Rex American (REX) AI Stock Analysis

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Rex American

(NYSE:REX)

69Neutral

Rex American's overall stock score reflects a mixed financial performance marked by strong balance sheet stability but concerns over declining revenue and cash flow issues. The technical indicators suggest short-term positive momentum, while the valuation remains reasonable. The earnings call highlighted a balanced outlook with both strategic advancements and operational challenges. These factors combined provide a cautiously optimistic view of the company's stock performance potential.

Rex American (REX) vs. S&P 500 (SPY)

Market Cap

$687.49M

Dividend YieldN/A

Average Volume (3M)171.67K

Price to Earnings (P/E)12.3

Beta (1Y)0.68

Revenue Growth-23.12%

EPS Growth-4.89%

CountryUS

Employees122

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)3.29

Shares Outstanding17,012,775

10 Day Avg. Volume172,275

30 Day Avg. Volume171,670

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)N/A

Price to Sales (P/S)0.96

Price to Cash Flow (P/CF)4.80

P/FCF Ratio8.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$50.00

Price Target Upside23.73% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Rex American Business Overview & Revenue Model

Company DescriptionRex American Resources Corporation (REX) is a holding company that operates in the ethanol production and by-products sector. The company is primarily involved in the production and sale of ethanol, dried distillers grains with solubles (DDGS), and other related products. REX's operations are focused on utilizing corn as a primary raw material to produce renewable fuel and animal feed products, contributing to the agricultural and energy sectors.

How the Company Makes MoneyREX American Resources Corporation generates revenue primarily through the production and sale of ethanol and its by-products. The company's key revenue streams include the sale of ethanol, which is used as a renewable fuel additive in gasoline, and the sale of DDGS, a high-protein animal feed derived from the ethanol production process. The company's earnings are influenced by factors such as commodity prices, government regulations on renewable fuels, and partnerships with entities involved in the agricultural and energy industries. Additionally, REX may engage in strategic joint ventures and investments in ethanol production facilities to optimize its operational efficiency and financial performance.

Rex American Financial Statement Overview

Summary

Rex American displays a mixed financial performance. The company maintains a strong balance sheet with low leverage, evidenced by a low debt-to-equity ratio and high equity ratio. However, declining revenue and negative free cash flow are concerns. Moderate profitability margins are offset by cash flow challenges that could impact future growth.

Income Statement

Positive

Rex American has demonstrated a fluctuating revenue trend with a decline in the most recent year. The gross profit margin for the latest year was approximately 14.23%, and the net profit margin was 9.05%. The EBIT margin stood at 10.01%, and the EBITDA margin was also 10.01%. These margins indicate moderate profitability, but the revenue decrease is a concern.

Balance Sheet

Positive

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04 and a high equity ratio of 77.82%. The return on equity (ROE) was 10.38%, reflecting solid profitability relative to equity. Overall, the balance sheet indicates stability with low leverage.

Cash Flow

Neutral

Rex American has experienced a decline in free cash flow, with a negative free cash flow of -7.13 million in the latest year. The operating cash flow to net income ratio is 1.10, indicating the company's ability to convert profits into cash. However, the negative free cash flow raises concerns about capital expenditure management.

TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Breakdown
Income Statement		Total Revenue
672.75M	642.49M	833.38M	855.00M	774.80M	372.85M
	Gross Profit
105.81M	91.48M	98.22M	54.73M	97.56M	13.86M
	EBIT
77.44M	64.33M	68.84M	25.77M	69.08M	-3.80M
	EBITDA
95.39M	64.33M	91.88M	49.08M	92.67M	25.37M
	Net Income Common Stockholders
67.64M	58.17M	60.94M	37.94M	52.36M	5.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.56M	359.07M	378.66M	280.94M	255.72M	180.69M
	Total Assets
435.02M	720.01M	664.80M	579.58M	550.36M	479.35M
	Total Debt
118.67M	21.11M	12.85M	15.04M	10.99M	12.31M
	Net Debt
31.11M	-175.14M	-210.55M	-54.58M	-218.86M	-132.19M
	Total Liabilities
153.40M	25.96M	77.20M	68.58M	62.80M	42.16M
	Stockholders Equity
251.02M	560.34M	513.92M	447.98M	430.79M	384.78M
Cash Flow		Free Cash Flow
29.15M	-7.13M	90.31M	39.22M	86.58M	-1.79M
	Operating Cash Flow
99.88M	64.19M	127.97M	54.80M	91.71M	8.62M
	Investing Cash Flow
129.32M	-72.86M	28.40M	-198.51M	5.29M	-20.79M
	Financing Cash Flow
-5.51M	-18.47M	-4.32M	-17.01M	-11.10M	-22.45M

Rex American Technical Analysis

Technical Analysis Sentiment

Positive

Last Price40.41

Price Trends

50DMA

38.51

Positive

100DMA

40.15

Positive

200DMA

42.93

Negative

Market Momentum

MACD

0.66

Negative

RSI

60.39

Neutral

STOCH

81.85

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REX, the sentiment is Positive. The current price of 40.41 is above the 20-day moving average (MA) of 38.48, above the 50-day MA of 38.51, and below the 200-day MA of 42.93, indicating a neutral trend. The MACD of 0.66 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 81.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REX.

