American Resources (AREC) AI Stock Analysis

• Market Cap: $238.27M
• Dividend Yield: N/A
• Average Volume (3M): 5.80M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -76.24%
• EPS Growth: -8.61%
• Country: US
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.09
• Shares Outstanding: 101,393,310
• 10 Day Avg. Volume: 3,656,867
• 30 Day Avg. Volume: 5,801,980
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.97
• Price to Sales (P/S): 203.52
• P/FCF Ratio: -3.35
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 3.11K
• Enterprise Value/Gross Profit: 3.22K
• Enterprise Value/Ebitda: -20.08
• 1Y Price Target: $6.00
• Price Target Upside: 181.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -0.35
• Revenue Forecast (FY): $700.00K

• Rating: 40 Underperform
• Price Target: $2.50 ▲(17.37% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by negative profitability and high leverage. Technical analysis further indicates weak market momentum, while valuation metrics show limited attractiveness due to ongoing losses and lack of dividends.

Positive Factors

Strategic Partnership

The partnership to develop the tungsten value chain enhances AREC's market position in strategic minerals, potentially boosting revenue and diversifying its product offerings.

Sustainable Practices

AREC's focus on sustainability and environmental compliance strengthens its reputation and aligns with global trends towards responsible resource extraction, potentially attracting eco-conscious investors.

Revenue Stability

Long-term contracts in the metallurgical coal sector ensure consistent revenue, supporting financial stability and enabling strategic planning.

Negative Factors

High Leverage

High leverage poses significant financial risk, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Cash Flows

Persistent negative cash flows indicate operational inefficiencies and may hinder the company's ability to fund operations and service debt, impacting long-term viability.

Poor Profitability

Negative profit margins reflect operational challenges and high costs, which could undermine competitive positioning and financial health if not addressed.

American Resources Business Overview & Revenue Model

Company Description

American Resources Corporation engages in the extraction, processing, transportation, distribution, and sale of metallurgical coal to the steel industries. The company supplies raw materials; and sells coal used in pulverized coal injections. It has a portfolio of operations located in the Pike, Knott, and Letcher Counties in Kentucky; and Wyoming County, West Virginia. American Resources Corporation was founded in 2006 and is headquartered in Fishers, Indiana.

How the Company Makes Money

American Resources generates revenue primarily through the sale of metallurgical coal to steel producers and other industrial customers. The company has established key revenue streams from its coal mining operations, which involve extracting, processing, and selling coal products. Additionally, AREC is involved in the recovery of critical minerals, which has the potential to diversify its revenue base. The company benefits from strategic partnerships with various industrial clients and has positioned itself to capitalize on the growing demand for metallurgical coal in global markets, particularly as economies recover and expand. Factors contributing to its earnings include operational efficiencies, market pricing for coal, and the ability to adapt to regulatory changes in the energy sector.

American Resources Financial Statement Overview

Summary

American Resources faces substantial financial challenges. The income statement reflects poor profitability and growth, the balance sheet highlights high leverage and potential solvency issues, and the cash flow statement shows negative cash flows with limited coverage of net losses. The company needs to address operational inefficiencies and financial stability to improve its financial health.

Income Statement

The income statement reveals significant challenges for American Resources. The company has consistently reported negative net profit margins, with the TTM (Trailing-Twelve-Months) showing a drastic -126.91%. Revenue growth is minimal at 2.85% TTM, indicating stagnation. The EBIT and EBITDA margins are also deeply negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

The balance sheet indicates a precarious financial position. The debt-to-equity ratio is extremely high and negative, suggesting that liabilities far exceed equity. The return on equity is positive but misleading due to negative equity, and the equity ratio is concerning, indicating potential solvency issues. The company is highly leveraged, posing significant financial risk.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a declining free cash flow growth rate of -42.30% TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues. However, the free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow, albeit limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	145.03K	383.23K	13.23M	39.47M	7.76M	1.06M
Gross Profit	140.16K	-2.18M	1.25M	14.00M	-639.79K	-4.05M
EBITDA	-22.47M	-27.07M	-33.19M	3.51M	-24.01M	-2.02M
Net Income	-39.90M	-40.11M	-38.53M	-1.45M	-32.50M	-10.26M
Balance Sheet
Total Assets	201.20M	205.01M	64.73M	55.92M	42.87M	38.42M
Cash, Cash Equivalents and Short-Term Investments	2.08M	1.19M	2.67M	10.87M	11.49M	10.62M
Total Debt	233.59M	220.51M	47.10M	23.49M	15.72M	30.70M
Total Liabilities	296.20M	286.92M	109.73M	55.63M	45.22M	58.42M
Stockholders Equity	-93.43M	-80.35M	-43.53M	284.70K	-2.35M	-20.01M
Cash Flow
Free Cash Flow	-6.97M	-23.28M	-23.72M	2.55M	-32.16M	-13.85M
Operating Cash Flow	-15.33M	-22.23M	-20.10M	2.55M	-29.09M	-13.85M
Investing Cash Flow	1.09M	55.98K	-5.63M	-1.13M	-5.92M	417.86K
Financing Cash Flow	10.54M	146.66M	45.61M	-1.02M	36.40M	24.36M

American Resources Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREC, the sentiment is Negative. The current price of 2.13 is below the 20-day moving average (MA) of 2.78, below the 50-day MA of 3.50, and above the 200-day MA of 1.79, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of 6.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AREC.

American Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NRP	67 Neutral	$1.34B	9.36	26.19%	4.12%	-14.79%	-17.10%
NC	67 Neutral	$367.93M	12.67	7.04%	2.00%	25.35%	―
SXC	64 Neutral	$590.12M	9.17	9.61%	6.70%	-6.44%	-24.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HNRG	60 Neutral	$894.91M	-4.23	-74.70%	―	7.60%	-591.73%
AMR	59 Neutral	$2.40B	-55.56	-2.87%	―	-32.53%	-112.77%
AREC	40 Underperform	$238.27M	-4.59	―	―	-76.24%	-8.61%

American Resources Corporate Events

American Resources Announces Private Placement Offering

On October 15, 2025, American Resources Corporation entered into securities purchase agreements with investors for a private placement offering of common stock and pre-funded warrants, with Maxim Group LLC acting as the sole placement agent. The proceeds from this offering are intended to support the company’s development efforts in critical mineral processing and other corporate needs, with the offering expected to close on or about October 16, 2025.