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Rex American
(NYSE:REX)
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Rating:73Outperform
Price Target:
$50.00
▲(51.52% Upside)
Action:Upgraded
Date:07/01/26
REX scores well primarily due to strong financial quality (very low leverage, high flexibility) and a positive latest earnings outlook supported by improved profitability and 45Z tax-credit contribution with projects progressing on schedule. The score is held back by the sharp recent revenue decline, weaker free-cash-flow conversion, and only mixed technical momentum (price still below the 50-day average).
Positive Factors
Conservative Balance Sheet
An exceptionally low debt load and large equity base provide durable financial flexibility and downside protection. This balance-sheet strength supports ongoing capital deployment, funds multi-year projects from internal resources, and reduces bankruptcy and refinancing risk across commodity cycles.
Negative Factors
Sharp Revenue Decline
A roughly 28% TTM revenue drop signals persistent demand, price or mix pressures that can erode earnings durability. In a commodity-exposed ethanol business, sustained top-line weakness increases volatility in margins, impairs reinvestment capacity, and heightens sensitivity to feedstock and fuel-price swings.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
An exceptionally low debt load and large equity base provide durable financial flexibility and downside protection. This balance-sheet strength supports ongoing capital deployment, funds multi-year projects from internal resources, and reduces bankruptcy and refinancing risk across commodity cycles.
Read all positive factors
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:
The Fly
The FlyRex American (REX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.57B
Dividend YieldN/A
Average Volume (3M)206.46K
Price to Earnings (P/E)16.7
Beta (1Y)0.54
Revenue Growth2.95%
EPS Growth73.25%
CountryUS
Employees132
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)2.81
Shares Outstanding32,937,717
10 Day Avg. Volume135,809
30 Day Avg. Volume206,459
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)1.84
Price to Sales (P/S)1.73
P/FCF Ratio22.73
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue2.02
Enterprise Value/Gross Profit12.24
Enterprise Value/Ebitda11.18
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.5
Revenue Forecast (FY)$769.34M
Rex American Business Overview & Revenue Model
Company Description
REX American Resources Corporation, along with its various subsidiaries, manufactures and distributes ethanol across the United States. The company's product portfolio extends to include corn, distillers grains, industrial-grade corn oil, gasoline...
How the Company Makes Money
REX makes money primarily through its equity interests in ethanol production plants, earning its share of the operating results generated by those facilities. The core revenue driver is the sale of ethanol produced by these plants, which is typica...
Rex American Earnings Call Summary
Earnings Call Date:May 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial picture: record first-quarter EPS and sharply higher net income and gross profit driven in part by recognized 45Z production tax credits, stable ethanol volumes, stronger co-product pricing, no bank debt and active, on-schedule growth projects. Offsetting concerns include a decline in ethanol selling price, a substantial increase in SG&A expenses, ongoing permitting and regulatory uncertainty related to carbon capture, and a reduction in interest income and cash due to project spending. On balance, the highlights (notably material earnings improvement and project progress) outweigh the lowlights.Positive Updates
Record Net Income and EPS
Net income attributable to REX shareholders was $18.5 million in Q1 FY26, or $0.56 per diluted share, up from $8.7 million or $0.26 per diluted share in Q1 FY25 — net income increased ~112.6% and EPS increased ~115.4% year-over-year. Management called this the most profitable first quarter on a net income per share basis in company history.
Negative Updates
Decline in Ethanol Selling Price
Average ethanol selling price fell to $1.66 per gallon in Q1 FY26 from $1.76 per gallon in Q1 FY25, a decline of ~5.7%, which pressures top-line revenue absent offsetting factors like tax credits.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Income and EPS
Net income attributable to REX shareholders was $18.5 million in Q1 FY26, or $0.56 per diluted share, up from $8.7 million or $0.26 per diluted share in Q1 FY25 — net income increased ~112.6% and EPS increased ~115.4% year-over-year. Management called this the most profitable first quarter on a net income per share basis in company history.
