tiprankstipranks
Trending News
More News >
Aston Martin Lagonda Global Holdings plc (GB:AML)
LSE:AML
Advertisement

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

Compare
529 Followers

Top Page

GB:AML

Aston Martin Lagonda Global Holdings plc

(LSE:AML)

Select Model
Select Model
Select Model
Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
73.00p
▲(3.55% Upside)
Aston Martin's overall stock score is primarily impacted by its weak financial performance and valuation, with ongoing losses and high leverage posing significant risks. While the earnings call provided some positive strategic initiatives, the technical analysis indicates bearish momentum, further weighing down the score.
Positive Factors
Product Innovation
The introduction of the Valhalla, a mid-engine hybrid, positions Aston Martin as a forward-thinking leader in luxury automotive innovation, potentially expanding its market reach and customer base.
Operational Efficiency
Enhanced production efficiency reduces costs and improves quality, supporting long-term profitability and competitiveness in the luxury automotive market.
Liquidity Enhancement
Improved liquidity through strategic asset sales enhances financial stability, providing the company with more flexibility to invest in growth and innovation.
Negative Factors
Revenue Decline
A significant revenue decline indicates challenges in maintaining sales momentum, which could impact long-term growth and market position if not addressed.
High Debt Levels
High debt levels can strain financial resources, limiting the company's ability to invest in new projects and potentially impacting long-term financial health.
Profitability Challenges
Ongoing profitability challenges, as reflected in EBIT losses, highlight difficulties in achieving sustainable financial performance, which could hinder future growth initiatives.

Aston Martin Lagonda Global Holdings plc (AML) vs. iShares MSCI United Kingdom ETF (EWC)

Aston Martin Lagonda Global Holdings plc Business Overview & Revenue Model

Company DescriptionAston 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 MoneyAston Martin generates revenue primarily through the sale of its luxury vehicles, which are positioned in the high-end market segment. The company earns significant income from both the direct sales of new cars and the pre-owned market, catering to affluent customers looking for exclusivity and performance. Additionally, Aston Martin has developed a revenue stream through bespoke personalization services, allowing customers to customize their vehicles to meet personal preferences, which commands a premium price. The company also benefits from partnerships in motorsports and collaborations with luxury brands, enhancing its brand visibility and attracting new customers. Furthermore, Aston Martin engages in merchandise sales, including branded accessories and apparel, contributing to its overall revenue. The company’s focus on limited-edition models creates scarcity and exclusivity, driving demand and allowing for higher pricing strategies.

Aston Martin Lagonda Global Holdings plc Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture with strong product launches and ASP growth, but these are offset by significant revenue decline and challenges in the U.S. and China markets. Despite the hurdles, there are strategic initiatives in place to improve liquidity and operational efficiency.
Q2-2025 Updates
Positive Updates
Record ASP Growth
Average Selling Price (ASP) grew by 7% to GBP 192,000, reflecting strong demand for next-generation models.
Successful Product Launches
Launch of four new derivatives: Vantage Roadster, Vanquish Volante, DBX S, and Vantage S, supporting future profit growth.
Valhalla Order Book Strength
Valhalla, Aston Martin's first mid-engine plug-in hybrid electric vehicle, reported a 12-month order book before customer test drives, with 1/3 of lifetime production already secured.
Liquidity Enhancement
Liquidity is expected to increase to GBP 340 million following the anticipated completion of the sale of shares in the Aramco Formula One Team, with proceeds of around GBP 110 million.
Operational Improvements
Significant improvement in production efficiency, with 'right first time' production rates increasing from 65% to 95%.
Negative Updates
Revenue Decline
Revenue decreased by 25% year-on-year to GBP 454 million, mainly due to fewer specials delivered.
Adjusted EBIT Loss
Adjusted EBIT saw a loss of GBP 122 million, a decrease of 22% compared to the previous year.
Challenges in China
The market for luxury vehicles in China remains subdued, with ongoing macroeconomic weakness impacting demand.
U.S. Tariff Impact
U.S. tariffs pose significant challenges, with a 10% rate on the first 100,000 U.K.-made cars and a 27.5% rate beyond that.
Company Guidance
In the call, Aston Martin provided guidance for the second half of 2025, highlighting several key metrics and strategic focuses. The company expects positive free cash flow generation in the latter half of the year, with adjusted EBIT improving towards breakeven. Retail volumes outpaced wholesale volumes by over 40% in the first half as part of a disciplined approach to optimize stock levels, while average selling prices (ASP) grew by 7% to GBP 192,000. Despite a 25% revenue decrease to GBP 454 million due to fewer specials deliveries, the company anticipates that new derivatives like the Vantage S and DBX S, along with the upcoming Valhalla, will bolster second-half performance. The Valhalla alone is expected to contribute significantly over the next 2 to 2.5 years, with an initial production of 999 units. Aston Martin also plans to enhance liquidity through the sale of shares in the Aramco Formula One Team, with expected proceeds of around GBP 110 million. The company is actively managing the impact of U.S. tariffs by implementing a 3% price increase and engaging with the U.K. government on quota mechanisms. Additionally, a transformation program is underway, with a projected GBP 25 million in annualized savings and efforts to improve operational efficiency and customer satisfaction.

