Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: C$22.06M
• Dividend Yield: N/A
• Average Volume (3M): 444.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: N/A
• EPS Growth: -11500.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 630,347,800
• 10 Day Avg. Volume: 333,727
• 30 Day Avg. Volume: 444,526
• PEG Ratio: 0.94
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.28
• 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

• Rating: 52 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The stock's score is primarily impacted by significant financial performance challenges, particularly in revenue generation and profitability. While technical indicators show some positive momentum, the valuation remains unfavorable due to negative earnings.

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. 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

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	26.79K	109.83K	124.26K	21.77K	11.25K	134.14K
Gross Profit	-173.83K	-149.00K	-107.00K	-147.00K	-102.00K	-29.15K
EBITDA	-4.12M	380.74K	-3.99M	-4.01M	-3.92M	-5.21M
Net Income	-4.82M	-635.00K	-3.32M	-3.95M	-3.75M	-5.37M
Balance Sheet
Total Assets	136.42M	136.38M	131.05M	120.45M	118.47M	116.60M
Cash, Cash Equivalents and Short-Term Investments	1.61M	712.31K	2.58M	3.03M	1.82M	1.30M
Total Debt	9.69M	7.05M	3.30M	4.56M	3.68M	867.47K
Total Liabilities	10.68M	8.76M	4.91M	6.14M	4.84M	2.10M
Stockholders Equity	125.73M	127.62M	126.14M	114.31M	113.63M	114.50M
Cash Flow
Free 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	-1.38M	1.04M
Financing Cash Flow	6.16M	2.75M	13.78M	4.52M	3.94M	300.04K

Avalon Advanced Materials Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.04 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLAN	70 Outperform	C$27.44M	26.88	7.85%	―	-1.12%	―
GMA	59 Neutral	C$25.81M	―	-65.04%	―	-89.84%	-16.41%
FNC	54 Neutral	C$21.81M	4.00	10.15%	―	―	―
AVL	52 Neutral	C$22.06M	―	-5.23%	―	―	-11500.00%
Sector *	44 Neutral	C$982.42M	-6.71	-13.24%	2.54%	17.20%	-32.72%
ABR	39 Underperform	C$18.16M	550.00	0.98%	―	―	85.65%
TN	37 Underperform	C$14.41M	―	-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.