Rex American (REX) AI Stock Analysis

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Rex American

(NYSE:REX)

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Outperform 78 (OpenAI - 4o)

Rating:78Outperform

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 (REX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.11B

Dividend YieldN/A

Average Volume (3M)220.99K

Price to Earnings (P/E)22.5

Beta (1Y)0.78

Revenue Growth-3.10%

EPS Growth-22.31%

CountryUS

Employees122

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.71

Shares Outstanding32,937,717

10 Day Avg. Volume302,461

30 Day Avg. Volume220,989

Financial Highlights & Ratios

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 Cap0.74

Enterprise Value/Revenue1.25

Enterprise Value/Gross Profit9.91

Enterprise Value/Ebitda10.50

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)0.78

Revenue Forecast (FY)$657.00M

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 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 Key Performance Indicators (KPIs)

Any

Average Selling Price Per Gallon of Ethanol

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.

Chart InsightsThe average selling price per gallon of ethanol has seen a notable decline since 2023, reflecting broader market pressures. However, REX American's strategic initiatives, including share repurchases and ethanol facility expansions, aim to bolster long-term growth. Despite a dip in sales volume and gross profit, the company remains financially robust with no bank debt and a positive outlook for ethanol margins and exports. Regulatory uncertainties pose risks, but positive legislative developments could mitigate these challenges, supporting REX's strategic positioning and operational excellence.

Data provided by:

The Fly

Rex American Earnings Call Summary

Earnings Call Date:Dec 04, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 26, 2026

Earnings Call Sentiment Neutral

The earnings call demonstrated strong performance in terms of net income, ethanol export growth, and financial stability, with continued progress on strategic initiatives like ethanol capacity expansion. However, challenges such as a decline in gross profit, uncertainty around carbon credits, and the impact of tariffs were also highlighted. The sentiment is balanced, reflecting both achievements and hurdles.

Q3-2025 Updates

Positive Updates

Strong Net Income and Profitability

Net income per share of $0.71, reflecting strong performance and excellent execution in managing input costs and margins. The company delivered 21 consecutive quarters of profitability.

Ethanol Production Expansion

The One Earth Energy facility expansion to 200 million gallons per year is on track for completion in 2026, enhancing production capabilities and operational efficiency.

Positive Ethanol Export Trends

U.S. ethanol exports were 14% higher than the first eight months of 2024, with expectations for a record-setting year in 2025. This is supported by robust demand and favorable industry dynamics.

Strong Financial Position

The company has approximately $335 million in cash, cash equivalents, and short-term investments with no bank debt, indicating financial robustness.

Corn Oil Revenue Growth

Corn oil sales volumes increased by approximately 17% and the average selling price increased by approximately 36%, leading to a 60% increase in sales revenue.

Negative Updates

Decline in Gross Profit

Gross profit for the third quarter was $36.1 million, down from $39.7 million in Q3 2024, primarily due to lower prices for ethanol and distiller grains.

Challenges in Carbon Credits and Tariff Impact

Uncertainty around 45Z tax credit guidelines and the impact of tariffs on corn oil prices and DDG exports were noted as challenges. The company awaits Treasury guidance for further clarity.

Decreased Interest and Other Income

Interest and other income for the quarter totaled $3.2 million, down from $4.6 million in Q3 2024 due to lower rates and investments.

Company Guidance

During the REX American Resources Q3 2025 conference call, the company highlighted several key metrics and strategic initiatives. The net income per share was reported at $0.71, showing improved performance from $0.69 in Q3 2024. Ethanol sales volumes reached 78.4 million gallons, up from 75.5 million gallons in the previous year, although the average selling price decreased to $1.73 per gallon from $1.83. Gross profit stood at $36.1 million, reflecting a decline from $39.7 million in Q3 2024, primarily due to lower prices for ethanol and distiller grains. The company maintained a strong balance sheet with approximately $335 million in cash, cash equivalents, and short-term investments, despite investing $155.8 million in capital projects. Strategic focuses included the One Earth Energy facility expansion, anticipated to be completed in 2026, and the continued assessment of carbon intensity scores to potentially benefit from the 45Z tax credits. Additionally, the company emphasized strong export demand, with U.S. ethanol exports up 14% in the first eight months of 2025 compared to 2024.

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

Positive

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

Very Positive

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

Positive

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	77.74M	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	282.68M	255.72M	182.35M
Total Debt	22.94M	21.11M	12.85M	13.56M	10.99M	11.27M
Total Liabilities	93.86M	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 Price33.00

Price Trends

50DMA

33.05

Positive

100DMA

32.16

Positive

200DMA

27.79

Positive

Market Momentum

MACD

0.08

Negative

RSI

54.83

Neutral

STOCH

83.33

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 33 is below the 20-day moving average (MA) of 33.25, below the 50-day MA of 33.05, and above the 200-day MA of 27.79, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 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
REX	78 Outperform	$1.11B	22.46	8.89%	―	-3.10%	-22.31%
ODC	68 Neutral	$747.56M	15.00	20.62%	1.41%	5.29%	17.29%
SCL	66 Neutral	$1.17B	26.10	3.67%	3.33%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
KOP	56 Neutral	$570.37M	36.24	2.99%	1.19%	-9.62%	-76.62%
GPRE	55 Neutral	$812.18M	-3.97	-22.21%	―	-12.07%	-821.68%
GEVO	48 Neutral	$487.04M	-10.45	-9.27%	―	675.75%	42.00%

* Basic Materials Sector Average

Performance Comparison

REX

Rex American

33.59

12.87

62.11%

GEVO

Gevo

2.01

0.06

3.08%

GPRE

Green Plains

11.63

1.73

17.47%

KOP

Koppers Holdings

29.08

-2.92

-9.13%

ODC

Oil-Dri Of America

55.30

12.17

28.22%

SCL

Stepan Company

51.58

-12.09

-18.99%

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.Date of analysis: Dec 05, 2025