Ama Group Limited (AMA) AI Stock Analysis

• Market Cap: AU$420.87M
• Dividend Yield: N/A
• Average Volume (3M): 5.05M
• Price to Earnings (P/E): 440.0
• Beta (1Y): 0.72
• Revenue Growth: -1.09%
• EPS Growth: N/A
• Country: AU
• Employees: 3,469
• Sector: Consumer Cyclical
• Sector Strength: 69
• Industry: Auto - Parts
• EPS (TTM): >-0.01
• Shares Outstanding: 4,782,595,700
• 10 Day Avg. Volume: 3,553,380
• 30 Day Avg. Volume: 5,052,642
• PEG Ratio: -2.01
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.81
• 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: 33.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: AU$0.00 ▼(-100.00%Downside)

Ama Group Limited's stock score is primarily influenced by its financial performance and valuation. While there are improvements in operational efficiency, high leverage and lack of profitability pose significant risks. Additionally, the stock appears overvalued with a very high P/E ratio. Technical analysis suggests a neutral trend, adding to the cautious outlook.

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 its core operations in the automotive services industry. The company's main revenue streams include fees for vehicle panel and collision repair services offered through a network of repair centers. Additionally, AMA earns income from the distribution of automotive components and accessories, leveraging partnerships with manufacturers and suppliers. The company also benefits from the sale of vehicle protection products, which contribute to its diversified income sources. Key factors contributing to AMA's earnings include its extensive service network, strategic partnerships with insurers and automotive manufacturers, and its ability to provide high-quality repair and maintenance services to a broad customer base.

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 present significant challenges. The company needs further action to stabilize financial health and achieve sustainable profitability.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	890.50M	864.53M	838.08M	916.51M	824.13M
Gross Profit	490.03M	33.98M	-5.51M	55.18M	34.88M
EBITDA	94.89M	-53.86M	-72.73M	-2.17M	20.46M
Net Income	-7.63M	-144.45M	-144.21M	-104.35M	-70.27M
Balance Sheet
Total Assets	844.38M	962.28M	1.09B	1.23B	1.50B
Cash, Cash Equivalents and Short-Term Investments	36.90M	28.87M	52.19M	64.20M	112.92M
Total Debt	437.31M	531.13M	499.59M	561.67M	691.45M
Total Liabilities	726.20M	893.30M	874.46M	979.03M	1.16B
Stockholders Equity	109.30M	60.91M	204.17M	236.70M	326.68M
Cash Flow
Free Cash Flow	25.91M	7.19M	-35.57M	39.40M	108.66M
Operating Cash Flow	42.54M	17.57M	-28.23M	52.10M	122.46M
Investing Cash Flow	-16.46M	-9.02M	-17.95M	33.26M	-445.86M
Financing Cash Flow	-15.06M	-31.89M	34.25M	-134.06M	424.19M

Ama Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AMA, the sentiment is Neutral. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.10 is Neutral, neither overbought nor oversold. The STOCH value of -0.64 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AMA.

Ama Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	AU$17.35M	4.08	6.94%	―	12.63%	46.73%
SFC	69 Neutral	AU$283.50M	9.15	13.91%	4.31%	5.89%	79.20%
ABV	67 Neutral	AU$31.83M	24.24	14.53%	―	18.20%	-15.38%
Sector *	62 Neutral	$16.95B	10.84	-7.26%	3.63%	1.71%	-25.14%
NTD	58 Neutral	AU$34.38M	15.95	-42.37%	―	-3.66%	-750.00%
AMA	48 Neutral	AU$420.87M	440.00	1.53%	―	-1.09%	―
SIX	46 Neutral	AU$31.43M	―		―	-29.96%	-37.78%

Ama Group Limited Corporate Events

Soul Patts Acquires Substantial Stake in AMA Group Limited

Washington H. Soul Pattinson and Company Limited (Soul Patts) has become a substantial holder in AMA Group Limited, acquiring a 4.48% voting power through 214,040,206 ordinary shares. Alongside Pengana Capital Group Limited, which holds a 0.71% voting power, the total voting power amounts to 5.19%. This acquisition could potentially influence the strategic direction of AMA Group Limited and impact its stakeholders.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.10 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Ama Group Limited Announces Cessation of Securities

Ama Group Limited announced the cessation of certain securities, specifically the lapse of 3,125,624 performance rights. This cessation occurred because the conditions for these securities were not met or became incapable of being satisfied. The announcement reflects a change in the company’s issued capital and may affect stakeholders’ perception of the company’s operational and financial strategies.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.10 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Brickworks Limited Ceases Substantial Holding in AMA Group

Brickworks Limited has ceased to be a substantial holder in AMA Group Limited as of June 19, 2025. This change is due to Brickworks’ relevant interest in AMA Group’s securities being tied to its voting power in Washington H. Soul Pattinson and Company Limited (WHSP), where Brickworks holds a 25.6% share. The announcement indicates a shift in the ownership structure of AMA Group, potentially impacting its market dynamics and stakeholder interests.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.10 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

Soul Patts Ceases Substantial Holding in Ama Group

Ama Group Limited has announced that Washington H. Soul Pattinson and Company Limited (Soul Patts) has ceased to be a substantial holder in the company as of June 19, 2025. This change in shareholding could impact Ama Group’s market dynamics and investor relations, as Soul Patts previously held significant voting power. The announcement may lead to shifts in stakeholder strategies and influence within the company.

The most recent analyst rating on (AU:AMA) stock is a Buy with a A$0.10 price target. To see the full list of analyst forecasts on Ama Group Limited stock, see the AU:AMA Stock Forecast page.

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.