Avalon Holdings AWX

NYSE AWX

$2.64 +0.02 (+0.76%)

As of: Sep 10, 2026 · 3:48 PM EDT

Key Stats

Market Cap10.29 Mn

P/E7.21

P/S0.12

Div. Yield0.00

Total Debt (Qtr)28.34 Mn

Revenue Growth (1y) (Qtr)3.19

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About

Avalon Holdings Corporation provides waste management services and golf and related operations. The company operates in the waste disposal brokerage and management industry as well as the golf course and resort industry. Avalon Holdings Corporation generates revenue from two primary business segments. Avalon Holdings Corporation generates revenue through waste disposal brokerage and management services, captive landfill management, and salt water injection well operations.…

Avalon Holdings Corporation generates revenue through waste disposal brokerage and management services, captive landfill management, and salt water injection well operations. The company also earns income from golf course operations, hotel and resort amenities, fitness centers, tennis courts, salon and spa services, dining, banquet and conference facilities, and medical spa and dermatology services. Customers include industrial, commercial, municipal, and governmental entities for waste services, and individual members, hotel guests, and the general public for recreational and hospitality offerings.

The company operates through the following segments: waste management services and golf and related operations.

Waste management services: This segment provides hazardous and nonhazardous waste disposal brokerage and management services, captive landfill management, and salt water injection well operations. AWMS assists customers with managing and disposing of wastes at approved treatment and disposal sites based upon a customer’s needs. ALMI provides turnkey services, including daily operations, facilities management, and management reporting for its customers owning captive disposal facilities. AWMS Holdings, LLC, offers investment opportunities to accredited investors by selling membership units through private placement offerings to construct facilities for salt water injection wells. AWMS Water Solutions, LLC manages operations, marketing, sales, and decisions regarding well operations for a percentage of gross revenues. AWMS Rt. 169, LLC leases 5.2 acres on which two salt water injection wells are located, though operations are currently suspended based on regulatory decisions.
Golf and related operations: This segment includes the operation and management of four golf courses and related country clubs, a hotel and its associated resort amenities, and an athletic center. ALGI owns and operates a Pete Dye designed championship golf course in Warren, Ohio, generating revenue from membership dues, greens fees, cart rentals, merchandise, and food and beverage sales. TBG leases and operates Squaw Creek Country Club, which includes a championship golf course, swimming pool, tennis courts, and a clubhouse with fitness center, dining, and banquet facilities. Sharon Country Club assets, acquired in October 2006, include a golf course and clubhouse with dining, banquet facilities, swimming pool, salon and spa services, and fitness center. The Grand Resort, acquired in August 2014, includes a hotel, indoor junior Olympic size swimming pool, outdoor resort pool, Roman Bath, fitness center, restaurants, bars, cigar lounge, salon and spa, banquet and conference facilities, and adjoining tennis center. Avalon Athletic Club at Boardman is a multipurpose recreation center with indoor tennis, basketball, volleyball, and pickleball courts and a fitness area. Avalon Field Club at New Castle includes a golf course and associated clubhouse. Avalon Med Spa, LLC provides elective appearance improving nonsurgical aesthetic services under physician supervision. Avalon Dermatology, LLC provides dermatology services from a board licensed dermatologist.

Avalon Holdings Corporation competes in a highly fragmented waste disposal brokerage and management market where knowledge, service, and price are key factors. The company faces competition from other brokerage companies and firms that own treatment and disposal facilities. In golf and related operations, Avalon Holdings Corporation competes with many public courses and country clubs in the region, while The Grand Resort competes with full service, select service, and extended stay properties, including major hospitality chains and independent local operators. The company’s competitive advantage lies in its integrated golf and resort experience, which enhances member retention and guest appeal through bundled access to multiple amenities.

Avalon Holdings Corporation serves industrial, commercial, municipal, and governmental customers for its waste management services in selected northeastern and midwestern United States markets. For golf and related operations, the company serves individual members of the Avalon Golf and Country Club, hotel guests at The Grand Resort, and the general public accessing its recreational facilities. Specific customer names are not disclosed in the filing, but the company notes that in 2025, one customer accounted for 10% of consolidated net operating revenues and 18% of the waste management services segment’s net operating revenues to external customers.

Investment Thesis

▲ Bull case

Avalon Holdings Corporation demonstrates underlying operational resilience through consistent revenue generation in its core waste management segment, which saw a year-over-year increase of 18.9% in Q1 2026, rising from $9.7 million to $11.5 million, indicating strong demand for industrial and municipal waste services despite broader economic headwinds, and this growth was achieved while maintaining disciplined cost control in ancillary segments, suggesting management’s focus on higher-margin, stable cash-flow businesses is beginning to yield measurable improvements in segment profitability even as overall results remain pressured by legacy golf operations.
The company’s improving net loss trajectory—from $1.5 million in Q1 2025 to $1.2 million in Q1 2026—reflects meaningful progress in loss reduction, driven by a 15.5% decline in golf and related operating costs year-over-year, which fell from $5.1 million to $4.9 million, signaling successful restructuring of underperforming resort amenities and potential for further margin expansion if management continues to optimize or divest non-core recreational assets, thereby freeing capital for reinvestment into the higher-growth waste management and saltwater injection well operations.
Avalon’s balance sheet reveals a significant but underappreciated asset base in restricted cash totaling $8.5 million as of March 31, 2026, which, while designated for specific obligations like landfill closure and post-closure care, represents a growing financial buffer that enhances creditworthiness and provides latent flexibility for strategic investments or debt reduction once regulatory requirements are met, particularly as the company continues to generate positive operating cash flow from waste services despite GAAP losses due to non-cash depreciation and amortization charges.
The waste management segment’s revenue growth is occurring in geographically concentrated northeastern and midwestern markets where regulatory pressure on industrial waste disposal is increasing, creating barriers to entry for new competitors and positioning Avalon to benefit from long-term pricing power and contract renewal advantages, especially as municipal and industrial clients seek reliable, compliant partners amid tightening environmental regulations—a structural tailwind not fully reflected in current earnings due to the drag from the golf division.
Despite the net loss in Q1 2026, the company’s operating loss improved by 36.1% year-over-year, narrowing from $1.2 million to $0.7 million, and this improvement was achieved without relying on one-time gains, suggesting organic operational efficiency is taking hold; if Avalon can sustain this pace of loss reduction while maintaining waste segment momentum, it could reach operating break-even by mid-2027, unlocking valuation re-rating potential as investors begin to focus on normalized earnings power excluding the golf segment’s historical drag.

Avalon Holdings Corporation demonstrates underlying operational resilience through consistent revenue generation in its core waste management segment, which saw a year-over-year increase of 18.9% in Q1 2026, rising from $9.7 million to $11.5 million, indicating strong demand for industrial and municipal waste services despite broader economic headwinds, and this growth was achieved while maintaining disciplined cost control in ancillary segments, suggesting management’s focus on higher-margin, stable cash-flow businesses is beginning to yield measurable improvements in segment profitability even as overall results remain pressured by legacy golf operations.
The company’s improving net loss trajectory—from $1.5 million in Q1 2025 to $1.2 million in Q1 2026—reflects meaningful progress in loss reduction, driven by a 15.5% decline in golf and related operating costs year-over-year, which fell from $5.1 million to $4.9 million, signaling successful restructuring of underperforming resort amenities and potential for further margin expansion if management continues to optimize or divest non-core recreational assets, thereby freeing capital for reinvestment into the higher-growth waste management and saltwater injection well operations.
Avalon’s balance sheet reveals a significant but underappreciated asset base in restricted cash totaling $8.5 million as of March 31, 2026, which, while designated for specific obligations like landfill closure and post-closure care, represents a growing financial buffer that enhances creditworthiness and provides latent flexibility for strategic investments or debt reduction once regulatory requirements are met, particularly as the company continues to generate positive operating cash flow from waste services despite GAAP losses due to non-cash depreciation and amortization charges.
The waste management segment’s revenue growth is occurring in geographically concentrated northeastern and midwestern markets where regulatory pressure on industrial waste disposal is increasing, creating barriers to entry for new competitors and positioning Avalon to benefit from long-term pricing power and contract renewal advantages, especially as municipal and industrial clients seek reliable, compliant partners amid tightening environmental regulations—a structural tailwind not fully reflected in current earnings due to the drag from the golf division.
Despite the net loss in Q1 2026, the company’s operating loss improved by 36.1% year-over-year, narrowing from $1.2 million to $0.7 million, and this improvement was achieved without relying on one-time gains, suggesting organic operational efficiency is taking hold; if Avalon can sustain this pace of loss reduction while maintaining waste segment momentum, it could reach operating break-even by mid-2027, unlocking valuation re-rating potential as investors begin to focus on normalized earnings power excluding the golf segment’s historical drag.

▼ Bear case

Avalon Holdings Corporation continues to face persistent structural challenges in its golf and resort operations, which remain a significant drag on profitability, as evidenced by the segment’s $4.9 million in operating costs in Q1 2026 generating only $6.15 million in revenue—resulting in a segment operating margin of just 20.0%, far below industry benchmarks for well-managed recreational facilities—and with no clear turnaround strategy disclosed in recent news, the division risks becoming a permanent liability that consumes capital without delivering adequate returns, especially as discretionary spending on golf and leisure remains sensitive to economic cycles and regional demographic shifts.
The company’s financial flexibility is constrained by a high debt load, with long-term debt net of current portion standing at $27.9 million as of March 31, 2026, representing nearly 75% of total shareholders’ equity, and when combined with the $3.2 million line of credit already fully drawn, total interest-bearing obligations exceed $31.1 million, creating a leverage ratio that limits strategic options and increases vulnerability to interest rate fluctuations, particularly given that interest expense remains stubbornly high at $0.5 million per quarter despite modest reductions in principal balances.
Avalon’s ability to generate sustainable free cash flow is questionable, as the improvement in net loss is largely attributable to reduced losses rather than genuine profitability, and the company still reported negative operating income of $0.7 million in Q1 2026, meaning it is not generating cash from core operations before working capital changes and capital expenditures, which raises concerns about its capacity to fund necessary maintenance capital expenditures on aging landfill infrastructure and golf course assets without further eroding liquidity or increasing leverage.
The waste management segment, while showing revenue growth, is experiencing rising operating costs that increased by 17.1% year-over-year in Q1 2026—from $7.6 million to $8.9 million—outpacing revenue growth and indicating potential margin compression due to higher fuel, labor, or regulatory compliance costs, which could undermine the segment’s profitability if not offset by price increases or operational efficiencies, and there is no evidence in the provided data that the company has successfully implemented such mitigating measures at scale.
Avalon’s earnings performance remains highly volatile and dependent on seasonal fluctuations in its golf and resort businesses, which contributed 34.8% of total net operating revenues in Q1 2026, making the company susceptible to weather-related disruptions, changing consumer preferences, and regional economic downturns in its core markets, and without diversification into more stable, recurring-revenue streams beyond waste management, the company’s earnings profile will continue to exhibit unpredictable quarterly swings that deter long-term institutional investment and keep valuation multiples depressed.

Avalon Holdings Corporation continues to face persistent structural challenges in its golf and resort operations, which remain a significant drag on profitability, as evidenced by the segment’s $4.9 million in operating costs in Q1 2026 generating only $6.15 million in revenue—resulting in a segment operating margin of just 20.0%, far below industry benchmarks for well-managed recreational facilities—and with no clear turnaround strategy disclosed in recent news, the division risks becoming a permanent liability that consumes capital without delivering adequate returns, especially as discretionary spending on golf and leisure remains sensitive to economic cycles and regional demographic shifts.
The company’s financial flexibility is constrained by a high debt load, with long-term debt net of current portion standing at $27.9 million as of March 31, 2026, representing nearly 75% of total shareholders’ equity, and when combined with the $3.2 million line of credit already fully drawn, total interest-bearing obligations exceed $31.1 million, creating a leverage ratio that limits strategic options and increases vulnerability to interest rate fluctuations, particularly given that interest expense remains stubbornly high at $0.5 million per quarter despite modest reductions in principal balances.
Avalon’s ability to generate sustainable free cash flow is questionable, as the improvement in net loss is largely attributable to reduced losses rather than genuine profitability, and the company still reported negative operating income of $0.7 million in Q1 2026, meaning it is not generating cash from core operations before working capital changes and capital expenditures, which raises concerns about its capacity to fund necessary maintenance capital expenditures on aging landfill infrastructure and golf course assets without further eroding liquidity or increasing leverage.
The waste management segment, while showing revenue growth, is experiencing rising operating costs that increased by 17.1% year-over-year in Q1 2026—from $7.6 million to $8.9 million—outpacing revenue growth and indicating potential margin compression due to higher fuel, labor, or regulatory compliance costs, which could undermine the segment’s profitability if not offset by price increases or operational efficiencies, and there is no evidence in the provided data that the company has successfully implemented such mitigating measures at scale.
Avalon’s earnings performance remains highly volatile and dependent on seasonal fluctuations in its golf and resort businesses, which contributed 34.8% of total net operating revenues in Q1 2026, making the company susceptible to weather-related disruptions, changing consumer preferences, and regional economic downturns in its core markets, and without diversification into more stable, recurring-revenue streams beyond waste management, the company’s earnings profile will continue to exhibit unpredictable quarterly swings that deter long-term institutional investment and keep valuation multiples depressed.

Statement Business Segments Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Hazardous Waste

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	CLH	Clean Harbors Inc	primary	16.94 Bn	38.57	2.71	2.77 Bn
2	PESI	Perma Fix Environmental Services Inc	primary	0.36 Bn	-17.12	6.34	0.00 Bn
3	DBHL	Deep Isolation Nuclear, Inc.	primary	0.22 Bn	-18.02	20.97	-
4	OIO	OIO Group	primary	0.02 Bn	-1.41	4.26	0.02 Bn
5	AWX	Avalon Holdings Corp	primary	0.01 Bn	7.21	0.12	0.03 Bn
6	FSTJ	First America Resources Corp	primary	0.00 Bn	4.89	0.12	0.00 Bn
7	MAR	Marriott International Inc /Md/	secondary	86.86 Bn	33.58	3.23	16.92 Bn
8	WM	Waste Management Inc	secondary	86.14 Bn	30.21	3.36	23.38 Bn

Avalon Holdings AWX

About

Investment Thesis

Segments Breakdown of Revenue (2025)

Statement Business Segments Breakdown of Revenue (2025)

Peer Comparison

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