REX American Resources Corporation (REX)
Basic Materials · NYQ · US
Fundamentals
Valuation and ratings
REX American Resources Corporation trades at USD46.10, which is 120% below the USD101.42 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 39 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.4 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About REX American Resources Corporation
REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company provides corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. It also offers dry distillers grains with soluble, which is used as a protein in animal feed. REX American Resources Corporation was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in June 2010. The company was founded in 1980 and is headquartered in Dayton, Ohio.
REX passes 2 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is REX American Resources Corporation (REX) undervalued?
Against our discounted cash flow estimate of USD101.42, REX at USD46.10 is 120% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is REX's P/E ratio?
REX trades at 16.4 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.