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AMMO Inc (POWW)
NASDAQ:POWW
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AMMO (POWW) AI Stock Analysis

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POWW

AMMO

(NASDAQ:POWW)

Rating:51Neutral
Price Target:
$1.50
▲(1.35% Upside)
AMMO's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability. While technical indicators show some positive momentum, the poor valuation due to negative earnings and lack of dividends further weighs down the score. The absence of recent earnings call data and notable corporate events leaves the financial and technical aspects as the primary drivers of the score.

AMMO (POWW) vs. SPDR S&P 500 ETF (SPY)

AMMO Business Overview & Revenue Model

Company DescriptionAMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company offers Jesse James ammunition, a jacketed hollow point projectile for self-defense; and Jeff Rann's ammunition for game hunting. Further, its products include armor piercing and hard armor piercing incendiary tactical rounds; and ammunition casings for pistol ammunition through large rifle ammunition. The company is based in Scottsdale, Arizona.
How the Company Makes MoneyAMMO generates revenue through the sale of its ammunition products to various customer segments, including individual consumers, law enforcement agencies, and military contracts. The company's primary revenue streams include direct sales through retail channels, online sales, and bulk sales to governmental and defense entities. Additionally, AMMO leverages strategic partnerships with distributors and wholesalers to expand its market reach. The company's focus on innovation and quality helps to maintain strong customer loyalty and repeat business, while fluctuations in demand for ammunition can impact revenue. Seasonal trends, such as increased sales during hunting seasons and around major holidays, also play a role in the company’s financial performance.

AMMO Earnings Call Summary

Earnings Call Date:Jun 25, 2025
(Q1-2025)
|
% Change Since: 12.98%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook, with significant transformation and strategic initiatives in place for long-term growth in both the eCommerce and Ammunition segments. However, immediate financial performance is challenged by decreased revenue and gross margins, along with significant non-recurring expenses. The company is focused on improving efficiencies and resolving production challenges to enhance profitability in the future.
Q1-2025 Updates
Positive Updates
Transformation in eCommerce and Marketplace
Significant progress in transforming the marketplace to an innovative eCommerce leader, with an increase in take rate from 5.8% to 6.2% due to category fee changes, advertising revenue, and enhanced listing option fees.
New Product Launches and Deliveries
Launch of new premium rifle hunting segments and delivery of 211,000 pieces of 12.7x108 for ZRO Delta.
Cost-Cutting and Efficiency Initiatives
Identification of up to $15 million in cost-cutting and working capital opportunities, with organizational alignment and talent to execute these initiatives.
Increased Ammunition Production
Increase in rifle brass production, with a steady progress expected in rifle case production in the quarters ahead.
Negative Updates
Decrease in Revenue and Gross Margin
Total revenues decreased from $34.3 million to $31 million compared to the prior year quarter, with a decrease in gross margin from 40.9% to 31.6%.
Challenges in Ammunition Segment
Negative gross margin of -4% in the Ammunition segment due to production inefficiencies and a shift in sales mix.
Non-Recurring Expenses Impacting Profitability
$6.3 million in non-recurring expenses related to legal and professional fees, impacting adjusted EBITDA, which decreased from $6.5 million to $2 million.
Supply Chain and Production Challenges
Issues with equipment such as an annealing oven and mechanical issues with presses affecting production efficiency.
Company Guidance
During the fiscal first quarter of 2025 earnings call, AMMO, Inc. provided guidance highlighting several key metrics and strategic initiatives. The company reported total revenues of approximately $31 million, with $18.7 million from the Ammunition segment and $12.3 million from the Marketplace segment. The gross margin was $9.8 million or 31.6%, a decline from the previous year's 40.9%, attributed to production inefficiencies and shifts in sales mix. AMMO achieved an adjusted EBITDA of $2 million, compared to $6.5 million in the prior quarter, resulting in a loss per share of $0.07. The company also increased its take rate by 40 basis points to 6.2% and executed share repurchases exceeding $1 million. AMMO is focusing on increasing rifle production and streamlining operations to enhance profitability. They reported successful delivery of 211,000 pieces of 12.7x108 ammunition for ZRO Delta and are enhancing their eCommerce platform, GunBroker, to improve cross-selling capabilities and customer engagement.

