Ama Group Limited (AMA) AI Stock Analysis

• Market Cap: AU$305.68M
• Dividend Yield: N/A
• Average Volume (3M): 4.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: 13.54%
• EPS Growth: 66.33%
• Country: AU
• Employees: 3,469
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 481,379,520
• 10 Day Avg. Volume: 2,949,046
• 30 Day Avg. Volume: 4,915,948
• PEG Ratio: 1.07
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 10.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.16
• Price Target Upside: 81.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.03
• Revenue Forecast (FY): AU$1.04B

• Rating: 56 Neutral
• Price Target: AU$0.65 ▲(2.19% Upside)
• Action: Reiterated Date: 02/24/26
• Date: Action: Reiterated 02/24/26

The score is held back primarily by weak technicals (downtrend signals and negative MACD) and ongoing profitability/leverage constraints in the financial statements. These are partially offset by constructive earnings-call takeaways, including maintained FY26 guidance and improving EBITDA and cash flow trends, though valuation remains challenged due to negative earnings.

Positive Factors

Recovering revenue and improving gross margin

Sustained revenue recovery and a materially higher gross margin reflect stronger pricing, parts mix and cost control across repair and parts operations. These durable topline and margin gains improve the business’s ability to absorb fixed costs, scale profits and progress toward medium‑term margin goals.

Improving cash generation and operating cash conversion

Consistent free cash flow growth and strong operating cash conversion demonstrate the company’s ability to convert repair revenues (largely insurer‑funded) into cash. Durable cash generation supports deleveraging, funds network investments and reduces reliance on external financing during cyclical periods.

Operational turnarounds and network scale expansion

Concrete recoveries in core divisions, positive parts profitability and targeted site expansions show operational execution and scale benefits. Combined with maintained guidance and a clear 10% margin objective, this structural progress supports sustainable margin improvement and stronger insurer/retailer relationships.

Negative Factors

Elevated leverage

High leverage constrains financial flexibility, raises interest and covenant sensitivity, and limits the company’s ability to pursue opportunistic expansion. Until debt is meaningfully reduced, elevated leverage increases vulnerability to revenue cyclicality and interest rate pressure.

Persistent unprofitability and weak returns

Despite revenue and gross margin gains, negative net margins and ROE show the group has yet to convert operational improvements into sustainable profitability. This undermines retained earnings growth, limits reinvestment capacity and delays restoring shareholder returns absent margin recovery.

Volume shortfalls plus capex and lease cost pressures

Repair volumes below internal targets weaken fixed‑cost absorption, while elevated capex and start‑up costs depress near‑term margins. Higher lease finance costs are a structural headwind to operating leverage, meaning margins remain sensitive until volumes and utilization sustainably improve.

Ama Group Limited Business Overview & Revenue Model

Company Description

AMA 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 Money

Ama 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

Recovery indicators are present (revenue up 12.58%, gross margin improved to 56.81%, free cash flow growth 17.39% and strong operating cash conversion), but profitability remains weak (net margin -0.74%, ROE -3.37%) and leverage is elevated (debt-to-equity 1.72), limiting the score.

Income Statement

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

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

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.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.06B	1.01B	890.50M	864.53M	838.08M	916.51M
Gross Profit	108.26M	573.81M	490.03M	33.98M	-5.51M	55.18M
EBITDA	123.99M	89.67M	94.89M	-49.47M	-72.73M	-2.17M
Net Income	-4.05M	-7.47M	-7.63M	-144.45M	-144.21M	-104.35M
Balance Sheet
Total Assets	882.64M	884.84M	844.38M	962.28M	1.09B	1.23B
Cash, Cash Equivalents and Short-Term Investments	47.34M	57.35M	36.90M	28.87M	52.19M	64.20M
Total Debt	701.83M	380.68M	437.31M	531.13M	499.59M	561.67M
Total Liabilities	649.09M	652.96M	726.20M	893.30M	874.46M	979.03M
Stockholders Equity	223.00M	221.70M	109.30M	60.91M	204.17M	236.70M
Cash Flow
Free Cash Flow	42.54M	45.17M	25.91M	7.19M	-35.57M	39.40M
Operating Cash Flow	78.66M	75.78M	42.54M	17.57M	-28.23M	52.10M
Investing Cash Flow	-39.73M	-34.02M	-16.46M	-9.02M	-17.95M	33.26M
Financing Cash Flow	-95.96M	-24.29M	-15.06M	-31.89M	34.25M	-134.06M

