AB Dynamics (ABDP) AI Stock Analysis

• Market Cap: $387.93M
• Dividend Yield: 0.45%
• Average Volume (3M): 43.39K
• Price to Earnings (P/E): 36.5
• Beta (1Y): 0.87
• Revenue Growth: 12.52%
• EPS Growth: -22.03%
• Country: UK
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 0.46
• Shares Outstanding: 22,954,462
• 10 Day Avg. Volume: 31,904
• 30 Day Avg. Volume: 43,392
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.80
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 17.10
• 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: $2,155.00
• Price Target Upside: 27.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

AB Dynamics has a solid financial foundation with robust revenue growth and cash generation, bolstered by positive corporate developments. However, the stock's technical indicators show bearish trends, and the high P/E ratio suggests overvaluation concerns. While the company's strategic initiatives are promising, the current valuation and market sentiment weigh on the overall stock score.

Positive Factors

Financial Performance

There was +160bps of yoy EBITA margin expansion to 18.6%.

Strategic Progress

Good strategic progress was made with decent order book visibility.

Negative Factors

Market Uncertainty

Uncertainty caused by US tariffs and their potentially inflationary impact is recognized.

Market Valuation

The Underperform rating is primarily due to the stock trading at significant premiums to the sector.

AB Dynamics Business Overview & Revenue Model

Company Description

AB Dynamics (ABDP) is a leading provider of advanced testing systems and measurement products for the global automotive industry. The company specializes in developing and manufacturing sophisticated equipment for vehicle testing, including driving simulators, advanced driver-assistance systems (ADAS) testing platforms, and laboratory testing products. AB Dynamics serves a range of sectors within the automotive industry, including research and development, regulatory compliance, and product development, catering to automotive manufacturers and component suppliers worldwide.

How the Company Makes Money

AB Dynamics generates revenue primarily through the sale of its advanced testing systems and measurement products to automotive manufacturers and suppliers. The company's key revenue streams include the sale of driving simulators, ADAS testing platforms, and laboratory testing equipment. AB Dynamics also offers associated software solutions that enhance the functionality and integration of its hardware products. In addition to direct sales, the company earns income through after-sales services, including maintenance contracts, software updates, and system upgrades. Significant partnerships with automotive companies and research institutions further bolster its revenue by expanding its market reach and enhancing its product offerings.

AB Dynamics Financial Statement Overview

Summary

AB Dynamics demonstrates strong financial health with consistent revenue growth and effective cost management. The balance sheet reflects low leverage and strong equity positioning, while cash flow statements underscore healthy cash generation. Despite these strengths, there is room for improvement in profitability margins and ROE to enhance overall financial performance.

Income Statement

AB Dynamics has shown solid revenue growth, with a 10.39% increase in the latest year. The gross profit margin is strong at 59.59%, indicating efficient cost management. However, net profit margin decreased from the previous year to 8.72%, suggesting potential cost pressures or operational inefficiencies. EBITDA margin remains healthy at 20.45%, reflecting good core business profitability.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.02, highlighting minimal leverage. The equity ratio of 74.57% indicates a solid reliance on equity financing. Return on equity is modest at 7.39%, suggesting room for improvement in effectively generating returns from shareholders' equity.

