Avalon Holdings (AWX) AI Stock Analysis

• Market Cap: $9.61M
• Dividend Yield: N/A
• Average Volume (3M): 3.92K
• Price to Earnings (P/E): 81.5
• Beta (1Y): -0.06
• Revenue Growth: -6.27%
• EPS Growth: 308.11%
• Country: US
• Employees: 882
• Sector: Industrials
• Sector Strength: 76
• Industry: Waste Management
• EPS (TTM): 0.07
• Shares Outstanding: 3,287,647
• 10 Day Avg. Volume: 4,021
• 30 Day Avg. Volume: 3,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.11
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: 7.05
• 1Y Price Target: $2.50
• Price Target Upside: 1.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $2.50 ▲(1.63% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability margins, and cash flow difficulties. The lack of technical analysis data and high P/E ratio further contribute to a lower score, indicating potential overvaluation and market risks.

Avalon Holdings Business Overview & Revenue Model

Company Description

Avalon Holdings (AWX) is a diversified holding company primarily engaged in the leisure and hospitality sectors. The company operates through various subsidiaries, providing services such as golf course management, waste management, and environmental services. Avalon Holdings focuses on creating value through its leisure activities and environmental solutions, catering to both individual customers and corporate clients.

How the Company Makes Money

Avalon Holdings generates revenue through multiple streams including membership fees from its golf courses, service fees from waste management and environmental consulting, and event hosting at its facilities. The company also benefits from partnerships with local governments and businesses for waste management contracts, providing a steady income source. Additionally, Avalon may engage in land development and leasing, further contributing to its earnings through asset utilization and management.

Avalon Holdings Financial Statement Overview

Summary

Avalon Holdings shows a balanced financial position with strengths in equity and manageable debt levels. However, profitability and cash flow generation pose challenges, with declining revenue and negative free cash flow growth. The company demonstrates potential for improvement in cost management and operational efficiency to enhance profitability and cash flow stability.

Income Statement

The income statement reveals moderate performance with a slight decline in revenue over the TTM, showing a negative revenue growth rate of -3.33%. The gross profit margin is 19.18%, which is healthy for the waste management industry. However, the net profit margin is relatively low at 0.99%, indicating potential challenges in controlling costs or generating net income. The EBIT and EBITDA margins are 3.01% and 7.82% respectively, indicating operational profitability, but there is room for improvement.

Balance Sheet

The balance sheet showcases a stable equity position with a debt-to-equity ratio of 0.17, reflecting conservative leverage. The return on equity (ROE) stands at 2.18%, indicating modest returns for shareholders. The equity ratio is 41.69%, signifying a strong equity base relative to total assets. Overall, the balance sheet suggests financial stability with manageable debt levels.

Cash Flow

The cash flow statement indicates challenges with cash generation, highlighted by a negative free cash flow of -$308,000 in the TTM. The operating cash flow to net income ratio is 2.48, demonstrating efficient conversion of earnings into cash. However, the free cash flow to net income ratio is -0.39, reflecting a need to improve cash flow management. The free cash flow growth rate is -127.5%, driven by capital expenditures exceeding cash generated from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	78.20M	83.80M	80.52M	81.18M	70.38M	58.72M
Gross Profit	14.64M	17.23M	13.78M	13.96M	13.55M	11.71M
EBITDA	5.60M	6.99M	3.94M	4.06M	6.01M	4.17M
Net Income	118.00K	1.32M	-1.77M	-583.00K	1.97M	14.00K
Balance Sheet
Total Assets	88.06M	86.19M	87.97M	89.75M	78.04M	77.95M
Cash, Cash Equivalents and Short-Term Investments	3.71M	2.80M	1.19M	1.62M	3.25M	4.21M
Total Debt	34.71M	34.71M	35.02M	33.69M	22.76M	26.16M
Total Liabilities	52.48M	49.13M	51.87M	51.61M	39.06M	40.98M
Stockholders Equity	36.81M	38.03M	36.72M	38.49M	39.07M	37.09M
Cash Flow
Free Cash Flow	-417.00K	1.12M	-1.54M	-4.13M	-2.06M	-1.98M
Operating Cash Flow	1.81M	3.37M	2.35M	2.26M	2.36M	2.57M
Investing Cash Flow	-2.23M	-2.25M	-3.90M	-6.39M	-4.42M	-4.51M
Financing Cash Flow	-889.00K	-818.00K	944.00K	11.23M	-1.09M	1.40M

Avalon Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 2.46 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.51, and below the 200-day MA of 2.90, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.11 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
Sector *	64 Neutral	$10.71B	16.03	7.42%	2.02%	2.57%	-16.39%
CHNR	48 Neutral	$4.47M	―	-16.37%	―	―	―
CDTG	48 Neutral	$7.47M	29.51	4.19%	―	-14.18%	-78.84%
AWX	47 Neutral	$9.61M	81.46	0.32%	―	-6.27%	308.11%
QRHC	43 Neutral	$33.97M	―	-46.57%	―	-5.20%	-275.34%
AQMS	36 Underperform	$5.31M	―	-182.91%	―	-100.00%	-112.68%

Avalon Holdings Corporate Events

Avalon Holdings Concludes Annual Stockholders Meeting

On May 7, 2025, Avalon Holdings Corporation held its Annual Meeting of Stockholders where key decisions were made regarding the election of directors and executive compensation. Directors were elected for both Class A and Class B Common Stock, with Ronald E. Klingle, Michael J. Havalo, Timothy C. Coxson, and Christine M. Bell elected by Class B holders, and Kurtis D. Gramley and Stephen L. Gordon elected by Class A holders. Additionally, the advisory vote on the compensation of the company’s named executive officers was approved, reflecting shareholder support for the executive pay structure.