Company Overview
American Rebel Holdings, Inc. functions as a designer, manufacturer, and marketer of branded safes, personal security, and self-defense products operating under its American Rebel brand within the United States market. The company also engages in the design and production of branded apparel and accessories for both men and women, including specific product lines such as backpacks. This business operates within the Consumer Cyclical sector, specifically the Footwear & Accessories industry, indicating that its performance is closely tied to discretionary consumer spending habits and economic cycles. The company currently holds a market capitalization of $1.60M and reports annual revenue of $9.01M, while the employee count is listed as N/A. These valuation and revenue figures indicate that American Rebel Holdings, Inc. operates on a micro-cap scale with a very small market presence relative to the broader footwear and accessories sector.
Financial Health
The company reported revenue of $9.01M for the trailing twelve months, yet it posted a net income of $-36,329,152, revealing a severe disconnect between top-line sales and bottom-line profitability that suggests significant cost inefficiencies or one-time charges. EBITDA for the period was $-15,559,245, indicating that even before interest, taxes, depreciation, and amortization, the core operations are generating negative cash earnings. Free cash flow stands at $-13,996,820, which implies that the company is burning cash rather than generating liquidity, thereby limiting its financial flexibility to fund operations or pursue new initiatives without external financing. The gross margin is -4.8%, operating margin is -196.0%, and profit margin is 0.0%, collectively demonstrating that the company is losing money on every dollar of sales before operating expenses and failing to convert sales into profit. In terms of balance sheet leverage, the company holds $722,233 in cash against $22.51M in debt, resulting in a debt-to-equity ratio of 666.38. This heavy debt load relative to equity indicates a highly leveraged balance sheet rather than a conservative capital structure. The current ratio is 0.34, which signals that the company possesses only 34 cents in current assets for every dollar of current liabilities, highlighting potential short-term liquidity challenges. Return on Equity is N/A, while Return on Assets is -48.7%, metrics that reveal management is effectively destroying shareholder value and utilizing assets inefficiently to generate returns.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A due to negative earnings, while the forward P/E is listed at 215.33, a discrepancy that implies the market is pricing in a complete turnaround in profitability or is valuing the stock based on speculative future earnings rather than current performance. The price-to-book ratio is 0.05, indicating that the market values the company at just 5% of its book value, which suggests a significant discount often found in distressed or turnaround situations but also reflecting high perceived risk. Alternative valuation metrics include a price-to-sales ratio of 0.18 and an EV/EBITDA of -1.53, figures that suggest the stock is priced very cheaply relative to its revenue but carry a negative earnings multiple due to current losses. The 52-week high is $835,600.00 and the 52-week low is $6.20, meaning the current price sits extremely close to the bottom of this range and represents a substantial percentage below the historical high. The beta is 0.97, which indicates that the stock's price volatility is roughly equivalent to the broader market, suggesting it does not offer significant downside protection or upside leverage compared to a diversified portfolio.
Growth & Income
Revenue growth year-over-year is -19.7%, while earnings growth is N/A due to the reported losses, a combination that implies the company is contracting in terms of sales and has not yet achieved profitable growth. Since the company is not a dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, it currently does not distribute income to shareholders, implying that any theoretical earnings would need to be reinvested into growth rather than paid out. Given the negative net income and negative free cash flow, the concept of a sustainable dividend payout ratio is irrelevant as the company lacks the cash flow to support regular distributions. The overall growth and income profile is characterized by declining revenue, significant financial losses, negative cash flow generation, and an absence of dividend income for investors.