Motorcycle Holdings Ltd. (AU:MTO)
ASX:MTO
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Motorcycle Holdings Ltd.
(Sydney:MTO)
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Rating:69Neutral
Price Target:
AU$3.00
▼(-4.46% Downside)
Action:Reiterated
Date:03/14/26
The score is driven primarily by solid financial performance (revenue growth and strong free cash flow) and very attractive valuation (low P/E and high dividend yield). These positives are partially offset by weak technicals, with the price below all key moving averages and negative MACD indicating a bearish trend.
Positive Factors
Free cash flow generation
Sustained FCF growth (17.9%) and a high FCF-to-net-income ratio (0.94) indicate the business reliably converts earnings into cash. That durable cash generation supports debt servicing, dividends, reinvestment in service capacity and selective M&A without relying on volatile external funding.
Negative Factors
Low net profitability
A 2.8% net margin leaves a thin earnings buffer after operating and financing costs, limiting retained earnings for reinvestment. Persistently low net margins constrain resilience to cost inflation or revenue shocks and make long-term margin expansion critical for stronger returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained FCF growth (17.9%) and a high FCF-to-net-income ratio (0.94) indicate the business reliably converts earnings into cash. That durable cash generation supports debt servicing, dividends, reinvestment in service capacity and selective M&A without relying on volatile external funding.
Read all positive factors
Motorcycle Holdings Ltd. (MTO) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$199.43M
Dividend Yield4.13%
Average Volume (3M)89.52K
Price to Earnings (P/E)10.1
Beta (1Y)0.78
Revenue Growth16.46%
EPS Growth16.28%
CountryAU
Employees100
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Dealerships
Share Statistics
EPS (TTM)0.27
Shares Outstanding73,863,000
10 Day Avg. Volume80,384
30 Day Avg. Volume89,515
Financial Highlights & Ratios
PEG Ratio0.44
Price to Book (P/B)1.00
Price to Sales (P/S)0.32
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.32
Revenue Forecast (FY)AU$802.20M
Motorcycle Holdings Ltd. Business Overview & Revenue Model
Company Description
Established in 1989 and headquartered in Slacks Creek, Australia, MotorCycle Holdings Limited oversees a substantial chain of motorcycle dealerships, primarily within Australia. The company's operations are divided into two principal divisions: th...
How the Company Makes Money
MTO primarily makes money through its dealership operations. Key revenue streams include: (1) New motorcycle sales: revenue generated from selling new motorcycles through franchised/authorised dealerships, with earnings driven by unit volumes, pro...
Motorcycle Holdings Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
75
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 718.62M | 650.36M | 582.32M | 577.40M | 457.32M | 429.82M |
| Gross Profit | 122.90M | 163.28M | 149.35M | 65.45M | 50.98M | 51.28M |
| EBITDA | 58.96M | 41.58M | 45.59M | 56.08M | 49.34M | 55.82M |
| Net Income | 19.77M | 18.02M | 14.13M | 23.01M | 23.11M | 28.30M |
Balance Sheet | ||||||
| Total Assets | 447.81M | 407.73M | 394.98M | 431.19M | 298.19M | 269.89M |
| Cash, Cash Equivalents and Short-Term Investments | 33.95M | 30.99M | 12.14M | 24.73M | 3.91M | 4.67M |
| Total Debt | 207.21M | 131.84M | 144.51M | 149.66M | 93.27M | 72.82M |
| Total Liabilities | 236.97M | 201.16M | 194.81M | 233.62M | 143.19M | 125.64M |
| Stockholders Equity | 210.83M | 206.57M | 200.17M | 197.57M | 155.01M | 144.25M |
Cash Flow | ||||||
| Free Cash Flow | 49.34M | 50.64M | 24.15M | 12.53M | 11.03M | 32.15M |
| Operating Cash Flow | 52.64M | 53.86M | 25.45M | 15.66M | 12.99M | 34.25M |
| Investing Cash Flow | -10.36M | -1.36M | -14.46M | -26.38M | -7.85M | -2.04M |
| Financing Cash Flow | -34.65M | -33.93M | -23.44M | 31.54M | -5.90M | -67.04M |
Motorcycle Holdings Ltd. Technical Analysis
Positive
3.14
Price Trends
2.34
Positive
2.40
Positive
2.81
Negative
Market Momentum
0.10
Negative
65.67
Neutral
74.86
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 3.14 is above the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.34, and above the 200-day MA of 2.81, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | AU$199.43M | 10.12 | 9.47% | 4.13% | 16.46% | 16.28% | |
63 Neutral | AU$153.95M | 9.67 | 3.08% | 3.05% | 0.81% | -12.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | AU$228.70M | -56.16 | -1.82% | ― | 18.26% | -600.00% | |
55 Neutral | AU$6.32B | 25.88 | 14.32% | 2.90% | 16.54% | 10.81% | |
54 Neutral | AU$383.46M | 8.33 | 8.54% | 2.04% | 12.68% | 21.46% |
* Consumer Cyclical Sector Average
AU:MTO
Motorcycle Holdings Ltd.
2.65
0.34
14.57%
AU:PWR
Peter Warren Automotive Holdings Ltd
0.93
-0.38
-29.06%
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Eagers Automotive Limited
22.44
6.56
41.28%
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Autosports Group Ltd
1.82
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AU:AMA
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0.48
-0.46
-49.41%
Motorcycle Holdings Ltd. Corporate Events
MotorCycle Holdings Director Nicola Thomas Increases Shareholding
Jun 16, 2026
MotorCycle Holdings Limited has disclosed a change in director Nicola Thomas’s holdings following an on-market share purchase. Thomas acquired 11,500 fully paid ordinary shares in two trades on 16 June 2026, increasing her direct interest fr...
Motorcycle Holdings Performance Rights Lapse After Conditions Not Met
Jun 10, 2026
Motorcycle Holdings Ltd. has notified the market that 93,337 performance rights, trading under the ASX code MTOAA, have lapsed as of 31 May 2026 after the conditions attached to those rights were not met or became incapable of being satisfied. The...
Motorcycle Holdings Issues New Unquoted Performance Rights Under Staff Incentive Plan
Jun 10, 2026
Motorcycle Holdings Ltd., an ASX-listed company in the motorcycle sector, continues to utilise unquoted equity instruments as part of its employee incentive arrangements. The business issues performance rights rather than quoted shares to align st...
MotorCycle Holdings Director Robert Cassen Lifts Indirect Stake With On-Market Share Purchase
May 28, 2026
MotorCycle Holdings director Robert Nigel Laurence Cassen has increased his indirect shareholding in the company through an on-market purchase. Via R Cassen Pty Limited as trustee for the R Cassen Family Account, he acquired 75,000 fully paid ordi...
MotorCycle Holdings Names New CFO as Finance Chief Departs
May 28, 2026
MotorCycle Holdings has announced a leadership change in its finance team, with Chief Financial Officer and Joint Company Secretary Nicole Spink stepping down effective 31 May 2026 after a 17-year career with the company. The board credited Spink ...
MotorCycle Holdings Moves to Extend and Expand CFMOTO Distribution Deal
May 4, 2026
MotorCycle Holdings has entered a non-binding memorandum of understanding with Zhejiang CFMOTO Power to negotiate an extension of its exclusive distribution rights for CFMOTO products in Australia and New Zealand beyond the current expiry in Septe...
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.