AVLNF (Avalon Advanced Materials) Financial Strength: 6 (As of May. 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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AVLNF Avalon Advanced Materials Inc AVLNF
66 GF Score
Price $3.65
GF Value $12.78
Valuation Possible Value Trap
! 5 Warning Signs
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What is Avalon Advanced Materials Financial Strength?

Avalon Advanced Materials AVLNF +1.08% 66 Financial Strength is 6 as of May. 2026, which is at its 10-year median of 6.00. GuruFocus rates AVLNF with a GF Score™ of 66/100 and a GF Value™ of $12.78 (Possible Value Trap). The stock has 5 warning signs investors should review.

Avalon Advanced Materials has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Avalon Advanced Materials did not have earnings to cover the interest expense. Avalon Advanced Materials's debt to revenue ratio for the quarter that ended in May. 2026 was 1.97. As of today, Avalon Advanced Materials's Altman Z-Score is 0.71.


Avalon Advanced Materials  (OTCPK:AVLNF) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Avalon Advanced Materials has the Financial Strength Rank of 6.


Avalon Advanced Materials Financial Strength Related Terms


Avalon Advanced Materials Financial Strength Competitor Comparison

For the Other Industrial Metals & Mining subindustry, Avalon Advanced Materials's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Avalon Advanced Materials Financial Strength vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Avalon Advanced Materials's Financial Strength distribution charts can be found below:

* The bar in red indicates where Avalon Advanced Materials's Financial Strength falls into.


AVLNF
66GF Score
Avalon Advanced Materials Inc AVLNF
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Avalon Advanced Materials Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Avalon Advanced Materials's Interest Expense for the months ended in May. 2026 was $-0.01 Mil. Its Operating Income for the months ended in May. 2026 was $-3.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2026 was $0.25 Mil.

Avalon Advanced Materials's Interest Coverage for the quarter that ended in May. 2026 is

Avalon Advanced Materials did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Avalon Advanced Materials's Debt to Revenue Ratio for the quarter that ended in May. 2026 is

Debt to Revenue Ratio=Total Debt (Q: May. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.155 + 0.254) / 0.208
=1.97

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Avalon Advanced Materials has a Z-score of 0.71, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.71 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 6 mean?
Avalon Advanced Materials (AVLNF) has a Financial Strength of 6 as of May. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Avalon Advanced Materials and its competitors. This is near median its historical median of 6.00. Over the past decade, Avalon Advanced Materials' Financial Strength has ranged from 5.00 to 10.00.
Is Avalon Advanced Materials' Financial Strength too high?
Avalon Advanced Materials' current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 10.00. Overall, Avalon Advanced Materials has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Avalon Advanced Materials' Financial Strength compare to competitors?
Avalon Advanced Materials' Financial Strength of 6 can be compared against companies in the Metals & Mining industry. Historically, Avalon Advanced Materials' own Financial Strength has ranged from 5.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Metals & Mining company?
A good Financial Strength depends on the Metals & Mining industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Avalon Advanced Materials and its competitors. Avalon Advanced Materials's current Financial Strength is 6, which is near median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avalon Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Avalon Advanced Materials (AVLNF) is currently considered Possible Value Trap. The stock's GF Value™ is $12.78, compared to a current price of $3.65 — trading 71.4% below its estimated fair value. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Avalon Advanced Materials' overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Avalon Advanced Materials (AVLNF), the current Financial Strength is 6 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Avalon Advanced Materials (AVLNF) Overvalued in 2026?

Based on GuruFocus' analysis, Avalon Advanced Materials stock appears to be undervalued. The current stock price of $3.65 is trading 71.4% below its estimated GF Value™ of $12.78. GuruFocus considers Avalon Advanced Materials to be Possible Value Trap.

Key valuation signals for AVLNF:

  • Financial Strength: 6 (near median its 10-year median of 6.00)
  • GF Value™: $12.78 vs. price of $3.65 (71.4% below fair value)
  • GF Score™: 66/100 with 5 warning signs

No single metric tells the full story. See the AVLNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Avalon Advanced Materials Business Description

Address 130 Adelaide Street West, Suite 2060, Toronto, ON, CAN, M5H 3P5
Avalon Advanced Materials Inc is a mineral exploration and development company. It is principally engaged in the acquisition, exploration, evaluation, and development of specialty and critical minerals properties, located principally in Canada. It holds an exploration license within four claims in the East Kemptville area of Yarmouth, Nova Scotia. The company also holds an interest in a mining lease in the Warren Township Anorthosite Project, Nechalacho REE Project, and Net Smelter Returns (NSR) rights in the East Cedartree Gold Property, and the Wolf Mountain Platinum-Palladium Project located near Thunder Bay, Ontario.
66GF Score

Get the complete analysis for AVLNF

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$3.65
Price
$12.78
GF Value