Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
In this section, we usually try to help investors determine whether American Resources is trading at an attractive price based on the cash flow it is expected to produce in the future. But as American Resources has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.
This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.
Show me the analysis anyway
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
American Resources. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
American Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
American Resources has negative assets, we can't compare the value of its assets to the US Metals and Mining industry average.
Take a look at our analysis of AREC’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through American Resources's regulatory filings and announcements.
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as American Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Metals and Mining industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare American Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare American Resources's earnings growth to the United States of America market average as no estimate data is available.
Unable to compare American Resources's revenue growth to the United States of America market average as no estimate data is available.
Unable to determine if American Resources is high growth as no earnings estimate data is available.
Unable to determine if American Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
American Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
American Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
American Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
American Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
American Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
American Resources has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 Corporation (Quest Energy Inc.) since 2015 and has been its Director since February 7, 2017. He has been Chairman of Board and Chief Executive Officer at NGFC Equities, Inc. since February 07, 2017. Previously, he was a Principal at Barron Partners LP. He also has significant experience with major Wall Street firms such as Citigroup where he advised and consulted with numerous companies raising growth capital and helped employ strategic initiatives. In this role, he is responsible for all facets of operational and strategic initiatives of the organizations. He worked on Wall Street since 2002 with firms specialized in company turn-around. He studied in Sydney Australia through Boston University completed his International Studies degree with a focus on East Asian culture and business. He graduated from the Kelley School of Business at Indiana University with a BS in Finance and International Studies with a focus on Business.
Mark's compensation has increased whilst company is loss making.
Mark's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the American Resources management team is about average.
Chairman & CEO
President & Director
Chief Financial Officer
Chief Operating Officer
Vice President of Corporate Finance & Communications
Vice President of Human Resource
Chief Purchasing Manager
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the American Resources board of directors is less than 3 years, this suggests a new board.
American Resources Corporation, through its subsidiary, Quest Energy Inc., mines for, processes, and sells coal in the United States. It operates 2 active mines and coal preparation facilities located in Pike County, Kentucky; 17 idled mining permits and 2 preparation facilities located in Knott County, Kentucky; and 14 idled mining permits and 1 preparation facility located in Knott and Letcher Counties, Kentucky. The company was formerly known as NGFC Equities, Inc. and changed its name to American Resources Corporation in February 2017. American Resources Corporation was founded in 2013 and is headquartered in Fishers, Indiana.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.