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American Resources Corporation (AREC)
NASDAQ:AREC
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American Resources
(NASDAQ:AREC)
35Underperform
American Resources (AREC) vs. S&P 500 (SPY)
Market Cap
$38.71M
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth-98.13%
EPS Growth-444.28%
CountryUS
Employees23
SectorBasic Materials
Sector Strength62
IndustrySteel
Share Statistics
EPS (TTM)-0.43
Shares Outstanding77,421,260
10 Day Avg. Volume1,531,457
30 Day Avg. Volume1,816,599
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)96.79
Price to Cash Flow (P/CF)-3.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
American Resources Business Overview & Revenue Model
Company DescriptionAmerican Resources Corp. (Indiana) engages in the extraction, processing, transportation, and distribution of metallurgical coal to the steel industry. It focuses on its operation of coal mining complexes located primarily within Pike, Knott, and Letcher Counties, Kentucky and Wyoming County, West Virginia. The company was founded on October 2, 2013 and in headquartered in Fishers, IN.
How the Company Makes MoneyAmerican Resources Corporation generates revenue through the sale of its extracted and processed raw materials. Key revenue streams include the production and sale of metallurgical carbon, which is used in steelmaking, and the development of rare earth elements, which are critical for the production of high-tech devices and renewable energy technologies. The company leverages its mining operations and processing facilities to supply these materials to various industrial clients. Additionally, partnerships with technology and manufacturing companies enhance its distribution network and market reach, contributing to its earnings.
American Resources Financial Statement Overview
Summary
American Resources faces significant financial challenges across all major financial statements. Declining revenues, persistent losses, high leverage, and poor cash flow management reflect financial instability. Immediate improvements are needed to stabilize the financial condition.Income Statement
The income statement for American Resources shows significant weaknesses, with negative gross and net profit margins, indicating the company is not profitable. Additionally, the revenue growth rate is negative, reflecting declining sales over the past period. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies and challenges in generating earnings.30
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, suggesting potential solvency issues. The equity ratio is negative, indicating the company's liabilities exceed its assets. Return on equity is also negative, which is concerning for investors looking for return on their investments. These factors suggest financial instability and a leveraged position that could pose risks.20
Very Negative
Cash Flow
Cash flow analysis indicates negative operating and free cash flows, which are red flags for liquidity and cash management. The free cash flow to net income ratio is negative, showing that the company struggles to convert its income into free cash flow. Although there is a significant influx of cash from financing activities, reliance on external funding is unsustainable in the long run.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 395.87K | 16.74M | 39.47M | 7.76M | 1.06M | 24.48M | Gross Profit |
| -10.82M | 2.48M | 14.00M | -639.79K | -4.05M | -5.83M | EBIT |
| -32.53M | -11.42M | -24.00M | -28.22M | -16.45M | -59.95M | EBITDA |
| -27.63M | -7.21M | 4.72M | -24.01M | -2.02M | -59.95M | Net Income Common Stockholders |
| -32.89M | -11.46M | 22.53M | -36.33M | -16.13M | -83.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 32.96M | 2.67M | 8.87M | 11.49M | 10.62M | 3.32K | Total Assets |
| 91.75M | 91.75M | 55.92M | 42.87M | 38.42M | 35.23M | Total Debt |
| 57.83M | 57.83M | 23.49M | 15.72M | 30.63M | 33.46M | Net Debt |
| 55.17M | 55.17M | 14.62M | 4.23M | 20.01M | 33.46M | Total Liabilities |
| 91.52M | 91.52M | 55.63M | 45.11M | 58.42M | 67.93M | Stockholders Equity |
| 223.84K | 223.84K | 284.70K | -2.24M | -20.01M | -32.70M |
| Cash Flow | Free Cash Flow | ||||
| -18.07M | -14.52M | 6.07M | -32.16M | -13.85M | -19.53M | Operating Cash Flow |
| -21.60M | -14.52M | 6.07M | -29.09M | -13.85M | -19.21M | Investing Cash Flow |
| -24.84M | -28.83M | -7.64M | -5.92M | 417.86K | 322.75K | Financing Cash Flow |
