AB Dynamics PLC (GB:ABDP)
LSE:ABDP
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AB Dynamics
(LSE:ABDP)
Select Model
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Rating:73Outperform
Price Target:
1,238.00 p
▲(11.53% Upside)
Action:ReiteratedDate:12/11/25
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
Net cash position and low leverage
A net cash balance of £41.4m and strong cash conversion provide a durable financial buffer and flexibility. This reduces refinancing risk, funds organic and inorganic investments, and supports dividend increases, enabling strategic execution through economic cycles over the next several months.
Negative Factors
Macroeconomic and tariff-related headwinds
Exposure to macro disruptions and tariff shifts creates structural risk to order intake and cross-border sales. Such policy and demand volatility can delay multi-month projects, compress near-term revenue visibility, and constrain growth momentum across the 2-6 month horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Net cash position and low leverage
A net cash balance of £41.4m and strong cash conversion provide a durable financial buffer and flexibility. This reduces refinancing risk, funds organic and inorganic investments, and supports dividend increases, enabling strategic execution through economic cycles over the next several months.
Read all positive factors
AB Dynamics (ABDP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£253.65M
Dividend Yield0.63%
Average Volume (3M)67.82K
Price to Earnings (P/E)27.3
Beta (1Y)0.91
Revenue Growth3.10%
EPS Growth23.59%
CountryUK
Employees555
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.30
Shares Outstanding22,954,462
10 Day Avg. Volume65,739
30 Day Avg. Volume67,823
Financial Highlights & Ratios
PEG Ratio1.15
Price to Book (P/B)2.34
Price to Sales (P/S)2.86
P/FCF Ratio15.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,370.00Price Target Upside23.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.8
Revenue Forecast (FY)£119.35M
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 Unite...
How the Company Makes Money
AB Dynamics makes money primarily by selling and supporting automotive test and validation solutions. A key revenue stream is the sale of physical test equipment used for vehicle dynamics and ADAS/autonomy development, such as driving robots, targ...
AB Dynamics Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 14, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant profit growth, operational improvements, and a robust cash position. However, there were challenges from macroeconomic disruptions affecting revenue growth and the Simulation segment. The overall outlook remains positive with strategic plans in place to address these challenges.Positive Updates
Strong Financial Performance
Operating profit and earnings per share growth of 15%, ahead of upgraded expectations. Revenue increased by 3% with double-digit revenue growth in the first half.
Negative Updates
Macroeconomic Challenges
Revenue growth slowed in the second half due to macroeconomic disruption, including U.S.-led tariff changes.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Financial Performance
Operating profit and earnings per share growth of 15%, ahead of upgraded expectations. Revenue increased by 3% with double-digit revenue growth in the first half.
Read all positive updates
Company Guidance
During the AB Dynamics 2025 Full Year Results Presentation, the company reported a 15% growth in both operating profit and earnings per share, slightly surpassing upgraded expectations despite macroeconomic challenges in the second half of the year. Revenue increased by 3%, with double-digit growth in the first half, although the second half was impacted by macroeconomic disruptions affecting order intake timing. The operating margin expanded by 210 basis points to 20.3%, aided by operational improvements and revenue mix effects. The company ended the fiscal year with a net cash position of GBP 41.4 million, following GBP 8.1 million in investments. Cash conversion stood at 106%, supporting further organic and inorganic investments. The group also noted a carried-forward order book of GBP 32 million into FY '26, providing momentum for the upcoming fiscal year.AB Dynamics Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 114.70M | 111.25M | 100.77M | 80.31M | 65.38M |
