American ResourcesAREC -1.75%28 Gross Margin % is -324.44% as of Dec. 2025. GuruFocus rates AREC with a GF Score™ of 28/100. The stock has 6 warning signs investors should review. Among 592 Steel companies, American Resources ranks worse than 168918.75% on this metric.
The historical rank and industry rank for American Resources's Gross Margin % or its related term are showing as below:
During the past 12 years, the highestGross Margin % of American Resources was 44.90%. The lowest was -1494.12%. And the median was -2.39%.
AREC's Gross Margin % is not ranked *
in the Steel industry.
Industry Median: 12.55 * Ranked among companies with meaningful Gross Margin % only.
American Resources had a gross margin of -324.44% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for American Resources was 0.00% per year.
American Resources (NAS:AREC) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
American Resources had a gross margin of -324.44% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
American Resources Gross Margin % Related Terms
American Resources Gross Margin % Historical Data
* Premium members only.
The historical data trend for American Resources's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Coking Coal subindustry, American Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American Resources Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, American Resources's Gross Margin % distribution charts can be found below:
* The bar in red indicates where American Resources's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
American Resources (AREC) has a Gross Margin % of -324.44% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on American Resources and its competitors. According to the industry distribution chart, American Resources ranks #999999 out of 592 companies in the Steel industry.
Is American Resources' Gross Margin % too high?
American Resources' current Gross Margin % is -324.44%. Based on the distribution chart, American Resources ranks #999999 out of 592 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, American Resources has a GF Score™ of 28/100, reflecting its overall financial health beyond just this single metric.
How does American Resources' Gross Margin % compare to SXC and METC?
According to the Steel industry distribution chart, American Resources ranks #999999 out of 592 companies for Gross Margin %. This places American Resources in the lower half of its industry. The industry median Gross Margin % is 12.55. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 592 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on American Resources and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Resources's current Gross Margin % is -324.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Resources stock overvalued right now?
American Resources (AREC) has a current Gross Margin % of -324.44%. The current Gross Margin % is -324.44%. American Resources' overall GF Score™ is 28/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For American Resources (AREC), the current Gross Margin % is -324.44% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
American Resources Corp is engaged in the aggregation, recovery, recycling, and sale of recovered metal and steel materials. The company operates through two segments: Corporate and Electrified Materials. The Electrified Materials segment focuses on processing and recycling recovered metal and steel products.
28GF Score
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