REX American Story

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REX -- USA Stock  

USD 65.50  1.38  2.06%

As many of us are excited about energy space, it is fair to break down REX American Resources. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation justified? Here I will cover 2020 perspective on the current valuation of REX American Resources to give you a better outlook on taking a possible position in this stock.
Published over three weeks ago
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Is REX American Resources well positioned for September economic uncertainties?
REX American Resources has 16.18 M in debt with debt to equity (D/E) ratio of 0.04, which may show that REX American is not taking advantage of profits from borrowing. The entity has a current ratio of 12.19, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. REX American is UNDERVALUED at 81.12 per share with modest projections ahead.
We determine the current worth of REX American Resources using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of REX American Resources based exclusively on its fundamental and basic technical indicators. By analyzing REX American's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of REX American's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of REX American. We calculate exposure to REX American's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to REX American's related companies.

REX American Resources Investment Alerts

REX American investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring REX American Resources performance across your portfolios.Please check all investment alerts for REX American

REX American Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare REX American value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across REX American competition to find correlations between indicators driving the intrinsic value of REX American.

How REX American utilizes its cash?

To perform a cash flow analysis of REX American, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash REX American is receiving and how much cash it distributes out in a given period. The REX American cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. REX American Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. REX American reported Net Cash Flow from Operations of 10.34 Million in 2019

Acquisition by Anne MacMillan of 370 shares of REX American subject to Rule 16b-3

Legal trades by REX American insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
REX American insider trading alert for grant of common stock $.01 par value by Anne MacMillan, the corporate stakeholder, on 16th of June 2020. This event was filed by Rex American Resources Co with SEC on 2020-06-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down REX American Indicators

The firm reported the last year's revenue of 396.71 M. Reported Net Loss for the year was (3.03 M) with profit before taxes, overhead, and interest of 12.48 M.

Margins Breakdown

REX American profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or REX American itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of REX American profit margins.
Profit Margin
Gross Margin
Operating Margin(1.66)
EBITDA Margin3.99
Gross Margin3.07
Profit Margin1.82

REX American Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Moreover, REX American Revenue Per Employee is fairly stable at the moment.

REX American has a small chance to finish above $79 in 2 months

Current coefficient of variation is at 1239.22. As of the 26th of August, REX American holds the Semi Deviation of 4.11, coefficient of variation of 1239.22, and Risk Adjusted Performance of 0.1222. Concerning fundamental indicators, the technical analysis model allows you to check practical technical drivers of REX American, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for REX American Resources, which can be compared to its competitors. Please check REX American Resources standard deviation, as well as the relationship between the value at risk and kurtosis to decide if REX American Resources is priced more or less accurately, providing market reflects its current price of 77.48 per share. Given that REX American has jensen alpha of 0.3175, we recommend you to check out REX American Resources's recent market performance to make sure the company can sustain itself at some point in the future.

Our Final Take On REX American

While some firms within the oil & gas refining & marketing industry are still a little expensive, even after the recent corrections, REX American may offer a potential longer-term growth to investors. Taking everything into account, as of the 26th of August 2020, our final 30 days buy-hold-sell recommendation on the company is Strong Sell. However, we believe REX American is undervalued with very small chance of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of REX American Resources. Please refer to our Terms of Use for any information regarding our disclosure principles.

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