📊 AWX Key Takeaways
Is Avalon Holdings Corp. (AWX) a Good Investment?
Avalon Holdings demonstrates critical fundamental deterioration with persistent unprofitability (net margin -7.0%), negative operating cash flow of -1.3M, and weakening liquidity (current ratio 0.96x). The company is burning cash operationally while carrying 27.9M in debt against minimal cash reserves of 2.4M, creating a precarious financial position unsustainable without significant operational improvement or capital infusion.
Avalon Holdings shows only marginal profitability, with a 2.4% operating margin and 0.4% net margin, leaving little room for error despite a sharp year-over-year improvement in net income. Financial health is strained by thin liquidity, meaningful leverage, and interest coverage of just 1.0x, while free cash flow is positive but modest relative to revenue.
Avalon Holdings Corp. Key Strengths (AWX)
- Moderate debt-to-equity ratio of 0.75x provides some leverage capacity if operations improve
- Asset base of 87.5M provides some residual value cushion
- Net income improved 424.2% YoY, indicating potential bottoming (though from negative base)
- Positive operating cash flow and free cash flow indicate the business is still generating cash
- Net income improved materially year over year, suggesting some earnings recovery
- Debt-to-equity of 0.73x is not extreme on its own and equity remains positive at $38.35M
AWX Stock Risks: Avalon Holdings Corp. Investment Risks
- Negative operating cash flow of -1.3M indicates core business operations are not self-sustaining
- Free cash flow of -1.8M signals unsustainable cash burn trajectory
- Current ratio of 0.96x falls below 1.0, indicating working capital deficit and near-term liquidity pressure
- Cash reserves of 2.4M insufficient relative to 27.9M debt and ongoing operating losses
- Zero insider Form 4 filings in 90 days suggests lack of insider confidence in recovery
- Slight revenue decline of -0.3% YoY despite essential services industry positioning
- Profitability is very weak, with minimal operating and net margins
- Liquidity is tight, with a 1.01x current ratio and 0.92x quick ratio
- Interest coverage of 1.0x suggests limited ability to absorb borrowing costs or earnings pressure
Key Metrics to Watch
- Operating cash flow trend - must turn positive to demonstrate sustainability
- Current ratio and working capital position - critical for near-term solvency
- Cash burn rate relative to remaining reserves - estimate runway to insolvency
- Revenue stabilization and margin recovery path - essential for profitability return
- Operating margin and interest coverage
- Operating cash flow and free cash flow consistency
Avalon Holdings Corp. (AWX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
AWX Profit Margin, ROE & Profitability Analysis
AWX vs Market Sector: How Avalon Holdings Corp. Compares
How Avalon Holdings Corp. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avalon Holdings Corp. Stock Overvalued? AWX Valuation Analysis 2026
Based on fundamental analysis, Avalon Holdings Corp. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avalon Holdings Corp. Balance Sheet: AWX Debt, Cash & Liquidity
AWX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Avalon Holdings Corp.'s revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.50 reflects profitable operations.
AWX Revenue Growth, EPS Growth & YoY Performance
AWX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $16.1M | -$1.2M | $-0.32 |
| Q3 2025 | $24.2M | $677.0K | $0.17 |
| Q2 2025 | $20.3M | -$25.0K | $-0.01 |
| Q1 2025 | $16.1M | -$979.0K | $-0.25 |
| Q3 2024 | $23.9M | $885.0K | $0.23 |
| Q2 2024 | $20.8M | -$25.0K | $-0.01 |
| Q1 2024 | $18.4M | -$979.0K | $-0.25 |
| Q3 2023 | $23.9M | $390.0K | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avalon Holdings Corp. Dividends, Buybacks & Capital Allocation
AWX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Avalon Holdings Corp. (CIK: 0001061069)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AWX
What is the AI rating for AWX?
Avalon Holdings Corp. (AWX) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 83% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AWX's key strengths?
Claude: Moderate debt-to-equity ratio of 0.75x provides some leverage capacity if operations improve. Asset base of 87.5M provides some residual value cushion. ChatGPT: Positive operating cash flow and free cash flow indicate the business is still generating cash. Net income improved materially year over year, suggesting some earnings recovery.
What are the risks of investing in AWX?
Claude: Negative operating cash flow of -1.3M indicates core business operations are not self-sustaining. Free cash flow of -1.8M signals unsustainable cash burn trajectory. ChatGPT: Profitability is very weak, with minimal operating and net margins. Liquidity is tight, with a 1.01x current ratio and 0.92x quick ratio.
What is AWX's revenue and growth?
Avalon Holdings Corp. reported revenue of $17.7M.
Does AWX pay dividends?
Avalon Holdings Corp. does not currently pay dividends.
Where can I find AWX SEC filings?
Official SEC filings for Avalon Holdings Corp. (CIK: 0001061069) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AWX's EPS?
Avalon Holdings Corp. has a diluted EPS of $-0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is AWX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Avalon Holdings Corp. has a C grade with 83% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AWX stock overvalued or undervalued?
Valuation metrics for AWX: ROE of -3.3% (sector avg: 15%), net margin of -7.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is AWX's AI grade for 2026?
Our dual AI analysis gives Avalon Holdings Corp. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AWX's free cash flow?
Avalon Holdings Corp.'s operating cash flow is $-1.3M, with capital expenditures of $525.0K. FCF margin is -10.1%.
How does AWX compare to other Market stocks?
Vs Default sector averages: Net margin -7.0% (avg: 12%), ROE -3.3% (avg: 15%), current ratio 0.96 (avg: 1.8).