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Ama Group Limited (AU:AMA)
ASX:AMA

Ama Group Limited (AMA) AI Stock Analysis

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AU:AMA

Ama Group Limited

(Sydney:AMA)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
AU$1.00
▲(31.58% Upside)
Ama Group Limited's overall stock score is primarily impacted by its financial performance, which shows signs of recovery but is hindered by profitability and leverage issues. The technical analysis indicates a lack of strong momentum, and the valuation is unattractive due to a negative P/E ratio and no dividend yield.
Positive Factors
Revenue Growth
The consistent revenue growth indicates a strong market position and effective business strategies, contributing to long-term stability and expansion potential.
Cash Flow Generation
Improved cash generation capabilities enhance financial flexibility, allowing the company to invest in growth opportunities and manage debt effectively.
Gross Profit Margin
An improved gross profit margin reflects efficient cost control, which can lead to better profitability and competitiveness in the long term.
Negative Factors
High Leverage
High leverage poses risks to financial stability, as it can increase vulnerability to economic downturns and limit the company's ability to invest in growth.
Profitability Challenges
Ongoing profitability issues hinder the company's ability to generate sustainable earnings, affecting long-term financial health and investor confidence.
Negative Return on Equity
A negative return on equity indicates inefficiency in generating returns from shareholder investments, which can deter potential investors and impact growth prospects.

Ama Group Limited (AMA) vs. iShares MSCI Australia ETF (EWA)

Ama Group Limited Business Overview & Revenue Model

Company DescriptionAMA Group Limited operates and develops complementary businesses in the automotive aftercare market in Australia and New Zealand. It operates through three segments: Vehicle Collision Repairs, Heavy Motors, and Supply. The company offers rapid repairs of cars; specialized facilities for all commercial vehicle repairs; and recycled and new automotive parts and accessory solutions to panel repair sites, wholesale, and retail. It also provides AMA rapid; conventional; prestige; fleet management; electric, hybrid, and semi-autonomous vehicles; and heavy motor repair services. The company was formerly known as Allomak Limited and changed its name to AMA Group Limited in December 2009. AMA Group Limited was incorporated in 2005 and is based in Melbourne, Australia.
How the Company Makes MoneyAma Group Limited generates revenue through multiple streams, primarily from the sale of its agricultural products to wholesalers, retailers, and food service providers. The company also engages in export activities, supplying its products to international markets, which significantly contributes to its earnings. Additionally, AMA offers consulting services in agricultural practices and technology implementation, creating another revenue source. Partnerships with local farmers and agricultural cooperatives enhance its supply chain and market reach, while collaborations with research institutions help in developing innovative farming solutions, further driving profitability.

Ama Group Limited Financial Statement Overview

Summary
Ama Group Limited shows positive revenue growth and improved cash flow generation, but profitability challenges and high leverage remain significant concerns.
Income Statement
65
Positive
Ama Group Limited has shown a positive revenue growth rate of 12.58% in the latest year, indicating a recovery trend. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -0.74%. The gross profit margin improved to 56.81%, suggesting better cost management. Despite these improvements, the company remains unprofitable, which affects the overall income statement score.
Balance Sheet
55
Neutral
The balance sheet reflects a high debt-to-equity ratio of 1.72, indicating significant leverage. While the equity ratio is 25.05%, the return on equity remains negative at -3.37%, highlighting ongoing profitability issues. The company needs to focus on reducing debt levels and improving equity returns to enhance financial stability.
Cash Flow
70
Positive
The cash flow statement shows a healthy free cash flow growth rate of 17.39%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 10.14, suggesting efficient cash flow management. However, the free cash flow to net income ratio of -6.05 indicates that profitability issues still impact cash flow sustainability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.01B1.01B890.50M864.53M838.08M916.51M
Gross Profit325.33M573.81M490.03M33.98M-5.51M55.18M
EBITDA110.43M89.67M94.89M-49.47M-72.73M-2.17M
Net Income-7.44M-7.47M-7.63M-144.45M-144.21M-104.35M
Balance Sheet
Total Assets884.84M884.84M844.38M962.28M1.09B1.23B
Cash, Cash Equivalents and Short-Term Investments57.35M57.35M36.90M28.87M52.19M64.20M
Total Debt380.68M380.68M437.31M531.13M499.59M561.67M
Total Liabilities652.96M652.96M726.20M893.30M874.46M979.03M
Stockholders Equity221.70M221.70M109.30M60.91M204.17M236.70M
Cash Flow
Free Cash Flow45.30M45.17M25.91M7.19M-35.57M39.40M
Operating Cash Flow75.78M75.78M42.54M17.57M-28.23M52.10M
Investing Cash Flow-34.02M-34.02M-16.46M-9.02M-17.95M33.26M
Financing Cash Flow-24.29M-24.29M-15.06M-31.89M34.25M-134.06M

