Ama Group Limited (AMA) AI Stock Analysis

• Market Cap: AU$502.17M
• Dividend Yield: N/A
• Average Volume (3M): 9.03M
• Price to Earnings (P/E): 525.0
• Beta (1Y): 0.54
• Revenue Growth: -1.09%
• EPS Growth: N/A
• Country: AU
• Employees: 3,469
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 4,782,595,700
• 10 Day Avg. Volume: 15,361,685
• 30 Day Avg. Volume: 9,029,047
• PEG Ratio: -2.23
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.05
• 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$0.12
• Price Target Upside: 20.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Ama Group Limited's stock shows strong technical momentum, contributing positively to its overall score. However, financial performance challenges, particularly high leverage and net losses, weigh down the score. The high P/E ratio further suggests overvaluation concerns. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Ama Group Limited Business Overview & Revenue Model

Company Description

Ama Group Limited (AMA) is a leading provider in the automotive aftercare and accessories industry. The company primarily operates in the collision repair sector, offering vehicle owners a comprehensive range of repair services. With a strong presence in Australia, AMA has established itself as a key player in ensuring vehicles are returned to their pre-accident condition, focusing on quality and customer satisfaction.

How the Company Makes Money

Ama Group Limited generates revenue primarily through its extensive network of collision repair centers across Australia. The company earns money by providing repair services to vehicles involved in accidents, working closely with insurance companies to streamline the repair process and ensure timely service delivery. Key revenue streams include payments from insurance companies for repair work, direct payments from vehicle owners for non-insurance repairs, and sales of automotive parts and accessories. Strategic partnerships with insurers and suppliers contribute significantly to AMA's earnings by ensuring a steady flow of business and access to necessary parts and materials at competitive prices.

Ama Group Limited Financial Statement Overview

Summary

Ama Group Limited is on a recovery path, with improvements in profitability and cash flow. However, high leverage and ongoing net losses indicate significant financial challenges. The company needs further measures to stabilize financial health.

Income Statement

Ama Group Limited showed a recovery in profitability with improvements in gross profit and a significant reduction in net losses from the previous year. The gross profit margin increased to 55.02%, and the company achieved a positive EBIT margin of 3.52%, marking a turnaround from prior negative margins. Despite these improvements, the net profit margin remains negative at -0.86%, indicating persistent challenges in achieving net profitability.

Balance Sheet

The company faces high financial leverage, with a debt-to-equity ratio of 4.20, indicating potential financial risk. However, there was an improvement in equity from the previous year, contributing to a stronger equity base, but the equity ratio of 12.33% suggests limited financial flexibility. Return on equity remains negative due to net losses, highlighting ongoing profitability challenges.

Cash Flow

Cash flow metrics improved significantly, with free cash flow increasing to $25.9 million from $7.2 million the previous year. This growth reflects enhanced operational efficiency, as shown by the free cash flow to net income ratio of -3.39. However, the operating cash flow to net income ratio indicates the company's earnings are still insufficient in covering cash flow requirements, suggesting room for further financial improvement.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
897.11M	890.50M	864.53M	838.08M	916.51M	824.13M
	Gross Profit
305.92M	490.03M	33.98M	-5.51M	55.18M	34.88M
	EBIT
31.41M	31.37M	-14.16M	-67.06M	1.76M	-14.41M
	EBITDA
97.11M	94.89M	-53.86M	-72.73M	-2.17M	20.46M
	Net Income Common Stockholders
-1.93M	-7.63M	-144.45M	-144.21M	-104.35M	-70.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.51M	36.90M	28.87M	52.19M	64.20M	112.92M
	Total Assets
1.38B	844.38M	962.28M	1.09B	1.23B	1.50B
	Total Debt
658.28M	437.31M	531.13M	499.59M	561.67M	691.45M
	Net Debt
609.77M	400.41M	502.26M	447.40M	497.47M	578.54M
	Total Liabilities
982.22M	726.20M	893.30M	874.46M	979.03M	1.16B
	Stockholders Equity
384.59M	109.30M	60.91M	204.17M	236.70M	326.68M
Cash Flow		Free Cash Flow
38.48M	25.91M	7.19M	-35.57M	39.40M	108.66M
	Operating Cash Flow
58.11M	42.54M	17.57M	-28.23M	52.10M	122.46M
	Investing Cash Flow
-19.44M	-16.46M	-9.02M	-17.95M	33.26M	-445.86M
	Financing Cash Flow
31.38M	-15.06M	-31.89M	34.25M	-134.06M	424.19M

Ama Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AMA, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.08, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:AMA.

