One-glance verdict
Undervalued
$61.54 our estimate vs market $41.72
32% below our estimate, below the bear case
Fundamentals snapshot
REX American Resources Corporation
REX · NYQ · Basic Materials · Chemicals
Current price
$41.72
52-week range
$30.46 - $53.36
Market cap
$1.38B
Balance sheet
Healthy
4.07x Stretched
Net cash $361.69M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.2% last year.
- Reward Returns 19.6% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Forward P/E (18.4x) is higher than trailing (11.4x) - earnings are expected to drop.
What this company does
REX American Resources Corporation
REX American Resources makes most of its money by turning corn into ethanol, a type of alcohol that gets blended into gasoline for cars. The company also sells the other materials left over from this process, like animal feed and corn oil. Because its main business is buying corn and selling fuel, its financial success is closely tied to the changing prices of both corn and energy.
How the company got here
REX American Resources started its life in 1980 not as an energy company, but as a chain of stores selling electronics and appliances. As the retail world changed, the company's leaders saw a new opportunity in the growing field of alternative energy. Starting in the mid-2000s, they began investing in ethanol production and officially changed the company's name in 2010 to reflect this new focus, eventually leaving the retail business behind entirely.
What it actually does
At its core, REX American Resources is in the business of turning corn into fuel. The company operates and invests in ethanol plants, which are basically large refineries that use corn to produce ethanol, a type of alcohol that is blended into gasoline to make it cleaner-burning. Besides ethanol, this process also creates valuable side products, known as by-products, from the parts of the corn that are left over. These by-products are then sold for other uses, like animal feed.
Ethanol and By-Products
This is the company's one and only business focus. REX makes money by taking in corn and processing it to create two main product streams that it sells to other businesses. The primary product is ethanol, which is sold to fuel blenders. The other stream consists of by-products, chiefly distillers grains, which are sold to farmers as a protein-rich feed for livestock, and distillers corn oil, which can be used to make other biofuels. The company's profitability is closely tied to the 'crush spread' (the difference between the price it gets for its ethanol and by-products and what it pays for corn and natural gas to run its plants).
What management is betting on now
The company's leadership is focused on making its ethanol plants more efficient to get more valuable products out of each bushel of corn. A major priority is a project for carbon capture and sequestration (the process of capturing carbon dioxide produced during ethanol production and storing it underground), which could make their ethanol more valuable in markets that favor low-carbon fuels. They are also expanding production capacity at one of their key plants and are known for maintaining a strong balance sheet (a company's summary of its financial health) with very little to no debt, which gives them flexibility.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$18.19M
FY2025 Q4
$9.20M
FY2026 Q1
$-10.38M
FY2026 Q2
$-5.74M
FY2026 Q3
$24.51M
FY2026 Q4
$41.00M
FY2027 Q1
$-13.73M
FY2027 Q2
$16.77M
Revenue
$168.49M
Net income
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Diluted EPS
1.06
Operating cash flow
$40.11M
Free cash flow
$16.77M
Fetching…
Sources
Revenue
$156.50M
Net income
—
Diluted EPS
0.56
Operating cash flow
$-2.09M
Free cash flow
$-13.73M
Fetching…
Sources
Revenue
$157.96M
Net income
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Diluted EPS
0.85
Operating cash flow
$53.78M
Free cash flow
$41.00M
Fetching…
Sources
Revenue
$175.62M
Net income
—
Diluted EPS
0.71
Operating cash flow
$51.24M
Free cash flow
$24.51M
Fetching…
Sources
Revenue
$158.56M
Net income
—
Diluted EPS
0.43
Operating cash flow
$16.28M
Free cash flow
$-5.74M
Fetching…
Sources
Revenue
$158.34M
Net income
—
Diluted EPS
0.51
Operating cash flow
$-3.48M
Free cash flow
$-10.38M
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Sources
Revenue
$158.23M
Net income
—
Diluted EPS
0.64
Operating cash flow
$25.09M
Free cash flow
$9.20M
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Sources
Revenue
$174.88M
Net income
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Diluted EPS
1.38
Operating cash flow
$33.40M
Free cash flow
$18.19M
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Sources
Is it cheap or expensive?
Fair value $61.54 vs current price $41.72
Our most-likely fair value is $61.54 a share — about 47.5% above today's price of $41.72, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $361.7M - more cash than debt. Interest coverage 4.1x.
Net debt
$-361.69M
Interest coverage
4.07x
REX American Resources Corporation's profit covers its interest bill about 4.1 times over. which is stronger than every peer shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
REX
BASELINE
REX American Resources Corporation
Total debt $17.82M Interest coverage 4.07x This is the baseline the peer rows are being compared against.
Total debt $548.63M Interest coverage -1.10x -100% vs REX This peer has almost no interest-payment cushion compared with REX.
Total debt $82.94M Interest coverage 1.41x -65% vs REX Carries about 2.9x less debt cushion than REX.
Total debt $900.76M Interest coverage 2.72x -33% vs REX Carries about 1.5x less debt cushion than REX.
Total debt $324.00K Interest coverage -346.34x -100% vs REX This peer has almost no interest-payment cushion compared with REX.
Total debt $170.70M Interest coverage -1.07x -100% vs REX This peer has almost no interest-payment cushion compared with REX.
What you should know
The case for and against REX
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.2% last year.
-
Returns 19.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Forward P/E (18.4x) is higher than trailing (11.4x) - earnings are expected to drop.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.43x
Forward P/E
18.38x
P/B
2.05x
P/S
2.10x
EV/EBITDA
9.29x
PEG ratio
1.74x
Profitability
How much profit each dollar creates
Gross margin
18.4%
Operating margin
22.4%
Net margin
18.3%
ROE
19.6%
ROA
8.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
6.88x
Quick ratio
6.19x
Total debt
$17.82M
Total cash
$379.51M
Growth
How the business has been compounding
Revenue TTM
$658.58M
Revenue 5Y CAGR
11.7%
EPS TTM
3.65
EPS 5Y CAGR
47.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$143.04M
Free CF TTM
$49.39M
FCF margin
7.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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