Avalon Holdings (AWX) AI Stock Analysis

• Market Cap: $9.65M
• Dividend Yield: N/A
• Average Volume (3M): 11.47K
• Price to Earnings (P/E): 12.2
• Beta (1Y): -0.06
• Revenue Growth: <0.01%
• EPS Growth: N/A
• Country: US
• Employees: 882
• Sector: Industrials
• Sector Strength: 90
• Industry: Waste Management
• EPS (TTM): -0.38
• Shares Outstanding: 3,287,647
• 10 Day Avg. Volume: 16,148
• 30 Day Avg. Volume: 11,466
• 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: 4.43
• 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: 60 Neutral
• Price Target: $2.50 ▲(0.81%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 (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 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
	EBIT
2.44M	3.08M	-273.00K	578.00K	930.00K	461.00K
	EBITDA
6.33M	6.99M	3.94M	4.06M	3.67M	3.03M
	Net Income Common Stockholders
798.00K	1.32M	-1.77M	-980.00K	1.97M	-46.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.27M	2.80M	1.19M	1.62M	3.25M	4.21M
	Total Assets
87.63M	86.19M	87.97M	89.75M	78.04M	77.95M
	Total Debt
6.22M	34.71M	35.02M	33.69M	22.76M	26.16M
	Net Debt
4.95M	31.91M	33.84M	32.07M	19.51M	21.95M
	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: Neutral
• Last Price: 2.48
• 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 Neutral. The current price of 2.48 is above the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.52, and below the 200-day MA of 2.92, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 50.44 is Neutral, neither overbought nor oversold. The STOCH value of 54.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AWX.

Avalon Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.52B	12.34	5.41%	3.62%	4.15%	-12.18%
AWX	60 Neutral	$9.65M	12.16	2.21%	―	<0.01%	―
OMEX	53 Neutral	$33.53M	―		―	-2.44%	―
KSCP	52 Neutral	$42.17M	―	-243.06%	―	-5.64%	35.09%
AIRI	52 Neutral	$13.06M	―	-11.05%	―	0.29%	31.48%
USEA	51 Neutral	$12.25M	―	-10.92%	3.01%	-2.85%	-280.26%
ASTC	42 Neutral	$9.49M	―	-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.