Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: C$17.22M
• Dividend Yield: N/A
• Average Volume (3M): 351.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: -11500.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 614,962,400
• 10 Day Avg. Volume: 314,304
• 30 Day Avg. Volume: 351,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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 is currently facing financial and operational challenges, with a weak income statement and cash flow issues. Despite these difficulties, the company's stable balance sheet and positive corporate events related to mineral resources and lithium processing provide some optimism. However, the negative P/E ratio and lack of dividends impact its valuation. Technical indicators suggest moderate market sentiment.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the acquisition, exploration, evaluation, and development of rare metal and mineral properties primarily in Canada. The company focuses on exploring lithium, tantalum, cesium, indium, gallium, germanium, tin, yttrium, and zirconium deposits, as well as rare earth elements. It holds 100% interests in the Nechalacho project comprises eight contiguous mining leases covering an area of 5,786 hectares located at Thor Lake in the Mackenzie Mining District of the Northwest Territories; the East Kemptville project that consists of an exploration license covering an area of approximately 1,165 hectares located to the northeast of Yarmouth, Nova Scotia; the Separation Rapids project, which includes nineteen mineral claims and one mining lease covering an area of approximately 4,414 hectares located in the Kenora in Ontario; and the Lilypad project comprising 14 claims, including 166 new claim units or cells covering an area of approximately 3,299 hectares in located to the northeast of the Pickle Lake in Ontario. The company was formerly known as Avalon Rare Metals Inc. and changed its name to Avalon Advanced Materials Inc. in February 2016. Avalon Advanced Materials Inc. was founded in 1991 and is headquartered in Toronto, Canada.

How the Company Makes Money

Avalon 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, particularly in revenue generation and profitability. The income statement shows negative revenue growth and losses, while cash flow issues indicate liquidity problems. The balance sheet remains stable with low leverage, but overall financial performance is weak.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
109.83K	45.00K	0.00	11.25K	134.14K
	Gross Profit
-149.04K	-107.40K	-169.03K	-102.25K	-29.15K
	EBIT
-5.92M	-3.73M	-3.02M	-2.44M	-2.13M
	EBITDA
380.74K	-3.76M	-2.85M	-3.80M	-5.21M
	Net Income Common Stockholders
-634.58K	-3.32M	-3.95M	-3.76M	-5.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
712.31K	2.58M	3.03M	1.82M	1.30M
	Total Assets
136.38M	131.05M	120.45M	118.47M	116.60M
	Total Debt
7.05M	3.30M	4.56M	3.68M	867.47K
	Net Debt
6.34M	714.88K	1.52M	1.86M	-428.26K
	Total Liabilities
8.76M	4.91M	6.14M	4.84M	2.10M
	Stockholders Equity
127.62M	126.14M	114.31M	113.63M	114.50M
Cash Flow		Free Cash Flow
-4.55M	-14.16M	-3.32M	-3.21M	-2.66M
	Operating Cash Flow
-4.08M	-2.62M	-2.46M	-2.03M	-1.92M
	Investing Cash Flow
-537.59K	-11.61M	-859.94K	-1.38M	1.04M
	Financing Cash Flow
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: Negative
• 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 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 bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 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
PLAN	71 Outperform	C$16.46M	16.13	7.85%	―	-1.12%	―
FNC	54 Neutral	C$18.07M	3.33	10.15%	―	―	―
GMA	51 Neutral	C$20.08M	―	-65.04%	―	-89.84%	-16.41%
Sector *	49 Neutral	$1.95B	-1.37	-21.43%	3.74%	0.84%	-29.84%
AVL	47 Neutral	C$17.22M	―	-5.23%	―	―	-11500.00%
ABR	39 Underperform	C$18.99M	―	-2.11%	―	―	85.65%
TN	37 Underperform	C$19.65M	―	-22.48%	―	―	6.12%

Avalon Advanced Materials Corporate Events

Avalon Advanced Materials Adopts Shareholder Rights Plan

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.

Spark’s Take on TSE:AVL Stock

According to Spark, TipRanks’ AI Analyst, TSE:AVL is a Neutral.

Avalon Advanced Materials scores a 42, reflecting a challenging financial position with operational and liquidity issues. Technical analysis indicates a bearish trend, and the valuation is unattractive due to a negative P/E ratio and no dividend yield. However, recent corporate events show promising developments that could potentially improve future prospects.

To see Spark’s full report on TSE:AVL stock, click here.

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.