Is REX AMERICAN RESOURCES Corp (REX) Halal?

NYSE Basic Materials United States $1.6B
✓ HALAL
Confidence: 95/100
REX AMERICAN RESOURCES Corp (REX) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 1.7% against the AAOIFI threshold of 30%, REX AMERICAN RESOURCES Corp comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 1.7%
/ 30%
29.1%
/ 30%
2.3%
/ 30%
2.98%
/ 5%
✓ HALAL
DJIM 1.7%
/ 33%
29.1%
/ 33%
2.3%
/ 33%
2.98%
/ 5%
✓ HALAL
MSCI 2.9%
/ 33%
49.9%
/ 33%
3.9%
/ 33%
2.98%
/ 5%
✗ NOT HALAL
S&P 1.7%
/ 33%
29.1%
/ 33%
2.3%
/ 33%
2.98%
/ 5%
✓ HALAL
FTSE 2.9%
/ 33%
49.9%
/ 33%
3.9%
/ 50%
2.98%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
19.1
Forward: 21.0
EPS
$2.50
P/B Ratio
2.6
EV/EBITDA
16.9
EV: $1.3B
Revenue
$642M
Growth: -0.2%
Beta
0.8
Low volatility
Current Ratio
5.9

Profitability

Gross Margin 14.4%
Operating Margin 10.5%
Net Margin 12.8%
Return on Equity (ROE) 14.1%
Return on Assets (ROA) 5.0%

Cash Flow & Balance Sheet

Operating Cash Flow$64M
Free Cash Flow-$7M
Total Debt$21M
Debt-to-Equity3.0
Current Ratio5.9
Total Assets$720M

Price & Trading

Last Close$44.08
50-Day MA$36.44
200-Day MA$31.69
Avg Volume180K
Beta0.8
52-Week Range
$16.73
$47.74

About REX AMERICAN RESOURCES Corp (REX)

CEO
Mr. Zafar A. Rizvi
Sector
Basic Materials
Industry
Chemicals
Country
United States
Exchange
NYSE
Market Cap
$1.6B
Currency
USD

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company provides corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. It also offers dry distillers grains with soluble, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

Purification Calculator

As a halal stock with 2.98% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is REX AMERICAN RESOURCES Corp (REX) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), REX AMERICAN RESOURCES Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is REX AMERICAN RESOURCES Corp's debt ratio?

REX AMERICAN RESOURCES Corp's debt ratio is 1.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 2.9%.

Does REX AMERICAN RESOURCES Corp require dividend purification?

Yes, REX AMERICAN RESOURCES Corp has an impermissible income ratio of 2.98%, which means 2.98% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are REX AMERICAN RESOURCES Corp's key financial metrics?

REX AMERICAN RESOURCES Corp has a market capitalization of $1.6B, trailing P/E ratio of 19.1, and revenue of $642M. The company maintains a gross margin of 14.4% and a net margin of 12.8%. Return on equity stands at 14.1%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.