There is an article published in summer of 2011, it is from reputed daily financ

ial review, dated 23rd Nov, 2011.

Article headlines directly highlight the profit strategy of Regional express hol
ding (REX) and how financial year 2011/12 proven for REX.
during year 2011/12 REX has maintained a course of earning profit. but yet due t
o highly unstable & flickle financial and economic environment, fuel rates and e
xchange rates its very difficult for them to offer a definite profit forecasts.
There are several statement also been mentioned in the context, one of them is c
oming from REX deputy chairman John Sharp at company's annual general meeting. H
e addressed the shareholders, where he assured confidence about REX ltd & its su
bsidiaries for earning profit in financial year 2011/12 as he states "The group
expect all subsidiaries to be profitable in FY11/12."
He also assent in parlance of company business strategy and course, that despite
been thru crest & troughs in past financial years, REX is all set to handle cha
llenges in coming future. quoting "we believe that the REX group is well poised
for the challenges ahead."
Furthermore its been mentioned how the course of earning profit in unchanged fro
m previous financial year, describing how they lagged in FY2010/11, where their
profit lowered by 28.5 percent from the prior corresponding period.
Article also highlight the operating region & other businesses of REX, as they a
re regionally operated aviation giant. REX Flights are mainly operated from Syd
ney, Melbourne and Adelaide to regional destinations in SA, NSW and Victoria. al
so It has business operation in charter flights and contract flyings. Plus, REX
also has an pilot training academy.
Rex maintains profit guidance
Rex profit poised to fall on economy, $A
This article highlights decline in profit for REX Ltd. in current financial year
(FY12/13)

Analysis : Starting in FY2010/11 the Price Earning Ratio (P/E) ratio for REX ltd
. 4.56 times it means the capital value of share 4.56 higher than its current l
evel of earnings, wh ich can be considerd as moderate. In 2011/12 there is a sli
ghtly P/E ratio decreased and it reached to 4.33 times, that could be fluctuatio
n/correction in market value of company share as compared to FY2010/11. But in f
inancial year 2012/13, it went quite high upto 8.83 times higher than its cur re
nt level of earnings.
Deduction : PE ratio is the essence , a measure of market confidence in the fut
ure of company. In our case REX ltd. has a moderate P/E ratio i.e 4.56 times. La
ter, in Financial year 2011/12 it got corrected because of market stablization.
then as from above ratio we can conclude (ROA and NPM) that REX is going thru so
me tough times, yet market believe in REX business and show confidence in their
future. as the result despite being performance below average in year 2012/13 th
ey have higher P/E ratio and its believed that the market will eventually correc
t itself .