Cash Flow

Free cash flow has grown by 23.39%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 2.42, showing robust cash conversion efficiency. However, the free cash flow to net income ratio is 2.03, suggesting a potential need for better alignment of cash flow with profitability metrics.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
111.25M	100.77M	80.31M	65.38M	61.51M
	Gross Profit
66.28M	59.93M	46.22M	37.11M	35.92M
	EBIT
12.74M	12.55M	5.23M	4.19M	5.41M
	EBITDA
22.76M	23.30M	15.29M	11.32M	10.61M
	Net Income Common Stockholders
9.71M	10.99M	4.74M	2.98M	4.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
31.80M	33.49M	30.14M	23.28M	31.18M
	Total Assets
175.96M	170.64M	141.26M	131.97M	118.90M
	Total Debt
3.24M	1.48M	943.00K	967.00K	1.23M
	Net Debt
-28.57M	-32.01M	-29.20M	-22.32M	-29.96M
	Total Liabilities
44.70M	45.49M	29.30M	26.98M	16.15M
	Stockholders Equity
131.25M	125.16M	111.96M	104.99M	102.75M
Cash Flow		Free Cash Flow
19.68M	15.95M	14.10M	8.58M	-3.26M
	Operating Cash Flow
23.50M	19.34M	17.91M	15.22M	4.90M
	Investing Cash Flow
-20.80M	-14.05M	-8.92M	-20.97M	-10.98M
	Financing Cash Flow
-4.38M	-1.92M	-2.04M	2.97M	950.00K

AB Dynamics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1690.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABDP, the sentiment is Negative. The current price of 1690 is above the 20-day moving average (MA) of 1661.00, below the 50-day MA of 1757.40, and below the 200-day MA of 1874.64, indicating a neutral trend. The MACD of -24.81 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 79.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ABDP.

AB Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OXIG	68 Neutral	$974.62M	18.52	14.23%	1.17%	7.18%	-13.14%
ABDP	64 Neutral	$387.93M	36.49	8.09%	0.45%	12.52%	-22.03%
AVON	64 Neutral	£409.95M	172.98	1.82%	1.36%	9.11%	―
TRCS	64 Neutral	$112.41M	216.37	0.76%	0.65%	1.71%	-89.07%
Sector *	60 Neutral	$6.85B	11.71	3.16%	4.15%	2.39%	-21.87%
GHH	50 Neutral	£97.21M	33.99	2.87%	3.50%	-8.41%	-31.29%

AB Dynamics Corporate Events

AB Dynamics Reports Strong Interim Results Amid Strategic Growth Initiatives

AB Dynamics reported strong interim results for the six months ending February 2025, with an 11% revenue increase and a 22% rise in statutory operating profit. The company is executing its growth plan, highlighted by new product developments and the acquisition of Bolab Systems GmbH. Despite challenges from international trade policy changes, AB Dynamics’ diversified operations and market-leading products position it well to navigate dynamic market conditions. The company remains optimistic about meeting its financial targets for FY 2025, supported by strong trading momentum and improving margins.

Spark’s Take on GB:ABDP Stock

According to Spark, TipRanks’ AI Analyst, GB:ABDP is a Neutral.

AB Dynamics exhibits strong financial health with consistent revenue growth, effective cost management, and a solid balance sheet. However, the technical indicators point to a bearish trend, and the valuation metrics suggest the stock may be overvalued. The company’s recent positive corporate events contribute positively but are overshadowed by the technical analysis and valuation concerns.

To see Spark’s full report on GB:ABDP stock, click here.

AB Dynamics Reports Strong First Half Performance with 11% Revenue Growth

AB Dynamics plc reported a positive trading update for the first half of 2025, with a revenue growth of 11% to approximately £58 million, driven by strong order growth in Asia Pacific and North America. The company maintains a solid financial position with net cash of £27.2 million, despite a recent acquisition, and is confident in achieving its full-year expectations, supported by a robust order book and strategic growth initiatives.

Octopus Investments Increases Stake in AB Dynamics

AB Dynamics PLC has announced a change in the voting rights held by Octopus Investments Limited, which has increased its stake to 11.1% from a previous 10.72%. This acquisition of voting rights signifies a strengthened position for Octopus Investments in the company, potentially impacting the strategic decisions and influence within AB Dynamics.

Octopus Investments Increases Stake in AB Dynamics

AB Dynamics PLC has announced a change in the voting rights held by Octopus Investments Limited, which has increased its stake from 9.92% to 10.72%. This acquisition of voting rights signifies a strengthened position for Octopus Investments in AB Dynamics, potentially impacting the company’s governance and strategic decisions.