Is REX American Resources Corp. overvalued or undervalued?

As of 10 September 2025, the valuation grade for REX American Resources Corp. has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, particularly when considering its P/E ratio of 24, which is significantly lower than its peer Proto Labs, Inc. at 58.60, and its EV to EBITDA ratio of 16.17, which is more favorable compared to Ecovyst, Inc. at 10.41. Additionally, REX boasts a strong ROCE of 30.23%, suggesting efficient capital utilization.
In terms of performance, REX American Resources has faced challenges, with a YTD return of -26.12% compared to the S&P 500's 12.22%, and a 1Y return of -31.27% against the S&P 500's 17.14%. However, over the 5-year period, REX has outperformed the S&P 500 with a return of 176.31% compared to 96.61%, highlighting its potential for recovery and growth.