NasdaqCM:AREC

Stock Analysis Report

Executive Summary

American Resources Corporation engages in the extraction, processing, transportation, and selling of metallurgical coal and pulverized coal injection for the steel making process.

Snowflake

Fundamentals

Limited growth with weak fundamentals.

Share Price & News

How has American Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

12.3%

AREC

1.7%

US Oil and Gas

1.3%

US Market


1 Year Return

-91.4%

AREC

-21.8%

US Oil and Gas

5.9%

US Market

Return vs Industry: AREC underperformed the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: AREC underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

ARECIndustryMarket
7 Day12.3%1.7%1.3%
30 Day-7.7%-4.0%-1.9%
90 Day-79.2%-8.2%-1.8%
1 Year-91.4%-91.4%-19.0%-21.8%8.3%5.9%
3 Yearn/a-6.0%-14.4%45.6%36.2%
5 Yearn/a-22.5%-33.2%66.1%47.9%

Price Volatility Vs. Market

How volatile is American Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Resources undervalued compared to its fair value and its price relative to the market?

1.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate AREC's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate AREC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AREC is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: AREC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate AREC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AREC is overvalued based on its PB Ratio (1.5x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is American Resources forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

58.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AREC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AREC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AREC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AREC's revenue (38.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AREC's revenue (38.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if AREC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Resources performed over the past 5 years?

-20.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AREC is unprofitable, and losses have increased over the past 5 years at a rate of -20% per year.

Accelerating Growth: Unable to compare AREC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AREC is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (22.6%).


Return on Equity

High ROE: AREC has a negative Return on Equity (-298.43%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AREC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AREC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is American Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AREC's short term assets ($4.0M) do not cover its short term liabilities ($33.4M)

Long Term Liabilities: AREC's short term assets (4.0M) do not cover its long term liabilities (21.7M)


Debt to Equity History and Analysis

Debt Level: AREC's debt to equity ratio (254.5%) is considered high

Reducing Debt: Insufficient data to determine if AREC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AREC has a high level of physical assets or inventory.

Debt Coverage by Assets: AREC's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AREC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AREC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -23.6% each year


Next Steps

Dividend

What is American Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate AREC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AREC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AREC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AREC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AREC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of American Resources's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Mark Jensen (40yo)

4.8yrs

Tenure

US$172,326

Compensation

Mr. Mark C. Jensen is a Co-founder and Co-managing partner in a micro-cap investment fund at T Squared Capital, LLC. Mr. Jensen serves as the Chairman and Chief Executive Officer at American Resources Corp ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mark's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Mark's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.8yrs

Average Tenure

39yo

Average Age

Experienced Management: AREC's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

0.9yrs

Average Tenure

58yo

Average Age

Experienced Board: AREC's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Mark Jensen (40yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$172.33k
  • Tom Sauve (39yo)

    President & Director

    • Tenure: 2.7yrs
    • Compensation: US$172.33k
  • Greg Jensen

    General Counsel

    • Tenure: 0yrs
  • Adam Jensen

    Vice President Of Operations & Human Resources

    • Tenure: 0yrs
  • Kirk Taylor (39yo)

    Chief Financial Officer

    • Tenure: 3.8yrs
    • Compensation: US$176.01k
  • Tarlis Thompson (35yo)

    Chief Operating Officer

    • Tenure: 1.1yrs
    • Compensation: US$193.68k
  • Mark LaVerghetta

    Vice President of Corporate Finance & Communications

    • Tenure: 0yrs
  • Joe Wright

    Chief Purchasing Manager

    • Tenure: 0yrs
  • Sid Stanley

    Chief Engineer

    • Tenure: 0yrs
  • Andy Cox

    Director of Coal Sales

    • Tenure: 0.3yrs

Board Members

  • Randal Stephenson (58yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$121.95k
  • Mark Jensen (40yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$172.33k
  • Tom Sauve (39yo)

    President & Director

    • Tenure: 2.7yrs
    • Compensation: US$172.33k
  • Ian Sadler (67yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$120.45k
  • Courtenay Taplin (69yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$120.45k

Company Information

American Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Resources Corporation
  • Ticker: AREC
  • Exchange: NasdaqCM
  • Founded: 2013
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: US$18.551m
  • Shares outstanding: 26.97m
  • Website: https://www.americanresourcescorp.com

Number of Employees


Location

  • American Resources Corporation
  • 9002 Technology Lane
  • Fishers
  • Indiana
  • 46038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARECNasdaqCM (Nasdaq Capital Market)YesClass A Common StockUSUSDFeb 2017

Biography

American Resources Corporation engages in the extraction, processing, transportation, and selling of metallurgical coal and pulverized coal injection for the steel making process. The company also provides ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:35
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.