| Gross Profit | 71.10M | 66.28M | 59.93M | 46.22M | 37.11M |
| EBITDA | 25.70M | 22.76M | 23.30M | 15.29M | 10.97M |
| Net Income | 12.00M | 9.71M | 10.99M | 4.74M | 2.98M |
Balance Sheet | |||||
| Total Assets | 188.90M | 175.96M | 170.64M | 141.26M | 131.97M |
| Cash, Cash Equivalents and Short-Term Investments | 44.70M | 31.80M | 33.49M | 30.14M | 23.28M |
| Total Debt | 3.30M | 3.24M | 1.48M | 943.00K | 967.00K |
| Total Liabilities | 49.00M | 44.70M | 45.49M | 29.30M | 26.98M |
| Stockholders Equity | 139.90M | 131.25M | 125.16M | 111.96M | 104.99M |
Cash Flow | |||||
| Free Cash Flow | 21.60M | 19.68M | 15.95M | 14.10M | 8.58M |
| Operating Cash Flow | 24.70M | 23.50M | 19.34M | 17.91M | 15.22M |
| Investing Cash Flow | -6.50M | -20.80M | -14.05M | -8.92M | -20.97M |
| Financing Cash Flow | -5.30M | -4.38M | -1.92M | -2.04M | 2.97M |
AB Dynamics Technical Analysis
Negative
1110.00
Price Trends
1250.27
Negative
1266.33
Negative
1363.38
Negative
Market Momentum
-46.66
Positive
31.84
Neutral
24.94
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 1110 is below the 20-day moving average (MA) of 1208.75, below the 50-day MA of 1250.27, and below the 200-day MA of 1363.38, indicating a bearish trend. The MACD of -46.66 indicates Positive momentum. The RSI at 31.84 is Neutral, neither overbought nor oversold. The STOCH value of 24.94 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £253.65M | 27.31 | 8.70% | 0.63% | 3.10% | 23.59% | |
65 Neutral | £10.35M | 1,307.96 | 12.05% | ― | 32.78% | -8.69% | |
62 Neutral | £17.66M | 4.36 | 30.82% | ― | -18.51% | -13.40% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | £93.22M | 12.59 | 16.70% | 1.48% | 20.64% | ― | |
52 Neutral | £73.28M | -6.75 | -34.64% | ― | 14.08% | 31.82% | |
47 Neutral | £1.50M | -0.62 | -131.18% | ― | 34.87% | 77.15% |
* Consumer Cyclical Sector Average
GB:ABDP
AB Dynamics
1,105.00
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-41.32%
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AB Dynamics Corporate Events
Business Operations and StrategyFinancial Disclosures
AB Dynamics Maintains Profit Outlook Despite China Setback and £16m Impairment
Neutral
Mar 12, 2026
AB Dynamics reported first-half 2026 revenue of about £49m and orders of £64m, broadly in line with expectations and supporting a second-half weighted trading pattern, with strong demand in Testing Products and Simulation, particularly i...
Business Operations and StrategyExecutive/Board Changes
AB Dynamics names veteran finance executive Andrew Lewis as interim CFO
Positive
Feb 19, 2026
AB Dynamics has appointed Andrew Lewis as Interim Chief Financial Officer with immediate effect, and he will join the Group’s Executive Committee. The move follows the promotion of former CFO Sarah Matthews-DeMers to Chief Executive Officer ...
DividendsShareholder Meetings
AB Dynamics Shareholders Approve All AGM Resolutions and Final Dividend
Positive
Jan 15, 2026
AB Dynamics reported that all resolutions at its latest Annual General Meeting were passed, including approval of the annual accounts, directors’ remuneration report and policy, and a final dividend of 6.36p per share. Shareholders also back...
Business Operations and StrategyFinancial Disclosures
AB Dynamics Maintains Strong Order Momentum and Confirms FY26 Profit Outlook
Positive
Jan 15, 2026
AB Dynamics reported that strong trading momentum from the end of FY25 has carried into the first four months of FY26, with order intake of £46m and a delivery profile expected to weight around 60% of trading performance into the second half ...
Other
AB Dynamics Executives Exercise LTIP Options and Sell Shares to Cover Tax
Neutral
Jan 7, 2026
AB Dynamics has disclosed that several senior managers exercised nil-cost options under its Long Term Incentive Plan and sold a portion of the resulting shares to cover exercise costs and tax liabilities. Chief executive Sarah Matthews-DeMers and ...
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.