Avalon Holdings Corporation (AWX) AI Stock Analysis
AWX AI stock analysis summary
AI ResearchAvalon Holdings Corporation (AWX) provides waste management services alongside golf and resort operations across the United States. In FY2025, the company delivered $83.5M in revenue with net income of $321,000, while free cash flow reached $2.1M. The stock closed at $2.50 with a market capitalization of $9.7M.
- Market cap
- $9.7M
- Revenue (TTM)
- $85.8M
- P/E
- 8.1x fwd 36.2x
- 1Y return
- -9.4% S&P 500 16.8%
- Avg. target
- —
Bull case
- Free cash flow expanded to $2.1M in FY2025, driven by operating cash flow of $3.8M against capital expenditures of $1.7M.
- Quarterly earnings growth reached 222.6% year-over-year in the latest quarter ended June 30, 2026.
- The stock trades at an EV to EBITDA of 5.9x and a trailing P/E of 8.1x, below the US-listed Industrials peer medians of 13.9x and 24.8x.
Bear case
- Annual net income dropped from $1.3M in FY2024 to $321,000 in FY2025 as gross margin fell from 20.6% to 15.0%.
- Long-term share performance has trailed broader markets, posting a 5-year return of -35.6% compared to an 83.0% return for the S&P 500.
- Net debt reached $26.3M as of June 30, 2026, significantly exceeding cash and short-term investments of $4.8M.
What Avalon does
Avalon Holdings Corporation specializes in providing comprehensive waste management services across the United States to industrial, commercial, municipal, and governmental clients. Headquartered in Warren, Ohio, the company operates through two primary segments: Waste Management Services and Golf and Related Operations. The Waste Management Services segment provides hazardous and nonhazardous waste disposal brokerage, captive landfill management, salt water injection well operations, turnkey operations management, facilities maintenance, and sales of construction mats. The Golf and Related Operations segment manages four golf courses, clubhouses, a travel agency, and The Grand Resort hotel, featuring spa services, banquet facilities, and tennis amenities.
Growth and profitability
Between FY2020 and FY2025, revenue grew at a 5-year CAGR of 7.3%. Annual revenue rose from $70.4M in FY2021 to $81.2M in FY2022 and $83.8M in FY2024, before declining 0.3% to $83.5M in FY2025. Gross margin contracted from 20.6% in FY2024 to 15.0% in FY2025, while operating margin fell from 3.7% to 2.4%. Annual net income moved from $2.0M in FY2021 to net losses of -$583,000 in FY2022 and -$1.8M in FY2023, recovering to $1.3M in FY2024 and $321,000 in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $85.8M with a profit margin of 1.4%, supported by latest quarter revenue growth of 3.2% and quarterly earnings growth of 222.6%.
Balance sheet and cash flow
As of June 30, 2026, Avalon Holdings held $4.8M in cash and short-term investments against total debt of $31.1M, resulting in net debt of $26.3M. Total assets stood at $87.6M, while shareholders' equity was $38.0M, resulting in a debt-to-equity ratio of 0.82 and a current ratio of 1.02. Operating cash flow rose to $3.8M in FY2025, generating free cash flow of $2.1M after capital expenditures of $1.7M. Over the past five years, the company's share count changed -0.8%.
Valuation and performance
At $2.50 per share, AWX trades at a market capitalization of $9.7M and an enterprise value of $39.7M. The stock trades at a trailing P/E of 8.1x and an EV to EBITDA of 5.9x, both below the median of its US-listed Industrials peers of 24.8x and 13.9x, respectively. However, its forward P/E of 36.2x exceeds the peer median of 17.2x, while price-to-sales is 0.1x compared to the peer median of 1.5x. Over the past year, the stock returned -9.4% compared to 16.8% for the S&P 500 (SPY), and over five years returned -35.6% versus 83.0% for the index.
What analysts expect
Wall Street analyst ratings, consensus price targets, and forward revenue estimates are not recorded for Avalon Holdings Corporation. In terms of earnings performance, the company generated trailing twelve months EPS of $0.31 and recorded quarterly earnings growth of 222.6% for the quarter ended June 30, 2026. Avalon Holdings is scheduled to report its next earnings on November 6, 2026.
Key risks and what to watch
- A current ratio of 1.02 and cash holdings of $4.8M against total debt of $31.1M indicate narrow balance sheet flexibility.
- Profitability margins remain slim, highlighted by a trailing twelve months net profit margin of 1.4% and return on equity of 2.5%.
- A forward P/E of 36.2x compared to a trailing P/E of 8.1x reflects expectations of potential earnings pressure.
- Insider ownership of 41.7% and a market capitalization of $9.7M mean institutional ownership stands at only 9.0%, which can affect share liquidity.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this AWX AI stock analysis
This page is an AI-written research summary of Avalon Holdings Corporation (AWX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: AWX income statement, AWX balance sheet, AWX key metrics, AWX chart. See the AWX stock overview for the latest quote and news.
AWX AI stock analysis FAQ
What businesses does Avalon Holdings Corporation operate?
Avalon Holdings Corporation operates Waste Management Services, providing disposal brokerage, captive landfill management, and injection well services, as well as Golf and Related Operations, which manages four golf courses, clubhouses, and The Grand Resort hotel.
Does AWX pay a dividend?
No, Avalon Holdings Corporation does not currently pay a dividend.
What is the financial position and debt load of Avalon Holdings?
As of June 30, 2026, the company held $4.8M in cash and short-term investments, total debt of $31.1M, net debt of $26.3M, and a current ratio of 1.02.
How is AWX valued relative to its sector peers?
AWX trades at an EV to EBITDA of 5.9x and a trailing P/E of 8.1x, both lower than the US-listed Industrials peer medians of 13.9x and 24.8x, though its forward P/E of 36.2x is higher than the peer median of 17.2x.
When is the next earnings release date for Avalon Holdings?
Avalon Holdings Corporation is scheduled to report earnings on November 6, 2026.