ASX:REX

Stock Analysis Report

Regional Express Holdings

Executive Summary

Regional Express Holdings Limited, together with its subsidiaries, engages in the air transportation of passengers and freight.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Regional Express Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

25.2%

REX

-10.8%

AU Airlines

5.0%

AU Market


1 Year Return

-53.8%

REX

-49.9%

AU Airlines

-19.2%

AU Market

Return vs Industry: REX underperformed the Australian Airlines industry which returned -49.9% over the past year.

Return vs Market: REX underperformed the Australian Market which returned -19.2% over the past year.


Shareholder returns

REXIndustryMarket
7 Day25.2%-10.8%5.0%
30 Day-34.6%-34.8%-20.3%
90 Day-43.7%-48.7%-25.8%
1 Year-51.2%-53.8%-48.8%-49.9%-15.6%-19.2%
3 Year-10.3%-28.0%-42.1%-45.5%-3.6%-16.8%
5 Year-14.0%-30.9%-43.6%-48.6%6.6%-17.5%

Price Volatility Vs. Market

How volatile is Regional Express Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Regional Express Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: REX (A$0.67) is trading below our estimate of fair value (A$2.03)

Significantly Below Fair Value: REX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: REX is good value based on its PE Ratio (5.1x) compared to the Airlines industry average (6.4x).

PE vs Market: REX is good value based on its PE Ratio (5.1x) compared to the Australian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate REX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: REX is good value based on its PB Ratio (0.4x) compared to the XX Airlines industry average (0.7x).


Next Steps

Future Growth

How is Regional Express Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

22.9%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Regional Express Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Regional Express Holdings performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REX has high quality earnings.

Growing Profit Margin: REX's current net profit margins (4.6%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: REX's earnings have grown significantly by 36.7% per year over the past 5 years.

Accelerating Growth: REX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: REX had negative earnings growth (-17.7%) over the past year, making it difficult to compare to the Airlines industry average (5.1%).


Return on Equity

High ROE: REX's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Regional Express Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: REX's short term assets (A$39.7M) do not cover its short term liabilities (A$59.0M).

Long Term Liabilities: REX's short term assets (A$39.7M) exceed its long term liabilities (A$11.7M).


Debt to Equity History and Analysis

Debt Level: REX's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: REX's debt to equity ratio has reduced from 11.8% to 5.2% over the past 5 years.

Debt Coverage: REX's debt is well covered by operating cash flow (327.3%).

Interest Coverage: REX's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet

Inventory Level: REX has a high level of physical assets or inventory.

Debt Coverage by Assets: REX's debt is covered by short term assets (assets are 3.8x debt).


Next Steps

Dividend

What is Regional Express Holdings's current dividend yield, its reliability and sustainability?

17.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: REX's dividend (17.91%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).

High Dividend: REX's dividend (17.91%) is in the top 25% of dividend payers in the Australian market (8.1%)


Stability and Growth of Payments

Stable Dividend: REX's dividend payments have been volatile in the past 10 years.

Growing Dividend: REX's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.4%), REX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Regional Express Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Kim Lim
Executive Chairman16.83yrsno data22.56% A$16.6m
Neville Howell
COO & Executive Director5.75yrsAU$309.38k0.021% A$15.5k
Mayooran Thanabalasingam
General Manager of Information Technology & Communications11.75yrsAU$262.24k0.081% A$59.8k
Warrick Lodge
General Manager of Network Strategy & Salesno dataAU$255.63k0.15% A$107.8k
Christopher Hine
Group Flight Operations Advisor & Executive Director9.08yrsAU$159.60k0.071% A$52.2k
Png Tat
General Manager of Engineering8.08yrsAU$253.25k0.027% A$20.0k
Paul Fisher
GM of Flight Operations & Chief Pilot 5.75yrsAU$282.36k0.042% A$31.0k
Irwin Tan
GM of Corporate Services & Company Secretaryno dataAU$270.57kno data
Anthony Gibara
General Manager of Human Factors2.25yrsno datano data
Benjamin Ng
Company Secretary12.5yrsno datano data

8.1yrs

Average Tenure

Experienced Management: REX's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kim Lim
Executive Chairman16.83yrsno data22.56% A$16.6m
Neville Howell
COO & Executive Director5.75yrsAU$309.38k0.021% A$15.5k
Christopher Hine
Group Flight Operations Advisor & Executive Director9.08yrsAU$159.60k0.071% A$52.2k
Thian Lee
Non-Executive Director16.83yrsAU$30.00k7.04% A$5.2m
John Sharp
Independent Deputy Chairman15yrsAU$117.50k0.30% A$217.8k
James Davis
Independent Director15.67yrsAU$43.80k0.18% A$134.6k
Ronald Bartsch
Independent Director9.42yrsAU$38.33kno data

15.0yrs

Average Tenure

64yo

Average Age

Experienced Board: REX's board of directors are seasoned and experienced ( 15 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regional Express Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regional Express Holdings Limited
  • Ticker: REX
  • Exchange: ASX
  • Founded: 2002
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: AU$73.516m
  • Shares outstanding: 109.73m
  • Website: https://www.rex.com.au

Location

  • Regional Express Holdings Limited
  • 81-83 Baxter Road
  • Mascot
  • New South Wales
  • 2020
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REXASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2005
REXCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2005
R4LDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2005

Biography

Regional Express Holdings Limited, together with its subsidiaries, engages in the air transportation of passengers and freight. The company operates through Regular Public Transport and Charter segments. It provides aeromedical transport services; fly in/fly out charter services; air freight charters services; and corporate jet charters services. The company also offers training programs to students and other airlines. As of March 31, 2020, it operated a fleet of 60 Saab 340 aircraft on approximately 1,500 weekly flights to 59 destinations throughout all states in Australia. The company was formerly known as Australiawide Airlines Limited and changed its name to Regional Express Holdings Limited. Regional Express Holdings Limited was incorporated in 2002 and is headquartered in Mascot, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 10:43
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.