American Resources (AREC) AI Stock Analysis

• Market Cap: $99.55M
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -95.97%
• EPS Growth: -173.75%
• Country: US
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Coal
• EPS (TTM): -0.08
• Shares Outstanding: 82,274,704
• 10 Day Avg. Volume: 2,496,306
• 30 Day Avg. Volume: 1,713,949
• PEG Ratio: N/A
• Price to Book (P/B): -1.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.11
• Enterprise Value/Market Cap: 3.38
• Enterprise Value/Revenue: 47.45
• Enterprise Value/Gross Profit: -230.66
• Enterprise Value/Ebitda: -3.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $1.50 ▲(23.97%Upside)

American Resources' stock score is heavily impacted by its weak financial performance, which is a significant risk factor. While there is some short-term technical momentum, the negative valuation metrics and lack of profitability present major concerns.

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 Corporation generates revenue through the extraction and sale of coal, rare earth elements, and other critical minerals. The company's revenue streams are derived mainly from contracts and agreements with industrial clients who require these materials for manufacturing and energy production. Additionally, AREC has strategic partnerships with technology and manufacturing companies that depend on their raw materials for production processes, contributing to the company's earnings. AREC's focus on sustainable practices and diversification of its product offerings also plays a significant role in enhancing its revenue potential.

American Resources Financial Statement Overview

Summary

American Resources is facing severe financial difficulties across its income statement, balance sheet, and cash flow. The company has experienced significant losses, high leverage, and poor cash flow generation, indicating financial instability and operational inefficiencies.

Income Statement

American Resources has shown significant challenges in its income statement over the TTM (Trailing-Twelve-Months) period. The company experienced consistent negative gross and net profit margins, indicating substantial losses relative to revenue. Additionally, there is a declining revenue trend, with TTM revenues falling significantly from previous periods. EBIT and EBITDA margins are also deeply negative, reflecting ongoing operational inefficiencies and cost management issues.

Balance Sheet

The balance sheet reveals a highly leveraged position with a negative stockholders' equity, indicating potential insolvency risks. The debt-to-equity ratio is unfavorable, suggesting the company is heavily reliant on debt financing. The equity ratio is negative, emphasizing a concerning financial structure with liabilities exceeding assets, which poses significant stability and risk concerns.

Cash Flow

The cash flow statement highlights severe liquidity challenges, with negative operating cash flow and free cash flow indicating cash outflows from core operations. The company is struggling to generate cash to sustain its operations, which is compounded by negative free cash flow growth. The ratios of operating and free cash flow to net income are concerning, further reflecting poor cash generation relative to reported losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	383.23K	16.74M	39.47M	7.76M	1.06M
Gross Profit	-2.18M	2.48M	14.00M	-639.79K	-4.05M
EBITDA	-27.07M	-7.21M	4.72M	-24.01M	-2.02M
Net Income	-40.11M	-11.46M	22.53M	-36.33M	-16.13M
Balance Sheet
Total Assets	205.01M	91.75M	55.92M	42.87M	38.42M
Cash, Cash Equivalents and Short-Term Investments	1.19M	2.67M	8.87M	11.49M	10.62M
Total Debt	220.51M	57.83M	23.49M	15.72M	30.63M
Total Liabilities	286.92M	91.52M	55.63M	45.11M	58.42M
Stockholders Equity	-80.35M	223.84K	284.70K	-2.24M	-20.01M
Cash Flow
Free Cash Flow	-23.28M	-14.52M	6.07M	-32.16M	-13.85M
Operating Cash Flow	-22.23M	-14.52M	6.07M	-29.09M	-13.85M
Investing Cash Flow	55.98K	-28.83M	-7.64M	-5.92M	417.86K
Financing Cash Flow	146.66M	37.39M	-31.61K	36.40M	24.36M

American Resources Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREC, the sentiment is Positive. The current price of 1.21 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 0.93, and above the 200-day MA of 0.86, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 44.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AREC.

American Resources Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXC	75 Outperform	$716.15M	7.75	14.26%	5.67%	-8.76%	51.59%
NC	75 Outperform	$298.22M	8.67	8.62%	2.33%	14.70%	―
NRP	71 Outperform	$1.32B	9.63	31.98%	4.20%	-19.21%	-30.92%
METC	63 Neutral	$1.15B	43.10	-0.08%	2.12%	-10.23%	-100.04%
HNRG	54 Neutral	$695.78M	―	-107.44%	―	-27.04%	-892.84%
AREC	50 Neutral	$99.55M	―	63.45%	―	-95.97%	-173.75%
Sector *	44 Neutral	C$980.66M	-6.79	-13.68%	1.76%	17.37%	-32.98%