Ama Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.76
Price Trends
50DMA
0.89
Negative
100DMA
0.92
Negative
200DMA
0.85
Negative
Market Momentum
MACD
-0.03
Positive
RSI
32.44
Neutral
STOCH
13.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AMA, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.89, and below the 200-day MA of 0.85, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 32.44 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AMA.

Ama Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
AU$273.45M11.2710.48%4.47%1.54%-10.39%
63
Neutral
AU$14.17M2.998.25%-5.17%-19.44%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
AU$43.76M23.9118.17%25.15%2.22%
53
Neutral
AU$363.72M-47.60-4.58%13.54%66.33%
48
Neutral
AU$35.60M-5.09-27.79%32.50%
48
Neutral
AU$45.28M-0.92-44.12%0.89%-2641.38%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AMA
Ama Group Limited
0.80
0.22
37.93%
AU:SIX
Sprintex Limited
0.06
0.00
0.00%
AU:NTD
National Tyre & Wheel Ltd.
0.27
0.01
3.85%
AU:SFC
Schaffer Corporation Limited
20.25
-0.31
-1.51%
AU:ABV
Advanced Braking Technology Limited
0.11
0.03
37.50%
AU:RPM
RPM Automotive Group Ltd.
0.05
-0.02
-28.57%

Ama Group Limited Corporate Events

Ama Group Limited Announces Cessation of Performance Rights
Dec 3, 2025

Ama Group Limited has announced the cessation of 277,657 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This cessation may impact the company’s capital structure and could have implications for stakeholders, as it reflects on the company’s ability to meet certain performance conditions.

Ama Group Limited Issues Performance Rights to Boost Employee Engagement
Nov 23, 2025

Ama Group Limited announced the issuance of 10,379,447 performance rights as part of an employee incentive scheme. These unquoted securities are not intended to be listed on the ASX, indicating a strategic move to enhance employee engagement and retention, potentially impacting the company’s operational efficiency and market positioning.

AMA Group Director Increases Shareholding
Nov 14, 2025

Brian Austin, a director at AMA Group Limited, has increased his indirect interest in the company by acquiring 355,000 ordinary shares through an on-market trade, bringing his total to 8,192,953 shares. This change in shareholding reflects a significant investment in the company and may indicate confidence in the company’s future performance, potentially impacting investor perceptions and stakeholder interests.

Ama Group Limited Updates Security Consolidation Details
Nov 12, 2025

Ama Group Limited announced an update regarding its security consolidation, specifically reflecting the actual number of fully paid ordinary shares and performance rights following the consolidation. This update is part of their ongoing efforts to streamline their share structure, potentially impacting shareholder value and market perception.

Ama Group Announces Director’s Interest Change Following Share Consolidation
Nov 12, 2025

Ama Group Limited has announced a change in the director’s interest notice, specifically regarding Brian Austin’s indirect interest in the company’s securities. The change involves a consolidation of security holdings on a 10-for-1 basis, which was approved by shareholders at the company’s Annual General Meeting. This consolidation reduces the number of ordinary shares held by Austin Superannuation Pty Ltd, a director-related entity, from 78,379,526 to 7,837,953. This move is part of the company’s strategic efforts to streamline its share structure, potentially impacting shareholder value and market perception.

AMA Group Completes Capital Consolidation
Nov 12, 2025

AMA Group Limited has successfully completed a capital consolidation on a ten-for-one basis, following approval from shareholders at the recent Annual General Meeting. This restructuring aims to streamline the company’s capital structure, potentially enhancing its market positioning and operational efficiency. The new shareholding statements have been dispatched, and normal trading on a T+2 basis is set to resume on 14 November 2025, with settlement of deferred trades occurring on 18 November 2025.

