| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 78 | 11.4x | 17.8x | Top tier | |
Growth | 66 | 1.3% | 7.1% | Around median | |
Quality | 57 | 15.7% | 4.5% | Around median | |
Safety | 95 | — | 2.6x | Top tier | |
Capital Return | 37 | — | 2.12% | Bottom tier | |
Momentum | 71 | 39.6% | 2.9% | Top tier | |
Sentiment | 19 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
REX American Resources Corporation operates in the renewable energy sector through consolidated and unconsolidated interests in six ethanol production facilities, including One Earth Energy and NuGen Energy. Its financial performance primarily depends on ethanol production volumes and prices and crush margins, along with its share of earnings from unconsolidated facilities and incentives related to reducing carbon intensity, particularly the 45Z production tax credit. The company is also expanding One Earth and developing a carbon capture and storage project aimed at increasing production capacity and improving the value of tax credits obtainable per unit of production.
In the second quarter of fiscal 2026, revenue increased to $168.5 million from $158.6 million in the corresponding period, driven by improved pricing across the product mix. Gross profit jumped to $53.3 million from $14.3 million, representing a gross margin of approximately 31.6% versus about 9.0%, and included $18.4 million of 45Z credit income; even excluding this credit, management said gross profit grew by approximately 144% year over year. Net income attributable to REX shareholders was approximately $34.9 million, or $1.06 per diluted share, compared with $7.1 million and $0.22 per share in the second quarter of fiscal 2025.
The earnings mix reflects significant dependence on ethanol economics, with a growing contribution from tax incentives and unconsolidated facilities; the company’s share of income from unconsolidated affiliates reached $7.2 million in the second quarter of fiscal 2026, up from $0.9 million. REX ended the quarter with $379.5 million in cash and short-term investments and no bank debt, after cumulative investment of $191.2 million in the ethanol production expansion and carbon capture project through the end of the quarter.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $60, with both the high and low targets at $60 and a “Buy” consensus, indicating no visible dispersion among the available targets but potentially also reflecting a narrow coverage sample. This target is approximately 12.4% above the 52-week range high of $53.36, while the range extends to a low of $30.02, a breadth consistent with REX’s valuation sensitivity to ethanol margins, the 45Z credit, and the timing of approvals for the carbon capture project.
Figures in the text are as of 2026-09-04; the live price is shown at the top of the page.
Revenue increased to $168.5 million from $158.6 million, while gross profit jumped to $53.3 million from $14.3 million. The improvement came from higher pricing across the product mix and strong crush margins, in addition to $18.4 million of 45Z credit income. Net income attributable to REX shareholders was approximately $34.9 million, or $1.06 per diluted share, compared with $7.1 million and $0.22 per share in the second quarter of fiscal 2025. Management said gross profit grew by approximately 144% even excluding the impact of 45Z.
One Earth was producing approximately 150 million gallons at the time of the September 2, 2026 call, and REX aims to increase capacity to 175 million gallons by the end of 2026. After reaching that level, the company needs to submit additional applications and obtain further regulatory approvals to reach 200 million gallons. Management indicated that it could approach the 200 million-gallon level during the first half of 2027. The company believes the additional production could increase the value derived from the 45Z credit.
On August 17, 2026, the U.S. Environmental Protection Agency issued draft permits for three Class VI injection wells associated with the One Earth project. Illinois’s moratorium on carbon sequestration operations ended on July 1, 2026, and state regulators began rulemaking and accepting permit applications. REX plans to submit an application for an approximately five-mile connecting pipeline and a separate application to the Illinois Environmental Protection Agency. Management does not have a clear timeline for approval of the connecting pipeline and described it as the element likely to take the longest.
REX recorded $18.4 million of income from the 45Z credit in the second quarter of fiscal 2026, bringing the total since the beginning of the fiscal year to approximately $26 million. This contribution flowed directly into gross profit, which reached $53.3 million in the quarter. However, management reported that gross profit would have grown by approximately 144% year over year even without the credit. The carbon capture project could increase the value of 45Z if it reduces carbon intensity, receives all approvals, and becomes operational.
REX ended the second quarter of fiscal 2026 with $379.5 million in cash and cash equivalents and short-term investments, with no bank debt. Combined investment in the ethanol expansion and carbon capture project reached approximately $191.2 million through the end of the quarter. Management said it is funding its growth projects entirely from its balance sheet. It also stated that it is evaluating share repurchases and the acquisition of other ethanol plants or assets in related industries, but it did not announce an imminent transaction.
Results depend heavily on ethanol margins and prices and export demand, with a $18.4 million contribution from 45Z to second-quarter fiscal 2026 profit. The carbon capture project faces permit-delay risks, particularly the required Illinois approval for the approximately five-mile connecting pipeline. Selling, general, and administrative expenses also increased to $15.6 million from $6.2 million year over year. In addition, net insider sales totaled $4.6 million across seven sales over the three months through June 18, 2026, though they should be treated cautiously because these sales may have been prearranged.