Rex American Risk Analysis

Rex American disclosed 39 risk factors in its most recent earnings report. Rex American reported the most risks in the “Legal & Regulatory” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Rex American Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODC	75 Outperform	$567.54M	13.64	20.07%	1.46%	8.24%	4.69%
REX	69 Neutral	$687.49M	12.27	10.83%	―	-23.12%	-4.89%
SCL	63 Neutral	$1.10B	22.13	4.22%	3.13%	-6.26%	24.94%
Sector *	49 Neutral	$1.96B	-1.42	-21.96%	3.81%	0.71%	-27.38%
GEVO	47 Neutral	$285.14M	―	-15.02%	―	-1.66%	-18.31%
GPRE	46 Neutral	$231.73M	―	-9.65%	―	-25.69%	18.54%
ALTO	41 Neutral	$68.18M	―	-23.38%	―	-21.07%	-104.32%

* Basic Materials Sector Average

Performance Comparison

REX

Rex American

40.52

-16.52

-28.96%

GEVO

Gevo

1.19

0.54

83.08%

GPRE

Green Plains

3.58

-17.82

-83.27%

ODC

Oil-Dri Of America

41.97

8.15

24.10%

ALTO

Alto Ingredients

0.89

-1.05

-54.12%

SCL

Stepan Company

48.24

-34.03

-41.36%

Rex American Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: 10.38% | Next Earnings Date: May 21, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed outlook for REX American Resources. While there were positive aspects such as increased ethanol sales, progress on the carbon capture project, and a strong cash position, there were significant challenges including decreased gross profit, net income, and increased project costs and timelines. The sentiment is balanced with both positive and negative elements highlighted.

Highlights

Ethanol Sales Growth

Ethanol sales in fiscal year 2024 increased to 289.7 million gallons from 285.9 million gallons in 2023. Fourth quarter sales increased to 74.7 million gallons from 72.1 million gallons in the previous year.

Progress on Carbon Capture Project

Substantial completion of the capture and compression portions of the carbon capture facility in Gibson City, Illinois, with anticipation of moving forward in the sequestration phase upon receiving necessary permits.

Share Repurchase Program

During the fiscal fourth quarter of 2024, REX repurchased approximately 373,000 shares, and an additional 282,000 shares in the first quarter of 2025. The Board authorized an additional 1.5 million shares for repurchase.

Strong Cash Position

REX ended the fiscal year with $359.1 million in cash, cash equivalents, and short-term investments, despite the reduction due to capital expenditures and share repurchases.

Interest and Other Income Increase

Interest and other income grew by approximately 22% in 2024, totaling $19.2 million compared with $15.7 million in 2023.

Lowlights

Decreased Gross Profit

Gross profit for fiscal year 2024 was $91.5 million, down from $98.2 million in 2023. The fourth quarter saw a significant decrease from $30.4 million in 2023 to $17.6 million in 2024, mainly due to lower selling prices.

Decrease in Net Income

Net income attributable to REX shareholders for the year was $58.2 million compared to $60.9 million in 2023. Fourth-quarter net income was $11.1 million, down from $20.6 million in the previous year.

Project Cost Increase and Delays

The budget for the One Earth carbon capture project and ethanol facility expansion increased to $222-$230 million due to equipment upgrades and inflation, extending the project timeline beyond mid-2025.

Lower Dry Distillers Grain Sales

Dry distillers grain sales volumes decreased by 3% in 2024 over 2023, with a 2% decrease in the fourth quarter compared to 2023.

Company Guidance

During the fourth quarter and full fiscal year 2024 earnings conference call, REX American Resources Corporation shared several key metrics and strategic updates. The company reported ethanol sales of 289.7 million gallons for fiscal year 2024, a slight increase from 285.9 million gallons in the previous year, with fourth-quarter sales reaching 74.7 million gallons. The average selling price for ethanol was $1.71 per gallon for the year and $1.64 for the fourth quarter. REX's carbon capture and sequestration project in Gibson City, Illinois, saw substantial completion of its capture and compression facilities, with $115.6 million invested so far, and a budget adjustment to $222-$230 million for ongoing projects. The company repurchased approximately 373,000 shares in Q4 and an additional 281,709 shares in Q1 2025, reflecting a strong commitment to delivering shareholder value. REX ended fiscal 2024 with $359.1 million in cash and investments, and no bank debt, despite a decrease from the previous year's $378.7 million, largely due to capital expenditures and share repurchases. The call highlighted REX's focus on strategic growth, regulatory developments, and maintaining operational efficiency.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.