Breaking Down Avalon Holdings Corporation (AWX) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of a specific company's financial standing? Have you considered how Avalon Holdings Corporation (AWX) is performing? For the full year 2024, AWX reported net operating revenues of $83.8 million, a notable increase from $80.9 million in 2023, and achieved a net income of $1.3 million, a significant turnaround from a net loss of $1.8 million the previous year. With earnings per share of $0.34, compared to a loss of $0.46 in 2023, is AWX a stock to watch? Read on to discover key insights into Avalon Holdings' financial health and market position.

Avalon Holdings Corporation (AWX) Revenue Analysis

Understanding the revenue streams of Avalon Holdings Corporation (AWX) is crucial for investors seeking to assess the company's financial health and future prospects. A detailed breakdown reveals the primary sources of income, historical growth trends, and the contributions of different business segments.

Avalon Holdings Corporation primarily generates revenue through its subsidiaries, which operate in the following segments:

• Waste Management Services: This segment focuses on the collection, processing, and disposal of hazardous and non-hazardous waste.
• Steel Services: This involves providing services to the steel industry, such as processing and related activities.

Analyzing the year-over-year revenue growth rate provides insights into the company's performance and its ability to expand its market presence. While specific percentage increases or decreases require up-to-date financial data, examining historical trends can reveal periods of significant growth or contraction. Investors should pay close attention to these trends to understand the factors driving revenue fluctuations.

To gain a comprehensive understanding of Avalon Holdings Corporation's financial health, it's essential to examine the contribution of each business segment to the overall revenue. By analyzing the financial data, investors can identify which segments are the primary drivers of revenue and which may be underperforming. This information is valuable for assessing the company's strategic focus and resource allocation.

Changes in revenue streams can significantly impact a company's financial performance. Investors should carefully analyze any notable shifts in Avalon Holdings Corporation's revenue sources, such as the introduction of new products or services, expansion into new geographic markets, or changes in customer demand. Understanding these changes is crucial for evaluating the company's long-term growth potential and risk profile.

A detailed revenue analysis often involves examining specific financial statements and reports. For instance, a breakdown of revenue by segment might look like this:

For more insights into the company's values and strategic direction, refer to Mission Statement, Vision, & Core Values of Avalon Holdings Corporation (AWX).

Avalon Holdings Corporation (AWX) Profitability Metrics

Analyzing Avalon Holdings Corporation's profitability involves examining several key metrics that reveal its financial health and operational efficiency. For the full year 2024, the company has shown improved performance with a net income of $1.3 million, or $0.34 per share, a notable turnaround from a net loss of $1.8 million, or $0.46 per share, in 2023. This indicates a positive shift in the company's ability to generate profit.

Here's a breakdown of various profitability aspects:

• Gross Profit: For the first nine months of 2024, Avalon Holdings reported a gross profit of $12.1 million, resulting in a gross margin of 13.5%. In comparison, the gross profit for the full year 2024 stood at $17.229 million.
• Operating Income: The operating income for the first nine months of 2024 was $1.8 million, yielding an operating margin of 2.0%. For the full year, the operating income was $3.075 million with an operating margin of 3.67%.
• Net Profit Margin: The net profit margin for 2024 is 1.573%, a significant improvement compared to the net loss in the previous year.

A closer look at the balance sheet reveals:

• Revenue: The total revenue for 2024 was reported as $83.8 million, up from $80.9 million in 2023.
• Cost of Revenue: The cost of revenue was $66.566 million in 2024.

Here is a summary of Avalon Holdings Corporation's Income Statement (in USD Thousands):

Additionally, key profitability ratios provide further insight:

• Gross Margin: 15.90%
• Operating Margin: 3.67%
• Pretax Margin: 1.244%
• Net Margin: 1.573%
• Return on Assets: 1.482%
• Return on Equity: 3.526%

It is also worth noting the segment performance, where waste management services and golf-related operations contribute significantly to Avalon's revenue. In 2024, waste management accounted for approximately 55% of total consolidated net operating revenues, while golf and related operations represented about 45%.

Interested in learning more about the investors behind AWX? Check out: Exploring Avalon Holdings Corporation (AWX) Investor Profile: Who’s Buying and Why?

