Motorcycle Holdings Ltd. (MTO) AI Stock Analysis

• Market Cap: AU$188.21M
• Dividend Yield: 5.88%
• Average Volume (3M): 63.63K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.86
• Revenue Growth: 3.76%
• EPS Growth: -26.42%
• Country: AU
• Employees: 100
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Dealerships
• EPS (TTM): 0.23
• Shares Outstanding: 73,806,440
• 10 Day Avg. Volume: 57,317
• 30 Day Avg. Volume: 63,632
• 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$2.01
• Price Target Upside: -19.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: AU$3.00 ▲(20.48%Upside)

Motorcycle Holdings Ltd. demonstrates strong technical indicators with bullish momentum and is trading above key moving averages. Despite modest revenue growth and declining profitability margins, the company shows robust cash management and maintains a solid balance sheet. Its valuation appears attractive with a low P/E ratio and a high dividend yield, making it appealing for value and income investors.

Motorcycle Holdings Ltd. Business Overview & Revenue Model

Company Description

MotorCycle 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 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
	EBIT
54.36M	27.58M	38.73M	30.88M	33.29M	18.93M
	EBITDA
51.13M	45.59M	56.08M	49.34M	55.82M	15.56M
	Net Income Common Stockholders
17.00M	14.13M	23.01M	23.11M	28.30M	-9.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.77M	12.14M	24.73M	3.91M	4.67M	39.49M
	Total Assets
393.59M	394.98M	431.19M	298.19M	269.89M	274.84M
	Total Debt
134.42M	144.51M	149.66M	93.27M	72.82M	106.55M
	Net Debt
113.65M	132.37M	124.92M	89.36M	68.15M	67.86M
	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: 2.49
• 50DMA: Positive
• 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 2.49 is below the 20-day moving average (MA) of 2.54, above the 50-day MA of 2.33, and above the 200-day MA of 1.83, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.89 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
MTO	79 Outperform	AU$188.21M	11.07	8.49%	5.88%	3.76%	-26.42%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
ARBFF		$1.72B	25.27	15.18%	2.20%	―	―
WN6		€7.66B	48.75	8.51%	2.32%	―	―
0BS		€995.80M	―	-16.06%	2.92%	―	―
SGF	53 Neutral	$1.22B	14.00	15.27%	5.42%	8.61%	8.16%

Motorcycle Holdings Ltd. Corporate Events

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.

Increase in Substantial Holder’s Voting Power at Motorcycle Holdings Ltd.

Motorcycle Holdings Ltd. has experienced a change in the interests of its substantial holder, Hamish Douglass and Associates. The voting power of this substantial holder has increased from 9.44% to 10.45%, indicating a stronger influence within the company. This change in voting power may impact the company’s decision-making processes and could have implications for its strategic direction.