AB Dynamics (ABDP) AI Stock Analysis

• Market Cap: £325.95M
• Dividend Yield: 57.04%
• Average Volume (3M): 28.27K
• Price to Earnings (P/E): 30.7
• Beta (1Y): 1.01
• Revenue Growth: 12.52%
• EPS Growth: -22.03%
• Country: UK
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Auto - Parts
• EPS (TTM): 0.37
• Shares Outstanding: 22,954,462
• 10 Day Avg. Volume: 31,034
• 30 Day Avg. Volume: 28,266
• PEG Ratio: 3.30
• Price to Book (P/B): 5.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 144.97
• 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: £2,135.00
• Price Target Upside: 46.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: 1,634.00p ▲(11.92%Upside)

AB Dynamics holds strong financial fundamentals with consistent revenue growth and effective cost management. However, technical indicators show bearish momentum, which could impact short-term performance. The stock appears overvalued based on its P/E ratio, but high dividend yield offers a cushion. Positive corporate events and confidence from insiders add to the overall outlook.

Positive Factors

Financial Performance

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

Growth Prospects

There are plenty of opportunities for AB Dynamics to execute on margin and growth targets.

Valuation

Valuation has recently become more attractive.

Negative Factors

Leadership

The announcement of the CEO departure is likely to surprise investors and may lead to a negative share price reaction.

Market Uncertainty

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

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 makes money through the sale of its advanced testing and measurement systems and related services. The company's revenue model is primarily based on the direct sale of its hardware products, such as driving robots and ADAS test systems, to automotive manufacturers, suppliers, and research organizations. Additionally, AB Dynamics generates income through software licensing for its simulation tools, providing continuous upgrades and support. The company also offers consulting and engineering services to assist clients in integrating and optimizing their testing processes. Significant partnerships with leading automotive manufacturers and technology firms further enhance its revenue potential, as these collaborations often result in long-term contracts and repeat business.

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. However, there is room for improvement in profitability margins and return on equity.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	117.00M	111.25M	100.77M	80.31M	65.38M	61.51M
Gross Profit	64.32M	66.28M	59.93M	46.22M	37.11M	35.92M
EBITDA	24.26M	22.76M	23.30M	15.29M	11.32M	10.61M
Net Income	10.63M	9.71M	10.99M	4.74M	2.98M	4.02M
Balance Sheet
Total Assets	186.30M	175.96M	170.64M	141.26M	131.97M	118.90M
Cash, Cash Equivalents and Short-Term Investments	30.60M	31.80M	33.49M	30.14M	23.28M	31.18M
Total Debt	3.40M	3.24M	1.48M	943.00K	967.00K	1.23M
Total Liabilities	50.30M	44.70M	45.49M	29.30M	26.98M	16.15M
Stockholders Equity	136.00M	131.25M	125.16M	111.96M	104.99M	102.75M
Cash Flow
Free Cash Flow	18.23M	19.68M	15.95M	14.10M	8.58M	-3.26M
Operating Cash Flow	21.17M	23.50M	19.34M	17.91M	15.22M	4.90M
Investing Cash Flow	-18.45M	-20.80M	-14.05M	-8.92M	-20.97M	-10.98M
Financing Cash Flow	-4.01M	-4.38M	-1.92M	-2.04M	2.97M	950.00K

AB Dynamics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1460.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1460 is below the 20-day moving average (MA) of 1559.75, below the 50-day MA of 1676.70, and below the 200-day MA of 1795.22, indicating a bearish trend. The MACD of -64.26 indicates Positive momentum. The RSI at 26.15 is Positive, neither overbought nor oversold. The STOCH value of 8.91 is Positive, 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
ABDP	64 Neutral	£325.95M	30.66	8.09%	57.04%	12.52%	-22.03%
TRT	62 Neutral	£22.14M	15.45	26.18%	―	30.79%	-11.38%
CTA	61 Neutral	£25.39M	3.76	35.77%	―	-18.48%	30.21%
CAR	58 Neutral	£33.81M	―	-44.37%	―	-8.33%	74.38%
Sector *	57 Neutral	HK$25.34B	4.18	-2.03%	5.87%	-0.23%	-68.02%
MOTR	55 Neutral	£148.74M	49.07	11.03%	54.05%	-17.31%	47.33%
SCE	49 Neutral	£18.23M	―	-131.28%	―	12.73%	67.16%

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.