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AB Dynamics (GB:ABDP)
:ABDP
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AB Dynamics (ABDP) AI Stock Analysis

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GB:ABDP

AB Dynamics

(LSE:ABDP)

Rating:64Neutral
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 (ABDP) vs. iShares MSCI United Kingdom ETF (EWC)

AB Dynamics Business Overview & Revenue Model

Company DescriptionAB 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 MoneyAB 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
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue117.00M111.25M100.77M80.31M65.38M61.51M
Gross Profit64.32M66.28M59.93M46.22M37.11M35.92M
EBITDA24.26M22.76M23.30M15.29M11.32M10.61M
Net Income10.63M9.71M10.99M4.74M2.98M4.02M
Balance Sheet
Total Assets186.30M175.96M170.64M141.26M131.97M118.90M
Cash, Cash Equivalents and Short-Term Investments30.60M31.80M33.49M30.14M23.28M31.18M
Total Debt3.40M3.24M1.48M943.00K967.00K1.23M
Total Liabilities50.30M44.70M45.49M29.30M26.98M16.15M
Stockholders Equity136.00M131.25M125.16M111.96M104.99M102.75M
Cash Flow
Free Cash Flow18.23M19.68M15.95M14.10M8.58M-3.26M
Operating Cash Flow21.17M23.50M19.34M17.91M15.22M4.90M
Investing Cash Flow-18.45M-20.80M-14.05M-8.92M-20.97M-10.98M
Financing Cash Flow-4.01M-4.38M-1.92M-2.04M2.97M950.00K

AB Dynamics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1460.00
Price Trends
50DMA
1676.70
Negative
100DMA
1720.39
Negative
200DMA
1795.22
Negative
Market Momentum
MACD
-64.26
Positive
RSI
26.15
Positive
STOCH
8.91
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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
£325.95M30.668.09%57.04%12.52%-22.03%
62
Neutral
£22.14M15.4526.18%30.79%-11.38%
61
Neutral
£25.39M3.7635.77%-18.48%30.21%
58
Neutral
£33.81M-44.37%-8.33%74.38%
57
Neutral
HK$25.34B4.18-2.03%5.87%-0.23%-68.02%
55
Neutral
£148.74M49.0711.03%54.05%-17.31%47.33%
49
Neutral
£18.23M-131.28%12.73%67.16%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ABDP
AB Dynamics
1,460.00
-600.83
-29.15%
GB:CAR
Carclo plc
47.60
14.10
42.09%
GB:MOTR
Motorpoint
184.00
43.30
30.77%
GB:SCE
Surface Transforms
1.40
-0.28
-16.67%
GB:TRT
Transense Technologies PLC
141.00
-4.00
-2.76%
GB:CTA
CT Automotive Group Plc
34.50
-27.00
-43.90%

AB Dynamics Corporate Events

Other
AB Dynamics CFO Increases Shareholding
Positive
Jul 9, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
AB Dynamics CEO Transition Announcement
Neutral
Jul 8, 2025

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.

Business Operations and StrategyFinancial Disclosures
AB Dynamics Reports Steady Performance and Confident Outlook for FY 2025
Positive
Jun 26, 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.

Other
AB Dynamics Board Advisor Sells Shares, Retains Significant Stake
Neutral
Jun 9, 2025

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.

Executive/Board Changes
AB Dynamics Strengthens Board with New Non-Executive Director Appointment
Positive
May 14, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025