REX American Resources Corporation REX
REX American Resources remains a buy following record fiscal Q2 2026 EPS of $1.06 versus $0.22 in the prior-year quarter, extending a multi-quarter streak of significant earnings beats driven by stronger ethanol margins and Section 45Z tax credit contributions. The balance sheet is fortress-like with total debt of $21.3M against stockholders' equity of $610.7M as of the fiscal year ended 2026-01-31, and FY2025 produced positive free cash flow of $49.4M with EPS of $2.50.
At a PE of 14.94 and a last close of $41.99 below the 50-day moving average of $44.34, the stock offers an attractive entry after the earnings catalyst, though it trades at a premium to peers on EV/EBITDA at 10.82 versus a peer median of 7.34.
What could go wrong
- Commodity margin cyclicality. Ethanol margins driving the record Q2 FY2026 results are inherently cyclical; any reversal in corn costs or ethanol pricing could compress the gross margin of 14.41% achieved in FY2025.
- Regulatory dependence on Section 45Z. A material portion of recent earnings strength is attributed to the Section 45Z production tax credit; changes, delays, or expiration of this program would directly hit profitability.
- Insider selling. Chairman Stuart Rose sold shares in June 2026 at approximately $43.64–$43.77 per share, and the 24-month insider net value is negative at -$6.4M despite net share acquisitions.
- Valuation premium to peers. REX trades at an EV/EBITDA of 10.82 and PS of 2.11 versus peer medians of 7.34 and 0.57 respectively, leaving limited room for execution missteps.
What would change my mind
Where this comes from: Business Wire press release 2026-09-02 · FMP fundamentals FY2025 · FMP fundamentals FY2025 · peer_relative. Orin's read on REX; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All REX filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| State Street | $71.0M | 0.0% of fund |
| Vanguard Portfolio Management | $58.0M | 0.0% of fund |
| Vanguard Capital Management | $56.1M | 0.0% of fund |
| Geode Capital Management | $39.2M | 0.0% of fund |
| D. E. Shaw & | $29.2M | 0.0% of fund |
| Morgan Stanley | $25.9M | 0.0% of fund |
48 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 56 Form 4 filings, net −$6.4M. Of the 50 on hand, 0 were open-market purchases and 9 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about REX
Orin answers questions about REX from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 12.1× | — | 29.8× |
| EV/EBITDA | 9.0× | — | — |
| P/S | 2.12× | — | — |
| P/B | 2.2× | — | — |
12.9%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $0.0B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$60
$60 – $60 · +36% against today's price
- 3 buy or overweight
- 0 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| REXREX American Resources Corporation | $1B | 12.1× | 9.0× | 21.5% | 17.6% | 19% |
| ECVTEcovyst Inc. | $1B | — | 7.5× | 21.0% | -7.1% | -10% |
| GPREGreen Plains Inc. | $1B | 8.4× | 6.0× | 10.0% | 6.7% | 16% |
| SCLStepan Co | $1B | — | 13.0× | 11.8% | -0.1% | -0% |
The median is of the 1 peers listed above and nothing else — check it against the column. This company trades 42.8% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.