Avalon Holdings (AWX) AI Stock Analysis

• Market Cap: $9.40M
• Dividend Yield: N/A
• Average Volume (3M): 14.77K
• Price to Earnings (P/E): 11.8
• Beta (1Y): -0.06
• Revenue Growth: <0.01%
• EPS Growth: N/A
• Country: US
• Employees: 882
• Sector: Industrials
• Sector Strength: 85
• Industry: Waste Management
• EPS (TTM): -0.38
• Shares Outstanding: 3,287,647
• 10 Day Avg. Volume: 8,502
• 30 Day Avg. Volume: 14,771
• PEG Ratio: 0.07
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.59
• Enterprise Value/Market Cap: 4.55
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $2.50 ▲(3.73%Upside)

The overall stock score of 60 reflects a mix of moderate valuation and financial stability against a backdrop of weaker technical indicators and cash flow challenges. The stock is currently underperforming in terms of price momentum, which may present risks in the short term. However, its reasonable valuation offers potential upside if the company can improve profitability and cash flow management.

Avalon Holdings Business Overview & Revenue Model

Company Description

Avalon Holdings Corporation, headquartered in Warren, Ohio, operates in the waste management sector and the golf and related operations sector. The company provides waste management services to industrial, commercial, municipal, and governmental customers. Avalon Holdings also owns and operates golf courses and related facilities, offering a range of amenities and services for golf enthusiasts.

How the Company Makes Money

Avalon Holdings Corporation generates revenue primarily through two main streams: waste management services and golf course operations. In the waste management division, the company earns money by providing waste disposal, management, and environmental services to various clients, including industrial and municipal entities. These services often involve contracts or service agreements that guarantee a steady flow of income. In the golf and related operations sector, Avalon Holdings makes money through membership fees, green fees, and other related services offered at its golf courses. The company also generates revenue from hosting events, providing dining services, and offering recreational activities at its golf facilities. The combination of these diverse revenue streams contributes to the overall earnings of the corporation.

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	81.00M	83.80M	80.52M	81.18M	70.38M	58.72M
Gross Profit	15.54M	17.23M	13.78M	13.96M	13.55M	11.71M
EBITDA	6.33M	6.99M	3.94M	4.06M	3.67M	3.03M
Net Income	798.00K	1.32M	-1.77M	-980.00K	1.97M	-46.00K
Balance Sheet
Total Assets	87.63M	86.19M	87.97M	89.75M	78.04M	77.95M
Cash, Cash Equivalents and Short-Term Investments	1.27M	2.80M	1.19M	1.62M	3.25M	4.21M
Total Debt	6.22M	34.71M	35.02M	33.69M	22.76M	26.16M
Total Liabilities	52.27M	49.13M	51.87M	51.61M	39.06M	40.98M
Stockholders Equity	36.53M	38.03M	36.72M	38.49M	39.07M	37.09M
Cash Flow
Free Cash Flow	-308.00K	1.12M	-1.54M	-4.13M	-2.06M	-1.98M
Operating Cash Flow	1.98M	3.37M	2.35M	2.26M	2.36M	2.57M
Investing Cash Flow	-2.29M	-2.25M	-3.90M	-6.39M	-4.42M	-4.51M
Financing Cash Flow	-841.00K	-818.00K	944.00K	11.23M	-1.09M	1.40M

Avalon Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.41
• 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 2.41 is below the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.48, and below the 200-day MA of 2.91, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 46.43 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 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 *	65 Neutral	$10.75B	15.69	5.29%	1.89%	3.09%	-27.41%
USEA	53 Neutral	$13.94M	―	-10.92%	2.57%	-2.85%	-280.26%
USEA	53 Neutral	$13.94M	―	-10.92%	2.57%	-2.85%	-280.26%
AWX	48 Neutral	$9.40M	11.78	2.21%	―	<0.01%	―
KSCP	48 Neutral	$37.40M	―	-243.06%	―	-5.64%	35.09%
KSCP	48 Neutral	$37.40M	―	-243.06%	―	-5.64%	35.09%
OMEX	47 Neutral	$38.86M	―		―	-2.44%	―
OMEX	47 Neutral	$38.86M	―		―	-2.44%	―
AIRI	45 Neutral	$12.31M	―	-11.05%	―	0.29%	31.48%
AIRI	45 Neutral	$12.31M	―	-11.05%	―	0.29%	31.48%
ASTC	42 Neutral	$9.57M	―	-44.54%	―	-54.94%	-24.76%
ASTC	42 Neutral	$9.57M	―	-44.54%	―	-54.94%	-24.76%

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.