Aston Martin Lagonda Global Holdings plc (AML) AI Stock Analysis

• Market Cap: £591.28M
• Dividend Yield: N/A
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -7.90%
• EPS Growth: 18.13%
• Country: UK
• Employees: 3,006
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.13
• Shares Outstanding: 1,012,461,700
• 10 Day Avg. Volume: 3,579,648
• 30 Day Avg. Volume: 2,097,786
• PEG Ratio: -0.07
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -3.20
• 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: £72.08
• Price Target Upside: 15.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: 66.00p ▲(5.68% Upside)

Aston Martin's overall stock score reflects significant financial challenges, including high leverage and ongoing losses, which weigh heavily on its financial performance. While technical indicators suggest short-term bullish momentum, long-term trends remain bearish. Valuation metrics are unattractive due to negative earnings. Recent earnings call and corporate events indicate strategic efforts to improve performance, but macroeconomic challenges persist.

Positive Factors

Product Development

The introduction of new models like the Valhalla and high-performance derivatives enhances Aston Martin's product lineup, potentially boosting market position and attracting new customers.

Customer Engagement

Strong customer engagement and pre-sales of the Valhalla indicate robust demand and customer loyalty, which can drive sustained revenue growth and brand strength.

Cost Reduction

Significant cost reduction efforts improve operational efficiency, potentially enhancing profitability and financial stability in the long term.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term sustainability.

Decreased Revenue

Significant revenue decline due to decreased wholesale volumes and weak demand in key markets challenges the company's growth trajectory and market competitiveness.

Free Cash Flow Concerns

Negative free cash flow indicates ongoing financial strain, limiting the company's ability to invest in growth opportunities and potentially affecting long-term viability.

Aston Martin Lagonda Global Holdings plc Business Overview & Revenue Model

Company Description

Aston Martin Lagonda Global Holdings plc designs, develops, manufactures, markets, and sells luxury sports cars under the Aston Martin and Lagonda brand names worldwide. It also engages in the sale of parts; sale of vehicles; servicing of vehicles; and brand and motorsport activities. The company sells its vehicles through a network of dealers. It has strategic technology agreement with Mercedes-Benz AG. Aston Martin Lagonda Global Holdings plc was incorporated in 2018 and is headquartered in Gaydon, the United Kingdom.

How the Company Makes Money

Aston Martin generates revenue primarily through the sale of its luxury vehicles, which are priced at a premium due to their craftsmanship, performance, and brand heritage. Key revenue streams include direct sales of new cars, special editions, and bespoke commissions. The company also earns income from aftersales services, including maintenance, parts, and accessories. Additionally, AML engages in limited partnerships and collaborations with other luxury brands and technology firms, enhancing its market presence and brand value. The company has also explored potential revenue from licensing its brand and expanding into lifestyle products, further diversifying its income sources.

Aston Martin Lagonda Global Holdings plc Financial Statement Overview

Summary

Aston Martin continues to face financial difficulties, with ongoing losses and high leverage impacting its financial health. Despite some revenue and gross profit improvements, profitability remains elusive. The balance sheet shows financial risks due to high debt levels, and cash flow challenges persist due to significant capital expenditures.

Income Statement

Aston Martin has faced persistent challenges in profitability, as evidenced by negative EBIT and net incomes over the years. Despite a revenue increase from 2020 to 2023, the net profit margin remains negative due to high operational costs. The gross profit margin has improved, indicating some cost management success, but the overall profitability remains weak.

Balance Sheet

The company's debt-to-equity ratio is high, indicating heavy reliance on debt financing, which poses a risk. However, the equity ratio has remained relatively stable, suggesting a consistent asset base. The return on equity is negative due to losses, but the company maintains a sizable asset base which provides some stability.