Avalon Holdings Corporation (AWX) Debt vs. Equity Structure

Understanding how Avalon Holdings Corporation (AWX) manages its debt and equity is crucial for investors. It provides insights into the company's financial stability and growth strategy. Here's a breakdown of key aspects:

As of the fiscal year 2024, Avalon Holdings Corporation's financial health can be better understood by examining its debt levels. While specific figures for 2024 are not available, analyzing past trends and industry benchmarks can provide a reasonable assessment.

Typically, an overview includes both long-term and short-term debt. Long-term debt represents obligations extending beyond one year, often used to finance significant capital expenditures. Short-term debt, on the other hand, covers liabilities due within a year, such as accounts payable and short-term loans.

The debt-to-equity ratio is a critical metric for evaluating Avalon Holdings Corporation's financial leverage. This ratio indicates the proportion of debt the company uses to finance its assets relative to the value of shareholders' equity. A high ratio suggests greater financial risk, as the company relies more on debt, which can increase vulnerability during economic downturns. Conversely, a lower ratio indicates a more conservative approach, with a greater reliance on equity financing.

Industry standards vary, but generally, a debt-to-equity ratio below 1.0 is considered healthy, indicating that the company has more equity than debt. However, the acceptable level can differ based on the industry's capital intensity and stability. Avalon Holdings Corporation's ratio should be compared against its peers to provide a meaningful context.

Recent activities such as debt issuances, credit ratings, or refinancing play a significant role in assessing the company's financial strategy. New debt issuances can provide capital for expansion or acquisitions but also increase the company's debt burden. Credit ratings from agencies like Standard & Poor's or Moody's offer an independent assessment of Avalon Holdings Corporation's creditworthiness, influencing borrowing costs and investor confidence. Refinancing activities might indicate efforts to lower interest rates or extend debt maturities, improving cash flow management.

Balancing debt financing and equity funding is a strategic decision. Debt financing can offer tax advantages and doesn't dilute ownership, but it introduces fixed payment obligations. Equity funding, while avoiding debt obligations, dilutes existing shareholders' ownership. Avalon Holdings Corporation's approach to this balance reflects its growth strategy, risk tolerance, and market conditions.

Here are factors influencing Avalon Holdings Corporation (AWX) debt vs equity structure:

• Financial Stability: A balanced approach ensures long-term sustainability.
• Growth Strategy: Debt can fuel rapid expansion, while equity supports steady growth.
• Market Conditions: Interest rates and investor sentiment impact financing decisions.

Understanding these elements provides a comprehensive view of Avalon Holdings Corporation's financial health and its strategic approach to funding its operations and growth. Check out Mission Statement, Vision, & Core Values of Avalon Holdings Corporation (AWX).

Avalon Holdings Corporation (AWX) Liquidity and Solvency

Analyzing Avalon Holdings Corporation's (AWX) financial health requires a close look at its liquidity and solvency. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations.

Here's an overview:

• Current and Quick Ratios: These ratios provide insight into AWX's ability to cover its current liabilities with its current assets.
• Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps in understanding the operational efficiency and short-term financial health.
• Cash Flow Statements Overview: Examining cash flow from operating, investing, and financing activities is crucial for assessing the overall liquidity position.
• Potential Liquidity Concerns or Strengths: Identifying any red flags or positive indicators in AWX's liquidity position is essential for investors.

To assess Avalon Holdings Corporation’s (AWX) liquidity, we can examine key metrics and trends evident in their financial statements. These indicators will help determine the company’s ability to meet its short-term obligations.

Current and Quick Ratios:

The current ratio and quick ratio are fundamental indicators of a company's liquidity. The current ratio measures a company's ability to pay short-term obligations with its current assets, while the quick ratio excludes inventories from current assets to provide a more conservative view.

For the fiscal year ended December 31, 2023, Avalon Holdings Corporation (AWX) reported the following:

• Current Ratio: 1.45
• Quick Ratio: 1.27

A current ratio of 1.45 suggests that AWX has $1.45 of current assets for every $1.00 of current liabilities. A quick ratio of 1.27 indicates that AWX has $1.27 of liquid assets (excluding inventory) available to cover each dollar of current liabilities. These ratios indicate a reasonably healthy liquidity position.

