American Resources (AREC) AI Stock Analysis

• Market Cap: $413.14M
• Dividend Yield: N/A
• Average Volume (3M): 13.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -94.49%
• EPS Growth: -102.05%
• Country: US
• Employees: 26
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.09
• Shares Outstanding: 99,551,254
• 10 Day Avg. Volume: 12,647,517
• 30 Day Avg. Volume: 13,214,055
• 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: 0.73
• Enterprise Value/Revenue: 913.67
• Enterprise Value/Gross Profit: -131.82
• Enterprise Value/Ebitda: -11.47
• 1Y Price Target: $5.50
• Price Target Upside: 49.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $4.00 ▲(8.99% Upside)

The overall stock score for American Resources is primarily driven by its poor financial performance, which poses significant risks due to high leverage and negative profitability. While technical analysis shows some positive momentum, the valuation remains unattractive with a negative P/E ratio. The lack of earnings call data and corporate events leaves these areas unaddressed.

Positive Factors

Strategic Partnership

The partnership with the U.S. Department of War supports expansion into rare earth magnet production, enhancing market position and diversification.

Revenue Stability

Long-term contracts in metallurgical coal provide stable income, supporting financial predictability and planning.

Sustainable Practices

Commitment to sustainability and reclamation enhances community relations and regulatory compliance, supporting long-term operational viability.

Negative Factors

High Leverage

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

Negative Profitability

Consistently negative profitability undermines financial health, limiting reinvestment capability and shareholder returns.

Negative Cash Flows

Negative cash flows indicate potential liquidity issues, affecting the company's ability to sustain operations without external financing.

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 manufacturers, with substantial contracts and long-term agreements that provide a stable income stream. The company also earns money from coal processing services, offering value-added services to enhance the quality and marketability of its products. Additionally, AREC is involved in partnerships with various industrial firms, which further solidifies its market presence and contributes to its revenue. The increasing demand for metallurgical coal in global markets, coupled with their focus on operational efficiency and resource optimization, bolsters their earnings potential.

American Resources Financial Statement Overview

Summary

American Resources faces substantial financial challenges. The income statement reflects poor profitability with deeply negative net profit margins and minimal revenue growth. The balance sheet indicates high leverage and potential solvency issues, while the cash flow statement shows negative cash flows with limited ability to cover net losses.

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	330.30K	383.23K	16.74M	39.47M	7.76M	1.06M
Gross Profit	-2.29M	-2.18M	2.48M	14.00M	-639.79K	-4.05M
EBITDA	-26.30M	-27.07M	-7.21M	4.72M	-24.01M	-2.02M
Net Income	-42.81M	-40.11M	-11.46M	-1.45M	-32.50M	-10.26M
Balance Sheet
Total Assets	200.45M	205.01M	64.73M	55.92M	42.87M	38.42M
Cash, Cash Equivalents and Short-Term Investments	2.28M	1.19M	2.67M	10.87M	11.49M	10.62M
Total Debt	240.23M	220.51M	47.10M	23.49M	15.72M	30.70M
Total Liabilities	292.64M	286.92M	109.73M	55.63M	45.22M	58.42M
Stockholders Equity	-90.63M	-80.35M	-43.53M	284.70K	-2.35M	-20.01M
Cash Flow
Free Cash Flow	-9.42M	-23.28M	-14.52M	6.07M	-32.16M	-13.85M
Operating Cash Flow	-17.89M	-22.23M	-14.52M	6.07M	-29.09M	-13.85M
Investing Cash Flow	3.00M	55.98K	-28.83M	-7.64M	-5.92M	417.86K
Financing Cash Flow	6.30M	146.66M	37.39M	-31.61K	36.40M	24.36M

American Resources Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREC, the sentiment is Neutral. The current price of 3.67 is below the 20-day moving average (MA) of 3.88, above the 50-day MA of 3.40, and above the 200-day MA of 1.54, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 32.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$1.38B	9.64	26.19%	4.01%	-14.79%	-17.10%
NC	67 Neutral	$339.14M	11.68	7.04%	1.99%	25.35%	―
SXC	62 Neutral	$582.50M	9.05	9.61%	7.03%	-6.44%	-24.68%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HNRG	61 Neutral	$876.94M	―	-74.70%	―	7.60%	-591.73%
AMR	56 Neutral	$2.13B	―	-2.87%	―	-32.53%	-112.77%
AREC	49 Neutral	$413.14M	―	―	―	-94.49%	-102.05%

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.

The most recent analyst rating on (AREC) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on American Resources stock, see the AREC Stock Forecast page.

American Resources Corp Reports Financial Challenges Amid Strategic Shift

American Resources Corporation is a company engaged in the extraction, processing, and distribution of coal and rare earth elements, with a focus on metallurgical coal for the steel industry and the development of technologies for rare earth element recovery.