Avalon Holdings Corporation Common Stock (AWX)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable competitive advantages bought at a discount. Avalon Holdings is a tiny industrial company—market cap $8.1M at the 2026-10-13 close—operating waste management services and golf operations. Waste handling can have local advantages from routes, permits, and landfill access, but with 799 employees and brokerage/management services, its scale is limited. The record is lumpy. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $17.7M and net income was a loss of $1.2M, or diluted EPS -$0.32. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $20.9M and net income $884,000, or diluted EPS $0.23. For full fiscal 2025, period ended 2025-12-31, revenue was $83.5M but net income only $321,000, or $0.08 per diluted share. Fiscal 2024 earned $1.3M on $83.8M revenue, while fiscal 2023 lost $1.8M. FairStock's metrics show P/E 8.17, P/B 0.25, Graham Number $8.02, margin of safety 69.45%, and FCF yield 20.4%, which suggest potential value if earnings normalize. But ROE 2.51%, ROCE 2.17%, Piotroski 2/9, and Altman Z -0.10 tell me the business is not high quality and carries financial risk; debt/equity is 0.94. The Lynch category is turnaround—returned to profit after a loss within three years—and that fits. A Graham-style bargain needs asset protection and a catalyst. Avalon has asset value and cash generation, but weak returns and volatile profits mean I would demand a very wide margin of safety.

In plain English: Avalon Holdings runs waste management services and golf operations. The business is small and its profits are uneven—it lost money in fiscal Q1 2026 but earned a profit in fiscal Q2 2026. The stock price looks low compared with its accounting value and some value measures, but the company carries meaningful debt and its financial quality signals are mixed.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer