Descripción de la empresa
Avalon Holdings Corporation operates within the Industrials sector, specifically serving the Waste Management industry by providing essential waste disposal and management services to a diverse clientele including industrial, commercial, municipal, and governmental entities across the United States. The company executes its operational strategy through two primary segments: Waste Management Services and Golf and Related Operations, ensuring comprehensive coverage for various customer needs ranging from hazardous waste handling to general refuse collection. In terms of market scale, the entity is valued at a market capitalization of $10.10M and generates annual revenue totaling $83.55M, while employing a workforce of 799 individuals to sustain its operations. These financial dimensions indicate that Avalon Holdings Corporation functions as a small-cap entity with a relatively modest revenue base, suggesting a specialized operational focus rather than broad market dominance. The valuation metrics further contextualize its position as a micro-cap to small-cap player, where revenue figures of $83.55M reflect a niche operational scope within the competitive waste management landscape.
Salud financiera
The company reported revenue of $83.55M over the trailing twelve months, accompanied by a net income of $321,000 and an EBITDA of $5.83M, highlighting a significant disparity between top-line performance and bottom-line profitability. This substantial gap between revenue and net income reveals a cost structure characterized by high operating expenses that consume the majority of generated income, leaving a narrow margin for profit. Avalon Holdings Corporation maintains a free cash flow position of $2.18M, which provides a measure of financial flexibility for capital expenditures or debt servicing, despite the overall compression in earnings. The gross margin stands at 19.5%, indicating that the company retains roughly one-fifth of sales revenue after direct costs, while the operating margin of 0.4% and profit margin of 0.4% demonstrate that overhead costs and other expenses severely erode gross profits to near-zero levels. On the balance sheet, the firm holds $4.11M in cash against $34.86M in total debt, resulting in a debt-to-equity ratio of 94.33 that signifies a highly leveraged financial position reliant on external financing. Liquidity is constrained by a current ratio of 1.01, which suggests the company possesses just enough current assets to cover its current liabilities, indicating a tight short-term liquidity situation with limited buffer for unexpected obligations. Return on equity is reported at -0.3%, reflecting a net loss relative to shareholders' equity, while return on assets sits at 1.5%, implying that the total asset base generates a minimal positive return despite the leverage burden on the equity holders.
Evaluación de valoración
The trailing twelve-month P/E ratio is 32.38, whereas the forward P/E is listed as N/A, a discrepancy that implies the market currently lacks a consensus on future earnings growth or that forward estimates are unavailable due to the company's earnings volatility. The price-to-book ratio is 0.26, which indicates that the market values the company at a significant discount relative to its book value, suggesting that investors are pricing in potential asset overhangs or future profitability challenges rather than applying a market premium. Alternative valuation metrics provide additional context, with a price-to-sales ratio of 0.12 and an EV/EBITDA of 6.77, both of which suggest the stock is priced very cheaply relative to its sales and enterprise earnings, though this low valuation must be weighed against the high debt levels. Over the past year, the stock price has ranged between a 52-week high of $5.43 and a 52-week low of $2.10, with the current trading price situated somewhere within this compressed range, reflecting the limited upside potential from recent peaks. The beta of 0.67 indicates that the stock exhibits lower volatility than the broader market, moving less aggressively than the S&P 500 and offering a lower-risk profile in terms of price swings, although this stability does not necessarily correlate with higher returns given the negative earnings.
Growth & Income
Revenue growth for the trailing twelve months reached 21.7% year-over-year, while earnings growth is listed as N/A, creating a scenario where revenue expansion is occurring without a corresponding measurable increase in net earnings due to the previously noted cost structure pressures. As a non-dividend payer, the company maintains a dividend yield of N/A and a payout ratio of 0.0%, meaning the firm does not distribute profits to shareholders and instead retains all earnings to fund operations, debt reduction, or potential reinvestment into growth initiatives. This reinvestment strategy is necessitated by the lack of distributable cash flow relative to the high debt obligations, as the company prioritizes solvency over income generation for investors. The overall growth and income profile is defined by strong top-line expansion that has yet to translate into bottom-line growth, coupled with an absence of dividend income, resulting in a total return profile driven primarily by capital appreciation potential rather than current yield or earnings consistency.