3.7 USD
-0.29 (-7.27%)
3.67 USD
-0.03 (-0.81%)
Overall AREC gets a fundamental rating of 1 out of 10. We evaluated AREC against 207 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and financial health of AREC have multiple concerns. While showing a medium growth rate, AREC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year AREC has reported negative net income.
- AREC had a negative operating cash flow in the past year.
- AREC had negative earnings in each of the past 5 years.
- 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.
- AREC does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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.
- AREC has more shares outstanding than it did 1 year ago.
- AREC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AREC has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of -2.10, we must say that AREC is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AREC (-2.10) is worse than 74.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -2.1 |
ROIC/WACCN/A
WACC8.27%
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.
- AREC has a worse Current ratio (0.11) than 94.20% of its industry peers.
- AREC has a Quick 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.
- AREC has a Quick ratio of 0.09. This is amonst the worse of the industry: AREC underperforms 94.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.11 | ||
| Quick Ratio | 0.09 |
3. Growth
3.1 Past
- AREC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -250.00%.
- AREC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -70.62%.
- AREC shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -56.46% yearly.
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
- AREC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.13% yearly.
- AREC is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 164.23% yearly.
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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- AREC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for AREC. No positive earnings are expected for the next year.
| 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.