REX American Story

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REX -- USA Stock  

USD 87.65  1.89  2.20%

REX American Resources is scheduled to announce its earnings today. The next earnings report is expected on the 25th of March 2021. REX American Accounts Payable Turnover is fairly stable at the moment as compared to the past year. REX American reported Accounts Payable Turnover of 31.71 in 2019. Accrued Expenses Turnover is likely to rise to 71.66 in 2020, whereas Average Assets are likely to drop slightly above 364.3 M in 2020. While some baby boomers are getting worried about energy space, it is reasonable to break down REX American Resources as an investment alternative. I will address a few possible reasons investors do not currently respect this stock.
Published over a month ago
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Is REX American (NYSE:REX) outlook still optimistic based on the current debt level?
REX American Resources has 14.91 M in debt with debt to equity (D/E) ratio of 0.03, which may show that REX American is not taking advantage of profits from borrowing. On a scale of 0 to 100, REX American holds a performance score of 8. The company holds a Beta of 1.3925, which implies a somewhat significant risk relative to the market. Let's try to break down what REX American's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, REX American will likely underperform. Although it is vital to follow REX American Resources current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The way in which we are forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By inspecting REX American Resources technical indicators, you can now evaluate if the expected return of 0.46% will be sustainable into the future. Please employ REX American Resources treynor ratio, expected short fall, as well as the relationship between the Expected Short fall and day median price to make a quick decision on whether REX American historical price patterns will revert.
REX American financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of REX American, including all of REX American's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of REX American assets, the company is considered highly leveraged. Understanding the composition and structure of overall REX American debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding REX American Total Debt

REX American Resources liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. REX American Resources has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on REX American balance sheet include debt obligations and money owed to different REX American vendors, workers, and loan providers. Below is the chart of REX American main long-term debt accounts currently reported on its balance sheet.
You can use REX American Resources financial leverage analysis tool to get a better grip on understanding its financial position

How important is REX American's Liquidity

REX American financial leverage refers to using borrowed capital as a funding source to finance REX American Resources ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. REX American financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between REX American's total debt and its cash.

Sale by Mervyn Alphonso of 536 shares of REX American

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 sale of common stock $.01 par value by Mervyn Alphonso, the corporate stakeholder, on 11th of December 2020. This event was filed by Rex American Resources Co with SEC on 2020-12-11. 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 current price rise of REX American Resources created some momentum for investors as it was traded today as low as 82.29 and as high as 88.5 per share. The company management teams may have good odds in positioning the company resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.95. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from REX American partners.

Asset Breakdown

208.7 M
Assets Non Current
219.2 M
Current Assets
Total Assets450.02 Million
Current Assets219.22 Million
Assets Non Current208.67 Million
Goodwill1.18 Million
Tax Assets7.42 Million

Our perspective of the current REX American rise

Current maximum drawdown is at 17.41. As of the 3rd of December, REX American holds the Coefficient Of Variation of 737.38, risk adjusted performance of 0.1772, and Semi Deviation of 3.61. 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 87.74 per share. Given that REX American has jensen alpha of 0.4118, 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.

While many other companies under the oil & gas refining & marketing industry are still a bit expensive, REX American may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to quit some or all of your REX American holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to REX American.

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 Raphi Shpitalnik 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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