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American Resources
(NASDAQ:AREC)
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Rating:54Neutral
Price Target:
$2.50
▲(10.62% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial performance—revenue collapse, ongoing operating losses, and persistent negative operating/free cash flow—despite a 2025 balance sheet improvement. Technicals are moderately supportive (above key shorter-term averages with positive MACD) but look stretched (high RSI/Stoch) and still below the 200-day average. Valuation appears cheap on P/E, and the announced buyback is a modest positive catalyst, but neither offsets the current fundamental cash-burn risk.
Positive Factors
Balance Sheet Improvement
The 2025 balance-sheet reset improves financial flexibility by reducing leverage and restoring positive equity. This gives AREC a stronger foundation for funding operations and strategic projects, although the improvement follows earlier periods of capital-structure stress.
Negative Factors
Revenue Collapse and Operating Losses
Zero reported revenue and continuing operating losses indicate that the core business is not currently demonstrating durable commercial traction. Positive net income without revenue or operating earnings also weakens earnings quality and makes a sustainable recovery difficult to establish.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Improvement
The 2025 balance-sheet reset improves financial flexibility by reducing leverage and restoring positive equity. This gives AREC a stronger foundation for funding operations and strategic projects, although the improvement follows earlier periods of capital-structure stress.
Read all positive factors
American Resources (AREC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$274.92M
Dividend YieldN/A
Average Volume (3M)4.45M
Price to Earnings (P/E)4.3
Beta (1Y)1.36
Revenue Growth-76.24%
EPS Growth-8.61%
CountryUS
Employees7
SectorBasic Materials
Sector Strength58
IndustryCoal
Share Statistics
EPS (TTM)N/A
Shares Outstanding106,971,275
10 Day Avg. Volume2,957,944
30 Day Avg. Volume4,452,333
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)2.28
Price to Sales (P/S)0.00
P/FCF Ratio-12.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue-451.27
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$5.00Price Target Upside121.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
American Resources Business Overview & Revenue Model
Company Description
American Resources Corporation focuses on the entire supply chain for metallurgical coal, from its initial extraction and refinement to its transportation, distribution, and final sale, primarily serving the steel manufacturing sector. The company...
How the Company Makes Money
AREC makes money primarily by selling metallurgical coal to customers, generating revenue based on contracted and spot sales volumes and realized selling prices (which are influenced by steelmaking demand and coal market conditions). Revenue is al...
American Resources Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
38
Negative
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 383.23K | 13.23M | 39.47M | 7.76M |
| Gross Profit | -2.56K | -2.18M | 1.25M | 14.00M | -639.79K |
| EBITDA | -15.95M | -27.07M | -33.19M | 3.51M | -24.01M |
| Net Income | 55.41M | -40.11M | -38.53M | -1.45M | -32.50M |
Balance Sheet | |||||
| Total Assets | 168.91M | 205.01M | 64.73M | 55.92M | 42.87M |
| Cash, Cash Equivalents and Short-Term Investments | 72.17M | 1.19M | 2.67M | 10.87M | 11.49M |
| Total Debt | 8.08M | 220.51M | 47.10M | 23.49M | 15.72M |
| Total Liabilities | 75.72M | 286.92M | 109.73M | 55.63M | 45.22M |
| Stockholders Equity | 94.78M | -80.35M | -43.53M | 284.70K | -2.35M |
Cash Flow | |||||
| Free Cash Flow | -17.82M | -23.28M | -10.60M | -3.53M | -32.16M |
| Operating Cash Flow | -17.78M | -22.23M | -6.98M | 2.55M | -29.09M |
| Investing Cash Flow | -43.19M | 55.98K | 964.32K | -1.13M | -5.92M |
| Financing Cash Flow | 95.31M | 146.66M | 222.82K | -1.02M | 36.40M |
American Resources Technical Analysis
Positive
2.26
Price Trends
2.09
Positive
2.16
Positive
2.60
Positive
Market Momentum
0.22
Negative
62.23
Neutral
39.44
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 2.26 is below the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.09, and below the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 39.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AREC.
American Resources Risk Analysis
American Resources disclosed 29 risk factors in its most recent earnings report. American Resources reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Resources Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.38B | 13.27 | 16.78% | 3.18% | -8.90% | -26.60% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $797.82M | -15.11 | -8.89% | 5.38% | 2.78% | -174.05% | |
55 Neutral | $310.47M | 17.75 | 4.00% | 2.18% | 4.74% | -45.86% | |
54 Neutral | $274.92M | 4.29 | -131.57% | ― | -76.24% | -8.61% | |
52 Neutral | $732.14M | 447.09 | -0.52% | ― | 8.47% | ― | |
51 Neutral | $2.46B | -58.50 | -2.99% | ― | -12.92% | -25.84% |
* Basic Materials Sector Average
AREC
American Resources
2.68
0.55
26.06%
HNRG
Hallador Energy Company
15.38
-0.87
-5.35%
NC
NACCO Industries
41.00
4.26
11.60%
NRP
Natural Resource PRN
105.39
5.78
5.80%
SXC
Suncoke Energy
9.69
2.66
37.92%
AMR
Alpha Metallurgical Resources
210.01
65.43
45.26%
American Resources Corporate Events
Business Operations and StrategyStock Buyback
American Resources Launches Flexible $20 Million Share Buyback
Positive
Jul 21, 2026
On July 12, 2026, American Resources Corporation’s board approved a share repurchase program authorizing buybacks of up to $20 million of its outstanding Class A common stock. The company may execute repurchases through various transaction t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.