One-glance verdict
Undervalued
$6.00 our estimate vs market $2.58
57% below our estimate, below the bear case
Fundamentals snapshot
Avalon Holdings Corporation
AWX · ASE · Industrials · Waste Management
Current price
$2.58
52-week range
$2.43 - $5.43
Market cap
$10.06M
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 operates in two very different businesses: it provides waste management services for industrial and government clients, and it also runs golf courses and a large hotel resort. This means the company makes money from both a steady, necessary service like waste disposal and from the leisure industry, which depends on people's willingness to spend on recreation. The blend of a required service with a luxury business is the key thing to understand about how Avalon operates.
How the company got here
Avalon Holdings Corporation was formed in 1998 as a subsidiary of American Waste Services, Inc. The company is headquartered in Warren, Ohio, and became a publicly traded company, meaning its shares can be bought and sold by the public on a stock exchange. It started by providing waste management services and later expanded its operations. A notable turning point was in 2003 when the company entered the hospitality business by leasing and operating a golf course and its facilities, which led to the creation of its Avalon Golf and Country Club subsidiary.
What it actually does
Avalon Holdings is a company with two main lines of business that are quite different from each other. On one hand, it provides waste management services for industrial, commercial, and government clients in the northeastern and midwestern United States. On the other hand, it owns and operates upscale golf courses, a resort hotel, and related recreational facilities. Think of it as a company that handles trash and recycling for businesses and towns, while also running a vacation and leisure destination.
Waste Management Services
This is the company's largest business area, making up about 55% of its total sales. This segment doesn't typically haul trash from people's homes, but instead serves larger customers like factories, municipalities (local governments), and other businesses. It acts as a middleman for hazardous and non-hazardous waste disposal, manages landfill sites for other companies, and operates wells that inject saltwater deep underground, a process often associated with oil and gas production.
Golf and Related Operations
This part of the company is focused on leisure and hospitality and accounts for the other major portion of its revenue (the money it brings in from sales). It operates four golf courses and country clubs in Ohio and Pennsylvania, which include restaurants, swimming pools, and fitness centers. The company also owns and operates The Grand Resort, a hotel with spa services and conference facilities, creating a full vacation destination. Customers for this segment are club members, hotel guests, and people attending events like weddings or conferences.
What management is betting on now
The company's leadership is focused on growing both sides of its business. For the waste management segment, they aim to hold onto their current customers while attracting new ones through targeted sales and marketing. They create customized programs to fit the specific needs of each client, helping them manage their waste disposal efficiently. In the golf and resort business, the strategy is to create a complete, self-contained vacation experience where hotel guests can easily access all the golf and country club amenities, and club members can use the resort's facilities.
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 $2.58
Our most-likely fair value is $6.00 a share — about 132.5% above today's price of $2.58, 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)
8.60x
Forward P/E
—
P/B
0.26x
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
0.30
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
—
Payout ratio
0.0%
Last ex-div date
—