Motorcycle Holdings Ltd. (MTO) AI Stock Analysis

• Market Cap: AU$243.01M
• Dividend Yield: 3.95%
• Average Volume (3M): 89.52K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.27
• Revenue Growth: 11.62%
• EPS Growth: N/A
• Country: AU
• Employees: 100
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): 0.12
• Shares Outstanding: 73,863,000
• 10 Day Avg. Volume: 80,384
• 30 Day Avg. Volume: 89,515
• PEG Ratio: 0.44
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.32
• P/FCF Ratio: 4.10
• 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$4.34
• Price Target Upside: 31.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: AU$4.00 ▲(21.58% Upside)

Motorcycle Holdings Ltd. demonstrates a solid financial foundation with strong cash flow and revenue growth. The technical analysis suggests a stable long-term trend despite short-term fluctuations. The valuation is reasonable, supported by a decent dividend yield. These factors collectively contribute to a moderately positive outlook for the stock.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Cash Flow Generation

Strong cash flow generation enhances the company's ability to invest in growth opportunities, pay down debt, and provide shareholder returns.

Balance Sheet Health

A healthy balance sheet with improved leverage ratios provides financial stability and flexibility to navigate market challenges.

Negative Factors

Profitability Margins

Low net profit margins may limit the company's ability to reinvest in business growth and could impact long-term financial performance.

Operational Efficiency

Moderate operational efficiency suggests the need for cost optimization to enhance profitability and competitiveness in the market.

Return on Equity

A modest return on equity indicates limited efficiency in generating profits from shareholders' investments, which could affect investor confidence.

Motorcycle Holdings Ltd. Business Overview & Revenue Model

Company Description

Motorcycle Holdings Ltd. (MTO) is an Australian company specializing in the retail and distribution of motorcycles, parts, accessories, and related services. The company operates across multiple sectors within the motorcycle industry, focusing primarily on the sale of new and used motorcycles, as well as aftermarket products. MTO aims to provide a comprehensive range of services that cater to motorcycle enthusiasts and everyday riders alike, ensuring they have access to quality products and expert support.

How the Company Makes Money

Motorcycle Holdings Ltd. generates revenue through several key streams, primarily from the sale of new and used motorcycles, which constitutes a significant portion of its earnings. The company also profits from the sale of motorcycle parts and accessories, which includes aftermarket products that enhance the riding experience. Additionally, MTO offers servicing and maintenance for motorcycles, contributing to its revenue through service fees. The company may also engage in financing options for customers purchasing motorcycles, generating income from interest and fees associated with these financial products. Strategic partnerships with motorcycle manufacturers allow MTO to access exclusive models and promotional incentives, further enhancing its profitability. Overall, the combination of retail sales, service offerings, and financial solutions forms the backbone of Motorcycle Holdings Ltd.'s revenue model.

Motorcycle Holdings Ltd. Financial Statement Overview

Summary

Motorcycle Holdings Ltd. exhibits a solid financial position with consistent revenue growth and strong cash flow generation. While profitability margins are moderate, the company maintains a healthy balance sheet with improved leverage ratios. Continued focus on enhancing net profit margins and operational efficiencies could further strengthen its financial standing.

Income Statement

Motorcycle Holdings Ltd. has demonstrated consistent revenue growth, with a 5.4% increase in the latest year. The gross profit margin has remained stable around 25%, indicating effective cost management. However, the net profit margin is relatively low at 2.8%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting potential areas for cost optimization.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.64, indicating a balanced approach to leveraging. Return on equity is modest at 8.7%, suggesting moderate profitability relative to shareholder equity. The equity ratio stands at approximately 50.7%, reflecting a solid equity base relative to total assets, which enhances financial stability.

Cash Flow

Free cash flow has grown significantly by 17.9%, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.45, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is high at 0.94, reflecting robust cash flow management and the ability to support future growth and debt obligations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	650.36M	650.36M	582.32M	577.40M	457.32M	429.82M
Gross Profit	163.28M	163.28M	149.35M	65.45M	50.98M	51.28M
EBITDA	41.58M	41.58M	45.59M	56.08M	49.34M	55.82M
Net Income	18.02M	18.02M	14.13M	23.01M	23.11M	28.30M
Balance Sheet
Total Assets	407.73M	407.73M	394.98M	431.19M	298.19M	269.89M
Cash, Cash Equivalents and Short-Term Investments	30.99M	30.99M	12.14M	24.73M	3.91M	4.67M
Total Debt	131.84M	131.84M	144.51M	149.66M	93.27M	72.82M
Total Liabilities	201.16M	201.16M	194.81M	233.62M	143.19M	125.64M
Stockholders Equity	206.57M	206.57M	200.17M	197.57M	155.01M	144.25M
Cash Flow
Free Cash Flow	50.64M	50.64M	24.15M	12.53M	11.03M	32.15M
Operating Cash Flow	53.86M	53.86M	25.45M	15.66M	12.99M	34.25M
Investing Cash Flow	-1.36M	-1.36M	-14.46M	-26.38M	-7.85M	-2.04M
Financing Cash Flow	-39.80M	-33.93M	-23.44M	31.54M	-5.90M	-67.04M

