Avalon Holdings (AWX) AI Stock Analysis

• Market Cap: $10.14M
• Dividend Yield: N/A
• Average Volume (3M): 13.21K
• Price to Earnings (P/E): 7.7
• Beta (1Y): -0.05
• Revenue Growth: 4.07%
• EPS Growth: N/A
• Country: US
• Employees: 882
• Sector: Industrials
• Sector Strength: 74
• Industry: Waste Management
• EPS (TTM): 0.34
• Shares Outstanding: 3,287,647
• 10 Day Avg. Volume: 9,544
• 30 Day Avg. Volume: 13,208
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.16
• Price to Cash Flow (P/CF): 9.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.54
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Avalon Holdings receives a moderate score of 64. The company's strong financial performance and undervalued P/E ratio are positive factors. However, technical indicators show bearish sentiment, contributing to a cautious outlook. The stock's valuation is attractive, but the lack of dividend yield and bearish technical signals suggest potential near-term challenges.

Avalon Holdings Business Overview & Revenue Model

Company Description

Avalon Holdings Corporation (AWX) is a diversified service provider focused primarily on the waste management and environmental services sectors. The company operates through two primary segments: waste management services and golf and related operations. The waste management division provides hazardous and non-hazardous waste disposal services, as well as environmental consulting. The golf operations segment operates golf courses and related facilities, offering services such as golf course management and event hosting.

How the Company Makes Money

Avalon Holdings generates revenue through its two main business segments. The waste management services segment earns money by providing comprehensive waste disposal and environmental consulting services to a variety of clients, including industrial, commercial, and governmental entities. This includes the collection, transportation, and disposal of both hazardous and non-hazardous waste materials. The company's golf and related operations segment makes money by managing and maintaining golf courses, providing leisure and recreational services, and hosting events. Revenue is generated through memberships, greens fees, facility rentals, and additional amenities associated with golf operations. Avalon Holdings may also engage in partnerships or contracts with local governments and businesses to secure long-term service agreements, contributing to its overall earnings.

Avalon Holdings Financial Statement Overview

Summary

Avalon Holdings has shown a solid recovery in profitability with a net profit margin of 1.57% and positive cash flow generation. Revenue growth is steady, and the balance sheet is stable with manageable debt levels. However, maintaining high growth rates remains a challenge.

Income Statement

Avalon Holdings shows a promising recovery in profitability with a net profit margin of 1.57% in 2024, compared to a net loss in previous years. The company achieved a gross profit margin of 20.56% and EBIT margin of 3.67% in 2024, indicating improved operational efficiency. Revenue grew by 4.06% from 2023 to 2024, showing positive growth, albeit slower than the previous year. Overall, the income statement signals a positive trajectory towards profitability and growth.

Balance Sheet

The debt-to-equity ratio of 0.91 in 2024 remains stable, reflecting a balanced leverage position. The return on equity (ROE) improved to 3.47% in 2024, indicating better utilization of shareholders' equity. However, the equity ratio decreased slightly to 44.13%, suggesting a minor increase in leverage. Overall, the balance sheet is stable, with controlled debt levels and improving equity returns.

Cash Flow

Avalon Holdings exhibited a significant improvement in free cash flow, turning positive to $1.12 million in 2024 from a negative position in previous years. The operating cash flow to net income ratio of 2.56 reflects strong cash generation relative to net income. However, investing and financing cash flows indicate modest activities. The cash flow statement reflects improving cash management and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
83.80M	80.52M	81.18M	70.38M	58.72M
	Gross Profit
17.23M	13.78M	13.96M	13.55M	11.71M
	EBIT
3.08M	-273.00K	578.00K	930.00K	461.00K
	EBITDA
6.99M	3.94M	4.06M	3.67M	3.03M
	Net Income Common Stockholders
1.32M	-1.77M	-980.00K	1.97M	-46.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.80M	1.19M	1.62M	3.25M	4.21M
	Total Assets
86.19M	87.97M	89.75M	78.04M	77.95M
	Total Debt
34.71M	35.02M	33.69M	22.76M	26.16M
	Net Debt
31.91M	33.84M	32.07M	19.51M	21.95M
	Total Liabilities
49.13M	51.87M	51.61M	39.06M	40.98M
	Stockholders Equity
38.03M	36.72M	38.49M	39.07M	37.09M
Cash Flow		Free Cash Flow
1.12M	-1.54M	-4.13M	-2.06M	-1.98M
	Operating Cash Flow
3.37M	2.35M	2.26M	2.36M	2.57M
	Investing Cash Flow
-2.25M	-3.90M	-6.39M	-4.42M	-4.51M
	Financing Cash Flow
-818.00K	944.00K	11.23M	-1.09M	1.40M

Avalon Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWX, the sentiment is Negative. The current price of 2.6 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.95, and below the 200-day MA of 2.89, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AWX.

Avalon Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWX	64 Neutral	$10.14M	7.69	3.53%	―	4.07%	―
Sector *	63 Neutral	$4.27B	11.36	5.38%	214.64%	4.14%	-9.01%
AIRI	47 Neutral	$12.54M	―	-9.06%	―	6.97%	37.99%
USEA	45 Neutral	$11.14M	―	-5.37%	19.42%	25.98%	-493.00%
OMEX	37 Underperform	$44.03M	―		―	-4.37%	―
ASTC	36 Underperform	$10.06M	―	-39.20%	―	-78.93%	-29.96%
KSCP	21 Underperform	$34.51M	―	-271.81%	―	-9.30%	49.84%