Aston Martin Lagonda Global Holdings plc Financial Statement Overview

Summary
Aston Martin faces financial difficulties with ongoing losses and high leverage. Despite some improvements in revenue and gross profit, 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
45
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.44B1.58B1.63B1.38B1.10B611.80M
Gross Profit477.60M583.90M639.20M450.70M343.70M111.10M
EBITDA206.20M237.80M309.60M-5.40M150.70M-206.70M
Net Income-264.70M-323.50M-228.10M-527.70M-189.30M-410.50M
Balance Sheet
Total Assets3.05B3.16B3.17B3.10B2.84B2.79B
Cash, Cash Equivalents and Short-Term Investments123.60M359.60M392.40M592.10M426.20M504.00M
Total Debt1.46B1.48B1.17B1.31B1.29B1.19B
Total Liabilities2.37B2.41B2.25B2.33B2.18B1.99B
Stockholders Equity671.90M740.20M902.30M753.00M641.80M787.80M
Cash Flow
Free Cash Flow-111.80M-276.70M-251.50M-159.80M-5.80M-459.30M
Operating Cash Flow14.30M123.90M145.90M127.10M178.90M-198.60M
Investing Cash Flow-542.10M-374.80M-383.40M-284.70M-184.10M-258.40M
Financing Cash Flow397.90M215.80M59.70M315.00M-66.50M840.20M

Aston Martin Lagonda Global Holdings plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price70.50
Price Trends
50DMA
75.76
Negative
100DMA
78.41
Negative
200DMA
83.85
Negative
Market Momentum
MACD
0.42
Positive
RSI
37.50
Neutral
STOCH
16.06
Positive
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 70.5 is below the 20-day moving average (MA) of 78.63, below the 50-day MA of 75.76, and below the 200-day MA of 83.85, indicating a bearish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 37.50 is Neutral, neither overbought nor oversold. The STOCH value of 16.06 is Positive, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
£5.29B10.5819.64%0.96%14.60%58.84%
74
Outperform
£2.60B6.7323.07%3.73%-15.99%69.97%
66
Neutral
£5.56B28.842.80%4.45%33.83%15.11%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£2.95B20.294.22%2.40%-11.63%-31.81%
49
Neutral
£823.13M-37.46%-7.90%18.13%
46
Neutral
£4.36B77.34-7.28%5.01%-17.08%-128.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AML
Aston Martin Lagonda Global Holdings plc
70.50
-40.30
-36.37%
GB:BTRW
Barratt Redrow
388.50
-67.43
-14.79%
GB:BWY
Bellway
2,486.00
-500.86
-16.77%
GB:BRBY
Burberry
1,238.50
594.70
92.37%
GB:INCH
Inchcape
708.00
-17.54
-2.42%
GB:JD
JD Sports Fashion
102.00
-28.35
-21.75%

Aston Martin Lagonda Global Holdings plc Corporate Events

Business Operations and StrategyExecutive/Board Changes
Aston Martin Awards Shares to Employees Under 2025 Incentive Plan
Positive
Sep 10, 2025

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.

The most recent analyst rating on (GB:AML) stock is a Hold with a £77.00 price target. To see the full list of analyst forecasts on Aston Martin Lagonda Global Holdings plc stock, see the GB:AML Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Aston Martin Issues New Shares for Employee Incentive Plan
Neutral
Sep 5, 2025

Aston Martin Lagonda Global Holdings plc has announced the issuance of 1,186,749 ordinary shares to satisfy share awards under its Share Incentive Plan for employees. This move will increase the company’s total issued share capital to 1,012,461,696 ordinary shares, all of which have voting rights, potentially impacting the company’s market positioning and stakeholder interests.

The most recent analyst rating on (GB:AML) stock is a Hold with a £77.00 price target. To see the full list of analyst forecasts on Aston Martin Lagonda Global Holdings plc stock, see the GB:AML Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Aston Martin Reports H1 2025 Results Amidst Tariff Challenges
Neutral
Jul 30, 2025

Aston Martin reported its interim results for the first half of 2025, highlighting a 25% decrease in revenue due to fewer Specials deliveries and disruptions from U.S. tariffs. Despite these challenges, the company maintained a strong core average selling price, reflecting the success of its new model range. The company anticipates improved financial performance in the second half of 2025, driven by the launch of new models and benefits from its transformation program.

The most recent analyst rating on (GB:AML) stock is a Hold with a £1.18 price target. To see the full list of analyst forecasts on Aston Martin Lagonda Global Holdings plc stock, see the GB:AML 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: Oct 08, 2025