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Avalon Holdings Corp. (AWX)
:AWX
US Market
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Avalon Holdings (AWX) AI Stock Analysis

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AWX

Avalon Holdings

(NYSE MKT:AWX)

Rating:61Neutral
Price Target:
$2.50
▼(-5.30%Downside)
The overall stock score of 61 reflects a balance of moderate financial performance and fair valuation. The key challenge lies in cash flow generation and revenue growth. Technical analysis indicates a neutral to bearish outlook, impacting the score. Valuation is reasonable, but the absence of dividends slightly weighs on the attractiveness of the stock.

Avalon Holdings (AWX) vs. SPDR S&P 500 ETF (SPY)

Avalon Holdings Business Overview & Revenue Model

Company DescriptionAvalon Holdings Corporation provides waste management services to industrial, commercial, municipal, and governmental customers in the United States. It operates in Waste Management Services, and Golf and Related Operations segments. The Waste Management Services segment offers hazardous and nonhazardous waste disposal brokerage and management services; and captive landfill management services, as well as engages in the salt water injection well operations. This segment also provides turnkey services, including daily operations, facilities management, and management reporting; and sells construction mats. The Golf and Related Operations segment operates and manages four golf courses and related clubhouses, a hotel, and a travel agency. Its golf and country club facilities provide swimming pools, fitness centers, tennis courts, dining, and banquet and conference facilities, as well as spa services. The company also owns and operates hotel under the brand of The Grand Resort, which provides various facilities, such as hotel, indoor and outdoor swimming pool, bath, fitness center, restaurants, bars, cigar lounge, salon and spa, banquet and conference facilities, and adjoining tennis center. Avalon Holdings Corporation was founded in 1998 and is headquartered in Warren, Ohio.
How the Company Makes MoneyAvalon 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
65
Positive
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
70
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue83.80M80.52M81.18M70.38M58.72M
Gross Profit17.23M13.78M13.96M13.55M11.71M
EBITDA6.99M3.94M4.06M3.67M3.03M
Net Income1.32M-1.77M-980.00K1.97M-46.00K
Balance Sheet
Total Assets86.19M87.97M89.75M78.04M77.95M
Cash, Cash Equivalents and Short-Term Investments2.80M1.19M1.62M3.25M4.21M
Total Debt34.71M35.02M33.69M22.76M26.16M
Total Liabilities49.13M51.87M51.61M39.06M40.98M
Stockholders Equity38.03M36.72M38.49M39.07M37.09M
Cash Flow
Free Cash Flow1.12M-1.54M-4.13M-2.06M-1.98M
Operating Cash Flow3.37M2.35M2.26M2.36M2.57M
Investing Cash Flow-2.25M-3.90M-6.39M-4.42M-4.51M
Financing Cash Flow-818.00K944.00K11.23M-1.09M1.40M

Avalon Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.64
Price Trends
50DMA
2.48
Positive
100DMA
2.60
Positive
200DMA
2.91
Negative
Market Momentum
MACD
0.05
Negative
RSI
61.25
Neutral
STOCH
72.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AWX, the sentiment is Positive. The current price of 2.64 is above the 20-day moving average (MA) of 2.53, above the 50-day MA of 2.48, and below the 200-day MA of 2.91, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 72.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AWX.

Avalon Holdings Risk Analysis

Avalon Holdings disclosed 23 risk factors in its most recent earnings report. Avalon Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Avalon Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$11.14B16.134.60%2.08%3.17%-25.97%
61
Neutral
$10.30M12.952.21%<0.01%
48
Neutral
$5.23M-16.37%
46
Neutral
$43.22M-44.84%-0.91%-305.99%
46
Neutral
$10.63M37.174.19%-14.18%-78.84%
36
Underperform
$5.02M-167.48%-100.00%24.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AWX
Avalon Holdings
2.65
0.49
22.69%
CHNR
China Natural Resources
4.47
-0.49
-9.88%
QRHC
Quest Resource
2.07
-6.37
-75.47%
AQMS
Aqua Metals
0.44
-5.77
-92.91%
CDTG
CDT Environmental Technology Investment Holdings Limited
0.76
-2.62
-77.51%

Avalon Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Avalon Holdings Concludes Annual Stockholders Meeting
Neutral
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 12, 2025