Cash Flow

While operating cash flow has remained positive, the company struggles with negative free cash flow due to high capital expenditures. The free cash flow to net income ratio is negative, reflecting ongoing cash flow challenges, despite improvements in operating cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.44B	1.58B	1.63B	1.38B	1.10B	611.80M
Gross Profit	477.60M	583.90M	639.20M	450.70M	343.70M	111.10M
EBITDA	324.70M	237.80M	309.60M	-5.40M	150.70M	-175.10M
Net Income	-264.70M	-323.50M	-228.10M	-527.70M	-189.30M	-410.50M
Balance Sheet
Total Assets	3.05B	3.16B	3.17B	3.10B	2.84B	2.79B
Cash, Cash Equivalents and Short-Term Investments	123.60M	359.60M	392.40M	592.10M	426.20M	504.00M
Total Debt	1.46B	1.48B	1.17B	1.31B	1.29B	1.19B
Total Liabilities	2.37B	2.41B	2.25B	2.33B	2.18B	1.99B
Stockholders Equity	671.90M	740.20M	902.30M	753.00M	641.80M	787.80M
Cash Flow
Free Cash Flow	-111.80M	-276.70M	-251.50M	-159.80M	-5.80M	-459.30M
Operating Cash Flow	14.30M	123.90M	145.90M	127.10M	178.90M	-198.60M
Investing Cash Flow	-542.10M	-374.80M	-383.40M	-284.70M	-184.10M	-258.40M
Financing Cash Flow	397.90M	215.80M	59.70M	315.00M	-66.50M	840.20M

Aston Martin Lagonda Global Holdings plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.45
• 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:AML, the sentiment is Negative. The current price of 62.45 is below the 20-day moving average (MA) of 62.46, below the 50-day MA of 62.74, and below the 200-day MA of 73.13, indicating a bearish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 23.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AML.

Aston Martin Lagonda Global Holdings plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	80 Outperform	£2.72B	7.03	23.07%	3.52%	-15.99%	69.97%
JD	71 Outperform	£4.30B	8.68	19.64%	1.22%	14.60%	58.84%
BTRW	67 Neutral	£5.34B	27.83	2.80%	4.91%	33.83%	15.11%
BWY	65 Neutral	£3.13B	19.99	4.49%	2.67%	16.91%	20.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BRBY	55 Neutral	£4.20B	-55.67	-3.00%	―	-9.44%	-170.53%
AML	52 Neutral	£591.28M	-2.00	-37.46%	―	-7.90%	18.13%

Aston Martin Lagonda Global Holdings plc Corporate Events

Aston Martin Faces Challenges in Q3 2025 but Eyes Future Growth with New Models

Aston Martin’s third-quarter results for 2025 reflect a challenging period marked by lower-than-expected wholesale volumes and a significant decrease in revenue and gross profit compared to the previous year. The company has initiated deliveries of its new Valhalla model, which is expected to improve financial performance in the fourth quarter. Despite macroeconomic challenges, including US tariffs and weak demand in China, Aston Martin is taking proactive steps to optimize costs and capital investment, with a focus on enhancing profitability and cash flow in 2026. The company’s strategic actions include reducing capital expenditure and SG&A costs, reviewing its product cycle plan, and leveraging its expanded range of core models and specials to drive future growth.

Aston Martin Revises FY 2025 Outlook Amid Economic Challenges

Aston Martin has revised its FY 2025 guidance due to global economic challenges, expecting a decline in wholesale volumes and adjusted EBIT below market consensus. The company is facing weaker demand in North America and APAC, impacting its financial performance. Despite these challenges, Aston Martin plans to commence Valhalla deliveries in Q4 2025 and expects profitability and cash flow to improve in FY 2026. The company is reviewing its cost and capital expenditures to adapt to market dynamics and regulatory changes, while engaging with governments for clarity on tariffs and quotas.

Aston Martin Awards Shares to Employees Under 2025 Incentive Plan

Aston Martin Lagonda Global Holdings plc announced the award of 500 ordinary shares to all eligible UK employees, including its CEO Adrian Hallmark and CFO Doug Lafferty, under the 2025 Share Incentive Plan. This move aligns with the company’s remuneration policy and aims to incentivize and retain key personnel, potentially strengthening employee commitment and aligning their interests with the company’s long-term goals.