On the stock market since 2007, it operates in the world of raw materials. It has 290 employees. Now — the numbers.
This is an established company with proven profits.
An average decline of 6% a year over the last 4 years — the most striking risk in this picture.
If every debt were paid off today, $40.2M would still be left in the vault — a solid cushion for hard times.
The stock trades 28% below its peak. The market has trimmed its expectations for the company.
The net profit margin is 16% — still a thick cushion, though costs have been eating into it lately.
There is $40.2M in the vault; even if every debt were paid off, $40.2M would remain.
It pays out $0.14 per share each year — regular cash for whoever holds the stock.
This stock swings about 2 times as much as the market average. Big rallies — and big drops — can both happen fast.
Over the last 3 years, sales fell about 4% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
On our five-subject report card, ARREF sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: ARREF is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.