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Redox (RDX)

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Question asked 05/07/2025

Redox (RDX)

Hello, I know this is too late for this week but would like your updated opinion on RDX for next week. The only comment you have made was when it IPO'd in 2023 and it seemed your opinion was positive. So I am wondering why there has been no further follow up on this? Regards Ray

Answer

Hi Ray,

For subscribers not familiar with Redox (RDX), it supplies over 1,000 chemicals and ingredients to industries like food, agriculture, health, mining, and water treatment. The stock listed in July 2023 at $2.25, with the shares embarking on a volatile journey since, it’s currently valued by the market at $1.1bn, trading at $2.16

In 2023, we liked RDX but said “MM is neutral RDX“, we should have been more positive with the stock almost doubling in the ensuing 15 months. However, RDX has fallen around 50% this year after missing profit estimates by around 13% in February, the secondary fall in June is harder to understand and after ASX queried it, the company had no explanation for the sharp decline.

To answer your question, the stock did very little for a long time post IPO before rallying very strongly, then falling off a cliff. Companies like RDX should be a lot more stable than that, which has reduced our interest and our coverage. That said, we think it is starting to look interesting back below the IPO price.

We think the risk/reward towards RDX around $2 is interesting with the stock trading on 14.9x, below say Orica (ORI) on 18.2x, and its expected to yield over 5.7% in the next 12-months.

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Redox Ltd (RDX)

LAST UPDATED 04/07/2025 16:07

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