MeritValue

American Resources Corp

ARECdata completeness 88%13 fiscal years on file
The thesis, from the filings

American Resources Corp earns about 58% on equity, but has diluted owners by 34% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.76M1$39.5M2$11.8M3$34,0704$04
Net income−$32.5M5−$1.45M5−$38.5M6−$39.2M7$55.4M7
Operating cash flow−$29.1M8$2.55M9−$19.5M10−$21.2M10−$10.4M11
Capital expenditure——$3.62M12$1.06M12—
Free cash flow (derived)——−$23.1M10−$22.3M10—
Total debt$5.28M13$3.84M13$2.94M14$2.08M15$965,28615
Cash & equivalents$12.6M16$11M17$1.32M18$201,45619$31.7M19
Diluted shares65.1M66.8M75.1M77.2M87.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$10.86
your share of equity
Profit it earned you last year
$6.35
Free cash flow it threw off
—
Debt you’d be carrying
$0.11

10 shares is a claim on $10.86 of net worth that earned you $6.35 last year, against $0.11 of debt.

iii. Is this a good business?
Moat signal · return on equity
58% avg · 5y
FY21 —FY22 —FY23 —FY24 —FY25 58%

It earned an average 58% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+34% shares · 5y

Share count is up 34% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 82% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$3.92
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001477932-23-002105 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001477932-24-002122 (Revenues)
  3. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001477932-26-003317 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001477932-23-002105 (NetIncomeLoss)
  6. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (NetIncomeLoss)
  7. 10-K · period ending 2024-12-31 · accession 0001477932-26-003317 (NetIncomeLoss)
  8. 10-K · period ending 2021-12-31 · accession 0001477932-23-002105 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-12-31 · accession 0001477932-24-002122 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2025-12-31 · accession 0001477932-26-003317 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  12. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001477932-23-002105 (LongTermDebtCurrent)
  14. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (LongTermDebtCurrent)
  15. 10-K · period ending 2024-12-31 · accession 0001477932-26-003317 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2021-12-31 · accession 0001477932-22-001737 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K/A · period ending 2022-12-31 · accession 0001477932-25-007744 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  18. 10-K/A · period ending 2023-12-31 · accession 0001477932-25-007744 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-12-31 · accession 0001477932-26-003317 (CashAndCashEquivalentsAtCarryingValue)