What does free cash flow margin mean?

How much real, spendable cash each sales dollar generates after reinvestment.

How do you interpret free cash flow margin?

A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.

How does free cash flow margin compare across companies?

Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.

Range Resources RRC Free cash flow margin

Discontinued — last reported Q2 '19

Free cash flow margin at other companies

EQT CorporationEQT

39.4%—

Antero ResourcesAR

34.5%+11.6pp

Permian ResourcesPR

69.1%-2.0pp

Devon EnergyDVN

17.7%-0.9pp

TRG

Targa ResourcesTRGP

4.8%-3.1pp

OneokOKE

6.4%-5.9pp

Other financials

Income statement

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Revenue$1.0B+49.8%

Gross profit$976.0M+54.4%

Net income$341.6M+252%

EPS (diluted)$1.44+260%

Balance sheet

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Cash & equivalents$247.0K-99.9%

Total debt$159.9M-77.5%

Total equity$4.6B+16.8%

Total assets$7.4B+0.3%

Cash flow

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Operating cash flow$619.1M+87.6%

Valuation

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Market cap$8.57B+10.4%

Enterprise value$8.73B+7.9%

P/E9.5×-19.1×

P/S2.5×-0.7×

Profitability

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Gross margin94.6%+1.4pp

Net margin26.1%+15.1pp

Returns & leverage

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Return on equity21.1%+14.1pp

Debt / equity0×-0.1×

Current ratio0.6×0.0×

Where this comes from

Calculated from Range Resources’s reported figures.

free cash flow/total revenue=25.6%

Based on trailing twelve months.

The official record: Range Resources’s 10-Q, filed July 25, 2019, on SEC EDGAR. View the filing →

Questions, answered.

What does free cash flow margin mean?: How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?: A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?: Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.