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Rex American Resources (REX)
NYSE:REX
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Rex American
(NYSE:REX)
Rating:72Outperform
Price Target:
$52.00
▲(10.64%Upside)
Rex American (REX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$774.04M
Dividend YieldN/A
Average Volume (3M)95.65K
Price to Earnings (P/E)14.6
Beta (1Y)0.66
Revenue Growth-18.36%
EPS Growth-13.81%
CountryUS
Employees122
SectorBasic Materials
Sector Strength67
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.51
Shares Outstanding16,468,859
10 Day Avg. Volume87,969
30 Day Avg. Volume95,651
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)1.29
Price to Sales (P/S)0.00
P/FCF Ratio14.72
Enterprise Value/Market Cap0.68
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit5.71
Enterprise Value/Ebitda1.43
Forecast
1Y Price Target
$50.00Price Target Upside6.38% 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 sale of ethanol, which is used as a fuel additive to reduce emissions and enhance octane levels in gasoline. The company also earns income from selling distillers grains, a high-protein co-product of ethanol production used as animal feed, as well as other by-products like corn oil. REX's earnings are influenced by factors such as commodity prices, government regulations regarding renewable fuels, and demand within the energy and agricultural markets. Strategic partnerships and operational efficiencies at its production facilities further contribute to the company's profitability.
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: 10.20%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted REX's strong financial position, ongoing share repurchase program, and consistent profitability, but there are concerns about decreased ethanol sales volume, reduced gross profit, and regulatory uncertainties. The company emphasized its strategic positioning and positive legislative developments, maintaining a cautiously optimistic outlook despite some challenges.Q1-2025 Updates
Positive Updates
Share Repurchase Program
REX repurchased approximately 822,000 shares for $32.7 million, considering the share price undervalued. This reflects about 6.8% of shares since December 2024, with 1,182,000 shares remaining authorized for repurchase.
Nineteenth Consecutive Profitable Quarter
REX achieved its nineteenth consecutive profitable quarter, highlighting strong financial performance and operational efficiency.
Ethanol Export Growth
Ethanol exports in March 2025 were up 23% compared to March 2024, and cumulative US ethanol exports through March 2025 increased by nearly 19% year-over-year.
Positive Legislative Developments
Senate Bill 1723 is viewed positively as REX's carbon sequestration sites are six miles outside the Mahomet Sole Source Aquifer, which the bill aims to protect.
Negative Updates
Decrease in Ethanol Sales Volume
Ethanol sales volumes decreased to 70.9 million gallons in Q1 2025 from 74 million gallons in Q1 2024, primarily due to the timing of shipments.
Decline in Gross Profit
Gross profit for Q1 2025 was $14.3 million compared to $14.5 million in Q1 2024, reflecting lower sales prices for dried distillers grains.
Reduced Net Income
Net income attributable to REX shareholders decreased to $8.7 million or $0.51 per diluted share in Q1 2025 from $10.2 million or $0.58 per diluted share in Q1 2024.
Regulatory Uncertainty
Uncertainties remain regarding federal pipeline regulations and the issuance of the EPA permit for the Class VI injection well, which could impact future operations.
Company Guidance
During the REX American Resources Corporation's Q1 2025 earnings call, guidance highlighted several key metrics and strategic initiatives. The company repurchased approximately 822,000 shares for $32.7 million, reflecting an average purchase price of $39.80, bringing total buyback activity to 6.8% of shares since December 2024. Ethanol sales volumes reached 70.9 million gallons, with an average selling price of $1.76 per gallon. The company reported a gross profit of $14.3 million, slightly down from $14.5 million in Q1 2024, and a net income attributable to shareholders of $8.7 million, or $0.51 per diluted share. The ongoing carbon capture and ethanol facility expansion projects have seen investments totaling $122.7 million, with a revised budget range of $220 million to $230 million. Additionally, REX maintained a strong financial position with no bank debt and cash, cash equivalents, and short-term investments of $315.9 million, despite reductions due to capital investments and share repurchases. The company continues to focus on operational excellence, strategic growth initiatives, and shareholder value, with a positive outlook for ethanol margins and exports through 2025.Rex American Financial Statement Overview
Summary
REX American shows a mixed financial performance. The strong balance sheet with low leverage is a positive, but concerns arise from declining revenue and negative free cash flow. Profitability margins are moderate, yet cash flow challenges could hinder future stability.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 | EBIT |
| 64.33M | 68.84M | 25.77M | 69.08M | 1.89M | EBITDA |
| 86.04M | 91.88M | 49.08M | 92.67M | 27.69M | Net Income Common Stockholders |
| 58.17M | 60.94M | 27.70M | 52.36M | 3.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 359.07M | 378.66M | 280.94M | 255.72M | 180.69M | Total Assets |
| 720.01M | 664.80M | 579.58M | 550.36M | 479.35M | Total Debt |
| 21.11M | 12.85M | 15.04M | 10.99M | 12.31M | Net Debt |
| -175.14M | -210.55M | -54.58M | -218.86M | -132.19M | 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
47.00
Price Trends
40.98
Positive
40.22
Positive
42.15
Positive
Market Momentum
1.27
Negative
71.06
Negative
93.56
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 47 is above the 20-day moving average (MA) of 42.94, above the 50-day MA of 40.98, and above the 200-day MA of 42.15, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 93.56 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $763.49M | 16.33 | 20.93% | 1.10% | 9.92% | 17.12% | |
72 Outperform | $774.04M | 14.57 | 10.68% | ― | -18.36% | -13.81% | |
66 Neutral | $1.23B | 22.19 | 4.65% | 2.83% | -0.16% | 47.70% | |
52 Neutral | $364.93M | ― | -12.34% | ― | -19.82% | -34.91% | |
51 Neutral | $2.03B | -1.27 | -21.09% | 3.98% | 2.91% | -30.50% | |
50 Neutral | $306.64M | ― | -16.11% | ― | 145.38% | -22.02% | |
46 Neutral | $90.34M | ― | -24.43% | ― | -17.27% | -112.62% |
* Basic Materials Sector Average
Performance Comparison
REX
Rex American
47.00
1.36
2.98%
GEVO
Gevo
1.28
0.66
106.45%
GPRE
Green Plains
5.58
-9.27
-62.42%
ODC
Oil-Dri Of America
56.26
24.00
74.40%
ALTO
Alto Ingredients
1.17
-0.14
-10.69%
SCL
Stepan Company
54.42
-27.80
-33.81%
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.
The most recent analyst rating on (REX) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Rex American stock, see the REX Stock Forecast page.
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.