Analysis of Working Capital Trends:

Working capital is a measure of a company's short-term financial health, calculated as the difference between current assets and current liabilities. Monitoring the trends in working capital provides insights into a company's operational efficiency and its ability to meet short-term obligations.

As of December 31, 2023, Avalon Holdings Corporation (AWX) reported working capital of approximately $4.88 million, compared to $5.48 million as of December 31, 2022.

The decrease in working capital from 2022 to 2023 suggests a tightening of short-term liquidity. This could be due to various factors, such as increased current liabilities or decreased current assets. Further investigation into the components of current assets and current liabilities is warranted to understand the drivers behind this change.

Cash Flow Statements Overview:

The cash flow statement provides a comprehensive view of all cash inflows and outflows of a company. It is typically divided into three sections:

• Operating Activities
• Investing Activities
• Financing Activities

For the year ended December 31, 2023, Avalon Holdings Corporation (AWX) reported the following:

• Net Cash Provided by Operating Activities: $1.73 million
• Net Cash Used in Investing Activities: $0.28 million
• Net Cash Used in Financing Activities: $0.85 million
• Net Decrease in Cash and Cash Equivalents: $0.40 million

AWX's operating activities generated $1.73 million in cash, indicating the company’s core business operations are a source of cash. However, investing activities used $0.28 million, primarily for capital expenditures. Financing activities used $0.85 million, mainly for debt repayments. Overall, cash and cash equivalents decreased by $0.40 million during the year.

Potential Liquidity Concerns or Strengths:

Based on the analysis, Avalon Holdings Corporation (AWX) exhibits a mixed liquidity profile:

• Strengths: Reasonable current and quick ratios suggest an adequate ability to meet short-term obligations. Positive cash flow from operating activities indicates the core business is generating cash.
• Concerns: Decreasing working capital and a net decrease in cash and cash equivalents could signal potential liquidity challenges.

Investors should monitor these trends and consider how Avalon Holdings Corporation (AWX) plans to address any liquidity pressures. A comprehensive understanding of these factors is crucial for assessing the company's overall financial health.

Read more about Avalon Holdings Corporation’s (AWX) financial health: Breaking Down Avalon Holdings Corporation (AWX) Financial Health: Key Insights for Investors

Avalon Holdings Corporation (AWX) Valuation Analysis

Assessing whether Avalon Holdings Corporation (AWX) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst sentiment. Let's delve into the critical metrics that provide insights into AWX's valuation.

Price-to-Earnings (P/E) Ratio: The P/E ratio is a fundamental metric used to determine if a stock is trading at a reasonable valuation compared to its earnings. As of December 31, 2023, Avalon Holdings had a trailing twelve months (TTM) net loss from continuing operations, therefore its P/E ratio is not meaningful. For companies with negative earnings, the P/E ratio is typically not used because it results in a negative or undefined value, which doesn't provide a clear indication of valuation relative to earnings. In such cases, investors often look to other valuation metrics like price-to-book (P/B) or price-to-sales (P/S) ratios, or enterprise value multiples, to assess the company's worth.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of December 31, 2023, Avalon Holdings Corporation's Price to Book ratio stood at 0.37. This suggests that the stock may potentially be undervalued, as it is trading below its book value. However, it's crucial to consider the company's specific circumstances and industry when interpreting this ratio.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess the overall value of a company relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA). A lower ratio might indicate that a company is undervalued, while a higher ratio could suggest overvaluation. As of December 31, 2023, Avalon Holdings Corporation's Enterprise Value to EBITDA multiple stood at 12.45x. This might indicate that the company is appropriately valued.

Stock Price Trends: Analyzing the stock price trends over the last 12 months provides insights into market sentiment and investor confidence. As of April 18, 2025, Avalon Holdings Corporation's stock is trading at $2.24. Over the past year, the stock has experienced considerable volatility. The 1-year target estimate is $7.50.

Dividend Yield and Payout Ratios: As of now, Avalon Holdings Corporation does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus: Based on the consensus of one analyst, the stock is currently a buy.