Motorcycle Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.29
• 50DMA: Negative
• 100DMA: Negative
• 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 3.29 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 3.49, and above the 200-day MA of 2.97, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 46.92 is Neutral, neither overbought nor oversold. The STOCH value of 37.93 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	69 Neutral	AU$243.01M	13.47	8.86%	3.95%	11.62%	―
ASG	64 Neutral	AU$774.25M	23.49	6.57%	2.09%	8.22%	-46.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
APE	60 Neutral	AU$6.77B	30.46	16.06%	3.00%	16.46%	-20.08%
PWR	57 Neutral	AU$326.81M	27.03	2.34%	2.95%	0.32%	-66.48%
AMA	53 Neutral	AU$378.07M	-47.31	-4.58%	―	13.54%	66.33%

Motorcycle Holdings Ltd. Corporate Events

Motorcycle Holdings Ltd Updates Director’s Interest

Motorcycle Holdings Ltd announced a change in the director’s interest, with Michael Poynton acquiring additional performance rights. This change, approved by shareholders, reflects the company’s ongoing commitment to aligning executive incentives with long-term strategic goals, potentially impacting its governance and stakeholder engagement.

Motorcycle Holdings Ltd. Issues Performance Rights to Employees

Motorcycle Holdings Ltd. announced the issuance of 255,602 performance rights as part of an employee incentive scheme. This strategic move is aimed at enhancing employee engagement and aligning their interests with the company’s growth objectives, potentially strengthening its market position and operational efficiency.

MotorCycle Holdings Reports Successful 2025 AGM Outcomes

MotorCycle Holdings Limited announced the successful results of its 2025 Annual General Meeting, with all resolutions passed by a significant majority. This outcome reflects strong shareholder support and may positively influence the company’s strategic initiatives and market position in the motorcycle retail and distribution industry.

MotorCycle Holdings Ltd. Reports Record Financial Performance in 2025

MotorCycle Holdings Ltd. has reported a successful financial year in 2025, with record sales revenue of $650 million, marking an 11.6% increase from the previous year. The company achieved a net profit increase of 27.7% to $18 million, attributed to improved sales discipline and inventory management. The company also declared a fully franked dividend of 13 cents per share, reflecting its commitment to shareholder returns. Despite facing potential duty underpayments, the company has taken steps to rectify the situation and strengthen its balance sheet. The acquisition of Peter Stevens and Harley-Heaven is expected to be pivotal for 2026, as the company continues to expand its footprint and enhance its omni-channel sales model.

Motorcycle Holdings Ltd. Issues New Securities Under Employee Incentive Scheme

Motorcycle Holdings Ltd. has announced the issuance of 56,554 ordinary fully paid securities, which will be quoted on the ASX. This move is part of an employee incentive scheme, indicating the company’s efforts to motivate and retain its workforce, potentially strengthening its market position and operational capacity.

MotorCycle Holdings Addresses Vehicle Registration Duty Underpayments

MotorCycle Holdings Limited has identified an underpayment of vehicle registration duty related to optional equipment on motorcycles sold across various states and territories. The company is implementing system and process improvements to address this issue and is working with revenue authorities to resolve it. The estimated financial impact of these underpayments, including potential interest and penalties, ranges from $2.5M to $3.5M, with interest potentially adding $1.1M to $1.5M. The company is making a voluntary disclosure to minimize penalties and plans to fund any payments through existing cash reserves.

Motorcycle Holdings Ltd Requests Trading Halt Amid Registration Duty Review

Motorcycle Holdings Limited (ASX: MTO) has requested a trading halt on its securities due to the discovery of historical underpayment of vehicle registration duty across all states and territories where it operates. The halt will allow the company time to conduct an internal review to assess the extent of these underpayments and their implications, with plans to release a detailed announcement to the market by November 13, 2025.

Motorcycle Holdings Ltd. Announces Cessation of Performance Rights

Motorcycle Holdings Ltd. announced the cessation of 226,003 performance rights, as the conditions for these securities were not met by the deadline of October 31, 2025. This development may affect the company’s capital structure and could have implications for stakeholders, reflecting on the company’s operational adjustments and strategic focus.

MotorCycle Holdings Announces 2025 Annual General Meeting

MotorCycle Holdings Limited has announced its 2025 Annual General Meeting, scheduled for 26 November 2025 in Brisbane, Queensland. Shareholders have been provided with the necessary documentation electronically, including the Notice of Meeting and Proxy Form, to facilitate their participation. This meeting is a significant event for stakeholders as it provides an opportunity to engage with the company’s strategic direction and performance.

MotorCycle Holdings Director Increases Shareholding

MotorCycle Holdings Limited has announced a change in the interest of its director, Nicola Thomas, who has acquired an additional 6,732 fully paid ordinary shares through an on-market trade. This change increases her total shareholding to 37,000 shares, reflecting a strategic move that may indicate confidence in the company’s future performance.

MotorCycle Holdings Announces Director Resignation

MotorCycle Holdings Ltd. announced the resignation of Mr. Dave Ahmet from his position as a Non-Executive Director due to personal and health reasons. His departure follows a recent transition from Managing Director/CEO to a Non-Executive Director role, marking the end of his 14-year tenure with the company. This change in the board may impact the company’s strategic direction and governance, as the company acknowledges his significant contributions over the years.

Motorcycle Holdings Director Increases Shareholding

Motorcycle Holdings Ltd. announced a change in the director’s interest, with Nicola Thomas acquiring 3,268 fully paid ordinary shares through an on-market trade, increasing her total holdings to 30,268 shares. This change reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability, which may positively influence stakeholder perceptions.