Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: C$18.25M
• Dividend Yield: N/A
• Average Volume (3M): 341.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: -1118.18%
• Country: CA
• Employees: 15
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Mining
• EPS (TTM): -0.01
• Shares Outstanding: 608,491,800
• 10 Day Avg. Volume: 520,967
• 30 Day Avg. Volume: 341,351
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 503.45
• Price to Cash Flow (P/CF): -4.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Avalon Advanced Materials faces significant challenges with negative revenue growth and liquidity issues. However, the company's stable balance sheet and recent positive corporate developments, such as resource expansion and strategic appointments, offer potential upside. The bearish technical indicators and negative valuation metrics underscore the financial struggles, resulting in a cautious outlook.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials Inc. is a Canadian mineral development company focused on rare minerals and metals essential for clean energy, electric vehicles, and other technology applications. Operating within the mining and materials sector, Avalon is engaged in the exploration and development of critical mineral projects, including lithium, tantalum, cesium, and rare earth elements. The company aims to provide sustainable solutions to support the transition to a low-carbon future.

How the Company Makes Money

Avalon Advanced Materials generates revenue primarily through the development and potential sale of mineral resources. The company engages in exploration and project development activities to identify and develop deposits of rare and critical minerals. Revenue is expected from the sale of these minerals to manufacturers and industries that require them for clean technology, electronics, renewable energy, and other high-tech applications. Avalon may also earn income through strategic partnerships, joint ventures, and potential off-take agreements with companies seeking reliable sources of critical materials. Additionally, the company may secure funding through investments and public and private financing to support its exploration and development projects.

Avalon Advanced Materials Financial Statement Overview

Summary

Avalon Advanced Materials is facing significant financial challenges, particularly in generating revenue and achieving profitability. While the balance sheet shows some strength through low leverage, the income statement and cash flow indicate operational and liquidity issues that require strategic attention to ensure sustainability.

Income Statement

The company shows a negative revenue growth, with a sharp decrease in net income over the years. The gross profit margin is negative due to consistently lower revenues than costs, indicating instability and ongoing losses. There is no EBIT or EBITDA margin due to negative EBIT and EBITDA values, reflecting operational inefficiencies.

Balance Sheet

The balance sheet is relatively stable with a strong equity base compared to liabilities, indicated by a low debt-to-equity ratio. However, the return on equity is negative due to persistent net losses, which poses a risk to profitability. The company maintains a solid equity ratio, showcasing financial stability despite operational challenges.

Cash Flow

Cash flow analysis reveals negative free cash flow, impacting liquidity. The company struggles to generate positive cash flows from operations, relying heavily on financing activities. The free cash flow growth rate is negative, indicating cash flow challenges that might affect future operations.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
7.13K	109.83K	45.00K	0.00	11.25K	134.14K
	Gross Profit
-194.53K	-149.04K	-107.40K	-169.03K	-102.25K	-29.15K
	EBIT
-2.51M	0.00	-3.73M	-3.02M	-2.44M	-2.13M
	EBITDA
-3.90M	-8.20K	-3.76M	-2.85M	-3.80M	-5.21M
	Net Income Common Stockholders
-4.56M	-634.58K	-3.32M	-3.95M	-3.76M	-5.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.13M	712.31K	2.58M	3.03M	1.82M	1.30M
	Total Assets
138.63M	136.38M	131.05M	120.45M	118.47M	116.60M
	Total Debt
10.10M	7.05M	3.30M	4.56M	3.68M	867.47K
	Net Debt
6.97M	6.34M	714.88K	1.52M	1.86M	-428.26K
	Total Liabilities
11.71M	8.76M	4.91M	6.14M	4.84M	2.10M
	Stockholders Equity
126.91M	127.62M	126.14M	114.31M	113.63M	114.50M
Cash Flow		Free Cash Flow
-3.16M	-4.55M	-14.16M	-3.32M	-3.21M	-2.66M
	Operating Cash Flow
-2.22M	0.00	-2.62M	-2.46M	-2.03M	-1.92M
	Investing Cash Flow
461.22K	-537.59K	-11.61M	-859.94K	-1.38M	1.04M
	Financing Cash Flow
6.63M	2.75M	13.78M	4.52M	3.94M	300.04K

Avalon Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 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 TSE:AVL, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVL.

Avalon Advanced Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALC	73 Outperform	C$602.84M	6.49	10.92%	5.19%	-2.46%	4.75%
Sector *	46 Neutral	$2.64B	-3.89	-29.36%	3.33%	2.89%	-29.66%
AVL	43 Neutral	C$18.25M	―	-5.00%	―	―	-1118.18%
LAC	42 Neutral	$921.56M	―	-4.13%	―	―	―
ARU	29 Underperform	C$45.38M	―	85.45%	―	―	31.44%

Avalon Advanced Materials Corporate Events

Avalon Advanced Materials Announces 2025 Shareholder Meeting Results

Avalon Advanced Materials Inc. announced the results of its 2025 Annual and Special Meeting of Shareholders, where all seven director nominees were elected. Shareholders also re-appointed Ernst & Young LLP as auditors and approved the issuance of common shares to SCR-Sibelco NV upon conversion of a convertible debenture. This meeting reflects Avalon’s ongoing commitment to its strategic initiatives in the lithium and rare earths sectors, which are crucial for the company’s growth and positioning in the advanced materials industry.

Avalon Advanced Materials Boosts Mineral Resources at Separation Rapids Project

Avalon Advanced Materials Inc., in collaboration with its joint-venture partner Sibelco, announced a significant update to the Mineral Resource Estimate for its Separation Rapids Project in Ontario, Canada. The updated estimate reveals a 28% increase in Measured and Indicated Mineral Resources, enhancing the project’s potential and aligning with Canada’s critical minerals strategy. This development strengthens Avalon’s market position as it continues to advance the project’s development and targets further exploration in 2025.

Avalon Appoints Strategic Consultant for Thunder Bay Lithium Facility

Avalon Advanced Materials Inc. has appointed Mark N.J. Ashcroft as a Strategic Consultant to advance the development of its proposed Lake Superior Lithium Facility in Thunder Bay, Ontario. This facility is set to become Ontario’s first midstream lithium hydroxide processing plant, playing a crucial role in the lithium supply chain by converting local lithium concentrates into battery-grade lithium hydroxide. This move is expected to support the clean energy transition in Canada and North America by ensuring a reliable supply of processed lithium for electric vehicle battery manufacturing. The strategic location of the facility in Thunder Bay offers logistical advantages and access to key markets, enhancing Avalon’s industry positioning and stakeholder value.