AB Dynamics (ABDP) AI Stock Analysis

• Market Cap: £297.26M
• Dividend Yield: 0.63%
• Average Volume (3M): 67.82K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.83
• Revenue Growth: 3.10%
• EPS Growth: 23.59%
• Country: UK
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.30
• Shares Outstanding: 22,954,462
• 10 Day Avg. Volume: 65,739
• 30 Day Avg. Volume: 67,823
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £2,166.00
• Price Target Upside: 67.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 1,433.00p ▲(10.66% Upside)

AB Dynamics shows strong financial performance and a positive outlook from its recent earnings call, which are the most significant factors in its overall score. However, technical indicators suggest a bearish trend, and the valuation is only moderately attractive, which tempers the overall score.

Positive Factors

Strong Financial Performance

The 15% growth in operating profit and EPS indicates robust financial health and operational efficiency, which supports long-term growth and shareholder value.

Operational Improvements

The increase in operating margin reflects effective cost management and improved operational processes, enhancing profitability and competitive positioning.

Cash Conversion and Strong Balance Sheet

Strong cash conversion and a healthy cash balance provide financial flexibility for investments and growth initiatives, ensuring long-term stability.

Negative Factors

Macroeconomic Challenges

Macroeconomic disruptions, such as tariff changes, can impact revenue growth, posing risks to future financial performance and market expansion.

Segment Revenue Decrease in Simulation

A decline in the simulation segment's revenue suggests potential challenges in product demand or competitive pressures, affecting overall growth prospects.

Reduced Revenue Mix Benefit for FY '26

The anticipated reduction in revenue mix benefits could lead to lower margins and profitability, impacting financial performance in the upcoming fiscal year.

AB Dynamics Business Overview & Revenue Model

Company Description

AB Dynamics plc, through its subsidiaries, designs, develops, manufactures, and supplies testing and verification products and services for advanced driver assistance systems (ADAS), autonomous vehicle technology, and vehicle dynamics in the United Kingdom, rest of Europe, North America, the Asia Pacific, and internationally. It offers guided soft target and LaunchPad that uses control software for control and synchronization of multiple test objects, as well as provides test track services. The company also offers laboratory testing and simulation, including Advanced Vehicle Driving Simulator, the Static Simulator, Axle Level NVH, suspension parameter measurement machines (SPMM), and the rFpro physics-based simulation software environment. Its products are used to evaluate vehicle dynamics, noise, vibration, and harshness and autonomy for a range of applications comprise conventional vehicles, motorsport, and automated/autonomous vehicles. The company was founded in 1982 and is headquartered in Bradford-on-Avon, the United Kingdom.

How the Company Makes Money

AB Dynamics generates revenue primarily through the sale of its specialized testing equipment and simulation software. Their revenue model is based on direct sales to automotive manufacturers and suppliers, as well as ongoing service contracts for maintenance and support. Key revenue streams include the sale of dynamic driving simulators, vehicle testing systems, and data analysis software. The company also benefits from strategic partnerships with automotive manufacturers and technology firms, which enhance its market reach and provide collaborative opportunities for product development. Additionally, ABDP invests in research and development to stay ahead in the rapidly evolving automotive sector, ensuring a steady pipeline of innovative solutions that attract new clients and retain existing ones.

AB Dynamics Financial Statement Overview

Summary

AB Dynamics exhibits a strong financial position with consistent profitability, a solid balance sheet, and robust cash flow generation. While there is a slight dip in recent revenue growth, the company maintains healthy margins and low leverage, positioning it well for future growth in the auto parts industry.

Income Statement

AB Dynamics has demonstrated consistent revenue growth over the years, although the latest period shows a slight decline. The company maintains strong gross and net profit margins, indicating efficient cost management and profitability. EBIT and EBITDA margins are healthy, reflecting solid operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The return on equity is improving, showcasing effective use of shareholder funds. The equity ratio is strong, highlighting a solid capital structure.

