American Resources Corp

AREC
About the company

American Resources Corporation engages in the production of rare earth and critical mineral concentrates for the infrastructure and electrification markets. It operates through Electrified Materials and Corporate segments. The Electrified Materials segment aggregates and processes used metals for recycling into new steel-based products for the recovery and sale of recovered metal and steels.

Country: United StatesPrice: $1.83Market Cap: $195.8M

Investment snapshot

0%positive consensus
Scored 37d ago

Positive

0

BUY / PASS

Neutral / negative

3 / 12

NEUTRAL / FAIL

Median fair value

$6.54

+257.4% vs price

Models with upside

2 / 16

Positive margin of safety

Strongest signal

AREC undervalued: all 2 models price fair value above $1.83 (median $6.54)

Key risk

All 8 investors flag AREC's growth

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Munger

Quality Focus

Marks

Risk-Aware Value

Buffett

Quality Compounder

Lynch

GARP

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Graham

Defensive Value

VerdictNEUTRALNEUTRALFAILFAILFAILNEUTRALFAILFAILFAILFAILFAILFAILFAILFAILFAIL · Rank #2175 (Top 67.8%)FAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of SafetyN/AN/AN/AN/AN/AN/A+80.8%N/AN/AN/AN/AN/AN/AN/AN/A+48.3%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Valuation models100% pass✓ 2▾

    AREC undervalued: all 2 models price fair value above $1.83 (median $6.54)

    Akre fair value$9.54
    ✓Akre+80.8% margin vs $1.83
    Graham fair value$3.54
    ✓Graham+48.3% margin vs $1.83
  • Debt & Leverage73% pass✓ 11✗ 3▾

    8 of 11 pass — Marks, Buffett and Piotroski object

    Debt Levels0.01
    ✓MungerDebt/Equity < 0.5✓AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDA
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Debt/Equity & Interest CoverageD/E: 0.01, IC: N/A
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity0.01
    ✓Lynch< 0.33
    Cash - Long-term Debt$30.7M
    ✓LynchPositive preferred
    Total Debt / Shareholders' Equity0.01x
    ✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓Dreman< 0.8
    Current Assets / Current Liabilities2.19x
    ✓SchlossCurrent ratio >= 1.50x (app cutoff)✓Dreman> 1.5
    Total Debt / Shareholders Equity0.01
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change0.00% -> 0.57%
    ✗PiotroskiDecreased YoY
    LT Debt vs Net Current AssetsLT Debt $1.0M vs NCA $73.1M
    ✓GrahamLT Debt <= Net Current Assets

Where It Falls Short

  • Growth0% pass✗ 13▾

    All 8 investors flag AREC's growth

    Positive Net Income Frequency1/12 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Basic earnings-growth PEG (dividends excluded)P/E 2.9x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue Growth
    ✗LynchInventory growth < Revenue growth
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    3yr Median Revenue Growth-84.9%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Verdicts0% pass✗ 13▾

    Split decision: 12 FAIL · 3 NEUTRAL

    Overall verdict
    •OshaughnessyNEUTRAL (Not ranked)•MungerNEUTRAL (3/4)✗MarksFAIL (1/5)✗BuffettFAIL (0/9)✗LynchFAIL (3/7)•PabraiNEUTRAL (2/3)✗AkreFAIL (1/6)✗SchlossFAIL (2/7)✗NeffFAIL (1/6)✗SleepFAIL (0/6)✗TempletonFAIL (3/8)✗AckmanFAIL (2/9)✗DremanFAIL (4/11)✗PiotroskiFAIL (F-Score 3)✗GreenblattRank #2175✗GrahamFAIL (2/9)
  • Cash Flow10% pass✓ 1✗ 11▾

    9 of 10 flag AREC's cash flow — Oshaughnessy, Marks, Buffett +6 more

    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive0/6 years FCF positive
    ✗MarksPositive FCF in majority of recent years
    Free Cash Flow Proxy$-66.7M
    ✗BuffettPositive and growing
    FCF Positive and Growing$-22.3M
    ✗LynchPositive and growing
    P/E or FCF YieldP/E=2.9x
    ✓PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures
    ✗Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency1/11 years positive
    ✗SleepPositive OCF in >= 70% of available years
    (OCF - CapEx) / Market Cap
    ✗Ackman>= 4%
    Price / FCF per Share
    ✗Ackman<= 25
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    Operating Cash Flow$-10.4M
    ✗PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=-6.16%, ROA=32.79%
    ✗PiotroskiCFO/Assets > ROA
  • Profitability13% pass✓ 7✗ 24▾

    13 of 15 flag AREC's profitability — Marks, Buffett, Lynch +10 more

    Net income / market capitalization+28.29%; #177/6251 (top 2.8%)
    ✓OshaughnessyTop 10% of eligible cross-section
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency1/12 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Net Income Positive (10+ years)1/12 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-12.2%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)-41734.7% (latest)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy$-66.7M
    ✗BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)P/E 2.9x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE58.4%
    ✓Lynch> 15%
    Margin of SafetyP/E=2.9x, P/B=2.1x
    ✓PabraiP/B < 1.5 or P/E < 15
    Return on Equity-12.2% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years1/9 years positive
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trend
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend
    ✗TempletonNon-negative operating-margin trend over 3 years
    Operating Income / Revenue
    ✗Ackman>= 15%
    Net Income / Shareholders Equity58.4%
    ✓Ackman>= 15%
    Pre-Tax Income / Revenue
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity58.4%
    ✓Dreman> 12%
    Net Income / Total Assets32.79%
    ✓PiotroskiROA > 0
    ROA Change YoY-13.92% -> 32.79% (delta: +46.71%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=-6.16%, ROA=32.79%
    ✗PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value-6.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-6.9%, ROC=-27.3%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Positive EPS (10 years)1/12 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Valuation17% pass✓ 7✗ 19▾

