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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.1%
Sector: 3.3%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, REX AMERICAN RESOURCES Corp (REX) receives a "Hold" rating with a composite score of 41.9/100, ranked #426 out of 4446 stocks. Key factor scores: Quality 50/100, Value 34/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
REX AMERICAN RESOURCES Corp (REX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does REX AMERICAN RESOURCES Corp Do?
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 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. REX AMERICAN RESOURCES Corp (REX) is classified as a small-cap stock in the Materials sector, specifically within the Chemicals industry. The company is led by CEO Zafar A. Rizvi and employs approximately 120 people, headquartered in DAYTON, Ohio. With a market capitalization of $1.5B, REX is one of the notable companies in the Materials sector.
REX AMERICAN RESOURCES Corp (REX) Stock Rating — Hold (April 2026)
As of April 2026, REX AMERICAN RESOURCES Corp receives a Hold rating with a composite score of 41.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.REX ranks #426 out of 4,446 stocks in our coverage universe. Within the Materials sector, REX AMERICAN RESOURCES Corp ranks #25 of 284 stocks, placing it in the top 10% of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
REX Stock Price and 52-Week Range
REX AMERICAN RESOURCES Corp (REX) currently trades at $44.28. The stock lost $0.25 (0.6%) in the most recent trading session. The 52-week high for REX is $64.95, which means the stock is currently trading -31.8% from its annual peak. The 52-week low is $30.02, putting the stock 47.5% above its annual trough. Recent trading volume was 194K shares, suggesting relatively thin trading activity.
Is REX Overvalued or Undervalued? — Valuation Analysis
REX AMERICAN RESOURCES Corp (REX) carries a value factor score of 34/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 19.48x, compared to the Materials sector average of 26.50x — a discount of 27%. The price-to-book ratio stands at 2.15x, versus the sector average of 2.83x. The price-to-sales ratio is 2.26x, compared to 0.74x for the average Materials stock. On an enterprise value basis, REX trades at 18.65x EV/EBITDA, versus 6.01x for the sector.
At current multiples, REX AMERICAN RESOURCES Corp trades at a premium to most Materials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
REX AMERICAN RESOURCES Corp Profitability — ROE, Margins, and Quality Score
REX AMERICAN RESOURCES Corp (REX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.1%, compared to the Materials sector average of 3.3%, which is within a healthy range. Return on assets (ROA) comes in at 9.7% versus the sector average of 0.6%.
On a margin basis, REX AMERICAN RESOURCES Corp reports gross margins of 15.3%, compared to 29.8% for the sector. The operating margin is 21.4% (sector: 6.0%). Net profit margin stands at 11.4%, versus 3.0% for the average Materials stock. Revenue growth is running at 18.5% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
REX Debt, Balance Sheet, and Financial Health
REX AMERICAN RESOURCES Corp has a debt-to-equity ratio of 14.0%, compared to the Materials sector average of 41.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 5.94x, indicating strong short-term liquidity.
REX has a beta of 0.59, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for REX AMERICAN RESOURCES Corp is 49/100, reflecting average volatility within the normal range for its sector.
REX AMERICAN RESOURCES Corp Revenue and Earnings History — Quarterly Trend
In TTM 2026, REX AMERICAN RESOURCES Corp reported revenue of $667M and earnings per share (EPS) of $2.50. Net income for the quarter was $78M. Gross margin was 15.3%. Operating income came in at $75M.
In FY 2026, REX AMERICAN RESOURCES Corp reported revenue of $650M and earnings per share (EPS) of $2.50. Net income for the quarter was $95M. Gross margin was 14.4%. Revenue grew 1.2% year-over-year compared to FY 2025.
In Q3 2026, REX AMERICAN RESOURCES Corp reported revenue of $176M and earnings per share (EPS) of $0.71. Net income for the quarter was $27M. Gross margin was 20.6%. Revenue grew 0.4% year-over-year compared to Q3 2025. Operating income came in at $35M.
In Q2 2026, REX AMERICAN RESOURCES Corp reported revenue of $159M and earnings per share (EPS) of $0.43. Net income for the quarter was $9M. Gross margin was 9.0%. Revenue grew 7.0% year-over-year compared to Q2 2025.
Over the past 8 quarters, REX AMERICAN RESOURCES Corp has demonstrated a growth trajectory, with revenue expanding from $148M to $667M. Investors analyzing REX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
REX Dividend Yield and Income Analysis
REX AMERICAN RESOURCES Corp (REX) does not currently pay a dividend. This is common among smaller companies in the Chemicals industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Materials dividend stocks may want to explore other Materials stocks or use the stock screener to filter by dividend yield.
REX Momentum and Technical Analysis Profile
REX AMERICAN RESOURCES Corp (REX) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 14/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
REX vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing REX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full REX vs S&P 500 (SPY) comparison to assess how REX AMERICAN RESOURCES Corp stacks up against the broader market across all factor dimensions.