Read all positive updates
Company Guidance
The company guided that its Gibson City ethanol expansion remains on schedule for completion by year-end 2026 and that the Illinois carbon pipeline moratorium expires 07/01/2026 (with a permit filing planned shortly thereafter), that it has begun recognizing Section 45Z production tax credits (began in Q4‑2025), booked the credit at $0.10/gallon at consolidated plants and recorded $7.5 million of 45Z income in Q1, and that total capital invested in the carbon capture and expansion projects was about $176 million to date while remaining within a combined project budget range of $220–230 million; management reiterated a strong, no‑debt balance sheet with $364.3 million of cash, cash equivalents and short‑term investments, expects stable operating conditions and another profitable quarter, and cited Q1 operational and financial metrics including ethanol volumes of 71.1 million gallons at an average price of $1.66/gal, DDG volumes ~155k tons at $155.86/ton, MDG 13.4k tons at $76.94/ton, corn oil 23.9 million pounds at $0.54/lb, gross profit $29.1 million, SG&A $9.7 million, equity income from unconsolidated affiliates $3.6 million, interest and other income $3.2 million, income before taxes $26.1 million, and net income attributable to REX shareholders of $18.5 million ($0.56 diluted EPS), while noting ethanol exports were up ~20% year‑over‑year through March.Rex American Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
66
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 656.20M | 650.49M | 642.49M | 833.38M | 855.00M | 774.80M |
| Gross Profit | 108.44M | 93.71M | 91.48M | 98.22M | 48.60M | 97.56M |
| EBITDA | 118.71M | 105.34M | 114.59M | 121.52M | 70.78M | 99.43M |
| Net Income | 92.72M | 82.95M | 58.17M | 60.94M | 27.70M | 52.36M |
Balance Sheet | ||||||
| Total Assets | 807.67M | 797.73M | 720.01M | 664.80M | 579.58M | 550.36M |
| Cash, Cash Equivalents and Short-Term Investments | 364.31M | 375.78M | 359.07M | 378.66M | 282.68M | 255.72M |
| Total Debt | 19.54M | 21.27M | 21.11M | 12.85M | 13.56M | 10.99M |
| Total Liabilities | 83.92M | 95.73M | 76.41M | 77.20M | 68.58M | 62.80M |
| Stockholders Equity | 629.24M | 610.71M | 560.34M | 513.92M | 447.98M | 430.79M |
Cash Flow | ||||||
| Free Cash Flow | 46.04M | 49.39M | -7.13M | 90.31M | 39.22M | 86.58M |
| Operating Cash Flow | 119.22M | 117.83M | 64.19M | 127.97M | 54.80M | 91.71M |
| Investing Cash Flow | -158.41M | -87.69M | -72.86M | 28.40M | -198.51M | 5.29M |
| Financing Cash Flow | -3.05M | -37.66M | -18.47M | -4.32M | -17.01M | -11.10M |
Rex American Technical Analysis
Positive
33.00
Price Trends
46.76
Positive
44.17
Positive
38.52
Positive
Market Momentum
0.42
Negative
57.87
Neutral
75.31
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 below the 20-day moving average (MA) of 45.00, below the 50-day MA of 46.76, and below the 200-day MA of 38.52, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 75.31 is Neutral, 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 37 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.43B | 24.90 | 20.30% | 1.41% | 3.31% | 14.76% | |
73 Outperform | $1.57B | 16.75 | 15.77% | ― | 2.95% | 73.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $918.70M | 12.41 | 14.03% | 1.19% | -8.43% | 222.90% | |
58 Neutral | $1.29B | -91.77 | -1.15% | 3.33% | 5.46% | -125.23% | |
56 Neutral | $1.21B | -63.41 | -2.02% | ― | -20.16% | 83.66% | |
52 Neutral | $362.68M | -10.03 | -7.28% | ― | 314.95% | 58.49% |
* Basic Materials Sector Average
REX
Rex American
47.06
19.97
73.72%
GEVO
Gevo
1.43
-0.02
-1.38%
GPRE
Green Plains
17.12
9.23
116.98%
KOP
Koppers Holdings
48.53
16.08
49.54%
ODC
Oil-Dri Of America
103.84
45.06
76.66%
SCL
Stepan Company
56.90
2.10
3.83%
Rex American Corporate Events
Business Operations and StrategyExecutive/Board Changes
Rex American Approves New Executive Employment Agreements
Positive
Jul 1, 2026
In December 2025, REX American Resources engaged compensation consultant Pearl Meyer to review pay for its named executive officers and directors, culminating in Board approval on May 28, 2026, of new employment agreements effective February 1, 20...
Business Operations and StrategyExecutive/Board Changes
Rex American Adopts New Restricted Stock Unit Plan
Positive
Jun 12, 2026
On June 10, 2026, REX American Resources Corporation’s Compensation Committee approved a new form of Restricted Stock Unit Award Agreement to be used under its 2026 Incentive Plan for granting restricted stock units to eligible participants....
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Rex American Shareholders Approve 2026 Incentive Plan, Leadership
Positive
Jun 3, 2026
On May 28, 2026, REX American Resources shareholders approved the company’s 2026 Incentive Plan, designed to govern equity-based compensation such as restricted stock awards and align management incentives with shareholder interests. At the ...
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.