American Resources Corporation Class A Common Stock (AREC)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable earnings, honest accounting, and a margin of safety. American Resources is a tiny operator, with only seven employees, trying to build rare earth and critical-mineral concentrates and recycled steel products. The filed record is erratic. In fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $50,165 and net income was -$6.3M, or -$0.07 per diluted share. In fiscal Q3 2024, the quarter ended 2024-09-30, revenue was $235,443 and net income was -$8.9M, or -$0.12 per diluted share. For FY2024, the year ended 2024-12-31, revenue was $34,070 and net loss was $39.2M, or -$0.51 per diluted share. Then FY2025, the year ended 2025-12-31, shows net income of $55.4M and diluted EPS of $0.63, with revenue listed as N/A. That swing is why the Lynch category is TURNAROUND, returned to profit after a loss within the last three years, but one profitable year does not prove durable earning power. FairStock's calculations show revenue growth of -99.93%, ROE of -290.66%, ROCE of -2.94%, and trailing free cash flow of -$10.1M, a -7.1% FCF yield. The balance sheet has D/E of 0.22, not crushing, but an Altman Z-Score of -0.10 and a Piotroski F-Score of 3/9 point to fragility. At the 2026-10-13 close of $1.33, FairStock's P/E is -6.63, P/B is 1.49, and the FairStock Score is 32/100. The stock is near its 52-week low of $1.30 versus a high of $5.40. I see no clear moat and little margin of safety; it is a speculation on a turnaround, not a Graham-style bargain.

In plain English: American Resources works in rare earth and critical minerals and also recycles used metals into steel products. The business looks weak and erratic: reported revenue is tiny, several recent periods show losses, and it is burning cash. At $1.33, the price is near its lowest level of the past year, but the numbers do not clearly show a bargain; it looks more like a speculative turnaround.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q3 2024 10-Q (period ended 2024-09-30) · fiscal Q2 2024 10-Q (period ended 2024-06-30) · fiscal Q1 2024 10-Q (period ended 2024-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer