TSX:AVL

Stock Analysis Report

Avalon Advanced Materials

Executive Summary

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the exploration and development of mineral properties primarily in Canada.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

How has Avalon Advanced Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-11.1%

AVL

-1.9%

CA Metals and Mining

0.1%

CA Market


1 Year Return

-38.5%

AVL

11.8%

CA Metals and Mining

1.6%

CA Market

Return vs Industry: AVL underperformed the Canadian Metals and Mining industry which returned 11.8% over the past year.

Return vs Market: AVL underperformed the Canadian Market which returned 1.6% over the past year.


Shareholder returns

AVLIndustryMarket
7 Day-11.1%-1.9%0.1%
30 Day-20.0%-4.7%-2.9%
90 Day-42.9%-5.0%-1.4%
1 Year-38.5%-38.5%12.7%11.8%5.2%1.6%
3 Year-73.3%-73.3%-11.3%-13.0%13.8%3.7%
5 Year-85.2%-85.2%6.9%2.8%25.3%7.2%

Price Volatility Vs. Market

How volatile is Avalon Advanced Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avalon Advanced Materials undervalued compared to its fair value and its price relative to the market?

0.1x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate AVL's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate AVL's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AVL is unprofitable, so we can't compare its PE Ratio to the Metals and Mining industry average.

PE vs Market: AVL is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate AVL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVL is good value based on its PB Ratio (0.1x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Avalon Advanced Materials forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

43.4%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Avalon Advanced Materials has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Avalon Advanced Materials performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVL is unprofitable, but has reduced losses over the past 5 years at a rate of 10.2% per year.

Accelerating Growth: Unable to compare AVL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVL is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-13.7%).


Return on Equity

High ROE: AVL has a negative Return on Equity (-3.51%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AVL is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AVL is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Avalon Advanced Materials's financial position?


Financial Position Analysis

Short Term Liabilities: AVL's short term assets (CA$426.2K) do not cover its short term liabilities (CA$1.8M)

Long Term Liabilities: AVL's short term assets (426.2K) do not cover its long term liabilities (2.8M)


Debt to Equity History and Analysis

Debt Level: AVL's debt to equity ratio (1.7%) is considered satisfactory

Reducing Debt: Insufficient data to determine if AVL's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: AVL has a high level of physical assets or inventory.

Debt Coverage by Assets: AVL's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVL has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AVL has less than a year of cash runway if free cash flow continues to grow at historical rates of 21.5% each year.


Next Steps

Dividend

What is Avalon Advanced Materials's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate AVL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AVL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Avalon Advanced Materials's salary, the management and board of directors tenure and is there insider trading?

12.3yrs

Average management tenure


CEO

Don Bubar (63yo)

24.8yrs

Tenure

CA$316,024

Compensation

Mr. Donald Stephen Bubar, also known as Don, M.Sc., P.Geo has been President and Chief Executive Officer of Avalon Advanced Materials Inc. (formerly Avalon Rare Metals Inc.) since 1995 and has been its Dir ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Don's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Management Age and Tenure

12.3yrs

Average Tenure

60yo

Average Age

Experienced Management: AVL's management team is seasoned and experienced (12.3 years average tenure).


Board Age and Tenure

11.7yrs

Average Tenure

63yo

Average Age

Experienced Board: AVL's board of directors are seasoned and experienced ( 11.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$77,50003 Jun 19
Donald Bubar
EntityIndividual
Role
Chief Executive Officer
President
Shares500,000
Max PriceCA$0.15
SellCA$45,04525 May 19
Donald Bubar
EntityIndividual
Role
Chief Executive Officer
President
Shares500,000
Max PriceCA$0.095
SellCA$36025 Dec 18
Xi Hong Hu
EntityIndividual
Shares7,200
Max PriceCA$0.05
BuyCA$70,00026 Nov 18
Donald Bubar
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000,000
Max PriceCA$0.07

Ownership Breakdown


Management Team

  • Don Bubar (63yo)

    President

    • Tenure: 24.8yrs
    • Compensation: CA$316.02k
  • Jim Andersen (50yo)

    VP of Finance

    • Tenure: 18.3yrs
    • Compensation: CA$247.05k
  • Ian London

    Market Development and Energy Consultant

    • Tenure: 0yrs
  • Cindy Hu

    Controller

    • Tenure: 12.3yrs
  • Bill Mercer

    Vice President of Exploration

    • Tenure: 12.3yrs
    • Compensation: CA$217.11k
  • Dave Marsh (60yo)

    Senior Vice President of Metallurgy & Technology Development

    • Tenure: 7.2yrs
    • Compensation: CA$290.30k
  • Mark Wiseman

    Vice President of Sustainability

    • Tenure: 7.9yrs
    • Compensation: CA$179.07k
  • Melanie Smith

    Senior Legal Counsel

    • Tenure: 5.4yrs
  • Mary Kita

    Director of Communications

    • Tenure: 0yrs

Board Members

  • Brian MacEachen (56yo)

    Non-Executive Board Chairman

    • Tenure: 0yrs
    • Compensation: CA$26.26k
  • Don Bubar (63yo)

    President

    • Tenure: 24.8yrs
    • Compensation: CA$316.02k
  • Alan L. Ferry (64yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: CA$19.61k
  • Jane Pagel

    Director

    • Tenure: 3.7yrs
    • Compensation: CA$12.40k
  • Naomi Johnson

    Director

    • Tenure: 0.08yrs

Company Information

Avalon Advanced Materials Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avalon Advanced Materials Inc.
  • Ticker: AVL
  • Exchange: TSX
  • Founded: 1991
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$12.292m
  • Shares outstanding: 307.31m
  • Website: https://www.avalonadvancedmaterials.com

Number of Employees


Location

  • Avalon Advanced Materials Inc.
  • 130 Adelaide Street West
  • Suite 1901
  • Toronto
  • Ontario
  • M5H 3P5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVLTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1991
OU5DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1991
AVLN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1991

Biography

Avalon Advanced Materials Inc., together with its subsidiaries, engages in the exploration and development of mineral properties primarily in Canada. The company focuses on rare metals and minerals, includ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:58
End of Day Share Price2019/10/17 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.