Motorcycle Holdings Ltd. (MTO) AI Stock Analysis

• Market Cap: AU$175.66M
• Dividend Yield: 6.72%
• Average Volume (3M): 42.51K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.86
• Revenue Growth: 3.76%
• EPS Growth: -26.42%
• Country: AU
• Employees: 100
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Dealerships
• EPS (TTM): 0.23
• Shares Outstanding: 73,806,440
• 10 Day Avg. Volume: 36,812
• 30 Day Avg. Volume: 42,509
• PEG Ratio: -2.61
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.30
• 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$2.75
• Price Target Upside: 15.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: AU$2.50 ▲(5.04%Upside)

The overall stock score reflects a balanced view of strong valuation and financial management against bearish technical signals. The attractive P/E ratio and high dividend yield enhance its appeal, while declining profitability margins and bearish technical indicators present challenges.

Motorcycle Holdings Ltd. Business Overview & Revenue Model

Company Description

Motorcycle Holdings Ltd. (MTO) is one of Australia's largest motorcycle dealership operators, specializing in the sale of new and used motorcycles, accessories, and related products. The company operates through a network of dealerships and retail outlets across Australia, offering a wide range of motorcycle brands and models. In addition to its core retail operations, Motorcycle Holdings provides finance, insurance, and after-sales services to enhance the customer experience and support its extensive product offerings.

How the Company Makes Money

Motorcycle Holdings Ltd. generates revenue through multiple streams, primarily from the sale of new and used motorcycles. The company capitalizes on its extensive network of dealerships to offer a variety of brands and models, catering to different customer preferences. In addition to direct sales, Motorcycle Holdings earns income from the sale of motorcycle parts and accessories. The company also provides value-added services such as financing and insurance solutions, which not only enhance customer satisfaction but also contribute to its financial performance. These services are often facilitated through strategic partnerships with financial institutions and insurance companies. Furthermore, after-sales services, including repairs and maintenance, constitute another significant revenue stream, ensuring ongoing engagement with the customer base.

Motorcycle Holdings Ltd. Financial Statement Overview

Summary

Motorcycle Holdings Ltd. presents a mixed financial performance. Revenue growth is modest, but 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

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

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

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.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	617.07M	582.32M	577.40M	457.32M	429.82M	361.45M
Gross Profit	112.12M	149.35M	65.45M	50.98M	51.28M	33.81M
EBITDA	51.13M	45.59M	56.08M	49.34M	55.82M	15.56M
Net Income	17.00M	14.13M	23.01M	23.11M	28.30M	-9.12M
Balance Sheet
Total Assets	393.59M	394.98M	431.19M	298.19M	269.89M	274.84M
Cash, Cash Equivalents and Short-Term Investments	20.77M	12.14M	24.73M	3.91M	4.67M	39.49M
Total Debt	134.42M	144.51M	149.66M	93.27M	72.82M	106.55M
Total Liabilities	188.07M	194.81M	233.62M	143.19M	125.64M	150.25M
Stockholders Equity	205.52M	200.17M	197.57M	155.01M	144.25M	124.59M
Cash Flow
Free Cash Flow	42.94M	24.15M	12.53M	11.03M	32.15M	35.57M
Operating Cash Flow	46.24M	27.30M	15.66M	12.99M	34.25M	36.78M
Investing Cash Flow	-4.77M	-14.46M	-26.38M	-7.85M	-2.04M	-3.73M
Financing Cash Flow	-26.95M	-23.44M	31.54M	-5.90M	-67.04M	-2.74M

Motorcycle Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:MTO, the sentiment is Neutral. The current price of 2.38 is below the 20-day moving average (MA) of 2.49, below the 50-day MA of 2.43, and above the 200-day MA of 1.91, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:MTO.

Motorcycle Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	72 Outperform	$2.68B	25.97	15.18%	2.11%	6.17%	10.45%
CAR	71 Outperform	€14.13B	55.03	8.51%	2.06%	17.01%	-26.92%
MTO	69 Neutral	AU$175.66M	10.33	8.49%	6.72%	3.76%	-26.42%
Sector *	62 Neutral	$16.72B	10.85	-7.48%	3.11%	1.66%	-24.52%
BAP	47 Neutral	€1.68B	―	-16.06%	3.23%	-0.30%	-267.50%

Motorcycle Holdings Ltd. Corporate Events

MotorCycle Holdings Expands with Strategic Acquisition of Peter Stevens and Harley Heaven

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.

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

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

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.

MotorCycle Holdings Appoints Nikki Thomas as Independent Non-Executive Director

MotorCycle Holdings Limited, a company listed on the Australian Securities Exchange, has announced the appointment of Ms. Nikki Thomas as an Independent Non-Executive Director, effective April 3, 2025. Ms. Thomas, who will also chair the Audit & Risk Committee, brings over 30 years of experience in the financial services industry, with a strong background in global equities portfolio management. Her expertise is expected to enhance the board’s skill set and contribute to the company’s strategic direction.