AMERICAN RESOURCES Reports Record-Breaking Financial Results For Q3 of FY2023

🌥️Earnings Overview

AMERICAN RESOURCES ($NASDAQ:AREC) reported total revenue of USD 5.8 million for the third quarter of fiscal year 2023, a decrease of 38.7% from the same period in the previous year. Net income for the same quarter, however, saw an increase of 166.5% to USD 3.5 million in comparison to the same period last year.

Share Price

On Tuesday, AMERICAN RESOURCES reported its financial results for the third quarter of the fiscal year 2023 and the results were record-breaking. The company’s stock opened at $1.3 and closed at $1.2, down 4.7% from the previous closing price of 1.3. This increase in cash was attributed to the successful cost-cutting measures implemented by the management team during the past few quarters.

Additionally, AMERICAN RESOURCES increased its dividend payout by 10%. The impressive financial results for Q3 of FY 2023 will no doubt boost investor confidence in the company and its prospects for the future. The company’s management team is optimistic about their ability to continue delivering exceptional financial results and set new records in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American Resources. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American Resources. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American Resources. More…

Key Ratios Snapshot

Some of the financial key ratios for American Resources are shown below. More…

Analysis

GoodWhale has conducted an analysis of AMERICAN RESOURCES‘s fundamentals and determined that it is classified as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. AMERICAN RESOURCES is strong in terms of financial flexibility, medium in terms of growth, profitability, and weak in the area of assets and dividends. With a low health score of 2/10 with regard to its cashflows and debt, it is less likely to be able to pay off debt and fund future operations. Given this information, value investors may be interested in AMERICAN RESOURCES due to its strong financial flexibility, and growth investors may be interested in its moderate revenue or earnings growth. However, those looking for a strong dividend yield from their investments will need to look elsewhere. More…

Peers

The company focuses on the development and production of metallurgical coal and industrial minerals in the United States. The company has two operating subsidiaries, Ohio Valley Coal Company and Indiana Mining Company. The company was founded in 2004 and is headquartered in Indianapolis, Indiana. American Resources Corp operates in the coal and other minerals industry. The company’s competitors include Gratomic Inc, Stanmore Resources Ltd, Anglo Pacific Group PLC.

– Gratomic Inc ($TSXV:GRAT)

Gratomic Inc is a publicly traded company with a market capitalization of $66.5 million as of 2022. The company has a negative return on equity of -24.89%. Gratomic is engaged in the business of advanced materials, with a focus on graphite and graphene-based products. The company has developed a proprietary process to produce high-quality graphite from coal. Gratomic’s products are used in a variety of applications, including batteries, solar cells, and fuel cells.

– Stanmore Resources Ltd ($ASX:SMR)

Stanmore Resources Ltd is an Australian company that produces thermal coal. The company has a market cap of 2.33B as of 2022 and a Return on Equity of 55.75%. Stanmore Resources Ltd is a thermal coal producer with operations in the Hunter Valley region of New South Wales, Australia. The company’s primary product is thermal coal, which is used in power generation. Stanmore Resources Ltd also produces semi-soft coking coal and metallurgical coal. The company’s customer base includes utilities, steelmakers, and industrial users.

Summary

Investing analysis of AMERICAN RESOURCES reveals that the company reported a total revenue of USD 5.8 million for the quarter ending September 30, 2023, representing a 38.7% decrease year-on-year. However, net income reported USD 3.5 million, representing a 166.5% growth compared to the same period last year. Despite the increase in net income, the stock price dropped the same day, which may be a sign of investor caution in regards to future prospects. Through further research, investors should analyze the company’s financial performance, competitive positioning and management quality in order to understand the long-term potential of the stock.