One-glance verdict
Undervalued
$6.00 our estimate vs market $2.59
57% below our estimate, below the bear case
Fundamentals snapshot
Avalon Holdings Corporation
AWX · ASE · Industrials · Waste Management
Current price
$2.59
52-week range
$2.43 - $3.00
Market cap
$10.10M
Balance sheet
Distressed
0.99x Concerning
Net debt $29.51M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 2.7% last year.
- Reward Returns 2.5% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 2/10 years.
What this company does
Avalon Holdings Corporation
Avalon Holdings Corporation mainly makes money by collecting and disposing of trash for businesses and governments, and also from running golf courses and a hotel. This means their core business is managing waste, with the golf and hotel parts being extra ventures. Understanding their waste management piece is key because it's where the bulk of their earnings originate.
How the company got here
Avalon Holdings Corporation was established in 1998, emerging as a spin-off from American Waste Services, Inc.. Its origins trace back to earlier waste management operations, including waste disposal brokerage and captive landfill management, which were contributed to Avalon at its inception. The company also acquired golf course properties and corporate headquarters in Warren, Ohio, laying the groundwork for its diversified business model. Over the years, Avalon has expanded its operations, notably through the acquisition and management of golf courses, country clubs, and a hotel, The Grand Resort, integrating these leisure assets with its core waste management services. This strategic diversification has shaped Avalon into a company with a unique blend of industrial and hospitality services.
What it actually does
Avalon Holdings Corporation operates in two main areas: waste management and golf/resort operations. In waste management, it handles everything from hazardous and non-hazardous waste disposal to managing landfills and operating saltwater injection wells for industrial, commercial, and government clients. On the leisure side, the company manages golf courses, country clubs, a hotel, and recreational facilities, offering a range of amenities like dining, event spaces, and spa services. This dual focus means Avalon generates revenue from both essential environmental services and the hospitality sector.
Waste Management Services
This is Avalon's primary business, where it acts as a broker and manager for hazardous and non-hazardous waste. Think of it like a middleman that arranges for waste to be picked up, transported, and disposed of properly, often using specialized landfills it manages. This segment also includes operations like saltwater injection wells, which are used in industries such as oil and gas for disposal. Customers in this segment are typically industrial, commercial, municipal, and government entities that need reliable and compliant waste disposal solutions.
Golf and Related Operations
This segment is Avalon's hospitality arm, encompassing the operation of four golf courses, country clubs, a hotel (The Grand Resort), and other recreational facilities. These venues offer a variety of services beyond just golf, including dining, event hosting, lodging, fitness centers, and spa treatments. Revenue here comes from green fees, memberships, hotel stays, food and beverage sales, and event bookings. This part of the business aims to provide a comprehensive leisure and hospitality experience for its customers.
What management is betting on now
Avalon Holdings is focused on improving the efficiency of its core waste management and hospitality operations. The company aims to leverage its diverse business model, combining environmental services with leisure assets, to achieve steady growth. Management is looking to enhance profitability by optimizing operations and potentially capitalizing on the value of its real estate holdings. The strategy involves adapting to market demands and ensuring the sustainability of its services in a changing economic landscape.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-660.00K
FY2024 Q4
$-1.13M
FY2025 Q1
$-1.37M
FY2025 Q2
$2.74M
FY2025 Q3
$852.00K
FY2025 Q4
$-166.00K
FY2026 Q1
$-1.78M
FY2026 Q2
$2.37M
Revenue
$20.90M
Net income
$884.00K
Diluted EPS
—
Operating cash flow
$3.01M
Free cash flow
$2.37M
Fetching…
Sources
Revenue
$17.66M
Net income
$-1.24M
Diluted EPS
—
Operating cash flow
$-1.26M
Free cash flow
$-1.78M
Fetching…
Sources
Revenue
$21.48M
Net income
$-356.00K
Diluted EPS
—
Operating cash flow
$278.00K
Free cash flow
$-166.00K
Fetching…
Sources
Revenue
$25.75M
Net income
$1.90M
Diluted EPS
—
Operating cash flow
$1.45M
Free cash flow
$852.00K
Fetching…
Sources
Revenue
$20.25M
Net income
$274.00K
Diluted EPS
—
Operating cash flow
$3.03M
Free cash flow
$2.74M
Fetching…
Sources
Revenue
$16.07M
Net income
$-1.50M
Diluted EPS
—
Operating cash flow
$-982.00K
Free cash flow
$-1.37M
Fetching…
Sources
Revenue
$17.64M
Net income
$-497.00K
Diluted EPS
—
Operating cash flow
$-579.00K
Free cash flow
$-1.13M
Fetching…
Sources
Revenue
$24.23M
Net income
$1.84M
Diluted EPS
—
Operating cash flow
$342.00K
Free cash flow
$-660.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $6.00 vs current price $2.59
Our most-likely fair value is $6.00 a share — about 131.6% above today's price of $2.59, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $29.5M. Interest coverage 1.0x.
Net debt
$29.51M
Interest coverage
0.99x
Avalon Holdings Corporation's profit covers its interest bill about 1.0 times over. which is stronger than every peer shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
AWX
BASELINE
Avalon Holdings Corporation
Total debt $34.31M Interest coverage 0.99x This is the baseline the peer rows are being compared against.
Total debt $62.18M Interest coverage -0.04x -100% vs AWX This peer has almost no interest-payment cushion compared with AWX.
Total debt $5.22M Interest coverage -51.02x -100% vs AWX This peer has almost no interest-payment cushion compared with AWX.
Total debt $441.00K Interest coverage -21.31x -100% vs AWX This peer has almost no interest-payment cushion compared with AWX.
Total debt $6.13M Interest coverage -127.41x -100% vs AWX This peer has almost no interest-payment cushion compared with AWX.
Total debt $12.83M Interest coverage -7.05x -100% vs AWX This peer has almost no interest-payment cushion compared with AWX.
What you should know
The case for and against AWX
3 Rewards
0 Risks
Rewards
-
Revenue grew 2.7% last year.
-
Returns 2.5% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.09x
Forward P/E
—
P/B
0.27x
P/S
0.12x
EV/EBITDA
5.62x
PEG ratio
4.39x
Profitability
How much profit each dollar creates
Gross margin
20.5%
Operating margin
6.5%
Net margin
1.4%
ROE
2.5%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.94x
Current ratio
1.02x
Quick ratio
0.88x
Total debt
$34.31M
Total cash
$4.79M
Growth
How the business has been compounding
Revenue TTM
$85.78M
Revenue 5Y CAGR
4.4%
EPS TTM
0.32
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$3.48M
Free CF TTM
$2.06M
FCF margin
2.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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