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AMMO Inc (POWW)
NASDAQ:POWW
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AMMO
(NASDAQ:POWW)
Rating:43Neutral
Price Target:
$1.50
▲(20.97%Upside)
AMMO (POWW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$141.70M
Dividend YieldN/A
Average Volume (3M)615.90K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth-11.01%
EPS Growth-279.70%
CountryUS
Employees374
SectorIndustrials
Sector Strength89
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.01
Shares Outstanding117,110,794
10 Day Avg. Volume484,174
30 Day Avg. Volume615,902
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.68
Price to Sales (P/S)0.00
P/FCF Ratio-17.93
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit3.52
Enterprise Value/Ebitda-28.38
Forecast
1Y Price Target
$1.70Price Target Upside37.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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, Inc. generates revenue primarily through the manufacture and sale of ammunition products. Its key revenue streams include direct sales to commercial retailers, government contracts, and partnerships with law enforcement agencies. The company also benefits from proprietary technologies and branded ammunition lines, which enhance its market appeal and competitive position. Additionally, AMMO has expanded its reach through partnerships and distribution agreements, allowing it to access a broader customer base and increase its market penetration.
AMMO Earnings Call Summary
Earnings Call Date:Jun 25, 2025
(Q1-2025)
| % Change Since: -6.77%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive strategic initiatives and significant challenges. While the company is making notable progress in transforming its operations and increasing efficiency, it faces decreased revenues and margins, along with operational inefficiencies. The sentiment is mixed, as the highlights do not significantly outweigh the lowlights.Q1-2025 Updates
Positive Updates
Strategic Transformation Initiatives
AMMO is focusing on high-margin rifle and pistol production and transforming its marketplace to an innovative eCommerce leader, despite challenges in a regulated market. The company is confident that these changes will lead to long-term stability and reliability.
Increase in Take Rate
GunBroker increased its take rate by 40 basis points, from 5.8% to 6.2%, through category fee changes, advertising revenue, enhanced listing fees, and the launch of Collectors Elite.
Cost-Cutting and Efficiency Improvements
Up to $15 million in cost-cutting and working capital opportunities have been identified, with plans to realize these over the next 18 to 24 months by improving visibility to cost and operating margins.
Share Repurchase Program
AMMO repurchased over $1 million in shares last quarter, with 580,000 shares repurchased under the buyback plan this quarter.
Negative Updates
Decrease in Revenue
Total revenues for Q1 FY2025 were $31 million, down from $34.3 million in the prior year quarter, due to decreased activity in both reporting segments, influenced by the macroeconomic environment.
Decline in Gross Margin
Total gross margin decreased to $9.8 million or 31.6% from $14 million or 40.9% in the prior year period, with the ammunition segment having a negative gross margin of 4%.
Nonrecurring Expenses Impact
Approximately $6.3 million in nonrecurring expenses were recorded, including $3.2 million related to litigation contingency, affecting adjusted EBITDA which decreased to $2 million from $6.5 million in the prior year quarter.
Operational Challenges
Ongoing issues with production inefficiencies in the ammunition segment, including mechanical issues and production capacity limitations, are impacting operations.