Cash Flow

Cash flow generation is strong, with positive growth in free cash flow and a healthy operating cash flow to net income ratio. The company effectively converts its earnings into cash, supporting its financial flexibility and investment capacity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	114.70M	114.70M	111.25M	100.77M	80.31M	65.38M
Gross Profit	64.90M	71.10M	66.28M	59.93M	46.22M	37.11M
EBITDA	25.70M	25.70M	22.76M	23.30M	15.29M	10.97M
Net Income	12.00M	12.00M	9.71M	10.99M	4.74M	2.98M
Balance Sheet
Total Assets	188.90M	188.90M	175.96M	170.64M	141.26M	131.97M
Cash, Cash Equivalents and Short-Term Investments	44.70M	44.70M	31.80M	33.49M	30.14M	23.28M
Total Debt	3.30M	3.30M	3.24M	1.48M	943.00K	967.00K
Total Liabilities	49.00M	49.00M	44.70M	45.49M	29.30M	26.98M
Stockholders Equity	139.90M	139.90M	131.25M	125.16M	111.96M	104.99M
Cash Flow
Free Cash Flow	22.40M	21.60M	19.68M	15.95M	14.10M	8.58M
Operating Cash Flow	24.70M	24.70M	23.50M	19.34M	17.91M	15.22M
Investing Cash Flow	-6.50M	-6.50M	-20.80M	-14.05M	-8.92M	-20.97M
Financing Cash Flow	-5.30M	-5.30M	-4.38M	-1.92M	-2.04M	2.97M

AB Dynamics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1295.00
• 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 1295 is below the 20-day moving average (MA) of 1298.00, below the 50-day MA of 1301.30, and below the 200-day MA of 1530.45, indicating a bearish trend. The MACD of 1.48 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
TRT	80 Outperform	£20.55M	14.59	22.19%	―	32.78%	-8.69%
ABDP	73 Outperform	£297.26M	24.82	8.85%	0.63%	3.10%	23.59%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CTA	58 Neutral	£21.34M	3.30	30.82%	―	-18.51%	-13.40%
MOTR	55 Neutral	£107.10M	25.76	16.70%	1.48%	20.64%	―
CAR	49 Neutral	£38.76M	20.95	―	―	-7.27%	―
SCE	47 Neutral	£19.86M	-0.97	-131.18%	―	34.87%	77.15%

AB Dynamics Corporate Events

AB Dynamics CFO Increases Shareholding

AB Dynamics announced that its Chief Financial Officer, Mrs. Sarah Matthews-DeMers, has purchased 1,000 ordinary shares of the company at an average price of 1544 pence per share. This transaction increases her total shareholding to 31,091 shares, representing approximately 0.14% of the company’s issued share capital, indicating confidence in the company’s future prospects.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £22.50 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

AB Dynamics CEO Transition Announcement

AB Dynamics has announced that CEO James Routh will be leaving the company after seven years to become CEO of Victrex plc. The board, led by Chairman Dick Elsy, will start the process to find a successor, with Routh remaining in his role during the transition. The company is confident in its growth strategy and leadership team, aiming to continue delivering strong growth and financial returns.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £22.50 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

AB Dynamics Reports Steady Performance and Confident Outlook for FY 2025

AB Dynamics plc announced that its financial performance for the first nine months of FY 2025 is in line with expectations, supported by a solid order book and a robust balance sheet with net cash of £31.2m. Despite potential macroeconomic disruptions, the company remains confident in achieving its financial goals for the year, focusing on organic growth and value-enhancing acquisitions as outlined in its value creation plan.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £22.50 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

AB Dynamics Board Advisor Sells Shares, Retains Significant Stake

AB Dynamics announced that Mr. Tony Best, Special Advisor to the Board, and Mrs. Naemi Best sold a total of 90,000 ordinary shares in the company. Despite these transactions, Mr. Best and his associates continue to hold a significant stake of 23.49% in the company’s issued share capital, indicating a sustained interest in the company’s future prospects.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £22.50 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.

AB Dynamics Strengthens Board with New Non-Executive Director Appointment

AB Dynamics has announced the appointment of Julie Armstrong as a non-executive Director, effective from May 14, 2025. Julie, currently the Chief People Officer at SIG plc, brings extensive experience from various sectors including telecoms, retail, and aerospace. She will succeed Richard Hickinbotham as Chair of the Company’s Remuneration Committee upon his retirement by August 2026. This strategic board change is expected to enhance the company’s governance and strengthen its leadership team, potentially impacting its market positioning positively.

The most recent analyst rating on (GB:ABDP) stock is a Buy with a £22.50 price target. To see the full list of analyst forecasts on AB Dynamics stock, see the GB:ABDP Stock Forecast page.