Investors Continue Waiting On Sidelines For Rex International Holding Limited (SGX:5WH)

When close to half the companies in Singapore have price-to-earnings ratios (or "P/E's") above 11x, you may consider Rex International Holding Limited (SGX:5WH) as a highly attractive investment with its 4.9x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.

With earnings growth that's superior to most other companies of late, Rex International Holding has been doing relatively well. One possibility is that the P/E is low because investors think this strong earnings performance might be less impressive moving forward. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

Check out our latest analysis for Rex International Holding

Keen to find out how analysts think Rex International Holding's future stacks up against the industry? In that case, our free report is a great place to start.

Is There Any Growth For Rex International Holding?

The only time you'd be truly comfortable seeing a P/E as depressed as Rex International Holding's is when the company's growth is on track to lag the market decidedly.

If we review the last year of earnings growth, the company posted a terrific increase of 57%. The latest three year period has also seen an excellent 67% overall rise in EPS, aided by its short-term performance. So we can start by confirming that the company has done a great job of growing earnings over that time.

What We Can Learn From Rex International Holding's P/E?

Generally, our preference is to limit the use of the price-to-earnings ratio to establishing what the market thinks about the overall health of a company.

Before you take the next step, you should know about the 2 warning signs for Rex International Holding (1 is a bit concerning!) that we have uncovered.

If these risks are making you reconsider your opinion on Rex International Holding, explore our interactive list of high quality stocks to get an idea of what else is out there.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.