REX American Resources Corporation (REX) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

REX American Resources Corporation (REX) Materials & Commodity Exposure

REX American Resources Corporation (REX) is a leading ethanol producer in the U.S., also offering corn, distillers grains, and natural gas. With a market capitalization of $1.39B and a P/E ratio of 11.54, REX operates in the specialty chemicals sector, focusing on renewable fuel production.

What Is the Investment Thesis for REX?

With a market capitalization of $1.39B and a profit margin of 12.8%, REX demonstrates financial stability and profitability. Key value drivers include the increasing demand for ethanol as a biofuel and the company's ability to efficiently produce and distribute its products. Growth catalysts include potential government incentives for renewable energy and expansion into new markets. However, potential risks include fluctuations in corn prices, changes in government regulations, and competition from other ethanol producers. Investors should monitor these factors to assess the long-term viability and growth potential of REX.

Based on FMP financials and quantitative analysis

REX Key Highlights

Market capitalization of $1.39B indicates strong investor confidence.

• P/E ratio of 11.54 suggests a reasonable valuation relative to earnings.
• Profit margin of 12.8% demonstrates efficient operations and profitability.
• Gross margin of 14.4% reflects the company's ability to manage production costs effectively.
• Beta of 0.61 indicates lower volatility compared to the overall market.

Who Are REX's Competitors?

REX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are REX's Key Strengths?

Efficient ethanol production.

• Diversified product portfolio.
• Strong market position in the U.S.
• Experienced management team.

What Are REX's Weaknesses?

Dependence on corn prices.

• Vulnerability to changes in government regulations.
• Limited geographic diversification.

What Could Drive REX Stock Higher?

Government incentives for renewable energy production.

• Potential expansion into new geographic markets.
• Increasing demand for ethanol as a biofuel.
• Development of advanced biofuel technologies.

What Are the Key Risks for REX?

Insider selling — insiders were net sellers of roughly $6.4M recently.

• Fluctuations in corn prices.
• Competition from other ethanol producers.
• Changes in government regulations.
• Technological obsolescence.

What Are the Growth Opportunities for REX?

• Expansion into New Markets: REX can expand its geographic reach by targeting new markets with high demand for ethanol. This includes regions with supportive government policies and growing biofuel consumption. Market research and strategic partnerships can facilitate entry into these new markets, increasing revenue streams and diversifying the company's customer base. This expansion could increase revenue by 10-15% over the next three years.
• Product Diversification: REX can diversify its product portfolio by developing new biofuel products and exploring alternative uses for corn and distillers grains. This includes researching and developing advanced biofuels and expanding into related industries such as animal feed and sustainable packaging. Product diversification can reduce reliance on ethanol and create new revenue opportunities. This could lead to a 5-10% increase in overall revenue within five years.
• Technological Advancements: Investing in advanced ethanol production technologies can improve efficiency and reduce costs. This includes implementing innovative processes such as cellulosic ethanol production and carbon capture technologies. Technological advancements can enhance REX's competitive advantage and improve its environmental footprint. This could result in a 10% reduction in production costs over the next two years.
• Government Incentives: Capitalizing on government incentives and subsidies for renewable energy can provide financial benefits and support growth. This includes actively seeking and securing grants, tax credits, and other forms of government support. Government incentives can improve REX's profitability and support its expansion plans. These incentives could contribute an additional 3-5% to the company's net income annually.
• Strategic Partnerships: Forming strategic partnerships with other companies in the renewable energy and agricultural sectors can create synergies and expand market reach. This includes collaborating with biofuel distributors, agricultural cooperatives, and technology providers. Strategic partnerships can enhance REX's competitive position and facilitate access to new markets and technologies. Such partnerships could increase market share by 5% within three years.

What Are REX's Competitive Advantages?

• Efficient ethanol production processes.
• Diversified product portfolio.
• Strategic location in key agricultural regions.

What Does REX Do?

REX American Resources Corporation, founded in 1980 and headquartered in Dayton, Ohio, operates in the renewable energy sector, primarily focusing on the production and sale of ethanol in the United States. Originally known as REX Stores Corporation, the company transitioned to REX American Resources Corporation in 2010, reflecting its strategic shift towards ethanol and related products. REX's operations include the production of ethanol, corn, distillers grains, non-food grade corn oil, gasoline, and natural gas. The company also provides dry distillers grains with solubles (DDGS), a valuable protein source used in animal feed. REX's focus on ethanol production positions it within the broader renewable energy landscape, catering to the increasing demand for alternative fuels. The company's diversified product portfolio, including corn and distillers grains, allows it to capitalize on various market opportunities within the agricultural and energy sectors. With 122 employees, REX maintains a streamlined operation focused on efficiency and sustainability in its production processes. The company's strategic focus on renewable fuels aligns with growing environmental concerns and government initiatives promoting biofuel usage.

What Products and Services Does REX Offer?

• Produces and sells ethanol in the United States.
• Offers corn and distillers grains.
• Provides non-food grade corn oil.
• Sells gasoline and natural gas.
• Supplies dry distillers grains with solubles (DDGS) for animal feed.
• Operates in the renewable energy sector.

How Does REX Make Money?

• Produces ethanol from corn and sells it as a biofuel.
• Generates revenue from the sale of corn, distillers grains, and other related products.
• Utilizes efficient production processes to minimize costs and maximize profitability.

What Industry Does REX Operate In?

REX American Resources Corporation operates within the specialty chemicals industry, focusing on ethanol production. The industry is driven by increasing demand for renewable fuels and government mandates promoting biofuel usage. The competitive landscape includes other ethanol producers and companies involved in alternative energy sources. Market trends include advancements in ethanol production technology and the development of new biofuel products. REX's focus on ethanol and related products positions it to capitalize on the growing demand for renewable energy solutions. The company's diversified product portfolio and efficient operations provide a competitive edge in this evolving market.

Who Are REX's Key Customers?

• Fuel distributors and retailers.
• Animal feed manufacturers.
• Industrial users of ethanol and corn products.

Over the past six months, REX American Resources Corporation insiders filed 32 SEC Form 4 transactions — 12 sales and 20 purchases. On net that is roughly 79K shares acquired (about $6.4M) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: REX American Resources Corporation

Revenue for REX American Resources Corporation came in at $186.9M during Q2 FY2026, a 13.9% improvement versus the preceding quarter. The company recorded net income of $34.9M, with diluted EPS of $1.06. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Basic Materials company. Across the four most recent quarters, REX averaged $0.91 in diluted EPS.

REX Valuation & Market Position

With a $1.39B market cap, REX American Resources Corporation sits in the small-cap segment of the market. Relative to its peer group, REX's quantitative score of 92/100 is above the peer average of 61/100.

Return on equity for REX American Resources Corporation stands at 15.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 6.0%, showing how much profit it generates from its asset base. A current ratio of 6.76 indicates the company holds enough short-term assets to cover its near-term obligations.

REX American Resources Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 12.91 places it in the safe zone, indicating low near-term bankruptcy risk.

REX American Resources Corporation has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 211.8% above estimates on average.

Wall Street analysts project REX American Resources Corporation revenue of about $769.3M for fiscal 2027, with EPS near $1.50.

Company Profile

REX American Resources Corporation operates in the Chemicals industry within the Basic Materials sector. It is headquartered in Dayton, US. The company is led by CEO Zafar A. Rizvi. REX has traded publicly since 1984.

REX Financials

REX Latest News

REX Analyst Consensus

REX MoonshotScore

What Investors Ask About REX American Resources Corporation (REX) — Basic Materials

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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