AMMO (POWW) AI Stock Analysis

• Market Cap: $187.38M
• Dividend Yield: N/A
• Average Volume (3M): 609.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -11.01%
• EPS Growth: -279.70%
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.01
• Shares Outstanding: 117,110,825
• 10 Day Avg. Volume: 350,399
• 30 Day Avg. Volume: 609,700
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 3.29
• P/FCF Ratio: -19.17
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 10.09
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: -4.51
• 1Y Price Target: $2.38
• Price Target Upside: 20.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-24.24% Downside)

The overall stock score is primarily impacted by AMMO's financial struggles, with significant losses and cash flow issues. Technical analysis provides some neutral support, but the negative valuation metrics further weigh down the score.

Positive Factors

Strategic Transformation

The strategic transformation, including streamlining operations and modernizing GunBroker.com, suggests a focus on long-term growth and efficiency, potentially leading to sustainable profitability improvements.

Low Leverage

Low leverage provides financial flexibility and reduces risk, allowing the company to invest in growth opportunities without the burden of high interest expenses.

Market Position

As a leading supplier in the ammunition industry, AMMO benefits from strong market positioning, which can drive consistent demand and provide a competitive edge.

Negative Factors

Profitability Challenges

Negative profit margins and declining revenue growth indicate ongoing profitability challenges, which could hinder long-term financial health and investor confidence.

Cash Flow Issues

Persistent cash flow issues limit the company's ability to fund operations and growth initiatives, potentially impacting its ability to capitalize on market opportunities.

Declining Revenue

A significant decline in revenue suggests weakening demand or competitive pressures, which could challenge the company's ability to sustain its market position and profitability.

AMMO Business Overview & Revenue Model

Company Description

AMMO, Inc. (POWW) is a leading manufacturer and distributor of high-quality ammunition and ammunition-related products in the United States. The company operates within the defense and sporting goods sectors, focusing on the production of a wide range of ammunition types, including rimfire, centerfire, and specialty ammunition. AMMO caters to a diverse customer base, including law enforcement, military, and civilian markets, while also offering innovative products and accessories designed for shooting enthusiasts.

How the Company Makes Money

AMMO generates revenue primarily through the sale of its ammunition products to various segments such as law enforcement, military, and recreational shooters. The company has established key revenue streams through direct sales to distributors, retail partnerships, and online sales channels. Additionally, AMMO benefits from an expanding product line that includes specialty ammunition, which often commands higher margins. The company also engages in partnerships with law enforcement agencies and military contracts, providing a stable source of income. Moreover, its focus on branding and marketing initiatives helps to enhance customer loyalty and drive sales growth.

AMMO Financial Statement Overview

Summary

AMMO faces significant financial challenges, particularly in terms of profitability and cash flow. The income statement highlights substantial losses and declining revenues, while the balance sheet shows low leverage but negative returns on equity. Cash flow issues further compound these challenges, underscoring the need for strategic improvements to stabilize and grow the business.

Income Statement

The income statement reveals significant challenges, with a sharp decline in revenue growth and negative profit margins. The TTM data shows a drastic revenue drop of 64.13% and a net profit margin of -9.99%, indicating substantial losses. Historical data also reflects a consistent struggle with profitability, as seen in negative EBIT and EBITDA margins. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.0475 in the TTM, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio remains stable, but the negative ROE highlights the need for improved profitability.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow growth and a low operating cash flow to net income ratio. The TTM data shows a significant decline in free cash flow, and the free cash flow to net income ratio is negative, reflecting cash flow issues. The company must enhance its cash generation capabilities to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.87M	49.40M	53.94M	63.15M	240.27M	62.48M
Gross Profit	46.71M	42.93M	46.28M	54.03M	88.72M	11.39M
EBITDA	-24.30M	-45.26M	6.59M	15.05M	45.96M	73.56K
Net Income	-108.70M	-130.83M	-16.59M	-8.77M	25.87M	-7.81M
Balance Sheet
Total Assets	270.27M	297.33M	403.04M	412.34M	414.18M	179.38M
Cash, Cash Equivalents and Short-Term Investments	65.67M	30.23M	55.59M	39.13M	23.28M	118.34M
Total Debt	11.19M	1.56M	13.10M	14.86M	5.14M	10.61M
Total Liabilities	34.86M	75.30M	44.99M	39.74M	39.87M	19.03M
Stockholders Equity	235.42M	222.03M	358.05M	372.60M	374.30M	160.35M
Cash Flow
Free Cash Flow	-778.04K	-13.51M	29.98M	23.02M	-17.45M	-21.85M
Operating Cash Flow	1.37M	-10.11M	32.64M	35.56M	1.77M	-14.42M
Investing Cash Flow	39.27M	-5.48M	-8.02M	-12.54M	-69.68M	-7.44M
Financing Cash Flow	-2.01M	-9.77M	-8.66M	-6.66M	-27.15M	139.31M

AMMO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.98 is above the 20-day moving average (MA) of 1.86, above the 50-day MA of 1.70, and above the 200-day MA of 1.52, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWW.

AMMO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	66 Neutral	$425.42M	27.93	29.71%	―	50.99%	612.36%
SWBI	64 Neutral	$478.75M	48.47	2.71%	5.84%	-9.08%	-71.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RGR	60 Neutral	$533.34M	258.50	0.87%	1.89%	3.90%	-92.10%
POWW	49 Neutral	$187.38M	-3.06	―	―	-11.01%	-279.70%
PEW	43 Neutral	$102.95M	―	-1.16%	―	―	-116.40%
SPAI	39 Underperform	$82.21M	―	-193.70%	―	―	―

AMMO Corporate Events

AMMO COO Elizabeth Cross Announces Resignation

Elizabeth Cross, the Chief Operating Officer of the GunBroker division at Outdoor Holding Company, announced her resignation on November 14, 2025, effective November 28, 2025. Her departure was not due to any disagreements with the company’s operations, policies, or practices, indicating a smooth transition for the company.

AMMO Exercises Prepayment Option with Warrant Issuance

Outdoor Holding Company, through its subsidiary Speedlight Group I, LLC, entered into a settlement agreement with Steven F. Urvan and certain former board members, effective May 30, 2025. As part of the agreement, the company issued a $39 million unsecured promissory note to GDI Air III LLC, an affiliate of Mr. Urvan. Following stockholder approval at the 2025 Annual Meeting, the company exercised a prepayment option on September 17, 2025, issuing a warrant to purchase 13 million shares, thereby fulfilling its obligations under the note.

AMMO Announces Separation Agreement with Tod Wagenhals

On September 10, 2025, Tod Wagenhals resigned as Secretary of Outdoor Holding Company, effective immediately, and will step down as Executive Vice President on December 31, 2025. Jordan Christensen, the Chief Legal Officer, has been appointed as the new Secretary. On September 16, 2025, Wagenhals and the company entered into a separation agreement, entitling him to a cash severance payment of $230,000, reimbursement of business expenses, and a lump sum for unused vacation time. The agreement also includes COBRA health coverage for one month and requires Wagenhals to release claims against the company and adhere to confidentiality and non-disparagement covenants.