AMMO Inc (POWW)
NASDAQ:POWW
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AMMO
(NASDAQ:POWW)
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Rating:57Neutral
Price Target:
$2.00
▼(-2.91% Downside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by weak profitability and recent income-statement deterioration, only partly offset by a strong balance sheet and currently positive but inconsistent cash flow. Technicals are favorable but overextended, while valuation is constrained by losses (negative P/E). The earnings call and recent corporate actions add support via improving operating trends, cost reductions, and reduced legal overhang, but execution and legal-cost variability remain key risks.
Positive Factors
Balance sheet strength
AMMO’s low leverage and sizable equity provide durable financial flexibility. A conservative capital structure helps the company absorb one‑time legal charges, fund targeted investments or buybacks, and weather operational swings without immediate reliance on external debt markets.
Negative Factors
Sharp profitability deterioration
Recent annual and TTM results show a steep fall from prior profitability into large net losses and negative revenue growth. Deep and recent unprofitability undermines durable earnings power and means the business must sustain margin and volume recovery to reliably generate shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
AMMO’s low leverage and sizable equity provide durable financial flexibility. A conservative capital structure helps the company absorb one‑time legal charges, fund targeted investments or buybacks, and weather operational swings without immediate reliance on external debt markets.
Read all positive factors
AMMO (POWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$243.96M
Dividend YieldN/A
Average Volume (3M)609.70K
Price to Earnings (P/E)22.5
Beta (1Y)1.09
Revenue Growth-11.01%
EPS Growth-279.70%
CountryUS
Employees374
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.04
Shares Outstanding117,288,720
10 Day Avg. Volume350,399
30 Day Avg. Volume609,700
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.73
Price to Sales (P/S)3.29
P/FCF Ratio-12.01
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue-38.52
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda64.08
Forecast
1Y Price Target
$2.65Price Target Upside28.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.04
Revenue Forecast (FY)$49.19M
AMMO Business Overview & Revenue Model
Company Description
Outdoor Holding Company engages in online marketplace business. It owns and operates the GunBroker e-commerce marketplace, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. The company is also...
How the Company Makes Money
AMMO primarily makes money by selling manufactured ammunition products. Revenue is generated from (1) B2B sales to ammunition distributors, wholesalers, and retailers who buy inventory for resale; (2) sales to institutional customers such as law-e...
AMMO Earnings Call Summary
Earnings Call Date:Feb 09, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call highlighted substantial operational and financial improvement: revenue growth, strong gross margins, sizable GMV expansion, a significant year-over-year increase in adjusted EBITDA, return to net income for the quarter, meaningful operating expense reductions, and stronger cash balances. Offsetting these positives are ongoing and variable legal costs, continued implementation expenses (e.g., Master FFL), a decline in non-firearms categories, and timing uncertainty for payments improvements. Overall, management portrayed tangible progress and a clear plan to continue cost optimization and targeted investments while acknowledging that legal and implementation-related expenses could temper near-term results.Positive Updates
Net Sales Growth
Net sales of $13.4 million in fiscal Q3 2026, an increase of 7% (about $900,000) versus the same period last year.
Negative Updates
Ongoing Legal Costs and Variability
Legal and litigation-related costs remain significant and variable; management noted legal expenses materially affected past results and continue to impact cash generation and the ability to fully convert adjusted EBITDA into retained cash.
Read all updates
Q3-2026 Updates
Positive
Negative
Net Sales Growth
Net sales of $13.4 million in fiscal Q3 2026, an increase of 7% (about $900,000) versus the same period last year.