REX Next Earnings Date
No upcoming earnings date has been announced for REX AMERICAN RESOURCES Corp (REX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy REX? — Investment Thesis Summary
REX AMERICAN RESOURCES Corp presents a balanced picture with arguments on both sides. The value score of 34/100 indicates premium valuation.
In summary, REX AMERICAN RESOURCES Corp (REX) earns a Hold rating with a composite score of 41.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on REX stock.
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Institutional Research Dossier
REX AMERICAN RESOURCES Corp (REX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
REX American Resources (REX) is assigned a Hold rating, reflecting a balanced view of its operational performance and valuation. While the company demonstrates strong profitability metrics compared to its sector, particularly in operating and net margins, its higher P/E ratio suggests the market has already priced in much of its growth potential. The Hold rating acknowledges REX's solid financial health and growth, but also recognizes the potential for volatility in the ethanol market and the premium valuation, suggesting limited near-term upside.
The primary concern revolves around the sustainability of REX's high margins and revenue growth in the face of fluctuating commodity prices and evolving regulatory landscapes within the renewable fuels sector. The company's dependence on ethanol production exposes it to risks associated with corn prices, government mandates, and competition from alternative fuel sources. While REX has shown resilience and adaptability, the current valuation doesn't offer a significant margin of safety to account for these uncertainties, justifying a neutral stance.
Business Strategy & Overview
REX American Resources operates primarily in the ethanol production sector, converting corn into ethanol and related byproducts such as distillers grains and corn oil. The company's revenue is derived from the sale of these products, with ethanol being the primary driver. REX's strategic positioning involves owning and operating ethanol production facilities, allowing it to control costs and optimize production processes. The company also engages in the sale of gasoline and natural gas, although these are likely smaller contributors to overall revenue.
REX's business model is inherently tied to the agricultural commodity market, particularly corn prices. Fluctuations in corn prices directly impact the cost of production and, consequently, the profitability of ethanol production. The company mitigates this risk through hedging strategies and operational efficiencies. Furthermore, REX benefits from government mandates and incentives promoting the use of renewable fuels, which create a stable demand for ethanol.
The company's strategic focus appears to be on maximizing operational efficiency and expanding production capacity to capitalize on the growing demand for ethanol. REX also focuses on producing and selling byproducts such as distillers grains, which are used as animal feed, and non-food grade corn oil, which can be used in biodiesel production. These byproducts contribute to the overall profitability of the company and reduce its reliance solely on ethanol sales.
REX's industry context is characterized by increasing demand for renewable fuels, driven by environmental concerns and government regulations. However, the industry also faces challenges such as competition from other renewable fuel sources, fluctuating commodity prices, and potential changes in government policies. REX's ability to navigate these challenges and maintain its competitive advantage will be crucial for its long-term success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
18.5%
Sector: 1.8%
+959% VS SCTR
Economic Moat Analysis
REX American Resources possesses a narrow economic moat, primarily derived from cost advantages and potentially some degree of efficient scale. The ethanol production industry is generally considered a commodity business, where product differentiation is limited. Therefore, the ability to produce ethanol at a lower cost than competitors is a significant source of competitive advantage.
REX's cost advantages likely stem from efficient operations, strategic sourcing of corn, and potentially favorable locations of its production facilities. These factors allow the company to achieve higher margins compared to its peers, as evidenced by its superior operating and net margins. However, these cost advantages are not insurmountable, and competitors can invest in similar technologies and strategies to improve their own cost structures.
The efficient scale aspect of REX's moat is related to the capital-intensive nature of ethanol production. Building and operating ethanol plants requires significant upfront investment, which creates a barrier to entry for new competitors. However, existing players can expand their production capacity, and new entrants can overcome the capital barrier with sufficient funding. Therefore, the efficient scale advantage is not particularly strong.
REX does not appear to benefit from network effects, switching costs, or intangible assets, which are common sources of wide economic moats. Ethanol is a commodity product, and customers are likely to switch suppliers based on price and availability. The company's brand is not a significant factor in purchasing decisions, and it does not own any unique intellectual property that would create a sustainable competitive advantage. The narrow moat reflects the company's ability to generate above-average returns due to cost advantages and efficient scale, but these advantages are not durable enough to warrant a wide moat rating.
Financial Health & Profitability
REX American Resources exhibits a strong financial health profile, characterized by robust profitability, a healthy balance sheet, and positive revenue growth. The company's revenue has shown significant growth, with an 18.5% increase compared to the sector average of 1.5%. This indicates that REX is effectively capturing market share and capitalizing on the growing demand for ethanol. The quarterly financial history shows some revenue volatility, but the overall trend is positive.
