Stock fact sheet · data as of
American Resources Corporation (AREC): fair value, margin of safety and Wheel Score
Energy · Coal · United States · Value
Is AREC undervalued?
American Resources Corporation (AREC) closed at 1.20 on 16 Oct 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 16.92, which puts the price 93% below it. 5 of the 7 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DCF (0.3404) and GLS Growth (44.87). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files AREC under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for AREC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 0.3404 | -72% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 4.23 | +253% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 41.92 | +3393% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 18.32 | +1427% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 44.87 | +3639% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 0.6327 | -47% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 8.14 | +579% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.5473 | -54% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.00 | +400% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
American Resources Corporation scores only 4 of 9 on the Piotroski F-score, which fails the Sunday Scan's "6 or more" rule. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 53.9%, ROE 58.5%, ROA 32.8% - with debt at 0.09 times equity and negative free cash flow.
The dividend yield is 3.58% at a payout ratio of 0%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Consolidated 100% (quarter Q3 FY2025).
Institutional ownership scores 4/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 53.9% |
|---|---|---|---|
| GLS Moat | 2.5 / 10 | ROE | 58.5% |
| Debt / equity | 0.09 | ROA | 32.8% |
| Free-cash-flow yield | -8.9% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 57: Fair
A Wheel Score of 57 puts American Resources Corporation in the Fair band - below the 70 the Sunday Scan requires. Value 25/25, Health 9/20, Moat 4/15, Premium 5/20 and Stability 14/20; the weakest part is Premium (5/20).
Implied volatility is 122%, far above the range the wheel strategy is built for. The premium looks generous; the Wheel Score gives it only 5 of 20 Premium points because moves of that size can blow through any strike. The option chain is deep: 72,557 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 2.3M shares a day on a market cap of $128M, with a beta of 1.17; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 93% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 4 / 15 | moat 2.5/10 | |
| Premium | 5 / 20 | implied volatility 122% | |
| Stability | 14 / 20 | 2.3M shares/day, $128M cap, beta 1.17 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 13 Nov 2026, 28 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Coal
The 12 companies below are the closest to American Resources Corporation by market cap within the Coal industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PDER Pardee Resources Company | 299.00 | 193.81 | -54% | 21No options | $195M |
| CODQL Coronado Global Resources Inc. | 0.1200 | 0.2752 | +56% | 38No options | $201M |
| NC NACCO Industries, Inc. | 33.62 | 25.56 | -32% | 19No options | $254M |
| METCB Ramaco Resources, Inc. | 4.15 | 1.06 | -291% | 19No options | $354M |
| METCZ Ramaco Resources, Inc. | 24.78 | 1.06 | -2234% | 19No options | $478M |
| METC Ramaco Resources, Inc. | 8.34 | 1.06 | -685% | 35Weak | $480M |
| NRP Natural Resource Partners L.P. | 111.62 | 131.71 | +15% | 64Fair | $1.5B |
| ROYE Royal Energy Resources, Inc. | 0.5000 | 51.44 | +99% | 39No options | $9M |
| AMR Alpha Metallurgical Resources, Inc. | 169.71 | 217.44 | +22% | 45Weak | $2.2B |
| BTU Peabody Energy Corporation | 24.02 | 63.42 | +62% | 45Weak | $2.9B |
| ARLP Alliance Resource Partners, L.P. | 25.19 | 39.96 | +37% | 74Good | $3.2B |
| CNR Core Natural Resources, Inc. | 89.00 | 185.62 | +52% | 78Good | $4.4B |
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Start free See the Sunday ScanQuestions about AREC
Is AREC undervalued right now?
By the GLS models, yes: at 1.20 the stock is 93% below the average fair value of 16.92 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of AREC and what does it mean?
AREC scores 57 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for AREC?
16.92 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does American Resources Corporation report earnings next?
The next earnings report is due on 13 Nov 2026, 28 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does AREC have listed options, and how liquid are they?
Yes. The nightly snapshot found 142 listed contracts with 72,557 open interest across all expiries and implied volatility of 122% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.