Rex American (REX) AI Stock Analysis

• Market Cap: $1.11B
• Dividend Yield: N/A
• Average Volume (3M): 158.25K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.76
• Revenue Growth: -3.10%
• EPS Growth: -22.31%
• Country: US
• Employees: 122
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.71
• Shares Outstanding: 33,057,575
• 10 Day Avg. Volume: 190,666
• 30 Day Avg. Volume: 158,246
• PEG Ratio: -2.32
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 1.15
• P/FCF Ratio: -103.25
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 10.11
• Enterprise Value/Ebitda: 19.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $657.00M

• Rating: 78 Outperform
• Price Target: $40.00 ▲(21.21% Upside)

Rex American's overall stock score reflects strong financial health and positive technical momentum, supported by strategic initiatives and export growth. However, valuation concerns and challenges in profitability margins and regulatory uncertainties moderate the score. The balanced sentiment from the earnings call also contributes to a cautiously optimistic outlook.

Positive Factors

Strong Financial Position

A robust cash position with no bank debt enhances financial flexibility, allowing for strategic investments and resilience against market fluctuations.

Ethanol Production Expansion

Expanding ethanol production capacity positions Rex American to capitalize on growing demand, improving long-term revenue potential and market share.

Positive Ethanol Export Trends

Increased ethanol exports indicate strong global demand, supporting revenue growth and reinforcing Rex American's competitive position in international markets.

Negative Factors

Decline in Gross Profit

A decline in gross profit suggests margin pressures and potential challenges in maintaining profitability, which could affect long-term financial performance.

Revenue Growth Challenges

Declining revenue growth indicates potential market or operational challenges, which could hinder future expansion and profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow raises concerns about capital expenditure management and the company's ability to fund growth initiatives without external financing.

Rex American Business Overview & Revenue Model

Company Description

Rex American (REX) is a diversified energy company focused on the production and marketing of natural gas and natural gas liquids. Operating primarily in the midstream sector, REX engages in the transportation, storage, and processing of natural gas, serving both industrial and commercial customers. The company also invests in infrastructure projects that enhance the efficiency of natural gas distribution and leverage advancements in energy technology.

How the Company Makes Money

Rex American generates revenue through multiple key streams, including transportation fees for moving natural gas through its pipeline network, storage fees for holding natural gas in its facilities, and processing fees for refining natural gas into marketable products. The company may also earn income from long-term contracts with utility companies and industrial clients, which provide a steady revenue base. Strategic partnerships with other energy firms and investments in technology-driven solutions further bolster REX's earnings, as these collaborations can enhance operational efficiencies and expand service offerings.

Rex American Financial Statement Overview

Summary

Rex American demonstrates strong financial health with impressive revenue growth and a solid balance sheet characterized by low leverage. While profitability margins have faced some pressure, the company shows resilience in cash flow generation. Continued focus on operational efficiency could enhance profitability further.

Income Statement

Rex American shows a strong revenue growth rate of 11.5% TTM, indicating a positive trajectory. The gross profit margin is healthy at 12.66%, though it has slightly decreased from the previous year. The net profit margin of 7.73% TTM is solid, reflecting good profitability. However, the EBIT and EBITDA margins have declined compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.04 TTM, indicating low leverage and financial stability. The return on equity is decent at 9.11% TTM, though it has decreased from the previous year. The equity ratio is robust, showing a strong capital structure with equity financing.

Cash Flow

Rex American's cash flow statement shows a significant improvement in free cash flow growth at 56.09% TTM, indicating better cash generation. The operating cash flow to net income ratio of 1.55 TTM suggests strong cash flow relative to earnings. However, the free cash flow to net income ratio is lower at 0.20, indicating room for improvement in converting earnings to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	650.76M	642.49M	833.38M	855.00M	774.80M	372.66M
Gross Profit	82.36M	91.48M	98.22M	48.60M	97.56M	13.68M
EBITDA	42.74M	86.04M	91.88M	49.08M	92.67M	25.37M
Net Income	50.30M	58.17M	60.94M	27.70M	52.36M	3.00M
Balance Sheet
Total Assets	750.06M	720.01M	664.80M	579.58M	550.36M	479.35M
Cash, Cash Equivalents and Short-Term Investments	335.54M	359.07M	378.66M	280.94M	255.72M	180.69M
Total Debt	22.94M	21.11M	12.85M	15.04M	10.99M	12.31M
Total Liabilities	36.38M	76.41M	77.20M	68.58M	62.80M	42.16M
Stockholders Equity	566.92M	560.34M	513.92M	447.98M	430.79M	384.78M
Cash Flow
Free Cash Flow	17.59M	-7.13M	90.31M	39.22M	86.58M	-1.79M
Operating Cash Flow	89.13M	64.19M	127.97M	54.80M	91.71M	8.62M
Investing Cash Flow	-63.03M	-72.86M	28.40M	-198.51M	5.29M	-20.79M
Financing Cash Flow	-52.34M	-18.47M	-4.32M	-17.01M	-11.10M	-22.45M

Rex American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 33 is above the 20-day moving average (MA) of 32.90, above the 50-day MA of 32.17, and above the 200-day MA of 25.77, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 66.10 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
REX	78 Outperform	$1.11B	22.52	8.89%	―	-3.10%	-22.31%
ODC	73 Outperform	$738.65M	14.83	21.89%	1.25%	10.97%	36.07%
SCL	62 Neutral	$1.02B	22.85	3.67%	3.44%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	58 Neutral	$550.17M	36.39	2.99%	1.08%	-9.62%	-76.62%
GPRE	53 Neutral	$720.70M	―	-22.21%	―	-12.07%	-821.68%
GEVO	51 Neutral	$574.27M	―	-9.27%	―	675.75%	42.00%

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.