REX's profitability metrics are also impressive, with operating and net margins significantly higher than the sector averages. The company's operating margin of 21.4% compares favorably to the sector average of 6.0%, while its net margin of 11.4% is substantially higher than the sector average of 3.0%. This demonstrates REX's ability to efficiently manage its operations and generate profits from its revenue. The gross margin, however, is lower than the sector average, suggesting that the company's cost of goods sold is relatively high, but it is still able to generate higher profits due to efficient operations.
The company's balance sheet appears to be in excellent condition, with a current ratio of 7.16, indicating a strong ability to meet its short-term obligations. The debt-to-equity ratio is 14.00, which is lower than the sector average of 40.00, suggesting that REX is conservatively financed and has ample financial flexibility. The absence of specific data on total cash and total debt makes a complete assessment of the balance sheet challenging, but the available metrics suggest a healthy financial position.
The company's ROE of 11.8% is significantly higher than the sector average of 2.7%, indicating that REX is effectively utilizing its equity to generate profits. The lack of free cash flow data prevents a comprehensive assessment of the company's cash flow generation capabilities, but the strong profitability and healthy balance sheet suggest that REX is likely generating positive cash flow. Overall, REX's financial health is strong, providing a solid foundation for future growth and value creation.
Valuation Assessment
REX American Resources' valuation presents a mixed picture. While the company exhibits strong growth and profitability metrics, its valuation multiples suggest that the market has already priced in much of its potential. The company's P/E ratio of 54.5x is significantly higher than the sector average of 26.1x, indicating that investors are paying a premium for REX's earnings. This premium could be justified by the company's superior growth and profitability, but it also suggests that the stock may be overvalued.
Similarly, REX's EV/EBITDA ratio of 7.7x is higher than the sector average of 5.2x, further supporting the notion that the stock is trading at a premium. This premium could be attributed to REX's efficient operations and strong financial health, but it also implies that the stock may be vulnerable to a correction if the company's growth slows down or its profitability declines.
The absence of free cash flow data makes it difficult to assess the company's valuation using a discounted cash flow (DCF) analysis. However, based on the available metrics, it appears that REX is trading at a relatively high valuation compared to its peers. This suggests that investors should exercise caution and carefully consider the risks associated with the stock before investing.
Given the company's strong growth and profitability, a premium valuation may be warranted. However, the magnitude of the premium raises concerns about the stock's potential for future appreciation. A more reasonable valuation would likely be closer to the sector average, suggesting that the stock may be overvalued by as much as 20-30%. Therefore, a Hold rating is appropriate, reflecting the company's solid fundamentals but also acknowledging the potential for downside risk due to its high valuation.
Risk & Uncertainty
REX American Resources faces several specific risks that could impact its business and financial performance. The most significant risk is the volatility of ethanol prices, which are influenced by factors such as corn prices, government mandates, and competition from other renewable fuels. Fluctuations in ethanol prices can directly impact REX's revenue and profitability, making it difficult to predict future earnings.
Another key risk is regulatory uncertainty. Government mandates and incentives promoting the use of ethanol are subject to change, which could negatively impact the demand for REX's products. Changes in environmental regulations or tax policies could also affect the company's profitability. The political landscape surrounding renewable fuels is constantly evolving, creating uncertainty for ethanol producers like REX.
Competition from other ethanol producers and alternative fuel sources also poses a risk to REX's business. The ethanol industry is relatively fragmented, with numerous players competing for market share. Furthermore, alternative fuels such as biodiesel and electric vehicles are gaining traction, which could reduce the demand for ethanol in the long term. REX needs to continuously innovate and improve its operations to maintain its competitive advantage.
Finally, REX's reliance on corn as a primary feedstock exposes it to risks associated with agricultural commodity prices. Fluctuations in corn prices can significantly impact the company's cost of production and, consequently, its profitability. Weather conditions, crop yields, and global demand for corn can all influence corn prices, creating volatility for REX's business. The company's hedging strategies can mitigate some of this risk, but they cannot eliminate it entirely.
Bulls Say / Bears Say
The Bull Case
BULL VIEWREX's superior operating margins and revenue growth compared to its peers justify its premium valuation, indicating strong management and efficient operations.
BULL VIEWGovernment mandates supporting ethanol usage provide a stable demand base, ensuring consistent revenue streams for REX and mitigating downside risk.
The Bear Case
BEAR VIEWREX's high P/E ratio suggests the stock is overvalued, leaving limited upside potential and significant downside risk if growth slows or margins compress.
BEAR VIEWFluctuations in corn prices and potential changes in government regulations create significant uncertainty for REX's future earnings, making it a risky investment.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score REX and 4,400+ other equities.
REX AMERICAN RESOURCES Corp exhibits a 91% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
9.7%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
15.3%
Sector: 29.8%
Operating Margin
Core business profitability
21.4%
Sector: 6.0%
Net Margin
Bottom-line profitability
11.4%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
