American Resources Net Income vs. Return On Equity
| AREC Stock | USD 1.24 0.08 6.06% |
Net Loss | First Reported 2013-12-31 | Previous Quarter -6.6 M | Current Value -9.2 M | Quarterly Volatility 10.3 M |
For American Resources profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Resources to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Resources Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Resources's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Resources Corp over time as well as its relative position and ranking within its peers.
American |
Is Oil, Gas & Consumable Fuels space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Resources. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Resources listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.25) | Revenue Per Share 0.079 | Quarterly Revenue Growth (1.00) | Return On Assets (0.09) | Return On Equity (45.05) |
The market value of American Resources Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Resources' value that differs from its market value or its book value, called intrinsic value, which is American Resources' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Resources' market value can be influenced by many factors that don't directly affect American Resources' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Resources' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Resources is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Resources' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
American Resources Corp Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Resources's current stock value. Our valuation model uses many indicators to compare American Resources value to that of its competitors to determine the firm's financial worth. American Resources Corp is number one stock in net income category among its peers. It also is number one stock in return on equity category among its peers . At present, American Resources' Net Loss is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Resources' earnings, one of the primary drivers of an investment's value.American Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
American Resources |
| = | (11.46 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
American Resources |
| = | -45.05 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
American Return On Equity Comparison
American Resources is currently under evaluation in return on equity category among its peers.
American Resources Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Resources, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Resources will eventually generate negative long term returns. The profitability progress is the general direction of American Resources' change in net profit over the period of time. It can combine multiple indicators of American Resources, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | -11.4 M | -12 M | |
| Income Before Tax | -11.5 M | -12 M | |
| Total Other Income Expense Net | -32.8 K | -31.1 K | |
| Net Loss | -20.8 M | -21.8 M | |
| Net Loss | -11.5 M | -12 M | |
| Income Tax Expense | (2.00) | (2.10) | |
| Net Income From Continuing Ops | 8.4 M | 8.8 M | |
| Non Operating Income Net Other | 1.3 M | 1.5 M | |
| Interest Income | 38.1 K | 36.2 K | |
| Net Interest Income | -1.5 M | -1.5 M | |
| Change To Netincome | 1.3 M | 1.2 M | |
| Net Loss | (0.15) | (0.16) | |
| Income Quality | 1.27 | 1.33 | |
| Net Loss | (17.92) | (17.03) |
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Resources. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Resources position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Resources' important profitability drivers and their relationship over time.
Use American Resources in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Resources position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Resources will appreciate offsetting losses from the drop in the long position's value.American Resources Pair Trading
American Resources Corp Pair Trading Analysis
The ability to find closely correlated positions to American Resources could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Resources when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Resources - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Resources Corp to buy it.
The correlation of American Resources is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Resources moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Resources Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Resources can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Resources position
In addition to having American Resources in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Insurance Providers
Companies providing all types of insurance and insurance services. The Insurance Providers theme has 37 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Providers Theme or any other thematic opportunities.
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To fully project American Resources' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Resources Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Resources' income statement, its balance sheet, and the statement of cash flows.