Avalon Holdings Corporation
Avalon Holdings Corporation Fundamental Analysis
Avalon Holdings Corporation (AWX) shows weak financial fundamentals with a PE ratio of 56.10, profit margin of 0.23%, and ROE of 0.48%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 4.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 21.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AWX's fundamental strength across five key dimensions:
Efficiency Score
WeakAWX struggles to generate sufficient returns from assets.
Valuation Score
ModerateAWX shows balanced valuation metrics.
Growth Score
WeakAWX faces weak or negative growth trends.
Financial Health Score
ExcellentAWX maintains a strong and stable balance sheet.
Profitability Score
ModerateAWX maintains healthy but balanced margins.
Key Financial Metrics
Is AWX Expensive or Cheap?
P/E Ratio
AWX trades at 56.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AWX's PEG of 0.84 indicates potential undervaluation.
Price to Book
The market values Avalon Holdings Corporation at 0.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -3.56 times EBITDA. This is generally considered low.
How Well Does AWX Make Money?
Net Profit Margin
For every $100 in sales, Avalon Holdings Corporation keeps $0.23 as profit after all expenses.
Operating Margin
Core operations generate 2.27 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.48 in profit for every $100 of shareholder equity.
ROA
Avalon Holdings Corporation generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Avalon Holdings Corporation generates limited operating cash flow of $2.93M, signaling weaker underlying cash strength.
Free Cash Flow
Avalon Holdings Corporation generates weak or negative free cash flow of $1.10M, restricting financial flexibility.
FCF Per Share
Each share generates $0.28 in free cash annually.
FCF Yield
AWX converts 10.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.90
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.005
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AWX Stacks Against Its Sector Peers
| Metric | AWX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.10 | 26.66 | Worse (Expensive) |
| ROE | 0.48% | 1305.00% | Weak |
| Net Margin | 0.23% | -5148.00% (disorted) | Weak |
| Debt/Equity | 0.90 | 0.82 | Neutral |
| Current Ratio | 1.01 | 10.84 | Neutral |
| ROA | 0.20% | -1553219.00% (disorted) | Weak |
AWX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Avalon Holdings Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
344.84%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
6.45%
Industry Style: Cyclical, Value, Infrastructure
Growing