Company Guidance
During the AMMO Inc. Fiscal First Quarter 2025 Earnings Call, the company's leadership provided guidance on several key metrics and strategic initiatives. Total revenues for the quarter were approximately $31 million, a decrease from $34.3 million in the prior year, primarily due to macroeconomic factors impacting both the Ammunition segment, which generated $18.7 million, and the Marketplace segment, which contributed $12.3 million. The company reported a gross margin of $9.8 million or 31.6%, down from 40.9% in the previous year, with nonrecurring expenses amounting to $6.3 million affecting adjusted EBITDA, which stood at $2 million. Notably, GunBroker's take rate increased by 40 basis points to 6.2%, and the company executed share repurchases exceeding $1 million. Looking ahead, AMMO plans to capitalize on cost-cutting opportunities of up to $15 million and expects improvements in production throughput and profitability as they continue to streamline operations and enhance their ecommerce platform, including the new cross-selling capabilities launched in the past month.AMMO Financial Statement Overview
Summary
AMMO's financial performance is weak, with a significant revenue decline and negative profitability indicating operational challenges. The balance sheet is stable with low leverage, yet declining assets and equity are concerning. Cash flow issues further highlight financial instability.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.32
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.60
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.45
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 141.75M | 49.40M | 145.06M | 191.44M | 240.27M | 62.48M |
| Gross Profit | 34.95M | 42.93M | 42.62M | 55.41M | 88.76M | 11.39M |
| EBITDA | -8.78M | -45.26M | -95.89K | 14.29M | 54.49M | 1.07M |
| Net Income | -29.23M | -130.83M | -15.56M | -4.60M | 33.25M | -7.81M |
Balance Sheet | ||||||
| Total Assets | 402.42M | 297.33M | 399.90M | 412.34M | 414.18M | 179.38M |
| Cash, Cash Equivalents and Short-Term Investments | 50.75M | 30.23M | 55.59M | 39.13M | 23.28M | 118.34M |
| Total Debt | 14.58M | 1.55M | 13.10M | 14.86M | 5.14M | 10.61M |
| Total Liabilities | 54.44M | 75.30M | 43.35M | 39.74M | 39.87M | 19.03M |
| Stockholders Equity | 347.98M | 222.03M | 356.56M | 372.60M | 374.30M | 160.35M |
Cash Flow | ||||||
| Free Cash Flow | 10.96M | -8.47M | 24.61M | 23.02M | -16.37M | -21.85M |
| Operating Cash Flow | 19.09M | -5.06M | 32.63M | 35.56M | 2.85M | -14.42M |
| Investing Cash Flow | -8.13M | -3.41M | -8.02M | -12.54M | -69.68M | -7.44M |
| Financing Cash Flow | -8.21M | -9.53M | -8.66M | -6.66M | -28.24M | 139.31M |
AMMO Technical Analysis
Negative
1.24
Price Trends
1.58
Negative
1.55
Negative
1.43
Negative
Market Momentum
-0.08
Negative
34.74
Neutral
14.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWW, the sentiment is Negative. The current price of 1.24 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.58, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 34.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $306.30M | 52.63 | 5.35% | 3.24% | 10.75% | -20.49% | |
69 Neutral | $732.51M | 40.91 | 28.05% | ― | 73.56% | ― | |
69 Neutral | $593.66M | 19.55 | 9.56% | 2.01% | 0.65% | -20.28% | |
65 Neutral | $10.82B | 15.59 | 5.20% | 1.89% | 3.09% | -26.84% | |
64 Neutral | $755.68M | 17.56 | 12.14% | 0.95% | 23.15% | 31.43% | |
54 Neutral | $381.12M | 28.95 | 3.48% | 6.02% | -11.73% | -64.84% | |
43 Neutral | $141.70M | ― | -17.71% | ― | -11.01% | -279.70% |
* Industrials Sector Average
Performance Comparison
POWW
AMMO
1.21
-0.45
-27.11%
NPK
National Presto
104.86
31.30
42.55%
PKE
Park Electrochemical
15.29
2.12
16.10%
SWBI
Smith & Wesson Brands
8.65
-4.68
-35.11%
RGR
Sturm Ruger & Company
35.79
-4.82
-11.87%
BYRN
Byrna Technologies
25.42
15.39
153.44%
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.
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 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.
The most recent analyst rating on (POWW) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on AMMO stock, see the POWW Stock Forecast page.
M&A TransactionsBusiness Operations and Strategy
AMMO Sells Ammunition Assets to Focus on E-Commerce
Positive
Apr 18, 2025
On April 18, 2025, AMMO, Inc. completed the sale of its ammunition manufacturing assets to Olin Winchester, LLC for $75 million, marking a strategic shift towards becoming a high-margin, tech-enabled e-commerce company centered around GunBroker.com. This transaction is expected to simplify AMMO’s business structure, enhance its cash position, and allow the company to focus on scaling its digital platform and improving user engagement, ultimately aiming for long-term profitability and growth in the online firearms marketplace.
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.