It's not a stretch to say that REX American Resources Corporation's (NYSE:REX) price-to-earnings (or "P/E") ratio of 16.2x right now seems quite "middle-of-the-road" compared to the market in the United States, where the median P/E ratio is around 17x. Although, it's not wise to simply ignore the P/E without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
REX American Resources certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It might be that many expect the strong earnings performance to deteriorate like the rest, which has kept the P/E from rising. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
See our latest analysis for REX American Resources
If you'd like to see what analysts are forecasting going forward, you should check out our free report on REX American Resources.
Does Growth Match The P/E?
REX American Resources' P/E ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the market.
Taking a look back first, we see that the company grew earnings per share by an impressive 21% last year. Pleasingly, EPS has also lifted 1,668% in aggregate from three years ago, thanks to the last 12 months of growth. Therefore, it's fair to say the earnings growth recently has been superb for the company.
Looking ahead now, EPS is anticipated to slump, contracting by 19% during the coming year according to the only analyst following the company. That's not great when the rest of the market is expected to grow by 10%.
With this information, we find it concerning that REX American Resources is trading at a fairly similar P/E to the market. Apparently many investors in the company reject the analyst cohort's pessimism and aren't willing to let go of their stock right now. There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the negative growth outlook.
What We Can Learn From REX American Resources' P/E?
We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
Our examination of REX American Resources' analyst forecasts revealed that its outlook for shrinking earnings isn't impacting its P/E as much as we would have predicted. Right now we are uncomfortable with the P/E as the predicted future earnings are unlikely to support a more positive sentiment for long. Unless these conditions improve, it's challenging to accept these prices as being reasonable.
Many other vital risk factors can be found on the company's balance sheet. Our free balance sheet analysis for REX American Resources with six simple checks will allow you to discover any risks that could be an issue.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
REX American Resources Corporationの(NYSE:REX)のP / E比率は、現在16.2倍で、米国市場の中央値である約17倍に比べてかなり「中道的」と言っても過言ではありません。ただし、P / Eを説明なしで単純に無視することは賢明ではなく、投資家が明確な機会または高価な間違いを無視している可能性があるためです。
最近、REX American Resourcesは他の多くの企業が収益を後退させる中でも、収益成長が正の方向に向かっているため、素晴らしい仕事をしてきたと言えます。多くの人々が同じように強い収益成長が低下することを予想しているため、P / Eが上昇していないと考えられます。そうでなければ、既存株主は株価の将来的な方向に対して楽観的に感じる理由があります。
REX American Resourcesの最新分析をご覧ください
将来の予測を確認したい場合は、REX American Resourcesに関する無料レポートをチェックする必要があります。
成長とP / Eはマッチしていますか?
REX American ResourcesのP / E比率は、控えめな成長しか期待されていない企業に典型的なものであり、重要なことは市場と同じようにパフォーマンスすることです。
この情報を踏まえると、REX American Resourcesが市場とかなり近いP / Eで取引していることは懸念すべきです。明確な収益成長見通しが否定的な場合、株式の価格がより現実的なレベルまで低下することがあるため、多くの投資家がアナリストの悲観主義を拒否し、今すぐ自分たちの株を手放す気はありません。これらの株主が将来的に失望することがあるかもしれないと考えられます。
REX American Resourcesのアナリスト予測の分析から、将来の収益率が予測されているにもかかわらず、P / Eには予想よりも少ない影響があることが判明しました。現在、将来の予測収益が長期的なポジティブな感情を維持するのに十分でないため、このP / Eには不快感を感じています。これらの条件が改善しない限り、これらの価格を合理的であると考えることは困難です。
企業のバランスシートの重要なリスク要因は、他にもあります。REX American Resourcesの無料のバランスシート分析では、6つのシンプルなチェックを使用して、問題になる可能性のあるリスクを発見できます。
P / E比率が低く、収益成長が強い他の企業の無料のコレクションをご覧になりたい場合は、こちらをご覧ください。