Ama Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUL	73 Outperform	AU$3.21B	14.18	17.52%	4.85%	2.56%	-13.62%
MMS	72 Outperform	€1.10B	12.10	74.00%	10.32%	43.44%	165.54%
ARB	69 Neutral	$2.61B	25.29	15.18%	2.23%	6.17%	10.45%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
AMA	60 Neutral	AU$502.17M	525.00	1.53%	―	-1.09%	―
BAP	54 Neutral	€1.75B	―	-16.06%	2.92%	-0.30%	-267.50%

Ama Group Limited Corporate Events

Ama Group Limited Announces Cessation of Performance Rights

Ama Group Limited has announced the cessation of 8,782,625 performance rights due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s operations and stakeholder expectations, as it reflects on the company’s ability to meet performance targets and manage its issued capital effectively.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.13 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Change in Substantial Holding for Ama Group Limited

Ama Group Limited has announced a change in the interests of its substantial holder, Washington H. Soul Pattinson and Company Limited (Soul Patts). The substantial holder’s voting power increased from 5.27% to 6.02% as of May 1, 2025. Additionally, Pengana Capital Group Limited now holds a 0.42% voting power in the company. This change in substantial holding may impact the company’s governance and influence over its strategic decisions, potentially affecting stakeholders’ interests.

AMA Group Limited Reports Strong Q3 2025 Performance and Strategic Growth Initiatives

AMA Group Limited has successfully completed a refinancing of its debt facilities and redeemed $50 million in convertible notes, marking a significant capital restructure. The company reported a 97.2% increase in unaudited normalised EBITDA for the third quarter of 2025 compared to the previous year, driven by improved operational efficiencies and strategic acquisitions. The update highlights strong performances across its divisions, including Capital SMART and AMA Collision, with a focus on network optimisation and strategic growth. The acquisition of Hondat Smash Repairs has bolstered the company’s presence on the Gold Coast, while ongoing initiatives aim to enhance the performance of underperforming sites. The company expects continued growth with a projected EBITDA margin of 10% in the coming years.

Ama Group Limited Announces Cessation of Securities

Ama Group Limited has announced the cessation of 250,000 performance rights due to the lapse of conditional rights, as the conditions have not been met or have become incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments or strategic directions.

Ama Group Director Increases Shareholding

Ama Group Limited announced a change in the director’s interest, with Ray Smith-Roberts acquiring an additional 790,000 ordinary shares through an on-market trade. This acquisition increases his total holdings to 6,563,302 shares, potentially signaling confidence in the company’s future prospects and impacting shareholder perception positively.

AMA Group Limited Announces Leadership Change Amidst Operational Focus

AMA Group Limited announced the departure of its CEO, Mathew Cooper, and the appointment of Ray Smith-Roberts as the new Managing Director. This leadership change comes as the company aims to enhance the performance of its operations, particularly within the AMA Collision business. The company has recently achieved significant financial milestones, including a capital raise, debt extension, and refinancing of banking facilities, positioning itself for further operational improvements under Smith-Roberts’ leadership.

AMA Group Strengthens Partnership with Suncorp Through Updated Agreement

AMA Group Limited has updated its Motor Repair Services Agreement with Suncorp, incorporating industry-specific inflationary measures to adjust pricing. The collaboration aims to enhance service delivery by expanding network capacity, targeting twelve new locations, and increasing repair volumes by 40,000 annually over the next four years. The recent completion of Project SHIFT by Capital SMART has improved repair quality and efficiency, aligning with insurer frameworks and operational improvements.