AVALON HOLDINGS CORP (AWX) AI Stock Summary
Profitable micro-cap with high P/E
Updated
Snapshot
Avalon Holdings is a profitable but stagnant micro-cap in the waste management sector. FY 2025 revenue was flat at $83.5M while gross margins contracted to 15.0% from 20.6% the previous year. Net income was just $321K. The stock trades at a high P/E of ~31× despite the lack of growth. The balance sheet carries substantial leverage with $34.9M in debt against only $4.1M in cash, though positive free cash flow of $2.1M helps service that load.
What's Happening Right Now
- Fri 7th Aug '26 · Earnings: Q2 2026 net income rose to $0.9M from $0.3M on revenue of $20.9M, though the company still recorded a net loss for the first six months of the year.
Ownership
Institutions hold 7.9% of shares. Insiders hold 0.0%.
Bottom Line
This is a low-growth industrial business priced at a premium multiple, which is a disconnect. The shrinking margins and high debt relative to cash add risk to the story. Unless the recent quarter signals a sustained turnaround in profitability, the valuation looks stretched for a company of this size and financial health.