Rex American Resources (REX)
NYSE:REX
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Rex American
(NYSE:REX)
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Rating:76Outperform
Price Target:
$54.00
▲(63.64% Upside)
Action:ReiteratedDate:03/28/26
REX scores well overall due to a standout balance sheet and solid profitability, reinforced by positive guidance tied to capacity expansion and ongoing 45Z tax credit benefits. The score is held back by overbought technical conditions and mixed/volatile cash-flow conversion, with CCS permitting timing a notable uncertainty.
Positive Factors
Balance sheet strength
REX's very low leverage and growing equity provide durable financial flexibility to fund capex, weather commodity cycles, and pursue expansion without reliance on bank debt. A strong capital base supports long-term investment in projects and lowers refinancing and liquidity risk.
Negative Factors
Cash flow volatility
Inconsistent FCF conversion and past negative free cash flow signal working-capital swings and lumpy capex timing tied to plant cycles and expansion. This uneven cash generation can constrain discretionary investment, dividends, or rapid scale-up without tapping external funding.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
REX's very low leverage and growing equity provide durable financial flexibility to fund capex, weather commodity cycles, and pursue expansion without reliance on bank debt. A strong capital base supports long-term investment in projects and lowers refinancing and liquidity risk.
Read all positive factors
Rex American (REX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.48B
Dividend YieldN/A
Average Volume (3M)220.99K
Price to Earnings (P/E)13.5
Beta (1Y)0.59
Revenue Growth-3.10%
EPS Growth-22.31%
CountryUS
Employees122
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.32
Shares Outstanding32,937,717
10 Day Avg. Volume302,461
30 Day Avg. Volume220,989
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 Cap0.91
Enterprise Value/Revenue2.07
Enterprise Value/Gross Profit14.34
Enterprise Value/Ebitda17.24
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, 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 prov...
How the Company Makes Money
REX primarily makes money through its ownership interests in ethanol plants, which generate revenue by selling ethanol into fuel markets (often as a blendstock with gasoline). In addition to ethanol, the plants typically generate revenue from sell...
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 Earnings Call Summary
Earnings Call Date:Mar 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call emphasized multiple clear positives: record EPS and net income, a stronger Q4 gross profit, solid cash and zero bank debt, meaningful progress on the One Earth capacity expansion, and recognized 45Z tax credits (~$28M, ≈$0.10/gal) with upside if CCS permitting is achieved. Offsetting items include softer Q4 ethanol and dry distillers grains volumes, a notable rise in SG&A (especially Q4 incentive-driven), lower interest and other income, a modest decline in income before taxes, and permitting delays for CCS which constrain near-term incremental 45Z benefits. On balance, the positive operational performance, financial strength, and strategic catalysts (expansion + 45Z) materially outweigh the challenges and near-term uncertainties.Positive Updates
Record Ethanol Volume and All-Time High Sales
Consolidated ethanol sales volumes reached a record 290,000,000 gallons in FY2025 (vs. 289,700,000 in FY2024, a slight increase). This was driven by strong export demand and favorable industry conditions.
Negative Updates
Decline in Dry Distillers Grains Volumes
Dry distillers grains sales volumes decreased to 612,000 tons in FY2025 from 632,000 tons in FY2024 (≈-3%). Q4 volumes were ~151,000 tons, down ≈9% year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Ethanol Volume and All-Time High Sales
Consolidated ethanol sales volumes reached a record 290,000,000 gallons in FY2025 (vs. 289,700,000 in FY2024, a slight increase). This was driven by strong export demand and favorable industry conditions.
Read all positive updates
Company Guidance
Management guided to continued strong 2026 performance driven by expanded capacity, tax credits, and favorable markets: the One Earth Energy expansion will raise capacity to 200,000,000 gallons per year and is expected to be completed and commissioned in fiscal 2026; REX recognized approximately $28.0 million of 45Z tax credits in fiscal 2025 (management said these credits are available through 2029 and could grow materially with carbon capture), has invested about $166.0 million to date in carbon capture and ethanol expansion (within a total project budget of $220.0–$230.0 million), and expects a profitable first quarter and another year of strong earnings (the company has delivered 22 consecutive profitable quarters). Key FY2025 metrics cited as context for guidance include record ethanol sales of 290,000,000 gallons (avg. selling price ~$1.74/gal), diluted EPS of $2.50, net income attributable to REX of $83.0 million, gross profit of $93.7 million, year-end cash/short-term investments of $375.8 million with no bank debt, and management’s view that carbon capture could lower CI scores by ~30–35 points and potentially support credits up to $1.00/gal at the One Earth site.Rex American Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
68
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 650.49M | 642.49M | 833.38M | 855.00M | 774.80M |
| Gross Profit | 93.71M | 91.48M | 98.22M | 48.60M | 97.56M |
| EBITDA | 77.85M | 86.04M | 91.88M | 49.08M | 92.67M |
| Net Income | 82.95M | 58.17M | 60.94M | 27.70M | 52.36M |
Balance Sheet | |||||
| Total Assets | 797.73M | 720.01M | 664.80M | 579.58M | 550.36M |
| Cash, Cash Equivalents and Short-Term Investments | 375.78M | 359.07M | 378.66M | 282.68M | 255.72M |
| Total Debt | 21.27M | 21.11M | 12.85M | 13.56M | 10.99M |
| Total Liabilities | 95.73M | 76.41M | 77.20M | 68.58M | 62.80M |
| Stockholders Equity | 610.71M | 560.34M | 513.92M | 447.98M | 430.79M |
Cash Flow | |||||
| Free Cash Flow | 49.39M | -7.13M | 90.31M | 39.22M | 86.58M |
| Operating Cash Flow | 117.83M | 64.19M | 127.97M | 54.80M | 91.71M |
| Investing Cash Flow | -87.69M | -72.86M | 28.40M | -198.51M | 5.29M |
| Financing Cash Flow | -37.66M | -18.47M | -4.32M | -17.01M | -11.10M |
Rex American Technical Analysis
Positive
33.00
Price Trends
37.60
Positive
35.39
Positive
32.24
Positive
Market Momentum
2.43
Negative
64.90
Neutral
63.01
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 41.89, below the 50-day MA of 37.60, and above the 200-day MA of 32.24, indicating a bullish trend. The MACD of 2.43 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 63.01 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.48B | 13.54 | 14.68% | ― | -3.10% | -22.31% | |
76 Outperform | $911.19M | 15.57 | 19.73% | 1.41% | 5.29% | 17.29% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $1.12B | 23.10 | 3.80% | 3.33% | 5.35% | -1.43% | |
60 Neutral | $702.89M | 9.60 | 2.99% | 1.19% | -9.62% | -76.62% | |
58 Neutral | $1.12B | ― | -15.81% | ― | -12.07% | -821.68% | |
53 Neutral | $526.92M | -19.47 | 0.26% | ― | 675.75% | 42.00% |
* Basic Materials Sector Average
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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.