Latest news with #REXAmericanResources
Yahoo
29-05-2025
- Business
- Yahoo
REX American Resources Corp (REX) Q1 2025 Earnings Call Highlights: Navigating Market ...
Ethanol Sales Volume: 70.9 million gallons in Q1 2025, down from 74.5 million gallons in Q1 2024. Average Ethanol Selling Price: $1.76 per gallon during the quarter. Dry Distiller Grain Sales Volume: Approximately 153,000 tons with an average selling price of $145.65 per ton. Modified Distiller Grain Sales Volume: Approximately 22,000 tons with an average selling price of $73.44 per ton. Corn Oil Sales Volume: Approximately 21.4 million pounds with an average selling price of $0.46 per pound. Gross Profit: $14.3 million compared to $14.5 million in Q1 2024. Selling, General and Administrative Expenses: Approximately $5.9 million, down from $6.1 million in Q1 2024. Interest and Other Income: $4.2 million compared to $5.9 million in Q1 2024. Income Before Taxes and Non-Controlling Interest: Approximately $13.6 million compared to $16 million in Q1 2024. Net Income Attributable to REX Shareholders: $8.7 million or $0.51 per diluted share, down from $10.2 million or $0.58 per diluted share in Q1 2024. Cash, Cash Equivalents, and Short-Term Investments: $315.9 million at the end of Q1 2025. Share Repurchase: Approximately 822,000 shares repurchased for $32.7 million during Q1 2025. Warning! GuruFocus has detected 3 Warning Sign with REX. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. REX American Resources Corp (NYSE:REX) maintained its position as one of the industry's most consistent performers despite uncertain regulatory and market conditions. The company continued its share buyback program, repurchasing approximately 822,000 shares for $32.7 million, reflecting confidence in its undervalued stock. REX's ongoing projects, including carbon capture and ethanol production capacity expansion, are progressing well, with investments totaling $122.7 million. The company reported its 19th consecutive profitable quarter, demonstrating strong financial performance and operational efficiency. REX remains debt-free, maintaining a strong financial position with cash, cash equivalents, and short-term investments totaling $315.9 million. Ethanol sales volumes decreased to 70.9 million gallons in Q1 2025 from 74.5 million gallons in Q1 2024, primarily due to shipment timing. Net income attributable to REX shareholders declined to $8.7 million from $10.2 million in Q1 2024, impacted by lower cash balances and interest income. The company's gross profit slightly decreased to $14.3 million from $14.5 million in Q1 2024, reflecting lower sales prices for dried distiller grains. Regulatory uncertainties, particularly regarding carbon capture projects and federal pipeline regulations, pose potential challenges to future operations. Natural gas price volatility could negatively impact REX's business, as it is a major expense in ethanol production. Q: What drives REX's ability to consistently deliver superior returns on capital and profitability? A: Stuart Rose, Executive Chairman, attributes REX's success to the leadership of CEO Zafar Rizvi, who closely monitors market conditions and operational details. Additionally, REX benefits from strategic plant locations and a strong team that supports the company's mission and operational goals. Q: What specific deregulation measures could help REX, and what is the status of federal pipeline regulations? A: Stuart Rose explains that regulatory developments are currently uncertain, with ongoing discussions in Washington. However, the inclusion of 45Q and 45Z tax credits in the Big Beautiful Bill is seen as positive. Zafar Rizvi adds that Illinois legislation is favorable for REX's ethanol location, as it is situated away from restricted aquifer areas. Q: What are the current industry fundamentals and outlook for ethanol margins as we approach summer? A: Zafar Rizvi notes that ethanol margins remain positive, with expectations of a strong corn harvest boosting profitability. Ethanol exports are up 19% compared to last year, and potential tariff eliminations could further benefit the industry. However, natural gas prices are a concern and are being monitored closely. Q: How is REX progressing with its carbon capture and ethanol expansion projects? A: Zafar Rizvi reports ongoing technical reviews and coordination with the EPA for the Class 6 injection well permit, expected by January 2026. The projects are within budget, with a total investment of $122.7 million so far, and are expected to enhance long-term operational efficiencies. Q: Can you provide an update on REX's share repurchase program? A: Stuart Rose highlights that REX repurchased approximately 822,000 shares in Q1 2025 for $32.7 million, reflecting confidence in the company's future prospects. The buyback program aims to deliver shareholder value, with 1,182,000 shares remaining authorized for repurchase. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Washington Post
28-05-2025
- Business
- Washington Post
REX: Fiscal Q1 Earnings Snapshot
DAYTON, Ohio — DAYTON, Ohio — REX American Resources Corp. (REX) on Wednesday reported profit of $8.7 million in its fiscal first quarter. On a per-share basis, the Dayton, Ohio-based company said it had net income of 51 cents. The ethanol producer posted revenue of $158.3 million in the period. _____
Yahoo
07-03-2025
- Business
- Yahoo
REX American Resources Corporation's (NYSE:REX) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?
It is hard to get excited after looking at REX American Resources' (NYSE:REX) recent performance, when its stock has declined 11% over the past month. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Particularly, we will be paying attention to REX American Resources' ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Check out our latest analysis for REX American Resources The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for REX American Resources is: 13% = US$83m ÷ US$647m (Based on the trailing twelve months to October 2024). The 'return' refers to a company's earnings over the last year. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.13. Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. To start with, REX American Resources' ROE looks acceptable. Even when compared to the industry average of 14% the company's ROE looks quite decent. This certainly adds some context to REX American Resources' exceptional 44% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. Such as - high earnings retention or an efficient management in place. We then performed a comparison between REX American Resources' net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 39% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if REX American Resources is trading on a high P/E or a low P/E, relative to its industry. Given that REX American Resources doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. On the whole, we feel that REX American Resources' performance has been quite good. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
28-01-2025
- Business
- Yahoo
REX American Resources (NYSE:REX) Is Experiencing Growth In Returns On Capital
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. So on that note, REX American Resources (NYSE:REX) looks quite promising in regards to its trends of return on capital. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on REX American Resources is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$76m ÷ (US$716m - US$44m) (Based on the trailing twelve months to October 2024). Therefore, REX American Resources has an ROCE of 11%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Oil and Gas industry average of 12%. View our latest analysis for REX American Resources Above you can see how the current ROCE for REX American Resources compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering REX American Resources for free. The fact that REX American Resources is now generating some pre-tax profits from its prior investments is very encouraging. The company was generating losses five years ago, but now it's earning 11% which is a sight for sore eyes. Not only that, but the company is utilizing 43% more capital than before, but that's to be expected from a company trying to break into profitability. We like this trend, because it tells us the company has profitable reinvestment opportunities available to it, and if it continues going forward that can lead to a multi-bagger performance. In summary, it's great to see that REX American Resources has managed to break into profitability and is continuing to reinvest in its business. And with a respectable 62% awarded to those who held the stock over the last five years, you could argue that these developments are starting to get the attention they deserve. With that being said, we still think the promising fundamentals mean the company deserves some further due diligence. Before jumping to any conclusions though, we need to know what value we're getting for the current share price. That's where you can check out our that compares the share price and estimated value. While REX American Resources isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
