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

• Market Cap: £468.77M
• Dividend Yield: N/A
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -7.90%
• EPS Growth: 18.13%
• Country: UK
• Employees: 3,006
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): -0.07
• Shares Outstanding: 1,012,461,700
• 10 Day Avg. Volume: 3,579,648
• 30 Day Avg. Volume: 2,097,786
• PEG Ratio: -0.04
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -4.55
• 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: £68.25
• Price Target Upside: 47.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): £1.65B

• Rating: 42 Neutral
• Price Target: 46.00p ▼(-0.65% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by weak financial performance (losses, thin equity, high debt and cash burn) and very bearish technicals (price below all key moving averages with negative momentum). Valuation offers limited support due to ongoing losses and no dividend data, while the earnings call provides only partial offset via improved 2026 guidance and cost/CapEx actions amid high execution and liquidity risk.

Positive Factors

Halo product momentum (Valhalla)

The Valhalla mid‑engine PHEV is a high‑margin halo model with an order bank into late 2026. Its production scale and expected incremental deliveries improve model mix and ASP durability, supporting longer‑term margin recovery and aftermarket revenue versus relying on core volume alone.

Pricing power & personalization

Sustained ASP gains and strong uptake of bespoke options (Q by Aston Martin and high‑performing derivatives) indicate durable pricing power. Higher ASPs reduce reliance on volume growth, supporting gross margins and long‑term profitability if product desirability and personalization remain central to demand.

CapEx and cost discipline

Meaningful CapEx trimming and lower operating expenses improve structural cash burn and capital intensity. Reduced long‑term investment plans and ongoing cost discipline increase the company's ability to fund operations internally and lower refinancing needs amid a capital‑intensive product cycle.

Negative Factors

Elevated leverage

Very high net debt and materially reduced equity leave limited financial flexibility for an auto manufacturer. Elevated leverage raises refinancing risk, constrains investment optionality, and amplifies losses or demand shocks, particularly in a cyclical luxury car market where cash cushions matter.

Persistent cash burn

Repeated negative free cash flow and a meaningful 2025 operating cash shortfall necessitate external financing or one‑offs to bridge funding. This structural cash consumption undermines self‑funding of model programs, elevates dilution/refinancing risk, and increases execution reliance on planned improvements.

Declining revenue and margin headwinds

Sharp revenue and volume declines reflect weaker core demand and fewer high‑margin specials, pressuring sustainable margins. Combined with tariff impacts, warranty and dealer support costs, this trend risks prolonging recovery and makes margin targets harder to achieve without sustained mix improvement.

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

Overall financial strength is weak: persistent net losses (2020–2025), renewed 2025 revenue/profitability pressure, thin equity versus rising debt, and ongoing cash burn with 2025 operating cash flow turning negative. Positives (2023–2024 margin recovery and less-negative 2025 free cash flow vs 2024) are not yet sufficient to offset leverage and cash-consumption risk.

Income Statement

Profitability remains weak: the company has posted net losses every year from 2020–2025, with negative operating profit throughout the period. While 2023–2024 showed a meaningful recovery in gross margin and EBITDA versus 2022, momentum weakened again in 2025 as revenue fell sharply (down ~12%) and gross profit collapsed versus 2024, signaling renewed pricing/mix or cost pressure. Overall, the trajectory shows volatility and an incomplete turnaround.

Balance Sheet

Leverage is elevated and financial flexibility has deteriorated. Total debt rose to ~1.67B in 2025 while equity fell sharply to ~0.32B (from ~0.74B in 2024), implying a much thinner capital cushion. With persistent losses (negative returns on equity in prior years) and a higher debt load, the balance sheet carries above-average refinancing and downside risk for an auto manufacturer.