Ama Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 0.64 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.75, and below the 200-day MA of 0.89, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 24.24 is Positive, neither overbought nor oversold. The STOCH value of 36.03 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFC	66 Neutral	AU$273.18M	16.52	10.48%	4.50%	1.54%	-10.39%
ABV	63 Neutral	AU$49.73M	24.51	18.17%	―	25.15%	2.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RPM	57 Neutral	AU$8.99M	5.08	8.25%	―	-5.17%	-19.44%
AMA	56 Neutral	AU$305.68M	-74.71	-4.58%	―	13.54%	66.33%
SIX	47 Neutral	AU$47.04M	-9.71	―	―	-27.79%	32.50%
NTD	45 Neutral	AU$33.54M	-3.13	-44.12%	―	0.89%	-2641.38%

Ama Group Limited Corporate Events

Ama Group Seeks ASX Quotation for New Employee Incentive Shares

Ama Group Limited has applied to the ASX for quotation of 104,167 new ordinary fully paid shares, to be issued on 3 March 2026. The securities are being issued under an employee incentive scheme and will be quoted, signalling a modest equity issuance that slightly expands the company’s listed share base and aligns staff interests with shareholders.

This move supports Ama Group’s capital and remuneration structure by using equity-based incentives without imposing transfer restrictions on the new shares. While small in scale, the issue reflects ongoing use of share-based compensation as a tool for employee engagement and retention, with incremental dilution for existing investors.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.99 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Ama Group Narrows Half-Year Loss as Revenue and EBITDA Improve

Ama Group Limited reported a 6.0% increase in revenue and other income from continuing operations to $524.1 million for the half year ended 31 December 2025, while its loss after income tax narrowed significantly to $0.9 million from $4.3 million a year earlier. Normalised EBITDA from continuing operations (pre-AASB 16) rose 21.9% to $30.5 million, indicating operational improvement, though the company kept net tangible assets per share in negative territory and chose not to declare a dividend, underscoring a continued focus on balance sheet repair and reinvestment over immediate shareholder payouts.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.74 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Ama Group Seeks ASX Quotation for 2.8 Million New Shares

Ama Group Limited has applied for quotation on the ASX of 2,805,609 new ordinary fully paid shares, with an issue date of 6 February 2026. These securities, issued under a previously announced transaction, will be added to the company’s quoted capital base, modestly expanding its tradable share pool and potentially improving liquidity for existing investors.

The new shares stem from arrangements already disclosed via an earlier Appendix 3B filing to the market. While the announcement does not specify the underlying purpose of the issuance, the additional quoted securities reflect ongoing capital management activity that may support the company’s financing needs or transactional commitments.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.74 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

AMA Group Plans Placement of Up to 2.8 Million New Shares

AMA Group Limited has announced a proposed placement of up to 2,805,609 new fully paid ordinary shares on the ASX, with the issue date set for 6 February 2026. The additional equity issuance is intended to expand the company’s capital base, which may provide further financial flexibility for operations or strategic initiatives and could have a dilutive effect on existing shareholders depending on the final pricing and allocation of the new securities.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.75 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Ama Group Sets Date for H1 FY26 Results and Investor Webinar

Ama Group Limited has scheduled the release of its half-year fiscal 2026 results for Tuesday, 24 February 2026, and will present the numbers via a live webinar for investors and other stakeholders the same day at 11:00am AEDT. The event signals the company’s effort to maintain transparent and timely communication with the market, giving shareholders and analysts a structured opportunity to review performance and ask questions as the group updates on its financial and operational progress for the first half of the financial year.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.76 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

AMA Group Appoints Tony Clark to Board, Discloses Indirect Shareholding

AMA Group Limited has appointed Anthony (Tony) Clark as a director effective 19 January 2026. According to the initial director’s interest notice lodged with the ASX, Clark holds no shares directly in AMA Group but has an indirect interest through a related entity, the Clark Family Super Fund, which holds 41,825 ordinary shares in the company, and he currently has no disclosed interests in any contracts with AMA Group. The filing clarifies the extent and structure of Clark’s equity exposure as he joins the board, providing transparency for shareholders about his existing stake in the company.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.75 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

AMA Group Adds Insurance Veteran Tony Clark to Board as Independent Director

AMA Group Limited has appointed Anthony (Tony) Clark as an independent non-executive director, effective 19 January 2026, strengthening its board with deep insurance and transport-sector expertise. Clark, currently Managing Director and former long-serving CEO of NTI Limited, Australia’s largest specialist transport and logistics insurer, brings more than 30 years’ experience in motor vehicle insurance and a strong operational understanding of the heavy transport and repair industry, which the board expects will support management’s focus on operational excellence and a return to consistent strong commercial results.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$0.75 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Ama Group Cancels 761,980 Unvested Performance Rights

Ama Group Limited has announced the lapse of 761,980 performance rights, which have ceased because the conditions attached to those rights were not met or can no longer be satisfied as of 7 January 2026. The change reduces the company’s pool of potential equity-based incentives, slightly altering its issued capital structure and potentially affecting future dilution expectations for existing shareholders, though no broader operational impacts were disclosed in the filing.

The most recent analyst rating on (AU:AMA) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.