| 137.74M | 37.39M | -31.61K | 36.40M | 24.36M | 16.45M |
American Resources Technical Analysis
Neutral
0.50
Price Trends
0.62
Negative
0.85
Negative
0.79
Negative
Market Momentum
-0.05
Negative
43.00
Neutral
14.03
Positive
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 0.5 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.62, and below the 200-day MA of 0.79, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 14.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.44B | 14.16 | 12.64% | 0.74% | -17.03% | -78.54% | |
72 Outperform | $1.70B | 5.19 | 10.41% | 2.14% | -14.50% | -46.36% | |
70 Outperform | $3.92B | 7.63 | 19.67% | 0.68% | -13.20% | -51.56% | |
67 Neutral | $768.45M | 8.10 | 14.82% | 5.05% | -6.19% | 65.91% | |
47 Neutral | $2.65B | -3.63 | -25.36% | 3.28% | 3.74% | -28.38% | |
35 Underperform | $38.71M | ― | 63.45% | ― | -98.13% | -444.28% | |
35 Underperform | $544.65M | ― | -121.29% | ― | -37.38% | -494.24% |
* Basic Materials Sector Average
Performance Comparison
AREC
American Resources
0.50
-0.90
-64.29%
ARCH
Arch Resources
134.83
-26.67
-16.51%
HNRG
Hallador Energy Company
12.78
7.87
160.29%
SXC
Suncoke Energy
9.11
-1.29
-12.40%
BTU
Peabody Energy Comm
14.00
-9.58
-40.63%
CNR
Core Natural Resources
73.32
-12.53
-14.60%
American Resources Earnings Call Summary
Earnings Call Date: Nov 14, 2024 | % Change Since: -51.92% | Next Earnings Date: Mar 27, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mix of optimism about future growth and expansion plans, particularly in ReElement Technologies and American Infrastructure. However, there are significant challenges regarding stock performance and delays in strategic initiatives. The company's commitment to innovation and partnerships is promising, but execution remains crucial.Highlights
Progress in ReElement Technologies
ReElement Technologies is making significant progress, with developments in rare earth element separation and purification. The company is poised to become a major producer of lithium carbonate equivalent in the United States.
Expansion of American Infrastructure Corporation
The company has consolidated valuable assets in its metallurgical carbon and iron ore production, focusing on high-value, high-margin products.
Partnerships and Innovations
American Metals has partnered with India's leading battery recycling company to preprocess batteries, creating materials for ReElement Technologies. This reflects a strong push towards environmental consciousness and innovation.
Strategic Growth Plans
The company is working with large investment banks for a bond offering to scale its Marion facility, indicating robust financial planning for future growth.
Lowlights
Challenges with Stock Price and Shareholder Value
There is ongoing frustration over declining stock prices and the need to reflect fundamental value in the market, indicating challenges in investor confidence.
Delays in Spinoffs and Listings
Delays in the spin-off process for ReElement Technologies and other entities due to audit issues and strategic decisions, affecting timelines for expected growth.
Dependency on Future Developments
The company's future success hinges on the development and execution of various projects, such as the Marion facility and mining operations, which are yet to be fully realized.
Company Guidance
During the third quarter 2024 earnings call for American Resources Corporation, several key metrics and strategic updates were highlighted. The company reported approximately $150,000 in revenue from ReElement Technologies, emphasizing a focus on growth in the lithium and rare earth elements sectors. The Noblesville facility is currently producing while preparing for expanded operations at Marion, Indiana, which will increase production capacity. The company anticipates substantial revenue growth in 2025 as it scales operations, particularly with the Marion facility expected to become a major producer of separated and purified rare earth oxides and lithium carbonate equivalent. Management also reiterated their commitment to non-dilutive financing strategies, including convertible debt and bond offerings, to support expansion without excessive shareholder dilution. The upcoming spinoff of ReElement as a standalone company, with a record date set for December 2024, is intended to unlock shareholder value.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.