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Avalon Advanced Materials Inc. (TSE:AVL)
:AVL

Avalon Advanced Materials (AVL) AI Stock Analysis

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Avalon Advanced Materials

(OTC:AVL)

Rating:49Neutral
Price Target:
C$0.00
▼(-100.00%Downside)
Avalon Advanced Materials' stock faces significant challenges, primarily due to poor financial performance characterized by negative revenue growth and persistent losses. While technical indicators show some short-term strength, the negative P/E ratio and lack of dividend yield further detract from its investment appeal.

Avalon Advanced Materials (AVL) vs. iShares MSCI Canada ETF (EWC)

Avalon Advanced Materials Business Overview & Revenue Model

Company DescriptionAvalon Advanced Materials Inc. (AVL) is a Canadian mineral development company focused on the exploration and development of critical minerals and metals, including lithium, tin, and rare earth elements. The company aims to supply these vital materials to the growing clean technology and renewable energy sectors. Avalon is committed to sustainable practices and innovative solutions, working to advance projects that provide essential materials for electric vehicles, energy storage, and other clean technology applications.
How the Company Makes MoneyAvalon Advanced Materials makes money primarily through the development and eventual sale of critical mineral resources. The company generates revenue by advancing its mineral projects through exploration, development, and partnerships with larger companies interested in securing a stable supply of these essential materials. Avalon also seeks to establish joint ventures or off-take agreements with manufacturers and industries that require these critical minerals, such as lithium for batteries in electric vehicles. Additionally, Avalon may earn revenue through the sale of project stakes or mineral rights as its properties increase in value through exploration and development efforts. The company's ability to align with global trends towards renewable energy and sustainable practices plays a significant role in its revenue generation strategy.

Avalon Advanced Materials Financial Statement Overview

Summary
Avalon Advanced Materials faces significant financial challenges. The income statement displays negative revenue growth and ongoing losses, while the cash flow is impacted by negative free cash flow, reducing liquidity. However, the balance sheet shows some stability with a low debt-to-equity ratio.
Income Statement
20
Very Negative
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
65
Positive
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
30
Negative
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
26.79K109.83K124.26K21.77K11.25K134.14K
Gross Profit
-173.83K-149.00K-107.00K-147.00K-102.00K-29.15K
EBIT
-3.13M-5.92M-3.73M-2.99M-2.40M-2.08M
EBITDA
-4.12M380.74K-3.99M-4.01M-3.92M-5.21M
Net Income Common Stockholders
-4.82M-635.00K-3.32M-3.95M-3.75M-5.37M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.61M712.31K2.58M3.03M1.82M1.30M
Total Assets
136.42M136.38M131.05M120.45M118.47M116.60M
Total Debt
9.69M7.05M3.30M4.56M3.68M867.47K
Net Debt
8.08M6.34M714.88K1.52M1.86M-428.26K
Total Liabilities
10.68M8.76M4.91M6.14M4.84M2.10M
Stockholders Equity
125.73M127.62M126.14M114.31M113.63M114.50M
Cash FlowFree Cash Flow
-4.20M-4.55M-14.16M-3.32M-3.21M-2.66M
Operating Cash Flow
-3.89M-4.08M-2.62M-2.46M-2.03M-1.92M
Investing Cash Flow
-193.45K-537.59K-11.61M-859.94K-1.38M1.04M
Financing Cash Flow
6.16M2.75M13.78M4.52M3.94M300.04K

Avalon Advanced Materials Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.03
Price Trends
50DMA
0.03
Positive
100DMA
0.03
Positive
200DMA
0.04
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.07
Neutral
STOCH
73.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVL, the sentiment is Positive. The current price of 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.07 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AVL.

Avalon Advanced Materials Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
C$18.66M18.287.85%-1.12%
TSGMA
58
Neutral
C$25.10M-65.04%-89.84%-16.41%
TSFNC
54
Neutral
C$18.07M3.3310.15%
51
Neutral
$2.04B-1.26-21.09%3.98%2.91%-30.49%
TSAVL
49
Neutral
C$18.91M-5.23%-11500.00%
TSABR
39
Underperform
C$18.16M550.000.98%85.65%
TSTN
37
Underperform
C$15.06M-22.48%6.12%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AVL
Avalon Advanced Materials
0.03
-0.03
-50.00%
TSE:FNC
Fancamp Exploration
0.08
0.02
33.33%
TSE:TN
Tartisan Nickel Corp
0.10
-0.07
-41.18%
TSE:GMA
Geomega Resources
0.18
0.07
63.64%
TSE:ABR
Arbor Metals
0.22
-0.29
-56.86%
TSE:PLAN
Progressive Planet Solutions Inc
0.17
0.08
88.89%

Avalon Advanced Materials Corporate Events

Business Operations and Strategy
Avalon Advanced Materials Adopts Shareholder Rights Plan
Neutral
Apr 9, 2025

Avalon Advanced Materials Inc. has adopted a shareholder rights plan to ensure fair treatment of shareholders in the event of unsolicited take-over bids and to protect against creeping bids. The plan, which aligns with similar strategies by other Canadian companies, allows shareholders to purchase additional shares at a discount if certain conditions are met. The plan is subject to ratification by shareholders within six months, failing which it will be terminated.

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.