Is American Resources Corp. (Indiana) overvalued or undervalued?

As of 14 November 2024, the valuation grade for American Resources Corp. (Indiana) has moved from risky to does not qualify, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, particularly given its troubling financial ratios, including a Price to Book Value of -0.63 and an EV to EBITDA ratio of -9.08, which reflect substantial losses and negative equity. Additionally, the Return on Capital Employed (ROCE) stands at a concerning -29.77%, further emphasizing the company's struggles.
In comparison to its peers, American Resources Corp. exhibits stark contrasts; for instance, Natural Resource Partners LP has a P/E ratio of 7.55 and an EV to EBITDA of 7.85, suggesting a healthier valuation profile. Meanwhile, Hallador Energy Co. is classified as risky with a P/E of 128.77, indicating volatility in its earnings. The company's stock performance has been mixed, with a year-to-date return of -10.99% compared to the S&P 500's 2.44%, reinforcing the notion that it is currently overvalued in the market.