AMMO Financial Statement Overview

Summary
AMMO's financial performance is weak, with declining revenues and profitability. The income statement is particularly concerning, as it shows significant revenue decline and negative profit margins. The balance sheet is more stable due to low leverage, but the shrinking assets and equity are worrying. Cash flows have turned negative, indicating cash management issues and declining operational efficiency.
Income Statement
32
Negative
AMMO has faced a significant decline in revenue from $145 million in 2024 to $49 million in 2025, indicating a negative growth trajectory. Gross profit margin improved slightly, yet the company reported substantial negative EBIT and net profit margins, suggesting ongoing operational challenges and inefficiencies.
Balance Sheet
60
Neutral
The balance sheet shows a strong equity position with a debt-to-equity ratio of only 0.007, suggesting low leverage. However, the decreasing total assets and equity over the years point to potential financial instability. The equity ratio remains high, reflecting a solid capital structure.
Cash Flow
45
Neutral
Operating cash flow turned negative at -$5 million in 2025, highlighting cash management issues. A reduction in free cash flow growth is evident compared to previous years, reflecting declining operational efficiency. Despite past positive cash flows, current trends raise concerns.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue141.75M49.40M145.06M191.44M240.27M62.48M
Gross Profit34.95M42.93M42.62M55.41M88.76M11.39M
EBITDA-8.78M-45.26M7.21M11.92M54.49M73.56K
Net Income-29.23M-130.83M-15.56M-4.60M33.25M-7.81M
Balance Sheet
Total Assets402.42M297.33M399.90M412.34M414.18M179.38M
Cash, Cash Equivalents and Short-Term Investments50.75M30.23M55.59M39.13M23.28M118.34M
Total Debt14.58M1.55M13.10M14.86M5.14M10.61M
Total Liabilities54.44M75.30M43.35M39.74M39.87M19.03M
Stockholders Equity347.98M222.03M356.56M372.60M374.30M160.35M
Cash Flow
Free Cash Flow10.96M-8.47M24.61M23.02M-16.37M-21.85M
Operating Cash Flow19.09M-5.06M32.63M35.56M2.85M-14.42M
Investing Cash Flow-8.13M-3.41M-8.02M-12.54M-69.68M-7.44M
Financing Cash Flow-8.21M-9.77M-8.66M-6.66M-28.24M139.31M

AMMO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.48
Price Trends
50DMA
1.27
Positive
100DMA
1.46
Positive
200DMA
1.43
Positive
Market Momentum
MACD
0.04
Negative
RSI
69.38
Neutral
STOCH
97.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWW, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.27, and above the 200-day MA of 1.43, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.38 is Neutral, neither overbought nor oversold. The STOCH value of 97.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWW.

AMMO Risk Analysis

AMMO disclosed 38 risk factors in its most recent earnings report. AMMO reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

AMMO Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$378.25M54.936.43%2.62%16.60%6.58%
68
Neutral
$458.62M32.5128.05%73.56%
64
Neutral
$10.92B16.417.40%2.02%2.59%-16.33%
62
Neutral
$785.66M18.8211.68%0.91%31.27%26.36%
59
Neutral
$564.22M112.901.88%1.98%3.31%-82.99%
57
Neutral
$363.04M27.543.48%6.32%-11.73%-64.84%
51
Neutral
$173.32M-17.71%-11.01%-279.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
POWW
AMMO
1.48
-0.05
-3.27%
NPK
National Presto
109.89
35.77
48.26%
PKE
Park Electrochemical
19.05
5.86
44.43%
SWBI
Smith & Wesson Brands
8.23
-6.24
-43.12%
RGR
Sturm Ruger & Company
34.91
-6.71
-16.12%
BYRN
Byrna Technologies
20.20
9.13
82.48%

AMMO Corporate Events

Executive/Board ChangesShareholder Meetings
AMMO Board Restructures with New Director Nominations
Neutral
Jul 3, 2025

On June 30, 2025, AMMO‘s Board decided not to nominate Richard R. Childress, Randy E. Luth, or Russell William Wallace, Jr. for re-election at the company’s 2025 annual meeting of stockholders. The Board has nominated two new directors and plans to reduce its size from six to five members after the annual meeting. This decision was not due to any disagreements between the departing directors and the company.

Executive/Board ChangesM&A TransactionsLegal Proceedings
AMMO Appoints New CEO Amid Settlement Agreement
Neutral
May 28, 2025

On May 21, 2025, Outdoor Holding Company entered into a Settlement Agreement with Steven F. Urvan and other parties to resolve litigation related to the acquisition of GunBroker.com. The settlement includes issuing a warrant to Urvan for 7 million shares and unsecured promissory notes totaling $51 million. As part of the agreement, Jared Smith resigned as CEO, and Urvan was appointed as the new CEO and Chairman, effective May 30, 2025. This transition aims to refocus the company on its e-commerce segment, enhancing profitability and shareholder value.

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: Aug 22, 2025