Stock fact sheet · data as of
American Resources Corporation (AREC): fair value, margin of safety and Wheel Score
Ticker symbol AREC · Energy · Coal · United States · Class A common stock · Blend Income
AREC is American Resources Corporation's Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is AREC undervalued?
American Resources Corporation (AREC) closed at 0.9963 on 5 Nov 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 94% 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 (0.3405) 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for AREC, so the nightly engine files it under Blend (value score 91, growth score 85, out of 100). It also carries the Income tag (Income = a dividend yield of 4% or more).
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 | 0.3405 | -66% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 4.23 | +325% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 41.92 | +4107% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 18.32 | +1739% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 44.87 | +4403% | 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 | -36% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 8.14 | +717% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 0.5473 | -45% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 6.00 | +502% | 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 "Piotroski 6 or more" Wheel Trade Filter. 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 0.2/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, 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 high at 4.32% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. 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 | 0.2 / 10 | ROE | 58.5% |
| Debt / equity | 0.09 | ROA | 32.8% |
| Free-cash-flow yield | -10.7% | Payout ratio | 0% |
| Institutions | 4 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 24: Weak
With a Wheel Score of 24 American Resources Corporation sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (1,423 open interest, 15 a day); and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 5, can repay its debt - debt with no positive cash flow to repay it; and filter 7, a premium worth selling - implied volatility 127% (over 80%); and filter 8, big enough - market cap $107M (under $1.0B); and filter 9, not a penny stock - price 1.00 (under $5); Premium (weak) is its weakest part.
Implied volatility is 127%, above the 80% ceiling of the Wheel Trade Filter on premium. The premium looks generous, but moves of that size can blow through any strike. Chain open interest is thin - 1,423 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 3.0M shares a day on a market cap of $107M, with a beta of 1.16; the Stability part of the Wheel Score rates that fair.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (1,423 open interest, 15 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Fails | debt with no positive cash flow to repay it |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 127% (over 80%) |
| 8 | Big enough | Fails | market cap $107M (under $1.0B) |
| 9 | Not a penny stock | Fails | price 1.00 (under $5) |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 94% below fair value | |
| Premium | Weak | implied volatility 127% | |
| Moat | Weak | moat 0.2/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Fair | Red Flags score 70/100 | |
| Option trading | Weak | 15 contracts a day, 1,423 open interest | |
| Stability | Fair | beta 1.16, $107M company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
American Resources Corporation reports earnings on 13 Nov 2026 - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
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 |
|---|---|---|---|---|---|
| CODQL Coronado Global Resources Inc. | 0.1050 | 0.1728 | +39% | 28No options | $176M |
| PDER Pardee Resources Company | 294.00 | 199.00 | -48% | 17No options | $192M |
| NC NACCO Industries, Inc. | 33.67 | 34.10 | +1% | 19No options | $254M |
| METCB Ramaco Resources, Inc. | 3.98 | 0.9654 | -312% | 14No options | $340M |
| METCZ Ramaco Resources, Inc. | 24.48 | 2.75 | -790% | 14No options | $362M |
| METC Ramaco Resources, Inc. | 6.98 | 1.21 | -478% | 19Weak | $362M |
| ROYE Royal Energy Resources, Inc. | 0.5000 | 51.68 | +99% | 26No options | $9M |
| NRP Natural Resource Partners L.P. | 118.50 | 123.78 | +4% | 70Good | $1.6B |
| AMR Alpha Metallurgical Resources, Inc. | 153.81 | 149.70 | -3% | 28Weak | $1.9B |
| BTU Peabody Energy Corporation | 17.02 | 52.43 | +68% | 48Weak | $2.1B |
| ARLP Alliance Resource Partners, L.P. | 25.18 | 42.92 | +41% | 43Weak | $3.2B |
| CNR Core Natural Resources, Inc. | 80.22 | 191.21 | +58% | 84Good | $4.0B |
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Start free See the Sunday ScanQuestions about AREC
What kind of share is AREC?
AREC is American Resources Corporation's Class A common stock. The classes own the same business, share the same earnings report and trade within a few cents of each other; what differs is mainly the vote each share carries - the company's annual report sets out the voting rights.
Is AREC undervalued right now?
By the GLS models, yes: at 0.9963 the stock is 94% below the average fair value of 16.92 (data as of 5 Nov 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 24 out of 100 (Weak) - it fails Wheel Trade Filters 1, 4, 5, 7, 8, 9. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for AREC?
16.92 per share as of 5 Nov 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, 8 days from the data date of 5 Nov 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 6 listed contracts with 1,423 open interest across all expiries and implied volatility of 127% 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.