Rare Earths Americas, Inc. (REA): fair value, margin of safety and Wheel Score

Is REA undervalued?

REA closed at 8.22 on 5 Nov 2026, more than 30% above the GLS average fair value of 0.7112. Only 0 of the 2 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the "below fair value" Wheel Trade Filter keeps names like this under 70.

Only 2 of the nine models produced a value (DCF, DDM); the others need a dividend, positive free cash flow or positive book value the company does not have yet, so the average rests on a narrow base.

The nightly engine files REA under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for REA

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

No Piotroski health score is on file for REA (the statements it needs were not available), so the Health part of the Wheel Score counts it at half marks - 10 of 20 - rather than marking the stock down for missing data. The GLS Moat score is low at 1.9 out of 10: returns on capital, margins or the balance sheet have not shown a lasting edge yet - often a young company, a thin-margin business or one that has only recently turned profitable.

Returns on capital are thin or negative - ROIC -36.3%, ROE -37.9%, ROA -20.3% - with debt at 0.04 times equity and negative free cash flow.

The dividend yield is 0.31% with a payout ratio of 0% - a small yield that leaves most of the earnings in the business.

Institutional ownership scores 2/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 14: No options

REA has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business. It fails the first Wheel Trade Filter (options that actually trade), so the score stays under 70 and is shown as "No options" (14 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 204k shares a day on a market cap of $169M, with a beta of 0.00 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that fair.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.

Upcoming events

Rare Earths Americas, Inc. reports earnings on 10 Nov 2026 - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

No analyst upgrades or downgrades were recorded in the last 30 days.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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