Avalon Holdings (AWX) AI Stock Analysis

• Market Cap: $10.06M
• Dividend Yield: N/A
• Average Volume (3M): 110.78K
• Price to Earnings (P/E): 1.3
• Beta (1Y): 0.03
• Revenue Growth: -4.84%
• EPS Growth: -81.73%
• Country: US
• Employees: 882
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): -0.09
• Shares Outstanding: 3,287,647
• 10 Day Avg. Volume: 32,365
• 30 Day Avg. Volume: 110,778
• PEG Ratio: -0.43
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 5.10
• Enterprise Value/Market Cap: 4.06
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 7.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $2.50 ▼(-5.30% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

The score is primarily driven by mixed financial performance: improving free cash flow and consistently positive operating cash flow, but uneven profitability and weaker 2025 margins/earnings. Technical indicators are neutral-to-soft with the stock below key moving averages and a negative MACD. Valuation appears low on P/E, but is discounted by volatile earnings and no dividend yield data.

Positive Factors

Improving cash generation

Consistent positive operating cash flow and a shift to positive free cash flow in 2024–2025 indicate the business is generating usable cash from operations. Durable cash generation supports reinvestment, debt service, and resilience through cycles, reducing reliance on external financing.

Diversified revenue streams

Having both environmental services (tipping fees, landfill operations) and real estate rental income provides revenue diversification. This structural mix smooths cyclical swings in either segment, helping stabilize cash flows and preserve business continuity over the medium term.

Moderate leverage and stable equity base

Debt roughly matching equity and stable total debt suggest a manageable balance sheet profile. Moderate leverage preserves financial flexibility to fund operations or strategic investments while avoiding excessive interest burden, supporting sustainable operations over multiple quarters.

Negative Factors

Inconsistent profitability and weakening margins

Uneven profitability and declining margins in 2025 signal limited operating leverage and rising cost pressure. Persistently volatile margins undermine earnings predictability and make it harder to sustain investment, dividends, or build reserves over a multi-quarter horizon.

Very low and volatile returns on equity

ROE volatility and very low returns in recent periods indicate the company is not reliably converting equity into shareholder returns. This reduces shareholder wealth creation potential and may limit capital allocation options if profitability doesn’t stabilize.

Material negative revenue trend

A roughly 30% reported revenue decline implies structural demand or pricing challenges in core operations. Sustained top-line contraction pressures margins, cash generation, and strategic flexibility, making recovery dependent on tangible operational improvements or revenue diversification.

Avalon Holdings Business Overview & Revenue Model

Company Description

Avalon 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 Money

Avalon makes money mainly through two operating segments: (1) Environmental Services and (2) Real Estate. In Environmental Services, revenue is generated from fees charged for accepting and disposing of waste at its landfill (tipping fees), along with related waste-handling and environmental service activities conducted by its subsidiaries. In Real Estate, revenue comes from rental and leasing income from properties it owns and operates, and may also include property management-related income where applicable. The company’s earnings are influenced by volumes of waste received and pricing at its landfill operations, as well as occupancy/lease rates, rental pricing, and operating costs within its real estate portfolio. Specific significant partnerships: null.

Avalon Holdings Financial Statement Overview

Summary

Overall financials are mixed: revenue is steady and operating cash flow is consistently positive, with free cash flow turning positive and improving in 2024–2025. Offsetting this, profitability has been uneven (losses in 2022–2023, much lower earnings and weaker margins in 2025), and returns on equity remain very low.

Income Statement

Revenue has been relatively stable with low single-digit growth in 2024–2025, but profitability has been inconsistent. After losses in 2022–2023, the company returned to positive net income in 2024 and remained profitable in 2025, though 2025 earnings were much lower than 2024. Margins also weakened in 2025 versus 2024 (lower gross profit and lower operating profit), suggesting cost pressure and limited operating leverage.

Balance Sheet

Leverage appears moderate for the period where it’s provided, with debt roughly in line with equity (debt-to-equity around ~0.9 in 2023–2024) and total debt fairly steady. Equity has also been relatively stable, which supports balance sheet resilience. The main weakness is weak returns for shareholders: return on equity was negative in 2022–2023, improved in 2024, and is very low again in 2025—indicating the balance sheet is not currently generating strong profitability.

Cash Flow

Operating cash flow has been consistently positive across all years shown, which is a key stabilizer. Free cash flow has been volatile—negative in 2020–2023, turning positive in 2024 and improving further in 2025, a meaningful step-up in cash generation. The main concern is that cash conversion hasn’t been consistently strong over time (with multiple years of negative free cash flow), so the recent improvement needs to prove durable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.55M	83.80M	80.52M	81.18M	70.38M
Gross Profit	12.53M	17.23M	13.78M	13.96M	13.55M
EBITDA	5.83M	6.99M	3.94M	4.06M	6.01M
Net Income	321.00K	1.32M	-1.77M	-583.00K	1.97M
Balance Sheet
Total Assets	89.14M	86.19M	87.97M	89.75M	78.04M
Cash, Cash Equivalents and Short-Term Investments	4.11M	2.80M	1.19M	1.62M	3.25M
Total Debt	34.86M	34.71M	35.02M	33.69M	22.76M
Total Liabilities	52.19M	49.13M	51.87M	51.61M	39.06M
Stockholders Equity	38.35M	38.03M	36.72M	38.49M	39.07M
Cash Flow
Free Cash Flow	2.06M	1.12M	-1.54M	-4.13M	-2.06M
Operating Cash Flow	3.78M	3.37M	2.35M	2.26M	2.36M
Investing Cash Flow	-1.73M	-2.25M	-3.90M	-6.39M	-4.42M
Financing Cash Flow	-973.00K	-818.00K	944.00K	11.23M	-1.09M

Avalon Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.64
• 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 2.64 is above the 20-day moving average (MA) of 2.58, below the 50-day MA of 2.64, and above the 200-day MA of 2.61, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AWX	53 Neutral	$10.06M	1.34	0.47%	―	-4.84%	-81.73%
CHNR	48 Neutral	$5.61M	-7.05	―	―	―	―
AQMS	47 Neutral	$12.82M	>-0.01	-274.21%	―	―	-106.93%
QRHC	45 Neutral	$21.59M	-2.54	-44.35%	―	-9.25%	-189.37%
CDTG	42 Neutral	$4.75M	-11.98	-0.83%	―	-45.28%	-100.22%