RGC Resources, Inc. (RGCO) Stock

RGC Resources, Inc. (RGCO) is a Utilities stock trading at $21.96 (as of 2026-08-21), with a market capitalization of $228.87M and a trailing P/E of 10.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

RGC Resources, Inc., through its subsidiaries, is an energy services provider that sells and distributes natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and surrounding areas. It also offers unregulated services supported by natural gas pipeline, LNG storage, and metering infrastructure.

Understand RGC Resources, Inc.: how it makes money

RGC Resources distributes and sells natural gas to residential, commercial, and industrial customers in Roanoke, Virginia, and nearby localities, and it also provides various unregulated services, supported by its natural gas transmission and distribution pipeline, LNG storage facility, and metering stations.

For a local natural gas utility, the profit engine is steady regulated demand, meaning results depend heavily on how many active customers it serves and how much natural gas is delivered through its transmission and distribution infrastructure.

Business quality (Strong): The business and key operating metrics are clear (customer count and delivered volume), but this input does not include reportable segment revenue, so it is harder to see how much each business line contributes.

Valuation: At 18× earnings, RGCO trades 20% below the Utilities average (22×). Note: one-time items can distort reported P/E.

Bull case

Anchored by a local customer base and delivery infrastructure: The company operates about 1,157 miles of transmission and distribution pipeline, an LNG storage facility, and 6 metering stations, which supports gas delivery to its served area.
Measurable operating drivers: Key operational metrics available include Delivered Natural Gas Volume and Active Customer Count, which track demand and customer stability.

Bear case

Demand and volume variability: Because the business depends on delivered natural gas volume, changes in customer usage patterns or conditions that affect consumption can pressure results.
Credit and collections risk: The company tracks Customer Accounts Turned Off for Nonpayment, which signals that nonpayment events can occur and may indicate customer credit stress.
Regulatory and operational exposure: As an energy services operator with pipeline, storage, and metering assets, it faces operational execution risk and potential regulatory impacts typical for utility-style infrastructure and service.

Valuation — source: SEC EDGAR (first-party)
Price	$21.96
Market Cap	$228.87M
P/E Ratio	10.0
EV / EBITDA	8.8
Price / Book	1.86
Price / Sales	1.66
FCF Yield	6.6%
DCF Value (model)	$5.59
DCF Upside vs Price	-74.6%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$95.33M
Net Margin	13.9%
Revenue Growth (YoY)	-0.9%
EPS Growth (YoY)	0.0%
FCF Growth (YoY)	-49.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	1.16 (distress)

Valuation vs Sector & Industry
Stock P/E	10.0
Sector P/E (Utilities)	20.8
Industry P/E (Utilities)	20.1
vs Sector	-52.1%
vs Industry	-50.3%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($9.55M)
Institutional Holders Tracked	10

Company
Sector	Utilities
Industry	Utilities
CEO	Paul W. Nester
Employees	104
Country	US
IPO Date	1994-02-01

Related Companies (Business model: Regulated Utility (Electric / Gas); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.