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Motorcycle Holdings Ltd. (AU:MTO)
ASX:MTO
Australian Market
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Motorcycle Holdings Ltd. (MTO) AI Stock Analysis

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AU

Motorcycle Holdings Ltd.

(Sydney:MTO)

Rating:79Outperform
Price Target:
AU$3.50
▲(14.75%Upside)
The strong technical analysis score, driven by bullish momentum and favorable moving averages, significantly boosts the overall stock score. The financial performance score reflects mixed results, with strong cash flow management offset by declining profitability margins. A solid valuation, highlighted by a reasonable P/E ratio and attractive dividend yield, adds to the stock's appeal.

Motorcycle Holdings Ltd. (MTO) vs. iShares MSCI Australia ETF (EWA)

Motorcycle Holdings Ltd. Business Overview & Revenue Model

Company DescriptionMotorCycle Holdings Limited owns and operates motorcycle dealerships in Australia. It operates through two segments, Motorcycle Retailing and Motorcycle Accessories Wholesaling. The company is involved in the sale of new motorcycles, used motorcycles, accessories and parts, and mechanical protection plan contracts; wholesaling and retailing of motorcycle accessories; and financing and insurance services for motorcycle purchases through third-party sources, as well as servicing and repair of motorcycles. It serves motorcyclists who are primarily leisure riders, recreational users, commuters, farmers, and adventure sports enthusiasts through 39 retail and 3 wholesale outlets in Queensland, New South Wales, Victoria, the Australian Capital Territory in Australia, as well as in New Zealand. MotorCycle Holdings Limited was founded in 1989 and is based in Slacks Creek, Australia.
How the Company Makes MoneyMotorcycle Holdings Ltd. generates revenue through several key streams. The primary revenue source is the sale of new and used motorcycles across its extensive network of dealerships. In addition to sales, MTO capitalizes on the aftermarket segment by offering parts and accessories, which contribute significantly to its earnings. The company also provides finance and insurance services, earning commissions and fees from these financial products. Service and repair activities form another essential revenue stream, leveraging the company's expertise and infrastructure to offer maintenance solutions. Partnerships with financial institutions and insurance providers enhance MTO's ability to offer competitive financial products, further bolstering its revenue potential.

Motorcycle Holdings Ltd. Financial Statement Overview

Summary
Motorcycle Holdings Ltd. presents a mixed financial performance. While revenue growth is modest, profitability margins have declined, suggesting potential operational challenges. The company maintains a solid balance sheet with a prudent approach to leverage. Strong cash flow generation remains a highlight, indicating robust operational cash management. The company should focus on improving profitability while maintaining its cash flow strengths.
Income Statement
75
Positive
Motorcycle Holdings Ltd. shows steady revenue growth from 2023 to 2024, with a revenue growth rate of 0.85%. The gross profit margin stands at 10.17% for 2024, indicating moderate profitability. However, net profit margin decreased to 2.43% from 3.99% in 2023, reflecting a decline in bottom-line profitability. EBIT and EBITDA margins also declined to 4.74% and 7.83%, respectively, suggesting pressure on operating margins.
Balance Sheet
70
Positive
The company maintains a reasonable debt-to-equity ratio of 0.72 for 2024, indicating a balanced capital structure. Return on equity (ROE) decreased to 7.06% from 11.65% in 2023, reflecting less efficient use of equity. The equity ratio of 50.67% shows a stable financial position with adequate equity financing.
Cash Flow
80
Positive
Free cash flow experienced a significant growth of 92.73% from 2023 to 2024, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 1.93, highlighting effective cash management. However, the free cash flow to net income ratio is lower at 1.71, indicating some room for improvement in translating net income into free cash flow.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue582.32M577.40M457.32M429.82M361.45M
Gross Profit149.35M65.45M50.98M51.28M33.81M
EBITDA45.59M56.08M49.34M55.82M15.56M
Net Income14.13M23.01M23.11M28.30M-9.12M
Balance Sheet
Total Assets394.98M431.19M298.19M269.89M274.84M
Cash, Cash Equivalents and Short-Term Investments12.14M24.73M3.91M4.67M39.49M
Total Debt144.51M149.66M93.27M72.82M106.55M
Total Liabilities194.81M233.62M143.19M125.64M150.25M
Stockholders Equity200.17M197.57M155.01M144.25M124.59M
Cash Flow
Free Cash Flow24.15M12.53M11.03M32.15M35.57M
Operating Cash Flow27.30M15.66M12.99M34.25M36.78M
Investing Cash Flow-14.46M-26.38M-7.85M-2.04M-3.73M
Financing Cash Flow-23.44M31.54M-5.90M-67.04M-2.74M

Motorcycle Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.05
Price Trends
50DMA
2.70
Positive
100DMA
2.39
Positive
200DMA
2.04
Positive
Market Momentum
MACD
0.14
Positive
RSI
56.74
Neutral
STOCH
24.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MTO, the sentiment is Positive. The current price of 3.05 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 2.70, and above the 200-day MA of 2.04, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:MTO.

