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Rex American Resources (REX)
NYSE:REX
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Rex American
(NYSE:REX)
Rating:73Outperform
Price Target:
$63.00
▲(3.82% Upside)
Rex American (REX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$986.48M
Dividend YieldN/A
Average Volume (3M)80.43K
Price to Earnings (P/E)18.6
Beta (1Y)0.69
Revenue Growth-18.36%
EPS Growth-13.81%
CountryUS
Employees122
SectorBasic Materials
Sector Strength63
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.51
Shares Outstanding16,468,859
10 Day Avg. Volume80,516
30 Day Avg. Volume80,430
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.47
Enterprise Value/Revenue0.73
Enterprise Value/Gross Profit5.09
Enterprise Value/Ebitda5.72
Forecast
1Y Price Target
$63.00Price Target Upside3.82% 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 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 Key Performance Indicators (KPIs)
Any
Average Selling Price Per Gallon of Ethanol
Indicates the revenue generated per gallon of ethanol sold, highlighting pricing power and market demand for ethanol products.
Indicates the revenue generated per gallon of ethanol sold, highlighting pricing power and market demand for ethanol products.
Data provided by:
Main Street Data
Main Street DataRex American Earnings Call Summary
Earnings Call Date:May 28, 2025
(Q1-2025)
| % Change Since: 42.27%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balance between positive outcomes, such as the share buyback program, continued profitability, and regulatory developments, and challenges like lower ethanol sales volumes and reduced income before taxes.Q1-2025 Updates
Positive Updates
Continued Share Buybacks
During the first quarter, REX repurchased approximately 822,000 shares for a total consideration of $32.7 million, representing approximately 6.8% of outstanding shares since December 2024.
19th Consecutive Profitable Quarter
REX has achieved its nineteenth consecutive profitable quarter, with net income attributable to shareholders at $8.7 million or $0.51 per diluted share.
Positive Developments in Regulatory Environment
Senate Bill 1723 in Illinois, which could have impacted carbon sequestration projects, is seen as positive for REX's ethanol location since their sites are outside the affected area.
Strong Ethanol Export Growth
U.S. ethanol exports through March 2025 were nearly 19% higher than during the same period in 2024.
Negative Updates
Decline in Ethanol Sales Volumes
Ethanol sales volumes reached 70.9 million gallons in Q1 2025, down from 74 million gallons in Q1 2024, due to shipment timing.
Reduced Income Before Taxes
Income before taxes and non-controlling interest was approximately $13.6 million compared to $16 million in Q1 2024.
Lower Cash and Interest Income
Net income was impacted by lower cash balances and interest income, contributing to a decrease from $10.2 million or $0.58 per diluted share in Q1 2024.
Company Guidance
During REX American Resources Corporation's first quarter 2025 earnings call, several key metrics and guidance were highlighted. The company repurchased approximately 822,000 shares at an average price of $39.80, totaling $32.7 million, and plans to continue buybacks with 1,182,000 shares remaining on authorization. Ethanol sales volumes for the quarter were 70.9 million gallons with an average selling price of $1.76 per gallon. Dry distillers grain sales were 153,000 tons at $145.65 per ton, while modified distillers grains were 22,000 tons at $73.44 per ton. Corn oil sales reached 21.4 million pounds at $0.46 per pound. The gross profit was $14.3 million, slightly down from $14.5 million in Q1 2024, with net income attributable to shareholders at $8.7 million or $0.51 per diluted share. The company ended the quarter with $315.9 million in cash and short-term investments, reflecting ongoing investments and share repurchases. REX has invested $122.7 million in carbon capture and ethanol expansion projects, aiming to stay within a budget of $220-$230 million. The company remains optimistic about future profitability and favorable market conditions, with ethanol exports up 19% year-over-year through March 2025.Rex American Financial Statement Overview
Summary
Rex American shows a strong balance sheet with low leverage, but declining revenue and negative free cash flow are concerning. Moderate profitability margins are offset by cash flow challenges that could impact future growth if unaddressed.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 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 642.49M | 833.38M | 855.00M | 774.80M | 372.66M |
| Gross Profit | 91.48M | 98.22M | 48.60M | 97.56M | 13.68M |
| EBITDA | 86.04M | 91.88M | 49.08M | 92.67M | 27.69M |
| Net Income | 58.17M | 60.94M | 27.70M | 52.36M | 3.00M |
Balance Sheet | |||||
| Total Assets | 720.01M | 664.80M | 579.58M | 550.36M | 479.35M |
| Cash, Cash Equivalents and Short-Term Investments | 359.07M | 378.66M | 280.94M | 255.72M | 180.69M |
| Total Debt | 21.11M | 12.85M | 15.04M | 10.99M | 12.31M |
| Total Liabilities | 76.41M | 77.20M | 68.58M | 62.80M | 42.16M |
| Stockholders Equity | 560.34M | 513.92M | 447.98M | 430.79M | 384.78M |
Cash Flow | |||||
| Free Cash Flow | -7.13M | 90.31M | 39.22M | 86.58M | -1.79M |
| Operating Cash Flow | 64.19M | 127.97M | 54.80M | 91.71M | 8.62M |
| Investing Cash Flow | -72.86M | 28.40M | -198.51M | 5.29M | -20.79M |
| Financing Cash Flow | -18.47M | -4.32M | -17.01M | -11.10M | -22.45M |
Rex American Technical Analysis
Positive
60.68
Price Trends
52.52
Positive
46.60
Positive
44.03
Positive
Market Momentum
1.52
Negative
78.50
Negative
93.37
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 60.68 is above the 20-day moving average (MA) of 54.10, above the 50-day MA of 52.52, and above the 200-day MA of 44.03, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 78.50 is Negative, neither overbought nor oversold. The STOCH value of 93.37 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $795.93M | 17.15 | 20.93% | 1.09% | 9.92% | 17.12% | |
73 Outperform | $986.48M | 18.58 | 10.68% | ― | -18.36% | -13.81% | |
67 Neutral | $1.17B | 20.49 | 4.77% | 2.95% | 2.64% | 66.43% | |
61 Neutral | $10.28B | 6.36 | 0.65% | 2.93% | 3.32% | -39.60% | |
58 Neutral | $430.47M | ― | -11.71% | ― | 341.75% | 20.16% | |
55 Neutral | $585.50M | ― | -18.95% | ― | -15.66% | -237.12% | |
46 Neutral | $82.04M | ― | -28.22% | ― | -12.70% | -74.32% |
* Basic Materials Sector Average
Performance Comparison
REX
Rex American
60.68
13.18
27.75%
GEVO
Gevo
1.78
0.91
104.60%
GPRE
Green Plains
9.41
-4.64
-33.02%
ODC
Oil-Dri Of America
58.65
25.11
74.87%
ALTO
Alto Ingredients
1.04
-0.39
-27.27%
SCL
Stepan Company
50.55
-25.45
-33.49%
Rex American Corporate Events
Executive/Board ChangesShareholder Meetings
Rex American Holds Annual Shareholders Meeting
Positive
Jun 5, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.