Avalon Advanced Materials (AVL) AI Stock Analysis

• Market Cap: $22.32M
• Dividend Yield: N/A
• Average Volume (3M): 885.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: N/A
• EPS Growth: -10100.00%
• Country: CA
• Employees: 8
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 637,648,600
• 10 Day Avg. Volume: 693,572
• 30 Day Avg. Volume: 885,007
• PEG Ratio: 0.53
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 256.48
• P/FCF Ratio: -6.19
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 891.21
• Enterprise Value/Gross Profit: -137.35
• Enterprise Value/Ebitda: -7.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Avalon Advanced Materials' overall score is primarily impacted by its financial struggles and bearish technical indicators. However, recent corporate events provide a positive outlook, suggesting potential for future growth in the critical minerals sector.

Avalon Advanced Materials Business Overview & Revenue Model

Company Description

Avalon Advanced Materials Inc. is a Canadian mineral development company focused on the production of advanced materials, particularly critical minerals and metals essential for clean technology, electric vehicles, and renewable energy applications. The company operates in the mining and materials sector, with a portfolio that includes lithium, rare earth elements, and other strategic minerals. Avalon aims to sustainably develop its resource projects to meet the growing demand for these materials in various high-tech and green industries.

How the Company Makes Money

Avalon Advanced Materials generates revenue primarily through the exploration and development of its mineral resources, with a focus on selling high-value products derived from these minerals. The company's revenue model includes the sale of concentrate and refined materials to industries such as electronics, automotive, and energy storage. Key revenue streams involve partnerships and offtake agreements with manufacturers and end-users in sectors that require critical minerals. Additionally, Avalon may receive funding through joint ventures, government grants, and investments aimed at advancing its projects and technologies, contributing to its overall earnings.

Avalon Advanced Materials Financial Statement Overview

Summary

Avalon Advanced Materials faces significant financial challenges with negative revenue growth and profitability issues. Despite a stable balance sheet with low leverage, the operational inefficiencies and poor cash flow generation indicate financial instability and liquidity concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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	-3.18M	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: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.04 is below the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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	70 Outperform	C$26.89M	26.34	7.85%	―	-1.12%	―
GMA	59 Neutral	C$32.27M	―	-65.04%	―	-89.84%	-16.41%
FNC	54 Neutral	C$24.24M	4.00	10.15%	―	―	―
AVL	46 Neutral	$22.32M	―	-4.61%	―	―	-10100.00%
Sector *	44 Neutral	AU$1.55B	-7.44	-18.84%	4.38%	-3.12%	-36.19%
ABR	39 Underperform	C$17.75M	525.00	0.98%	―	―	―
TN	37 Underperform	C$10.48M	―	-17.92%	―	―	39.24%

Avalon Advanced Materials Corporate Events

Avalon Secures Funding and Advances Sustainable Byproduct Project

Avalon Advanced Materials Inc. has secured $1,300,000 in funding from Lind Global Fund II, LP, which will be used to advance strategic projects and corporate initiatives. The company is also progressing its Analcime Utilization Project, aimed at enhancing the value of byproducts from lithium processing. This project, supported by Ontario’s Critical Minerals Innovation Fund, explores the use of analcime in improving concrete durability and reducing carbon emissions, aligning with sustainable construction efforts. The initiative positions Avalon as a leader in the critical minerals economy, contributing to Ontario’s economic future and infrastructure development.

Avalon Secures Additional Funding to Advance Critical Mineral Projects

Avalon Advanced Materials Inc. has announced a second drawdown of $1,300,000 from its $15,000,000 convertible security funding agreement with Lind Global Fund II, LP. This funding will support ongoing projects and general corporate purposes, with the convertible security having a two-year term and a 10% annual interest rate. The agreement includes a conversion option for Lind and a repurchase option for Avalon, alongside a closing fee and share purchase warrants for Lind. The move is expected to bolster Avalon’s project advancements and strengthen its position in the critical minerals industry.