Ashtead Technology Holdings PLC (AT) AI Stock Analysis

• Market Cap: £253.56M
• Dividend Yield: 0.35%
• Average Volume (3M): 923.22K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.69
• Revenue Growth: 32.36%
• EPS Growth: 19.01%
• Country: UK
• Employees: 650
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.22
• Shares Outstanding: 80,624,200
• 10 Day Avg. Volume: 453,870
• 30 Day Avg. Volume: 923,221
• PEG Ratio: 0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 615.03
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 377.00p ▲(9.75% Upside)

The overall stock score of 73 reflects strong financial performance and attractive valuation, offset by technical indicators suggesting potential bearish momentum. The company's financial health is robust, but attention to debt levels and cash flow volatility is necessary to maintain stability.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Ashtead's subsea equipment and services, supporting long-term business expansion and market position.

Profitability Metrics

High profitability metrics demonstrate efficient operations and cost control, enhancing financial resilience and ability to reinvest in growth.

Operational Efficiency

Solid operational efficiency suggests Ashtead can maintain competitive pricing and profitability, crucial for sustaining market leadership in subsea services.

Negative Factors

Increasing Debt Levels

Rising debt levels could strain financial flexibility, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Volatile Free Cash Flow

Volatile Free Cash Flow may impact liquidity and restrict discretionary spending, posing risks to financial stability and strategic investments.

Reliance on Expansion

Dependence on continuous expansion for growth could expose Ashtead to risks if market conditions change or expansion strategies falter.

Ashtead Technology Holdings PLC Business Overview & Revenue Model

Company Description

Ashtead Technology Holdings Plc provides subsea equipment rental solutions for the offshore energy sector in Europe, the Americas, the Asia-Pacific, and the Middle East. It offers survey and robotics equipment comprising survey sensors, geophysical, hydrographic, metocean, subsea inspection, remote visual inspection, and environmental products; mechanical solutions, consisting of cutting, coating removal, dredging, diver mechanical tools, ROV tooling, ROV/hydraulic, and fabrication solutions; and asset integrity solutions, including subsea infrastructure inspection, riser cleaning and inspection, hull and mooring inspection, subsea sensor packages, and deflection monitoring. The company was founded in 1985 and is based in Westhill, the United Kingdom.

How the Company Makes Money

Ashtead Technology generates revenue primarily through the rental of its subsea equipment and the provision of related services. The company earns money by leasing its advanced technologies, such as ROVs and diving gear, to clients for specific projects, which often involve short to medium-term contracts. Additionally, Ashtead provides technical support and maintenance services, which contribute to its revenue. Key revenue streams include equipment rentals, service contracts, and sales of consumables. The company may also engage in partnerships with other firms in the energy sector to expand its service offerings and increase market reach, enhancing its earnings potential.

Ashtead Technology Holdings PLC Financial Statement Overview

Summary

Ashtead Technology Holdings PLC shows strong financial health with impressive revenue growth and profitability metrics. However, the increasing debt levels and volatile Free Cash Flow require attentive management to sustain long-term financial stability.

Income Statement

The company exhibits strong revenue growth, with a notable increase in Total Revenue from the previous year. The Gross Profit Margin and Net Profit Margin are relatively high, indicating effective cost management and profitability. The EBIT and EBITDA margins also reflect solid operational efficiency. However, the significant revenue growth trajectory suggests reliance on expansion, which could pose risks if not managed carefully.

Balance Sheet

The company maintains a moderate Debt-to-Equity ratio, reflecting balanced financial leverage. The Return on Equity is healthy, indicating efficient use of equity capital to generate profits. The Equity Ratio shows a stable proportion of equity financing in the asset base. While the balance sheet is robust, the increase in total debt warrants monitoring to avoid potential leverage risks.

Cash Flow

The Cash Flow from operating activities remains strong, supporting the business growth. However, Free Cash Flow demonstrates volatility due to capital expenditures, which might impact liquidity if not managed properly. The Operating Cash Flow to Net Income ratio is favorable, indicating good cash conversion from earnings, but the Free Cash Flow to Net Income ratio reveals constraints on cash availability for discretionary spending.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.73M	168.04M	110.47M	73.12M	55.80M	42.40M
Gross Profit	87.63M	129.42M	86.30M	54.29M	40.54M	31.36M
EBITDA	72.15M	65.51M	44.15M	27.05M	17.52M	14.75M
Net Income	29.29M	28.78M	21.58M	12.37M	2.53M	-998.00K
Balance Sheet
Total Assets	326.46M	313.60M	213.69M	136.82M	99.03M	99.76M
Cash, Cash Equivalents and Short-Term Investments	11.96M	12.17M	10.82M	9.04M	4.86M	10.96M
Total Debt	143.88M	140.52M	72.51M	37.72M	27.56M	47.14M
Total Liabilities	188.60M	186.28M	116.11M	61.02M	37.90M	55.07M
Stockholders Equity	137.86M	127.33M	97.59M	74.94M	61.13M	44.68M
Cash Flow
Free Cash Flow	8.38M	729.00K	19.59M	18.40M	-653.00K	9.91M
Operating Cash Flow	41.64M	30.12M	39.05M	32.85M	7.24M	14.98M
Investing Cash Flow	-92.86M	-93.30M	-68.93M	-36.91M	-6.44M	-3.45M
Financing Cash Flow	60.25M	65.32M	32.19M	7.98M	-7.13M	-5.17M

Ashtead Technology Holdings PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 343.50
• 50DMA: Positive
• 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:AT, the sentiment is Positive. The current price of 343.5 is above the 20-day moving average (MA) of 326.70, above the 50-day MA of 337.64, and below the 200-day MA of 409.50, indicating a neutral trend. The MACD of 3.97 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AT.

Ashtead Technology Holdings PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AT	73 Outperform	£253.56M	8.63	23.59%	0.35%	32.36%	19.01%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GKP	61 Neutral	£384.97M	-1,108.75	-0.09%	8.69%	38.03%	94.56%
HTG	56 Neutral	£553.79M	-21.26	-3.70%	0.89%	11.60%	-126.25%
TLW	48 Neutral	£137.62M	-0.87	―	―	-32.47%	-1490.91%
PANR	47 Neutral	£353.79M	-27.55	―	―	-100.00%	-84.62%