Read all positive updates
Company Guidance
The company guided to a near‑term objective of reaching a $25.0 million adjusted EBITDA run rate (pre‑sales growth) within the next 12 months while continuing cost optimization and targeted investments to boost traffic, conversion and transaction volume; Q3 bridges to that goal with adjusted EBITDA of $6.5 million (up 54% YoY and equal to 49% of net sales), net sales of $13.4 million (up 7% YoY), GMV of $215.8 million (up 6.4% YoY), gross margin ~87.1%, net income before discontinued operations of $1.465 million (EPS $0.01 vs. a loss of $0.18 a year ago), and over $4 million of cash from operations for the quarter. Management reiterated a cash balance of $69.9 million (up nearly $4.2 million from the prior quarter, including $0.5 million of interest income), intent to deploy buybacks when trading windows open, and continued emphasis on reducing OpEx (operating expenses declined roughly $22 million YoY in the quarter and $28.9 million YTD); they warned that remaining legal and professional fees (which “ebb and flow”) could temper near‑term results. Operational highlights tied to guidance include firearm unit sales rising >8% QoQ, adjusted mix dynamics (a 3.7% decrease in adjusted mix but a 56 bps increase in share), and ongoing investments—notably the Master FFL partnership costing roughly $60K–$120K per month—while timelines for universal payments were not specified.AMMO Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
72
Positive
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -4.92M | 49.40M | 53.94M | 63.15M | 240.27M | 62.48M |
| Gross Profit | 46.95M | 42.93M | 46.28M | 54.03M | 88.72M | 11.39M |
| EBITDA | 2.96M | -45.26M | 6.59M | 15.05M | 45.96M | 73.56K |
| Net Income | -80.34M | -130.83M | -16.59M | -8.77M | 25.87M | -7.81M |
Balance Sheet | ||||||
| Total Assets | 271.65M | 297.33M | 403.04M | 412.34M | 414.18M | 179.38M |
| Cash, Cash Equivalents and Short-Term Investments | 69.86M | 30.23M | 55.59M | 39.13M | 23.28M | 118.34M |
| Total Debt | 11.99M | 1.56M | 13.10M | 14.86M | 5.14M | 10.61M |
| Total Liabilities | 34.39M | 75.30M | 44.99M | 39.74M | 39.87M | 19.03M |
| Stockholders Equity | 237.27M | 222.03M | 358.05M | 372.60M | 374.30M | 160.35M |
Cash Flow | ||||||
| Free Cash Flow | 2.72M | -13.51M | 29.98M | 23.02M | -17.45M | -21.85M |
| Operating Cash Flow | 4.31M | -10.11M | 32.64M | 35.56M | 1.77M | -14.42M |
| Investing Cash Flow | 41.95M | -5.48M | -8.02M | -12.54M | -69.68M | -7.44M |
| Financing Cash Flow | -957.26K | -9.77M | -8.66M | -6.66M | -27.15M | 139.31M |
AMMO Technical Analysis
Positive
2.06
Price Trends
1.99
Positive
1.90
Positive
1.66
Positive
Market Momentum
0.02
Negative
53.68
Neutral
69.44
Neutral
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 2.06 is above the 20-day moving average (MA) of 2.02, above the 50-day MA of 1.99, and above the 200-day MA of 1.66, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWW.
AMMO Risk Analysis
AMMO disclosed 39 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $651.39M | 32.29 | 3.28% | 5.10% | -9.08% | -71.62% | |
62 Neutral | $662.80M | -120.73 | -1.50% | 1.92% | 3.90% | -92.10% | |
57 Neutral | $243.96M | 22.47 | -35.04% | ― | -11.01% | -279.70% | |
51 Neutral | $148.36M | 90.42 | 13.82% | ― | 50.99% | 612.36% | |
43 Neutral | $86.27M | ― | -182.65% | ― | ― | ― | |
42 Neutral | $84.99M | 28.24 | -4.66% | ― | ― | -116.40% |
* Industrials Sector Average
POWW
AMMO
2.11
0.75
55.15%
SWBI
Smith & Wesson Brands
14.82
6.10
69.97%
RGR
Sturm Ruger & Company
42.35
4.07
10.62%
BYRN
Byrna Technologies
6.69
-14.65
-68.65%
PEW
GrabAGun Digital Holdings
2.98
-7.77
-72.28%
SPAI
Safe Pro Group, Inc.
4.35
2.30
112.20%
AMMO Corporate Events
Business Operations and StrategyFinancial DisclosuresLegal Proceedings
AMMO Resolves Litigation, Refocusing on Core Operations
Positive
Feb 23, 2026
On February 23, 2026, Outdoor Holding Company announced a settlement with Innovative Computer Professionals, Inc., doing business as Digital Cash Processing, resolving litigation in the U.S. District Court for the District of Minnesota. Under the ...
Business Operations and StrategyStock Buyback
AMMO Authorizes $15 Million Share Repurchase Program
Positive
Jan 5, 2026
On January 4, 2026, Outdoor Holding Company’s board authorized a discretionary share repurchase program allowing the company to buy back up to $15 million of its common stock over the following 12 months, with transactions potentially execut...
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.