Here is a summary in the table format:

For further insights into the company's strategic direction, explore Mission Statement, Vision, & Core Values of Avalon Holdings Corporation (AWX).

Avalon Holdings Corporation (AWX) Risk Factors

Avalon Holdings Corporation (AWX) faces a variety of internal and external risks that could significantly impact its financial health. These risks span across industry competition, regulatory changes, and overall market conditions. Understanding these factors is crucial for investors assessing the company's stability and future prospects. For further insights into the company's strategic direction, refer to: Mission Statement, Vision, & Core Values of Avalon Holdings Corporation (AWX).

Here's an overview of key risks:

• Industry Competition: The industries in which Avalon Holdings Corporation (AWX) operates are highly competitive. Increased competition could lead to pricing pressures, reduced profit margins, and loss of market share.
• Regulatory Changes: Changes in environmental regulations could increase compliance costs and potentially limit the company's operational activities. Non-compliance could result in significant penalties and legal challenges.
• Market Conditions: Economic downturns or fluctuations in commodity prices can adversely affect the demand for the company's services and products, impacting revenue and profitability.

Operational, financial, and strategic risks are often detailed in Avalon Holdings Corporation's (AWX) earnings reports and filings. These documents provide insights into specific challenges the company is currently addressing. Investors should pay close attention to these disclosures to stay informed about potential risks and mitigation strategies.

Mitigation strategies and plans, when available, demonstrate the company's proactive approach to managing risks. These may include:

• Diversifying services and revenue streams to reduce reliance on specific markets.
• Investing in technology and process improvements to enhance efficiency and reduce operational costs.
• Implementing robust compliance programs to address regulatory risks.

Below is a hypothetical table illustrating potential financial impacts from various risk factors:

Understanding these risks and how Avalon Holdings Corporation (AWX) plans to mitigate them is essential for making informed investment decisions.

Avalon Holdings Corporation (AWX) Growth Opportunities

Assessing Avalon Holdings Corporation's (AWX) financial health involves understanding its potential for future growth. Several factors contribute to a company's growth prospects, including its ability to innovate, expand into new markets, and form strategic partnerships. A clear understanding of these elements provides investors with insights into the long-term viability and potential returns of AWX.

Key drivers for Avalon Holdings Corporation's (AWX) growth include:

• Product Innovations: Continuous innovation in waste management and related services can set AWX apart from its competitors.
• Market Expansions: Expanding its geographic footprint and service offerings can tap into new revenue streams.
• Acquisitions: Strategic acquisitions can quickly enhance market share and service capabilities.

Future revenue growth projections and earnings estimates are crucial for investors. While specific financial projections for Avalon Holdings Corporation (AWX) can vary based on market conditions and company-specific developments, analyzing past performance and current strategies provides a basis for reasonable expectations. For instance, reviewing annual reports and investor presentations can offer insights into projected growth rates. Keep in mind that these are estimates and not guarantees. As of fiscal year 2024 data, Avalon Holdings Corporation (AWX) reported total revenues of $73.6 million compared to $64.9 million for fiscal year 2023.

Strategic initiatives and partnerships can significantly drive future growth for Avalon Holdings Corporation (AWX). These may include:

• Technology Adoption: Implementing advanced technologies for waste processing and recycling.
• Regulatory Compliance: Adapting to and leveraging evolving environmental regulations.
• Public-Private Partnerships: Collaborating with government entities on environmental projects.

Competitive advantages are essential for positioning Avalon Holdings Corporation (AWX) for sustained growth. These advantages can include:

• Specialized Expertise: Unique knowledge and skills in handling specific types of waste.
• Established Relationships: Strong relationships with key clients and regulatory bodies.
• Operational Efficiency: Streamlined processes that reduce costs and improve service delivery.

Here is some key financial data of Avalon Holdings Corporation (AWX) for fiscal year 2024, compared to the previous year:

Understanding these growth drivers, strategic initiatives, and competitive advantages is crucial for assessing the potential of Avalon Holdings Corporation (AWX). Investors should continuously monitor these factors to make informed decisions. Read more about Avalon Holdings Corporation (AWX) Financial Health here: Breaking Down Avalon Holdings Corporation (AWX) Financial Health: Key Insights for Investors