📊 REI Key Takeaways
Is Ring Energy, Inc.. (REI) a Good Investment?
Ring Energy exhibits deteriorating operational performance with revenue down 16.1% YoY and sustained operating losses (-11.2% margin), creating a concerning profitability trend. The company faces acute liquidity stress with a current ratio of 0.61x and minimal cash reserves ($902.9K), posing near-term operational risk despite positive free cash flow generation.
Profitability deteriorated with negative operating and net margins and a double‑digit revenue decline, but the company still generates strong operating cash flow and carries no long‑term debt, supporting solvency. Liquidity is tight and interest coverage is negative, and the very high reported FCF likely reflects low capex and non‑cash addbacks, warranting caution on sustainability.
Why Buy Ring Energy, Inc.. Stock? REI Key Strengths
- Strong operating cash flow of $150.8M with 48.9% FCF margin demonstrates underlying business cash generation capability
- Zero long-term debt and 0.00x debt-to-equity ratio eliminates financial leverage risk
- Positive free cash flow of $150.3M indicates the core energy extraction operations remain viable despite GAAP losses
- Strong operating cash flow and reported FCF
- No long-term debt; solid equity base
- Large asset base supporting future production
REI Stock Risks: Ring Energy, Inc.. Investment Risks
- Critical liquidity position with current ratio of 0.61x and only $902.9K cash reserves relative to $1.4B asset base creates operational vulnerability
- Revenue contraction of 16.1% YoY coupled with negative net margin of -11.3% signals deteriorating business fundamentals
- Significant gap between GAAP losses and operating cash flow suggests reliance on non-cash charges; working capital management and refinancing risk warrant scrutiny
- Negative profitability and interest coverage
- Weak liquidity with sub-1.0 current ratio and low cash
- Revenue decline and commodity/volume sensitivity
Key Metrics to Watch
- Quarterly revenue trends and correlation to crude oil/natural gas commodity prices
- Current ratio and absolute cash position for indication of liquidity recovery or distress
- Operating cash flow sustainability and capital expenditure requirements to assess self-funding capability
- Operating cash flow vs. maintenance capex
- Current ratio and cash balance
Ring Energy, Inc.. (REI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 48.9% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
REI Profit Margin, ROE & Profitability Analysis
REI vs Energy Sector: How Ring Energy, Inc.. Compares
How Ring Energy, Inc.. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Ring Energy, Inc.. Stock Overvalued? REI Valuation Analysis 2026
Based on fundamental analysis, Ring Energy, Inc.. has mixed fundamental signals relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Ring Energy, Inc.. Balance Sheet: REI Debt, Cash & Liquidity
REI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Ring Energy, Inc..'s revenue has shown modest growth of 5% over the 5-year period. The most recent EPS of $0.54 reflects profitable operations.
REI Revenue Growth, EPS Growth & YoY Performance
REI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $78.6M | $5.5M | $-0.11 |
| Q2 2025 | $82.6M | $5.5M | $0.10 |
| Q1 2025 | $79.1M | $5.5M | $0.03 |
| Q3 2024 | $89.2M | $5.5M | $-0.04 |
| Q2 2024 | $79.3M | $5.5M | $0.11 |
| Q1 2024 | $88.1M | $5.5M | $0.03 |
| Q3 2023 | $93.7M | $7.1M | $-0.04 |
| Q2 2023 | $79.3M | $7.1M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Ring Energy, Inc.. Dividends, Buybacks & Capital Allocation
REI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Ring Energy, Inc.. (CIK: 0001384195)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REI
What is the AI rating for REI?
Ring Energy, Inc.. (REI) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REI's key strengths?
Claude: Strong operating cash flow of $150.8M with 48.9% FCF margin demonstrates underlying business cash generation capability. Zero long-term debt and 0.00x debt-to-equity ratio eliminates financial leverage risk. ChatGPT: Strong operating cash flow and reported FCF. No long-term debt; solid equity base.
What are the risks of investing in REI?
Claude: Critical liquidity position with current ratio of 0.61x and only $902.9K cash reserves relative to $1.4B asset base creates operational vulnerability. Revenue contraction of 16.1% YoY coupled with negative net margin of -11.3% signals deteriorating business fundamentals. ChatGPT: Negative profitability and interest coverage. Weak liquidity with sub-1.0 current ratio and low cash.
What is REI's revenue and growth?
Ring Energy, Inc.. reported revenue of $307.2M.
Does REI pay dividends?
Ring Energy, Inc.. does not currently pay dividends.
Where can I find REI SEC filings?
Official SEC filings for Ring Energy, Inc.. (CIK: 0001384195) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REI's EPS?
Ring Energy, Inc.. has a diluted EPS of $-0.17.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is REI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Ring Energy, Inc.. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is REI stock overvalued or undervalued?
Valuation metrics for REI: ROE of -4.2% (sector avg: 14%), net margin of -11.3% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy REI stock in 2026?
Our dual AI analysis gives Ring Energy, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is REI's free cash flow?
Ring Energy, Inc..'s operating cash flow is $150.8M, with capital expenditures of $599.4K. FCF margin is 48.9%.
How does REI compare to other Energy stocks?
Vs Energy sector averages: Net margin -11.3% (avg: 12%), ROE -4.2% (avg: 14%), current ratio 0.61 (avg: 1.3).