📊 REX Key Takeaways
Is REX AMERICAN RESOURCES Corp (REX) a Good Investment?
REX has a fortress balance sheet with minimal debt and strong liquidity, but fundamental operations are deteriorating with negative free cash flow of -$13.7M (-8.8% FCF margin), declining net income (-12.8% YoY) on flat revenue growth, and extremely low returns on equity (2.9%) and assets (2.3%). The wide divergence between reported profitability and negative operating cash flow signals declining earnings quality and unsustainable capital efficiency.
REX demonstrates strong underlying profitability and cash generation with double-digit net margins, high returns on capital, and a near‑debt‑free balance sheet. While revenue growth is modest and net income declined YoY, robust liquidity and disciplined capex support resilience through commodity cycles and reinvestment optionality.
REX AMERICAN RESOURCES Corp Key Strengths (REX)
- Exceptional balance sheet strength with $629.2M equity versus only $14.5M long-term debt (0.02x debt/equity)
- Outstanding liquidity with $117.7M cash and 6.76x current ratio, providing operational flexibility
- Strong operating margin of 39.1% demonstrates pricing power and operational efficiency in core business
- Fortress balance sheet with high liquidity and minimal debt
- Healthy margins and returns (GM 14.4%, OM 9.4%, ROE 13.6%)
- Solid free cash flow after capex, strong interest coverage
REX Stock Risks: REX AMERICAN RESOURCES Corp Investment Risks
- Critical cash flow crisis: negative $13.7M free cash flow and -$2.1M operating cash flow despite positive net income signals severe operational distress and earnings quality concerns
- Deteriorating profitability: net income declined 12.8% YoY while revenue grew only 1.2%, indicating margin compression and loss of pricing power
- Severe capital inefficiency: ROE of 2.9% and ROA of 2.3% are unacceptably low given the massive asset base, suggesting significant deployment or operational issues
- Commodity/crush spread volatility impacting margins
- Regulatory/policy risk tied to renewable fuels
- Muted top-line growth and YoY earnings decline
Key Metrics to Watch
- Operating cash flow trend - negative OCF is unsustainable and must return to positive
- Revenue growth acceleration - 1.2% YoY growth is insufficient for a mature industrial company
- Return on equity trajectory - 2.9% ROE requires significant operational improvement to be investment-worthy
- Gross margin trend
- Free cash flow margin
REX AMERICAN RESOURCES Corp (REX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.76x current ratio provides a solid financial cushion.
REX Profit Margin, ROE & Profitability Analysis
REX vs Materials Sector: How REX AMERICAN RESOURCES Corp Compares
How REX AMERICAN RESOURCES Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is REX AMERICAN RESOURCES Corp Stock Overvalued? REX Valuation Analysis 2026
Based on fundamental analysis, REX AMERICAN RESOURCES Corp has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
REX AMERICAN RESOURCES Corp Balance Sheet: REX Debt, Cash & Liquidity
REX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: REX AMERICAN RESOURCES Corp's revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.73 reflects profitable operations.
REX Revenue Growth, EPS Growth & YoY Performance
REX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $156.5M | $10.7M | $0.26 |
| Q3 2025 | $174.9M | $27.5M | $0.69 |
| Q2 2025 | $148.2M | $9.3M | $0.43 |
| Q1 2025 | $158.3M | $10.7M | $0.51 |
| Q3 2024 | $174.9M | $30.1M | $1.38 |
| Q2 2024 | $148.2M | $6.7M | $0.52 |
| Q1 2024 | $161.2M | $6.7M | $0.30 |
| Q3 2023 | $220.3M | $4.9M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
REX AMERICAN RESOURCES Corp Dividends, Buybacks & Capital Allocation
REX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for REX AMERICAN RESOURCES Corp (CIK: 0000744187)
📋 Recent SEC Filings
❓ Frequently Asked Questions about REX
What is the AI rating for REX?
REX AMERICAN RESOURCES Corp (REX) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are REX's key strengths?
Claude: Exceptional balance sheet strength with $629.2M equity versus only $14.5M long-term debt (0.02x debt/equity). Outstanding liquidity with $117.7M cash and 6.76x current ratio, providing operational flexibility. ChatGPT: Fortress balance sheet with high liquidity and minimal debt. Healthy margins and returns (GM 14.4%, OM 9.4%, ROE 13.6%).
What are the risks of investing in REX?
Claude: Critical cash flow crisis: negative $13.7M free cash flow and -$2.1M operating cash flow despite positive net income signals severe operational distress and earnings quality concerns. Deteriorating profitability: net income declined 12.8% YoY while revenue grew only 1.2%, indicating margin compression and loss of pricing power. ChatGPT: Commodity/crush spread volatility impacting margins. Regulatory/policy risk tied to renewable fuels.
What is REX's revenue and growth?
REX AMERICAN RESOURCES Corp reported revenue of $156.5M.
Does REX pay dividends?
REX AMERICAN RESOURCES Corp does not currently pay dividends.
Where can I find REX SEC filings?
Official SEC filings for REX AMERICAN RESOURCES Corp (CIK: 0000744187) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is REX's EPS?
REX AMERICAN RESOURCES Corp has a diluted EPS of $0.56.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is REX's fundamental grade?
Based on our AI fundamental analysis in June 2026, REX AMERICAN RESOURCES Corp has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is REX stock overvalued or undervalued?
Valuation metrics for REX: ROE of 2.9% (sector avg: 14%), net margin of 11.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is REX's AI grade for 2026?
Our dual AI analysis gives REX AMERICAN RESOURCES Corp a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is REX's free cash flow?
REX AMERICAN RESOURCES Corp's operating cash flow is $-2.1M, with capital expenditures of $11.6M. FCF margin is -8.8%.
How does REX compare to other Materials stocks?
Vs Materials sector averages: Net margin 11.8% (avg: 10%), ROE 2.9% (avg: 14%), current ratio 6.76 (avg: 1.6).