📊 AWX Key Takeaways
Is Avalon Holdings Corp. (AWX) a Good Investment?
Avalon Holdings exhibits severely strained financial health with critical liquidity concerns and profitability collapse. The company's interest coverage ratio of 1.0x indicates minimal debt servicing capacity, while near-zero net margins and declining shareholder returns suggest operational distress in a capital-intensive refuse systems business.
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.
Why Buy Avalon Holdings Corp. Stock? AWX Key Strengths
- Positive free cash flow generation of $2.1M provides minimal operational flexibility
- Debt-to-equity ratio of 0.73x indicates leverage is not extreme relative to equity base
- Operating cash flow of $3.8M shows some core business cash generation capability
- 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
- Interest coverage ratio of 1.0x signals acute default risk with no margin for operational deterioration
- Current ratio of 1.01x and quick ratio of 0.92x indicate severe short-term liquidity stress
- Net margin of 0.4% and ROE of 0.8% demonstrate operational inefficiency and minimal shareholder value creation
- Revenue flat-lined with -0.3% YoY decline suggesting market share or volume pressures
- Long-term debt of $28.0M against only $4.1M cash presents refinancing risk
- 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
- Interest coverage ratio trend - any decline below 1.0x signals imminent distress
- Operating cash flow sustainability - must remain positive to service debt obligations
- Net margin expansion - current 0.4% level unsustainable for long-term viability
- Current ratio movement - must move above 1.2x to indicate liquidity normalization
- 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 relatively thin 2.5% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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 |
| Q2 2023 | $19.5M | -$152.0K | $-0.04 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AWX's key strengths?
Claude: Positive free cash flow generation of $2.1M provides minimal operational flexibility. Debt-to-equity ratio of 0.73x indicates leverage is not extreme relative to equity base. 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: Interest coverage ratio of 1.0x signals acute default risk with no margin for operational deterioration. Current ratio of 1.01x and quick ratio of 0.92x indicate severe short-term liquidity stress. 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 $83.5M.
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 rating reflects both perspectives for balanced insights.
Is AWX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Avalon Holdings Corp. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AWX stock overvalued or undervalued?
Valuation metrics for AWX: ROE of 0.8% (sector avg: 15%), net margin of 0.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AWX stock in 2026?
Our dual AI analysis gives Avalon Holdings Corp. a combined SELL rating 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 $3.8M, with capital expenditures of $1.7M. FCF margin is 2.5%.
How does AWX compare to other Market stocks?
Vs Default sector averages: Net margin 0.4% (avg: 12%), ROE 0.8% (avg: 15%), current ratio 1.01 (avg: 1.8).