Avalon Holdings Corporation Common Stock (AWX)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $2 million in annual free cash flow (22.4% yield on market cap)
• Revenue growth of 21.7% demonstrates strong top-line momentum

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Avalon Holdings Corporation Common Stock is a micro-cap industrials company valued at $10 million. Revenue stands at $84 million. From a quality standpoint, Avalon shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.0 warrants caution. On valuation, the stock is trading at a premium 31.0x earnings, with offers a 41% margin of safety vs Graham Number of $4. Growth dynamics show revenue growing at 21.7% and profit growth of 28.4%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Avalon's 22% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $2 million in annual free cash flow (22.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 31x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer