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Avalon Holdings Corporation ( Avalon or the Company ) was formed on April 30, 1998 as a subsidiary of American Waste Services, Inc. ( AWS ). On June 17, 1998, AWS distributed, as a special dividend, all of the outstanding shares of capital stock of Avalon to the holders of AWS common stock on a pro rata and corresponding basis (the Spin-off ).
Operating margin is thin at 2.42%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.3% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $28M represents 13.4x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$85M
▼ -0.3% YoY
Net Income (TTM)
$585K
▼ -75.6% YoY
Op. Margin
2.87%
▼ -1.2pp YoY
ROIC
3.38%
▼ -1.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2M
▲ +83.6% YoY
Op. Cash Flow (TTM)
$4M
▲ +12.2% YoY
Net Debt
$29M
Cash & Equiv.
$2M
5Y CAGR: +7.3%
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