Ama Group Limited Announces Shareholder Approval for Security Reorganization
Nov 3, 2025

Ama Group Limited has announced an update regarding the consolidation or split of its securities, specifically affecting AMA Ordinary Fully Paid shares and AMAAK Performance Rights. The update confirms that shareholder approval for this reorganization was received on November 3, 2025, following an earlier announcement on October 1, 2025. This development is significant for the company’s operational structure and could impact its market positioning and stakeholder interests.

AMA Group Limited Announces Capital Consolidation Approval
Nov 3, 2025

AMA Group Limited announced that its shareholders have approved a consolidation of the company’s issued capital on a 1 for 10 basis during the Annual General Meeting. This consolidation is set to streamline the company’s capital structure and is expected to impact trading timelines, with normal trading in post-consolidation securities commencing on November 14, 2025. This move is likely to affect the company’s market positioning and could have implications for stakeholders as it adjusts its capital framework.

Ama Group Limited’s 2025 AGM Resolutions Successfully Passed
Nov 3, 2025

Ama Group Limited held its 2025 Annual General Meeting, where several resolutions were put to a vote and successfully carried. The resolutions included the adoption of the remuneration report, re-election of a director, consolidation of capital, and the grant of performance rights to the Group Managing Director. The outcomes of these resolutions indicate strong shareholder support for the company’s strategic decisions and governance practices.

AMA Group Limited Reports Strong Financial Growth and Debt Reduction in 2025
Nov 2, 2025

AMA Group Limited reported a strong financial performance for the 2025 fiscal year, achieving a 38.4% increase in normalised pre-AASB 16 EBITDA compared to the previous year. The company successfully reduced its net debt by $126.2 million following a $125 million equity raise, positioning itself for future growth and operational optimization. The board and management express optimism for continued progress and value delivery in the upcoming year.

AMA Group Reports Strong Q1 2026 Financial Performance Amid Operational Expansion
Oct 31, 2025

AMA Group Limited reported a significant increase in its unaudited EBITDA for the first quarter of 2026, showing a 36.3% rise from the previous year. Despite challenges in repair volumes, particularly in Victoria, the company has managed to offset these with higher severity and complexity of work. The company continues to expand its operations with new site openings and is focusing on optimizing its network and capabilities. The financial performance of the AMA Collision and Specialist Businesses segments has improved, although some areas like Wales face growth challenges due to softer work provisions. The company maintains its FY26 guidance, expecting EBITDA to range between $70m and $75m.

AMA Group Limited Announces 2025 Annual General Meeting Details
Sep 30, 2025

AMA Group Limited has announced the details for its 2025 Annual General Meeting, scheduled for November 3, 2025, at KPMG Australia in Docklands, VIC. This meeting will provide shareholders with the opportunity to discuss the company’s performance and future strategies, potentially impacting its market positioning and stakeholder interests.

Ama Group Limited Announces Security Consolidation
Sep 30, 2025

Ama Group Limited has announced a security consolidation involving its ordinary fully paid shares and performance rights, with trading on a deferred settlement basis commencing on November 5, 2025. This reorganization, which has received the necessary security holder approval, is set to impact the company’s stock structure and may influence its market positioning and stakeholder interests.

AMA Group Proposes Capital Consolidation to Enhance Market Appeal
Sep 30, 2025

AMA Group Limited has announced a proposed consolidation of its issued capital on a 1 for 10 basis, pending shareholder approval at the upcoming Annual General Meeting. This move aims to simplify the company’s capital structure, reduce share price volatility, and make the share price more attractive to investors, aligning it more closely with peer companies. The consolidation is expected to stabilize the company’s market capitalization and reduce short-term speculation impacts.

WHSP Holdings Ltd Reduces Stake in AMA Group Limited
Sep 19, 2025

WHSP Holdings Ltd has ceased to be a substantial holder in AMA Group Limited, a company listed on the Australian Securities Exchange (ASX: AMA), as of September 15, 2025. This change in substantial holding was due to the sale of shares by Pengana Capital Group Limited, which WHSP Holdings Ltd has a significant voting power in, affecting 36,590,575 securities or 0.76% of voting power. The change reflects a shift in the ownership structure of AMA Group Limited, potentially impacting its market dynamics and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 13, 2025