insider activity 10/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 5.1% |
|---|---|---|---|
| GLS Moat | 4.4 / 10 | ROE | 11.7% |
| Debt / equity | 1.31 | ROA | 4.0% |
| Free-cash-flow yield | 0.8% | Payout ratio | 63% |
| Institutions | 5 / 10 | Insiders · Congress | 10 · 5 / 10 |
Wheel Score 48: Weak
With a Wheel Score of 48 RGC Resources, Inc. sits in the Weak band. The parts - Value 0/25, Health 16/20, Moat 7/15, Premium 20/20, Stability 6/20 - show where: Value (0/25) scores lowest.
Implied volatility is 47% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 420 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 13k shares a day on a market cap of $240M, with a beta of 0.49 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -52% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.4/10 | |
| Premium | 20 / 20 | implied volatility 47% | |
| Stability | 6 / 20 | 13k shares/day, $240M cap, beta 0.49 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 18 Nov 2026, 33 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium. The shares go ex-dividend on 16 Oct 2026 (0.2175 per share), so a covered call sold before then carries a small early-assignment risk around that date.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Regulated Gas
The 12 companies below are the closest to RGC Resources, Inc. by market cap within the Regulated Gas industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ENO Entergy New Orleans, LLC | 19.68 | 105.04 | +81% | 39No options | $166M |
| SRJN Spire Inc. 6.375% Junior Subord | 20.75 | 31.15 | +33% | 39No options | $166M |
| ENJ Entergy New Orleans, LLC | 18.05 | 97.63 | +82% | 39No options | $162M |
| CTRI Centuri Holdings, Inc. | 19.76 | 8.02 | -147% | 56Fair | $2.0B |
| NWN Northwest Natural Holding Company | 48.35 | 33.78 | -43% | 49Weak | $2.0B |
| CPK Chesapeake Utilities Corporation | 130.66 | 82.95 | -58% | 47Weak | $3.1B |
| MDU MDU Resources Group, Inc. | 18.61 | 11.63 | -60% | 49Weak | $3.9B |
| BIPC Brookfield Infrastructure Corporation | 37.63 | 26.41 | -42% | 45Weak | $4.6B |
| OGS ONE Gas, Inc. | 74.56 | 46.32 | -61% | 53Fair | $4.7B |
| SR Spire Inc. | 79.80 | 171.07 | +53% | 64Fair | $4.7B |
| NJR New Jersey Resources Corporation | 51.53 | 44.50 | -16% | 59Fair | $5.2B |
| BKH Black Hills Corporation | 75.87 | 40.35 | -88% | 54Fair | $5.8B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RGCO
Is RGCO undervalued right now?
No: at 23.01 the stock trades 52% above the GLS average fair value of 15.14 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of RGCO and what does it mean?
RGCO scores 48 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RGCO?
15.14 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does RGC Resources, Inc. report earnings next?
The next earnings report is due on 18 Nov 2026, 33 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RGCO have listed options, and how liquid are they?
Yes. The nightly snapshot found 74 listed contracts with 420 open interest across all expiries and implied volatility of 47% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.