Approach ResourcesStock Price and Value Analysis

Should you buy Approach Resources stock? (NasdaqGS:AREX). Let's see how it does in our automated value investing analysis system.

AdvantagesDisadvantagesNeutral
  • This company has fluctuating growth.
  • This stock is available at a great discount!
  • This company is solid.
  • This company is making money at a modest rate.
  • This company pays no dividend.

AREX Free Cash Flow Trend

Based on historical returns, we believe that Approach Resources can grow its free cash at a rate of about 4%. That's positive!

Free Cash Flow trendline for AREX
Free Cash Flow trendline for Approach Resources

Inside the AREX Numbers

AREX Price
(Approach Resources stock price per share)
$2.41
[?] AREX Fair Price
(based on intrinsic value)
$24.24
[?] AREX Safety Price (based on a variable margin of safety) $15.76
[?] PE Ratio versus Sector 73% lower than other Basic Materials stocks
[?] PE Ratio versus Industry 78% lower than other Independent Oil & Gas stocks
[?] Cash Yield 105.72%
[?] Free Cash Flow Jitter 30%

Is Approach Resources Stock on Sale?

We believe that Approach Resources may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Approach Resources looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy AREX Stock?

Does Approach Resources have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.