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REX American ResourcesFRA:RX3 58 Gross Margin % is 31.63% as of Jul. 2026, which is 195% above its 10-year median of 10.73. GuruFocus rates FRA:RX3 with a GF Score™ of 58/100 and a GF Value™ of €19.34 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,572 Chemicals companies, REX American Resources ranks worse than 54.26% on this metric.
REX American Resources (FRA:RX3) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
REX American Resources had a gross margin of 31.63% for the quarter that ended in Jul. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
REX American Resources Gross Margin % Related Terms
REX American Resources Gross Margin % Historical Data
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The historical data trend for REX American Resources's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:RX3 vs HUN, GPRE, TROX: Gross Margin % Comparison
For the Chemicals subindustry, REX American Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
REX American Resources Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, REX American Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where REX American Resources's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
REX American Resources (FRA:RX3) has a Gross Margin % of 31.63% as of Jul. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on REX American Resources and its competitors. This is 195% above median its historical median of 10.73. Over the past decade, REX American Resources' Gross Margin % has ranged from 4.88 to 22.38. According to the industry distribution chart, REX American Resources ranks #853 out of 1572 companies in the Chemicals industry, placing it in the top 54.3%.
Is REX American Resources' Gross Margin % too high?
REX American Resources' current Gross Margin % of 31.63% is 195% above median its 10-year median of 10.73. Over the past 10 years, this metric has ranged from a low of 4.88 to a high of 22.38. The Chemicals industry median Gross Margin % is 24.15. REX American Resources' value of 31.63% is 31% above this industry median. Based on the distribution chart, REX American Resources ranks #853 out of 1572 companies in the Chemicals industry, which is below the industry midpoint. Overall, REX American Resources has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does REX American Resources' Gross Margin % compare to HUN and GPRE?
According to the Chemicals industry distribution chart, REX American Resources ranks #853 out of 1572 companies for Gross Margin %. This places REX American Resources in the lower half of its industry. The industry median Gross Margin % is 24.15. REX American Resources' value of 31.63% is 31% above this benchmark. Historically, REX American Resources' own Gross Margin % has ranged from 4.88 to 22.38 over the past decade. While the company's 10-year median is 10.73 vs. the industry median of 24.15, REX American Resources has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 24.15, based on 1,572 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. REX American Resources's current Gross Margin % of 31.63% is 31% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on REX American Resources and its competitors. For the Chemicals industry, the median Gross Margin % is 24.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REX American Resources's current Gross Margin % is 31.63%, which is 195% above median its own 10-year median of 10.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REX American Resources stock overvalued right now?
Based on GuruFocus' analysis, REX American Resources (FRA:RX3) is currently considered Significantly Overvalued. The stock's GF Value™ is €19.34, compared to a current price of €34.80 — trading 79.9% above its estimated fair value. The current Gross Margin % is 31.63%, which is 195% above median its 10-year median of 10.73 and 31% above the Chemicals industry median of 24.15. REX American Resources' overall GF Score™ is 58/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For REX American Resources (FRA:RX3), the current Gross Margin % is 31.63% as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is REX American Resources (FRA:RX3) Overvalued in 2026?
Based on GuruFocus' analysis, REX American Resources stock appears to be overvalued.
The current stock price of €34.80 is trading 79.9% above its estimated GF Value™ of €19.34.
GuruFocus considers REX American Resources to be Significantly Overvalued.
Key valuation signals for FRA:RX3:
Gross Margin %: 31.63% (195% above median its 10-year median of 10.73)
GF Value™: €19.34 vs. price of €34.80 (79.9% above fair value)
Industry Position: 31% above the Chemicals median (#853 of 1572)
No single metric tells the full story. See the FRA:RX3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REX American Resources Corp operates as a holding company that engages in investments in alternative energy and ethanol production entities. Its operating segments include Ethanol and By-Products. Its products include Ethanol, dried distillers grains, modified distillers grains, Distillers corn oil, Modified distillers grains, and Other.
58GF Score
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