American Resources Corporation

NasdaqCM:AREC Stock Report

Market Cap: US$82.1m

American Resources Valuation

Is AREC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AREC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AREC ($1.06) is trading below our estimate of fair value ($28.84)

Significantly Below Fair Value: AREC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for AREC?

Key metric: As AREC barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for AREC. This is calculated by dividing AREC's market cap by their current book value.
What is AREC's PB Ratio?
PB Ratio-1.6x
Book-US$51.83m
Market CapUS$82.07m

Price to Book Ratio vs Peers

How does AREC's PB Ratio compare to its peers?

The above table shows the PB ratio for AREC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average5.5x
LTBR Lightbridge
3.5xn/aUS$90.3m
NC NACCO Industries
0.6xn/aUS$219.4m
HNRG Hallador Energy
1.7xn/aUS$549.3m
LEU Centrus Energy
16.1x-22.8%US$1.1b
AREC American Resources
n/a125.9%US$82.1m

Price-To-Book vs Peers: AREC has negative equity and a Price-To-Book Ratio (-1.6x) compared to the peer average (5.5x).

Price to Book Ratio vs Industry

How does AREC's PB Ratio compare vs other companies in the US Oil and Gas Industry?

8 CompaniesPrice / BookEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.06xn/aUS$10.27m
VTNR.Q Vertex Energy
0.06xn/aUS$6.99m
FECO.F FEC Resources
0.2xn/aUS$1.46m
VELX.Q Canadian Overseas Petroleum
0.05xn/aUS$1.10m
AREC is unprofitableIndustry Avg. 1.5xNo. of Companies26PB012345+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: AREC has negative equity and a Price-To-Book Ratio (-1.6x) compared to the US Oil and Gas industry average (1.5x).

Price to Book Ratio vs Fair Ratio

What is AREC's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AREC PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio-1.6x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate AREC's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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