4.235 USD
+0.04 (+1.07%)
Taking everything into account, AREC scores 1 out of 10 in our fundamental rating. AREC was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. AREC may be in some trouble as it scores bad on both profitability and health. AREC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- AREC had negative earnings in the past year.
- In the past year AREC has reported a negative cash flow from operations.
- In the past 5 years AREC always reported negative net income.
- In the past 5 years AREC reported 4 times negative operating cash flow.
1.2 Ratios
- AREC's Return On Assets of -19.83% is on the low side compared to the rest of the industry. AREC is outperformed by 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -19.83% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)-27.23%
ROA(5y)-36.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Gross Margin, with a value of 963.20%, AREC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Profit Margin and Operating Margin are not available for AREC so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 963.2% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- AREC does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, AREC has more shares outstanding
- Compared to 5 years ago, AREC has more shares outstanding
- Compared to 1 year ago, AREC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -2.06, we must say that AREC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of -2.06, AREC is doing worse than 74.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -2.06 |
ROIC/WACCN/A
WACC8.14%
2.3 Liquidity
- AREC has a Current Ratio of 0.11. This is a bad value and indicates that AREC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.11, AREC is not doing good in the industry: 94.20% of the companies in the same industry are doing better.
- A Quick Ratio of 0.09 indicates that AREC may have some problems paying its short term obligations.
- AREC has a worse Quick ratio (0.09) than 94.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
- The earnings per share for AREC have decreased strongly by -250.00% in the last year.
- The Revenue for AREC has decreased by -70.62% in the past year. This is quite bad
- The Revenue for AREC have been decreasing by -56.46% on average. This is quite bad
EPS 1Y (TTM)-250%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%46.15%
Revenue 1Y (TTM)-70.62%
Revenue growth 3Y-63.31%
Revenue growth 5Y-56.46%
Sales Q2Q%-78.76%
3.2 Future
- Based on estimates for the next years, AREC will show a very strong growth in Earnings Per Share. The EPS will grow by 46.13% on average per year.
- Based on estimates for the next years, AREC will show a very strong growth in Revenue. The Revenue will grow by 164.23% on average per year.
EPS Next Y27.66%
EPS Next 2Y25.01%
EPS Next 3Y26.72%
EPS Next 5Y46.13%
Revenue Next Year-98.33%
Revenue Next 2Y165.14%
Revenue Next 3Y203.45%
Revenue Next 5Y164.23%
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AREC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year AREC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- AREC's earnings are expected to grow with 26.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y25.01%
EPS Next 3Y26.72%
5. Dividend
5.1 Amount
- AREC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AMERICAN RESOURCES CORP / AREC FAQ
Can you provide the ChartMill fundamental rating for AMERICAN RESOURCES CORP?
ChartMill assigns a fundamental rating of 1 / 10 to AREC.
Can you provide the valuation status for AMERICAN RESOURCES CORP?
ChartMill assigns a valuation rating of 1 / 10 to AMERICAN RESOURCES CORP (AREC). This can be considered as Overvalued.
What is the profitability of AREC stock?
AMERICAN RESOURCES CORP (AREC) has a profitability rating of 1 / 10.
What is the earnings growth outlook for AMERICAN RESOURCES CORP?
The Earnings per Share (EPS) of AMERICAN RESOURCES CORP (AREC) is expected to grow by 27.66% in the next year.