Riley Exploration Permian (REPX) appears to be an intriguing prospect for value investors, especially considering its current Zacks Rank of #2 (Buy) and impressive grade of “A” for Value in the Style Scores system.
One key metric supporting REPX’s value proposition is its Price-to-Book (P/B) ratio, which stands at 1.26. The P/B ratio compares a company’s market value to its book value, representing the net asset value of the company. In REPX’s case, its P/B ratio of 1.26 suggests that the stock is trading at a relatively attractive valuation compared to its industry peers, given that the industry average P/B ratio is higher at 2.27.
Analyzing REPX’s historical P/B ratio reveals some interesting insights. Over the past 12 months, REPX’s P/B ratio has fluctuated between 1.13 and 2.61, with a median value of 1.71. This indicates that the stock has traded at both lower and higher valuations compared to its current level, potentially presenting an opportunity for value-minded investors.
Riley Exploration Permian (REPX) continues to exhibit strong value characteristics when considering additional valuation metrics beyond the Price-to-Book (P/B) ratio.
One such metric is the Price-to-Sales (P/S) ratio, which compares a company’s market capitalization to its total revenue. REPX’s P/S ratio of 1.51 suggests that the stock is trading at a relatively attractive valuation compared to its industry peers, as the industry average P/S ratio is higher at 1.77. This indicates that investors are paying less for each dollar of REPX’s sales compared to the industry average.
Furthermore, REPX’s Price-to-Cash Flow (P/CF) ratio, which focuses on a company’s operating cash flow, is also favorable. With a P/CF ratio of 3.02, REPX appears undervalued relative to its industry peers, as the industry average P/CF ratio stands higher at 6.26. This metric suggests that investors are paying less for each dollar of REPX’s operating cash flow compared to the industry average.
Analyzing REPX’s historical P/CF ratio over the past 52 weeks reveals a range of values, with a median of 3.60. This indicates that the stock has traded at both lower and higher valuations compared to its current level, potentially presenting an opportunity for value-oriented investors.