Motorcycle Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUMTO
79
Outperform
AU$228.06M13.428.49%4.85%3.76%-26.42%
AUASG
72
Outperform
AU$504.07M13.887.39%8.63%0.90%-45.49%
AUAPE
69
Neutral
AU$5.05B24.4015.87%3.78%13.62%-27.61%
AUPWR
68
Neutral
AU$252.85M13.853.56%5.21%10.15%-61.72%
62
Neutral
$16.95B11.10-7.23%3.24%1.71%-24.93%
AUAMA
48
Neutral
AU$420.87M435.001.53%-1.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:MTO
Motorcycle Holdings Ltd.
3.05
1.85
154.17%
AU:PWR
Peter Warren Automotive Holdings Ltd
1.46
-0.37
-20.22%
AU:APE
Eagers Automotive Limited
18.88
8.93
89.75%
AU:ASG
Autosports Group Ltd
2.42
0.40
19.80%
AU:AMA
Ama Group Limited
0.09
0.04
80.00%

Motorcycle Holdings Ltd. Corporate Events

Motorcycle Holdings Ltd. Updates Registered Office Address
Jul 11, 2025

Motorcycle Holdings Ltd. has announced a change in its registered office address to Level 35, One Eagle, 1 Eagle Street, Brisbane, Qld 4000, while maintaining its principal place of business at 68 Moss Street, Slacks Creek, Qld 4127. This administrative update is part of the company’s ongoing efforts to streamline operations, potentially impacting its business efficiency and stakeholder engagement.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.85 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

Spheria Asset Management Acquires Substantial Stake in Motorcycle Holdings Ltd
Jul 4, 2025

Spheria Asset Management Pty Ltd has become a substantial holder in Motorcycle Holdings Ltd, acquiring a 5.19% voting power with 3,828,356 ordinary fully paid shares. This acquisition signifies a notable investment interest in Motorcycle Holdings, potentially impacting its market position and stakeholder dynamics.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.37 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

Motorcycle Holdings Ltd. Expands Market Share with Strategic Acquisition
Jul 1, 2025

Motorcycle Holdings Ltd. has announced the acquisition of select dealership assets from Peter Stevens Motorcycles Pty Ltd and Harley Heaven Pty Ltd, both of which are in administration. This strategic move, valued between $7 million and $9 million, is expected to increase the company’s national market share from 16.4% to 20% and strengthen its competitive position. The acquisition will be funded from existing cash reserves and bailment facilities, with an expected earnings accretion from the first half of 2026. The integration plan includes retaining staff and eCommerce capabilities, ensuring continuity of operations, and engaging with stakeholders to minimize disruption.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.37 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

Motorcycle Holdings Ltd. Announces Acquisition and Investor Q&A
Jun 30, 2025

Motorcycle Holdings Ltd. announced an upcoming Analyst & Investor Q&A session following its acquisition of Peter Stevens and Harley-Heaven. This acquisition is expected to enhance the company’s market position and expand its dealership network, potentially impacting stakeholders by increasing its market share and operational capabilities.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.37 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

MotorCycle Holdings Expands with Strategic Acquisition of Peter Stevens and Harley Heaven
Jun 27, 2025

MotorCycle Holdings Limited has announced the acquisition of select assets from Peter Stevens Motorcycles and Harley Heaven, two established motorcycle retail groups in administration. This strategic move allows MTO to expand its presence into key markets like Perth and Adelaide, enhancing its market leadership and digital capabilities. The acquisition, valued between $7 million to $9 million, is expected to be earnings accretive and will be funded through cash reserves and bailment facilities. By integrating these assets, MTO aims to consolidate market leadership, capitalize on synergies, and preserve the legacy of the acquired brands, ultimately representing approximately 20% of national sales.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.37 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

Director’s Increased Stake Signals Confidence in Motorcycle Holdings Ltd.
May 22, 2025

Motorcycle Holdings Ltd. announced a change in the director’s interest, with Peter Henley acquiring an additional 7,850 shares through an on-market trade, increasing his total holdings to 101,264 shares. This change reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which could have implications for stakeholders and the company’s market positioning.

The most recent analyst rating on (AU:MTO) stock is a Buy with a A$2.37 price target. To see the full list of analyst forecasts on Motorcycle Holdings Ltd. stock, see the AU:MTO Stock Forecast page.

MotorCycle Holdings Announces Change in Substantial Holder Interests
May 5, 2025

MotorCycle Holdings Limited has announced a change in the interests of its substantial holder, MRP Mojo Co Pty Ltd and its associates, which includes a reduction in their voting power from 9.04% to 7.82%. This change was due to the on-market sale of ordinary shares by MRP Investments Pty Ltd and MRP Mojo Motorcycles Pty Ltd, affecting a total of 891,211 votes. The announcement reflects a strategic shift in the shareholding structure, which may impact the company’s governance and investor relations.

MotorCycle Holdings Executive Sells Shares for Personal Purchase
May 2, 2025

MotorCycle Holdings Ltd announced a change in the shareholding of its Chief Operations Officer and Executive Director, Michael Poynton. Mr. Poynton sold 891,211 shares at $2.20 per share, representing 1.22% of the company’s issued capital, to fund a personal property purchase. Despite this sale, he retains a significant stake in the company and remains committed to its long-term growth. The company assured compliance with its Securities Trading Policy and continuous disclosure obligations.

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: Jul 16, 2025