    10 of 12 flag AREC's valuation — Oshaughnessy, Marks, Lynch +7 more

    Revenue / market capitalization+0.0000; #5052/5203 (top 97.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+28.29%; #177/6251 (top 2.8%)
    ✓OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-24.38%; #4780/6203 (top 77.1%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Valuation ReasonablenessP/E=2.9x
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    P/B or P/E vs. Historical AverageP/E=2.9x, P/B=2.1x
    ✓MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Basic earnings-growth PEG (dividends excluded)P/E 2.9x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=2.9x
    ✓PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share2.07x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per Share2.07x
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS2.9x
    ✓NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS2.9x
    ✓Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✓Dreman< 12x
    Price vs. Trailing Low392% of trailing low ($0.47)
    ✗Templeton<= 120% of trailing low (certified split-adjusted live window)
    Price / FCF per Share
    ✗Ackman<= 25
    Price / (CFO / Shares)N/A (negative CFPS)
    ✗Dreman< 8x
    EBIT / Enterprise Value-6.9%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=-6.9%, ROC=-27.3%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio2.1x
    ✗Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
  • Efficiency25% pass✓ 3✗ 8▾

    6 of 8 flag AREC's efficiency — Munger, Buffett, Akre +3 more

    Return on Invested Capital-9.3%
    ✗Munger> 15%
    ROIC (3-5 yr avg)-51.6%
    ✗Buffett> 10%
    ROIC - WACC-61.6%
    ✗BuffettPositive (WACC = 10%)
    ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=-9.3%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC-9.3% (RR=100% x ROIC=-9.3%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/2 years above 12% (latest -9.3%)
    ✗SleepROIC > 12% in a majority of years
    Current Assets / Current Liabilities2.19
    ✓Dreman> 1.5
    Current Ratio Change YoY0.56 -> 2.19
    ✓PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.00x -> 0.00x
    ✗PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)-27.3%
    ✗Greenblatt> 25%
    Current Ratio2.19
    ✓Graham>= 2.0

Business & financials

Company Profile

Industry: Coal
SIC Sector: Coal Mining
Size: Micro Cap($195.8M)
Revenue: $0.00-100.0% YoY
Net Income: $55.4M+241.3% YoY

Financial Snapshot

Operating Margin--
Return on Equity58.4%
Debt / Equity0.01
Current Ratio2.19
EPS (Diluted)$0.63

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Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$195.8M$50.3Mest.$102.9Mest.$103.5Mest.$121.6Mest.
Revenue$0↓100%$34.1K↓100%$11.8M↓70%$39.5M↑409%$7.8M
Operating Income-$11.3M↑20%-$14.2M↑61%-$36.4M↓87%-$19.5M↑31%-$28.3M
Net Income$55.4M↑241%-$39.2M↓2%-$38.5M↓2565%-$1.4M↑96%-$32.5M
EPS (Diluted)$0.63↑221%$-0.52↓2%$-0.51--$-0.59
Gross Margin———45.1%↑424%8.6%
Operating Margin—-41734.7%↓13464%-307.7%↓523%-49.4%↑86%-365.3%
ROE58.4%↑18%49.4%↓44%88.5%↑1120%7.3%↓99%1385.9%
Total Debt$965.3K↓54%$2.1M↑29%$1.6M↓58%$3.8M↓34%$5.8M
Shareholders' Equity$94.8M↑219%-$79.4M↓82%-$43.5M↓118%-$19.9M↓750%-$2.3M
Current Ratio2.19↑293%0.56↑16%0.48↑4%0.47↓50%0.93
Debt / Equity0.01↑139%-0.03↑29%-0.04↑81%-0.19↑92%-2.49
Operating Cash Flow-$10.4M↑51%-$21.2M↓9%-$19.5M↓866%$2.5M↑109%-$29.1M
Free Cash Flow---$22.3M↑4%-$23.1M----

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Coal

AREC vs Peers — Financial Grading

Revenue$0.00Bottom 25%
Net Income$55.4MMedian
ROE58.4%Top 25%
D/E0.01Top 25%
Op. Margin—
Curr. Ratio2.19Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
WARRIOR MET COAL, INC.HCC$4.8B$91.75$1.3B$57.0M2.7%0.073.5%3.193/94/93/70/3F-Score 43/11
Core Natural Resources, Inc.CNR$4.4B$86.50$4.2B$153.2M-4.2%0.11-4.4%1.603/93/92/70/3F-Score 34/11
ALLIANCE RESOURCE PARTNERS LPARLP$3.1B$24.38$2.2B$311.2M16.9%0.2417.6%2.104/96/95/71/3F-Score 48/11
PEABODY ENERGY CORPBTU$3.0B$24.37$3.9B$42.5M-1.2%0.10-2.1%1.853/93/91/70/3F-Score 44/11
Alpha Metallurgical Resources, Inc.AMR$2.1B$166.00$2.1B$61.7M-4.0%0.01-2.9%4.476/94/92/70/3F-Score 43/11
NATURAL RESOURCE PARTNERS LPNRP$1.5B$109.71$207.3M$136.4M21.6%0.0569.6%1.854/94/96/70/3F-Score 57/11
Ramaco Resources, Inc.METC$372.5M$8.38$536.6M$51.4M-10.6%0.02-10.4%5.463/92/92/70/3F-Score 32/11
NACCO INDUSTRIES INCNC$285.1M$37.78$277.2M$17.6M4.1%0.207.9%3.095/91/94/70/3F-Score 64/11