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Rex American Resources (REX)
NYSE:REX
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Rex American
(NYSE:REX)
64Neutral
Rex American (REX) vs. S&P 500 (SPY)
Market Cap
$617.39M
Dividend YieldN/A
Average Volume (3M)130.43K
Price to Earnings (P/E)11.0
Beta (1Y)0.66
Revenue Growth-23.12%
EPS Growth-4.89%
CountryUS
Employees122
SectorBasic Materials
Sector Strength64
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)3.29
Shares Outstanding17,012,775
10 Day Avg. Volume185,713
30 Day Avg. Volume130,434
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
$50.00Price Target Upside37.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Rex American Business Overview & Revenue Model
Company DescriptionREX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, non-food grade corn oil, gasoline, and natural gas. In addition, the company provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.
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
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.65
Positive
Balance Sheet
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.75
Positive
Cash Flow
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.60
Neutral
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| 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
Negative
36.29
Price Trends
39.25
Negative
41.07
Negative
43.30
Negative
Market Momentum
-0.34
Negative
52.24
Neutral
49.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REX, the sentiment is Negative. The current price of 36.29 is below the 20-day moving average (MA) of 37.01, below the 50-day MA of 39.25, and below the 200-day MA of 43.30, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 49.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $617.39M | 11.02 | 10.83% | ― | -23.12% | -4.89% | |
63 Neutral | $35.94B | 13.32 | 10.86% | 3.80% | -10.37% | -65.69% | |
60 Neutral | $22.84B | 13.03 | 7.78% | 4.22% | -9.01% | -43.53% | |
58 Neutral | $265.89M | 184.35 | 0.51% | ― | -10.30% | -93.51% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% | |
45 Neutral | $281.57M | ― | -9.65% | ― | -25.69% | 18.54% | |
42 Neutral | $78.91M | ― | -23.38% | ― | -21.07% | -104.32% |
* Basic Materials Sector Average
Performance Comparison
REX
Rex American
36.29
-22.51
-38.28%
ADM
Archer Daniels Midland
43.32
-17.82
-29.15%
GPRE
Green Plains
4.35
-19.09
-81.44%
ALTO
Alto Ingredients
1.03
-1.18
-53.39%
VLO
Valero Energy
104.69
-73.42
-41.22%
BIOX
Bioceres Crop Solutions
4.13
-8.52
-67.35%
Rex American Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -0.87% | 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.