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AMMO Inc (POWW)
NASDAQ:POWW
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AMMO
(NASDAQ:POWW)
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Rating:48Neutral
Price Target:
$1.50
▼(-3.23% Downside)
AMMO's stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profit margins. While technical analysis shows some positive momentum, the negative P/E ratio and lack of dividend yield present valuation challenges. The absence of earnings call data and corporate events further limits the assessment.
AMMO (POWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$179.18M
Dividend YieldN/A
Average Volume (3M)609.70K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-11.01%
EPS Growth-279.70%
CountryUS
Employees374
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.02
Shares Outstanding117,110,825
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-19.17
Enterprise Value/Market Cap0.61
Enterprise Value/Revenue3.62
Enterprise Value/Gross Profit2.52
Enterprise Value/Ebitda-2.91
Forecast
1Y Price Target
$1.70Price Target Upside9.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
AMMO Business Overview & Revenue Model
Company DescriptionOutdoor 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 involved in banner advertising campaign activities. Outdoor Holding Company was formerly known as AMMO, Inc. and changed its name to Outdoor Holding Company in April 2025. Outdoor Holding Company is headquartered 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:Aug 08, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 10, 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 health is challenged by declining revenues and profitability, as well as weakening cash flows. The company's balance sheet remains stable due to low leverage, yet shrinking assets and equity are worrying signs. Immediate strategic actions are required to reverse the negative trends and improve financial performance.Income Statement
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.35
Negative
Balance Sheet
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.50
Neutral
Cash Flow
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.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.31M | 49.40M | 145.06M | 191.44M | 240.27M | 62.48M |
| Gross Profit | 43.49M | 42.93M | 42.62M | 55.41M | 88.76M | 11.39M |
| EBITDA | -37.74M | -45.26M | 7.21M | 11.92M | 54.49M | 73.56K |
| Net Income | -122.53M | -130.83M | -15.56M | -4.60M | 33.25M | -7.81M |
Balance Sheet | ||||||
| Total Assets | 269.47M | 297.33M | 399.90M | 412.34M | 414.18M | 179.38M |
| Cash, Cash Equivalents and Short-Term Investments | 63.36M | 30.23M | 55.59M | 39.13M | 23.28M | 118.34M |
| Total Debt | 23.47M | 1.55M | 13.10M | 14.86M | 5.14M | 10.61M |
| Total Liabilities | 46.96M | 75.30M | 43.35M | 39.74M | 39.87M | 19.03M |
| Stockholders Equity | 222.51M | 222.03M | 356.56M | 372.60M | 374.30M | 160.35M |
Cash Flow | ||||||
| Free Cash Flow | -14.07M | -8.47M | 24.61M | 23.02M | -16.37M | -21.85M |
| Operating Cash Flow | -11.19M | -5.06M | 32.63M | 35.56M | 2.85M | -14.42M |
| Investing Cash Flow | 37.99M | -3.41M | -8.02M | -12.54M | -69.68M | -7.44M |
| Financing Cash Flow | -7.71M | -9.77M | -8.66M | -6.66M | -28.24M | 139.31M |
AMMO Technical Analysis
Positive
1.55
Price Trends
1.48
Positive
1.38
Positive
1.50
Positive
Market Momentum
0.03
Negative
53.83
Neutral
56.62
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 1.55 is above the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.48, and above the 200-day MA of 1.50, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 56.62 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 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $733.11M | 146.70 | 1.88% | 4.07% | 3.31% | -82.99% | |
| ― | $476.33M | 32.49 | 29.71% | ― | 50.99% | 612.36% | |
| ― | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
| ― | $448.74M | 37.33 | 3.27% | 5.14% | -7.25% | -63.58% | |
| ― | $179.18M | ― | ― | ― | -11.01% | -279.70% | |
| ― | $137.14M | ― | -706.72% | ― | ― | ― | |
| ― | $152.36M | 33.38 | 1.80% | ― | ― | -17.50% |
* Industrials Sector Average
POWW
AMMO
1.55
0.47
43.52%
SWBI
Smith & Wesson Brands
10.12
-2.15
-17.52%
RGR
Sturm Ruger & Company
45.36
6.75
17.48%
BYRN
Byrna Technologies
21.01
6.60
45.80%
PEW
GrabAGun Digital Holdings
4.83
-5.43
-52.92%
SPAI
Safe Pro Group, Inc.
6.48
4.23
188.00%
AMMO Corporate Events
Private Placements and FinancingShareholder Meetings
AMMO Exercises Prepayment Option with Warrant Issuance
Neutral
Sep 22, 2025
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.
The most recent analyst rating on (POWW) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AMMO stock, see the POWW Stock Forecast page.
Executive/Board Changes
AMMO Announces Separation Agreement with Tod Wagenhals
Neutral
Sep 16, 2025
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.
The most recent analyst rating on (POWW) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AMMO stock, see the POWW Stock Forecast page.
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder Meetings
AMMO Regains Nasdaq Compliance After Stockholder Meeting
Positive
Sep 2, 2025
On August 29, 2025, Outdoor Holding Company held its Annual Meeting of Stockholders, where all proposals were approved, including the election of directors and the ratification of an independent accounting firm. This meeting enabled the company to regain compliance with Nasdaq Listing Rule 5620(a), following a series of deficiency notices. The company has improved its internal processes and governance, positioning itself to focus on accelerating growth in its core online business and enhancing long-term stockholder value.
The most recent analyst rating on (POWW) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on AMMO stock, see the POWW Stock Forecast page.
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.