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American Resources
(NASDAQ:AREC)
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Rating:50Neutral
Price Target:
$2.00
▼(-16.67% Downside)
Action:Reiterated
Date:10/05/26
The score is held down primarily by weak financial performance (revenue collapse, ongoing operating losses, and persistent negative operating/free cash flow) and bearish technicals (price below major moving averages with negative MACD). These are partially offset by low headline valuation (very low P/E and a ~2.35% dividend yield) and supportive corporate actions (share buyback and asset acquisition with constrained legacy-liability exposure).
Positive Factors
Balance-sheet improvement
The 2025 balance-sheet turnaround improves financial flexibility, with positive equity and substantially lower debt providing a stronger base for operations and investment. If maintained, this reduces capital-structure pressure and gives management more capacity to pursue strategic initiatives over the coming quarters.
Negative Factors
Revenue collapse
Revenue reaching zero after steep prior declines indicates severe deterioration in the company’s commercial activity and weak visibility into a durable operating recovery. Without a sustained return of sales, the business has limited evidence of recurring top-line support for future investment and earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet improvement
The 2025 balance-sheet turnaround improves financial flexibility, with positive equity and substantially lower debt providing a stronger base for operations and investment. If maintained, this reduces capital-structure pressure and gives management more capacity to pursue strategic initiatives over the coming quarters.
Read all positive factors
American Resources (AREC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.08M
Dividend Yield2.64%
Average Volume (3M)1.52M
Price to Earnings (P/E)2.2
Beta (1Y)1.24
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees7
SectorIndustrials
Sector Strength72
IndustryCoal
Share Statistics
EPS (TTM)N/A
Shares Outstanding106,971,275
10 Day Avg. Volume1,502,325
30 Day Avg. Volume1,520,865
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 Cap2.65
Enterprise Value/Revenue-451.27M
Enterprise Value/Gross Profit-285.34
Enterprise Value/Ebitda-29.80
Forecast
1Y Price Target
$5.00Price Target Upside108.33% 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 commodities and processed materials produced from its operations. Historically, a major revenue stream has been the sale of metallurgical coal (and potentially related coal products), where revenue is generate...
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 | -35.45M | 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
Negative
2.40
Price Trends
2.23
Negative
2.11
Negative
2.46
Negative
Market Momentum
-0.16
Positive
25.30
Positive
7.13
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 2.4 is above the 20-day moving average (MA) of 1.85, above the 50-day MA of 2.23, and below the 200-day MA of 2.46, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 25.30 is Positive, neither overbought nor oversold. The STOCH value of 7.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.47B | 13.99 | 16.78% | 2.81% | -8.90% | -26.60% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $268.44M | 15.40 | 4.00% | 2.90% | 4.74% | -45.86% | |
55 Neutral | $2.30B | -50.58 | -2.99% | 2.62% | -12.92% | -25.84% | |
54 Neutral | $843.66M | -15.50 | -8.89% | 4.83% | 2.78% | -174.05% | |
53 Neutral | $656.24M | 404.65 | -0.52% | 8.70% | 8.47% | ― | |
50 Neutral | $170.08M | 2.25 | -214.90% | 2.64% | ― | ― |
* Industrials Sector Average
AREC
American Resources
1.59
-3.31
-67.57%
HNRG
Hallador Energy Company
13.92
-7.10
-33.78%
NC
NACCO Industries
35.57
-4.60
-11.45%
NRP
Natural Resource PRN
111.11
7.98
7.74%
SXC
Suncoke Energy
9.94
1.86
23.04%
AMR
Alpha Metallurgical Resources
181.57
13.86
8.26%
American Resources Corporate Events
Business Operations and StrategyLegal ProceedingsM&A Transactions
American Resources Acquires Wyoming County Coal Assets
Positive
Oct 5, 2026
On Sept. 29, 2026, American Resources Corporation entered into an Asset Purchase Agreement to acquire real property, structures, fixtures and equipment from Wyoming County Coal in Wyoming County, W.Va. The $40 million consideration was structured ...
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.