Cash Flow

Cash generation is a key pressure point: free cash flow is negative across all years shown, and 2025 operating cash flow turned negative (about -68M), worsening from positive operating cash flow in 2024. Although 2025 free cash flow improved versus 2024 (less negative), it remains meaningfully cash-consuming, which is difficult to sustain alongside high debt without external funding or a step-change in profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.26B	1.58B	1.63B	1.38B	1.10B
Gross Profit	29.90M	583.90M	639.20M	450.70M	343.70M
EBITDA	120.50M	237.80M	309.60M	-5.40M	150.70M
Net Income	-493.20M	-323.50M	-228.10M	-527.70M	-189.30M
Balance Sheet
Total Assets	2.81B	3.16B	3.17B	3.10B	2.84B
Cash, Cash Equivalents and Short-Term Investments	252.90M	359.60M	392.40M	592.10M	426.20M
Total Debt	1.67B	1.48B	1.17B	1.31B	1.29B
Total Liabilities	2.48B	2.41B	2.25B	2.33B	2.18B
Stockholders Equity	316.30M	740.20M	902.30M	753.00M	641.80M
Cash Flow
Free Cash Flow	-137.10M	-276.70M	-251.50M	-159.80M	-5.80M
Operating Cash Flow	-67.50M	123.90M	145.90M	127.10M	178.90M
Investing Cash Flow	-232.50M	-374.80M	-383.40M	-284.70M	-184.10M
Financing Cash Flow	196.60M	215.80M	59.70M	315.00M	-66.50M

Aston Martin Lagonda Global Holdings plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.30
• 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:AML, the sentiment is Negative. The current price of 46.3 is below the 20-day moving average (MA) of 59.08, below the 50-day MA of 61.27, and below the 200-day MA of 70.12, indicating a bearish trend. The MACD of -2.84 indicates Positive momentum. The RSI at 14.92 is Positive, neither overbought nor oversold. The STOCH value of 7.29 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INCH	80 Outperform	£3.18B	8.35	23.07%	3.44%	-15.99%	69.97%
ABDP	73 Outperform	£299.56M	25.01	8.85%	0.63%	3.10%	23.59%
VTU	71 Outperform	£185.97M	11.76	4.51%	3.22%	-0.17%	-10.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MOTR	55 Neutral	£109.48M	26.34	16.70%	1.48%	20.64%	―
AML	42 Neutral	£468.77M	-0.93	-37.46%	―	-7.90%	18.13%

Aston Martin Lagonda Global Holdings plc Corporate Events

Aston Martin Hit by Tariffs and Slower Specials but Bets on Valhalla and Cost Cuts

Aston Martin Lagonda reported a difficult 2025, as wholesale volumes fell 10% and revenue dropped 21%, pressured by weaker macroeconomic conditions, heightened tariffs in the U.S. and China, and fewer deliveries of higher-margin Special models. Gross margin contracted from 37% to 29%, adjusted EBIT loss more than doubled to £189m, and net debt rose to £1.38bn, although management cut operating expenses and capital expenditure as part of its ongoing transformation programme.

Despite the financial setback, the company highlighted operational progress, including the start of Valhalla production with 152 deliveries in the fourth quarter, contributing to higher average selling prices and a return to modest positive free cash flow in Q4. With liquidity of £250m at year-end, to be bolstered by a £50m naming-rights sale in early 2026, Aston Martin expects a material improvement in performance this year, driven by a richer product mix, continued cost discipline and a renewed focus on margin expansion and deleveraging.

The most recent analyst rating on (GB:AML) stock is a Hold with a £0.75 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.

Aston Martin to Monetise F1 Naming Rights as 2025 Trading Stays Under Pressure

Aston Martin Lagonda has agreed in principle to sell the perpetual right to use the Aston Martin name and chassis designation for the Aston Martin F1 Team to AMR GP Holdings for £50 million, alongside certain F1-specific branding rights. The transaction, classed as a substantial property and related-party deal due to Executive Chairman Lawrence Stroll’s links to AMR GP, requires shareholder approval, which is effectively secured with investors holding 54.27% of the stock already committed to vote in favour.

In a trading update for 2025, the company reported wholesale volumes of 5,448 units, down from 6,030 a year earlier, with lower high-margin specials and U.S. tariffs weighing on results and adjusted EBIT expected to come in slightly below the low end of analyst estimates. However, cost-cutting measures reduced operating expenses and capex, liquidity held broadly flat at £250 million, and management expects the naming-rights proceeds plus a richer product mix, including about 500 Valhalla deliveries, to drive a material improvement in financial performance in 2026.

The board’s independent directors, advised by Goldman Sachs International, have deemed the naming-rights sale fair and reasonable for shareholders under UK Listing Rules. The deal monetises Aston Martin’s Formula 1 brand association while preserving its long-term sponsorship arrangement, potentially strengthening the balance sheet as the group pursues its ongoing transformation programme and expanded model line-up in a challenging market.

The most recent analyst rating on (GB:AML) stock is a Buy with a £110.00 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.