Rex American (REX) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 106.28K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 0.69
• Revenue Growth: -9.57%
• EPS Growth: -24.85%
• Country: US
• Employees: 122
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 0.43
• Shares Outstanding: 16,528,788
• 10 Day Avg. Volume: 120,793
• 30 Day Avg. Volume: 106,282
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 7.23
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: $68.00
• Price Target Upside: 11.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $68.00 ▲(11.79% Upside)

REX American's overall stock score is driven by strong technical indicators and strategic expansions highlighted in the earnings call. Despite financial challenges like declining revenue and negative cash flow, the company's robust balance sheet and legislative support for carbon capture projects provide a positive outlook.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility to invest in growth opportunities and withstand economic downturns.

Ethanol Expansion Project

The ethanol expansion project enhances production capacity, supporting long-term growth in the renewable energy market and increasing shareholder value.

Regulatory Support

Extended tax credits provide favorable conditions for renewable energy projects, enhancing profitability and encouraging further investment in sustainable practices.

Negative Factors

Declining Revenue

Declining revenue trends can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth and profitability.

Negative Free Cash Flow

Negative free cash flow raises concerns about the company's ability to fund operations and investments without relying on external financing, affecting financial health.

Reduced Ethanol Sales Volumes

Reduced sales volumes may reflect market challenges or operational inefficiencies, potentially impacting revenue and market share in the competitive ethanol industry.

Rex American Business Overview & Revenue Model

Company Description

Rex American Resources Corporation (REX) is a leading producer of ethanol and related co-products, primarily operating in the renewable energy sector. The company focuses on the production of fuel-grade ethanol from corn and other biomass sources, as well as generating by-products such as distillers grains and CO2. REX operates several ethanol production facilities across the United States, contributing to the growing demand for renewable energy solutions and sustainable agricultural practices.

How the Company Makes Money

Rex American generates revenue primarily through the sale of ethanol, which is used as an alternative fuel source and blended with gasoline. The company benefits from the growing market for renewable fuels, driven by government mandates and consumer preferences for cleaner energy. Key revenue streams include the direct sale of ethanol to fuel blenders and distributors, as well as the sale of co-products like distillers grains to livestock feed markets. Additionally, REX may engage in strategic partnerships with agricultural producers and energy companies, enhancing its market reach and financial performance. The company's earnings are also influenced by fluctuations in corn prices, regulatory incentives for renewable fuels, and overall demand for ethanol in the energy sector.

Rex American Financial Statement Overview

Summary

Rex American shows a mixed financial performance with a strong balance sheet and low leverage, but faces challenges with declining revenue and negative free cash flow. Profitability margins are moderate, but cash flow issues 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	642.49M	642.49M	833.38M	855.00M	774.80M	372.66M
Gross Profit	91.48M	91.48M	98.22M	48.60M	97.56M	13.68M
EBITDA	81.40M	86.04M	91.88M	49.08M	92.67M	27.69M
Net Income	58.17M	58.17M	60.94M	27.70M	52.36M	3.00M
Balance Sheet
Total Assets	720.01M	720.01M	664.80M	579.58M	550.36M	479.35M
Cash, Cash Equivalents and Short-Term Investments	359.07M	359.07M	378.66M	280.94M	255.72M	180.69M
Total Debt	21.11M	21.11M	12.85M	15.04M	10.99M	12.31M
Total Liabilities	76.41M	76.41M	77.20M	68.58M	62.80M	42.16M
Stockholders Equity	560.34M	560.34M	513.92M	447.98M	430.79M	384.78M
Cash Flow
Free Cash Flow	-7.13M	-7.13M	90.31M	39.22M	86.58M	-1.79M
Operating Cash Flow	64.19M	64.19M	127.97M	54.80M	91.71M	8.62M
Investing Cash Flow	-72.86M	-72.86M	28.40M	-198.51M	5.29M	-20.79M
Financing Cash Flow	-18.47M	-18.47M	-4.32M	-17.01M	-11.10M	-22.45M

Rex American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 60.83 is above the 20-day moving average (MA) of 60.30, above the 50-day MA of 56.18, and above the 200-day MA of 45.09, indicating a bullish trend. The MACD of 1.87 indicates Positive momentum. The RSI at 57.58 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for REX.

Rex American Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODC	82 Outperform	$889.43M	19.02	20.93%	0.98%	9.92%	17.12%
REX	75 Outperform	$1.01B	20.58	9.47%	―	-9.57%	-24.85%
SCL	67 Neutral	$1.09B	18.99	4.77%	3.20%	2.64%	66.43%
Sector *	61 Neutral	$10.43B	7.39	-0.05%	2.88%	2.86%	-36.73%
GPRE	59 Neutral	$631.39M	―	-18.95%	―	-15.66%	-237.12%
GEVO	56 Neutral	$403.87M	―	-11.71%	―	341.75%	20.16%
ALTO	48 Neutral	$91.33M	―	-28.22%	―	-12.70%	-74.32%

Rex American Corporate Events

Rex American Announces Two-for-One Stock Split

On August 26, 2025, Rex American‘s Board of Directors approved a two-for-one stock split, executed as a 100% stock dividend. This decision will be effective on September 15, 2025, for shareholders recorded by September 8, 2025. The stock split will result in an additional 1,005,881 shares being available under the company’s existing stock plan, ensuring no dilution occurs due to the split.

Rex American Holds Annual Shareholders Meeting

On June 4, 2025, Rex American held its annual shareholders meeting, where key decisions were made regarding the company’s governance and financial oversight. Shareholders elected nine directors to the Board for a one-year term, approved executive compensation, and ratified the appointment of an independent registered public accounting firm, reflecting a strong endorsement of the current leadership and strategic direction.