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

Fundamentals

Excellent balance sheet with proven track record.

Risks

  • Regional Express Holdings is not covered by any analysts.

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


Market Performance


7 Day Return

2.1%

REX

-2.3%

AU Airlines

1.0%

AU Market


1 Year Return

-9.3%

REX

-5.2%

AU Airlines

6.9%

AU Market

REX underperformed the Airlines industry which returned -5.3% over the past year.

REX underperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

REXIndustryMarket
7 Day2.1%-2.3%1.0%
30 Day3.5%2.8%3.9%
90 Day5.4%8.7%1.6%
1 Year-2.1%-9.3%-0.4%-5.2%13.1%6.9%
3 Year127.8%93.4%74.3%56.1%39.5%20.7%
5 Year96.8%67.0%112.1%77.0%52.8%18.7%

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

2 weeks ago | Simply Wall St

Does Regional Express Holdings Limited's (ASX:REX) 3.6% Earnings Growth Reflect The Long-Term Trend? Want To Invest In Regional Express Holdings Limited (ASX:REX)? Here's How It Performed Lately

Valuation

Is Regional Express Holdings undervalued based on future cash flows and its price relative to the stock market?

12%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Regional Express Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Regional Express Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Regional Express Holdings is good value based on earnings compared to the Global Airlines industry average.

Regional Express Holdings is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Regional Express Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Regional Express Holdings is good value based on assets compared to the Oceania Airlines industry average.


Next Steps

Future Growth

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

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Regional Express Holdings is high growth as no revenue estimate data is available.

Regional Express Holdings's earnings are expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).

Unable to compare Regional Express Holdings's revenue growth to the Australia market average as no estimate data is available.

Regional Express Holdings's earnings growth is expected to exceed the Australia market average.

Regional Express Holdings's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Regional Express Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

33.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Regional Express Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Regional Express Holdings's 1-year earnings growth is less than its 5-year average (3.6% vs 33.2%)

Regional Express Holdings's earnings growth has exceeded the Global Airlines industry average in the past year (3.6% vs -15.3%).


Return on Equity

Regional Express Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Regional Express Holdings used its assets more efficiently than the Global Airlines industry average last year based on Return on Assets.


Return on Capital Employed

Regional Express Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Regional Express Holdings's financial position?


Financial Position Analysis

Regional Express Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Regional Express Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Regional Express Holdings's level of debt (1.5%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (23.3% vs 1.5% today).

Debt is well covered by operating cash flow (1062.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 23x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 16.8x debt.


Next Steps

Dividend

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

8.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Regional Express Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Regional Express Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.46%).

Regional Express Holdings's dividend is above the markets top 25% of dividend payers in Australia (5.58%).

Regional Express Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Regional Express Holdings only paid a dividend in the past 9 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Regional Express Holdings's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

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


Management Age and Tenure

5.2yrs

Average Tenure

The average tenure for the Regional Express Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

14.4yrs

Average Tenure

64yo

Average Age

The average tenure for the Regional Express Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Regional Express Holdings individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

SellAU$6,67206 Sep 19
Neville Howell
EntityIndividual
Role
Member of the Board of Directors
COO & Executive Director
Shares4,800
Max PriceAU$1.39
SellAU$910,39803 Apr 19
Anacacia Capital Pty Limited
EntityCompany
Shares625,529
Max PriceAU$1.46
BuyAU$812,02403 Apr 19
Anacacia Capital Pty Limited
EntityCompany
Shares537,565
Max PriceAU$1.51

Ownership Breakdown


Management Team

  • Kuan Tan

    GM of Corporate Services & Company Secretary

    • Tenure: 14yrs
    • Compensation: AU$249.81k
  • Warrick Lodge

    General Manager of Network Strategy & Sales

    • Tenure: 0yrs
    • Compensation: AU$255.63k
  • Kim Lim (62yo)

    Executive Chairman

    • Tenure: 16.3yrs
  • Chris Hine

    Group Flight Operations Advisor & Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$159.60k
  • Mayooran Thanabalasingam

    General Manager of Information Technology & Communications

    • Tenure: 11.2yrs
    • Compensation: AU$262.24k
  • Neville Howell

    COO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$309.38k
  • Png Tat

    General Manager of Engineering

    • Tenure: 7.5yrs
    • Compensation: AU$253.25k
  • Paul Fisher

    GM of Flight Operations & Chief Pilot

    • Tenure: 5.2yrs
    • Compensation: AU$282.36k
  • Anthony Gibara

    General Manager of Human Factors

    • Tenure: 1.7yrs
  • Irwin Tan

    GM of Corporate Services & Company Secretary

    • Tenure: 0yrs
    • Compensation: AU$270.57k

Board Members

  • Thian Lee (64yo)

    Non-Executive Director

    • Tenure: 16.3yrs
    • Compensation: AU$30.00k
  • John Sharp (64yo)

    Deputy Chairman

    • Tenure: 14.4yrs
    • Compensation: AU$117.50k
  • Kim Lim (62yo)

    Executive Chairman

    • Tenure: 16.3yrs
  • Jim Davis (67yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: AU$43.80k
  • Chris Hine

    Group Flight Operations Advisor & Executive Director

    • Tenure: 8.5yrs
    • Compensation: AU$159.60k
  • Ron Bartsch

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: AU$38.33k
  • Neville Howell

    COO & Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$309.38k

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$160.320m
  • Shares outstanding: 109.06m
  • 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

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. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 10:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.