ASX:AMA

Stock Analysis Report

Executive Summary

AMA Group Limited provides automotive aftercare services and accessories in Australasia.

Snowflake

Solid track record with high growth potential.


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Share Price & News

How has AMA Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AMA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

AMA

2.2%

AU Commercial Services

0.03%

AU Market


1 Year Return

32.2%

AMA

15.0%

AU Commercial Services

15.3%

AU Market

Return vs Industry: AMA exceeded the Australian Commercial Services industry which returned 15% over the past year.

Return vs Market: AMA exceeded the Australian Market which returned 15.3% over the past year.


Shareholder returns

AMAIndustryMarket
7 Day-1.8%2.2%0.03%
30 Day0.4%3.1%0.5%
90 Day-4.6%-1.5%4.7%
1 Year39.1%32.2%21.0%15.0%22.0%15.3%
3 Year41.3%27.8%29.8%15.8%40.8%21.6%
5 Year398.3%330.6%74.2%38.7%56.1%20.7%

Price Volatility Vs. Market

How volatile is AMA Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AMA Group undervalued compared to its fair value and its price relative to the market?

4.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMA (A$1.34) is trading below our estimate of fair value (A$1.4)

Significantly Below Fair Value: AMA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AMA is poor value based on its PE Ratio (33.3x) compared to the Commercial Services industry average (18.1x).

PE vs Market: AMA is poor value based on its PE Ratio (33.3x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AMA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AMA is overvalued based on its PB Ratio (3.7x) compared to the AU Commercial Services industry average (2.5x).


Next Steps

Future Growth

How is AMA Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

34.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMA's forecast earnings growth (34.1% per year) is above the savings rate (2.3%).

Earnings vs Market: AMA's earnings (34.1% per year) are forecast to grow faster than the Australian market (9.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AMA's revenue (26.1% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: AMA's revenue (26.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMA's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has AMA Group performed over the past 5 years?

24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMA has high quality earnings.

Growing Profit Margin: AMA's current net profit margins (3.5%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: AMA's earnings have grown significantly by 24.8% per year over the past 5 years.

Accelerating Growth: AMA's earnings growth over the past year (43.7%) exceeds its 5-year average (24.8% per year).

Earnings vs Industry: AMA earnings growth over the past year (43.7%) exceeded the Commercial Services industry 18.9%.


Return on Equity

High ROE: AMA's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AMA Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMA's short term assets (A$110.5M) do not cover its short term liabilities (A$131.2M)

Long Term Liabilities: AMA's short term assets (110.5M) do not cover its long term liabilities (135.7M)


Debt to Equity History and Analysis

Debt Level: AMA's debt to equity ratio (68.2%) is considered high

Reducing Debt: AMA's debt to equity ratio has increased from 0.6% to 68.2% over the past 5 years.

Debt Coverage: AMA's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: AMA's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet

Inventory Level: AMA has a high level of physical assets or inventory.

Debt Coverage by Assets: AMA's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is AMA Group's current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: AMA's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.36%).

High Dividend: AMA's dividend (2.06%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).


Stability and Growth of Payments

Stable Dividend: AMA's dividend payments have been volatile in the past 10 years.

Growing Dividend: AMA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68.7%), AMA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMA's dividends in 3 years are forecast to be well covered by earnings (46.7% payout ratio).


Next Steps

Management

What is the CEO of AMA Group's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Andy Hopkins 0

1yrs

Tenure

AU$1,450,000

Compensation

Mr. Andrew Hopkins, also known as Andy, has been Group Chief Executive Officer at AMA Group Limited since November 22, 2018 and also serves as its Executive Director since December 2015. He served as the C ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD982.65K) is about average for companies of similar size in the Australian market ($USD998.96K).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.8yrs

Average Tenure

Experienced Management: AMA's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

Experienced Board: AMA's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: AMA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$345,36329 Oct 19
Raymond Smith-Roberts
EntityIndividual
Role
Member of the Board of Directors
CEO of Automotive Components & Accessories Division and Executive Director
Shares300,316
Max PriceAU$1.15
BuyAU$50,00029 Oct 19
Leath Nicholson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares43,478
Max PriceAU$1.15
BuyAU$28,62229 Oct 19
Brian Austin
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares24,889
Max PriceAU$1.15
BuyAU$22,22329 Oct 19
Anthony Day
EntityIndividual
Role
Chairman of the Board
Chairman
Shares19,324
Max PriceAU$1.15
BuyAU$21,066,39416 Oct 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares14,234,048
Max PriceAU$1.48
SellAU$22,538,63816 Oct 19
AustralianSuper Pty. Ltd.
EntityCompany
Shares15,032,433
Max PriceAU$1.50
BuyAU$11,913,15815 Oct 19
Greencape Capital Pty Ltd
EntityCompany
Shares8,904,810
Max PriceAU$1.34
BuyAU$10,208,02415 Oct 19
Greencape Capital Pty Ltd
EntityCompany
Shares8,876,547
Max PriceAU$1.15
SellAU$10,901,52815 Oct 19
Greencape Capital Pty Ltd
EntityCompany
Shares7,959,120
Max PriceAU$1.37
SellAU$7,559,28801 Aug 19
Greencape Capital Pty Ltd
EntityCompany
Shares5,532,009
Max PriceAU$1.37
BuyAU$119,00020 May 19
Anthony Day
EntityIndividual
Role
Chairman of the Board
Chairman
Shares100,000
Max PriceAU$1.19
BuyAU$6,746,37403 Apr 19
Greencape Capital Pty Ltd
EntityCompany
Shares7,097,199
Max PriceAU$0.95
SellAU$8,794,69203 Apr 19
Greencape Capital Pty Ltd
EntityCompany
Shares9,443,300
Max PriceAU$0.93
SellAU$15,995,09328 Nov 18
Andrew Hopkins
EntityIndividual
Role
Chief Executive Officer
Group CEO & Executive Director
Shares16,780,425
Max PriceAU$0.95
BuyAU$64,998,17327 Nov 18
AustralianSuper Pty. Ltd.
EntityCompany
Shares54,165,166
Max PriceAU$1.20

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.4%.


Management Team

  • Stephen Harding-Smith

    Chief Financial Officer of Vehicle Panel Repairs Division

    • Tenure: 0yrs
  • Terri Bakos (51yo)

    Company Secretary & CFO

    • Tenure: 1.1yrs
  • Ray Malone (59yo)

    Consultant

    • Tenure: 0.3yrs
    • Compensation: AU$1.76m
  • Ray Smith-Roberts

    CEO of Automotive Components & Accessories Division and Executive Director

    • Tenure: 5.8yrs
    • Compensation: AU$1.46m
  • Andy Sibley

    Chief Financial Officer of Automotive Components & Accessories Division

    • Tenure: 0yrs
  • Andy Hopkins

    Group CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: AU$1.45m
  • Steve Becker

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: AU$642.28k
  • Steven Bubulj

    Panel Division CEO

    • Tenure: 0.3yrs

Board Members

  • Simon Moore (52yo)

    Deputy Chairman of the Board

    • Tenure: 1yrs
    • Compensation: AU$58.33k
  • Brian Austin

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$100.00k
  • Tony McLellan (78yo)

    Independent Non-Executive Director

    • Tenure: 1yrs
    • Compensation: AU$210.37k
  • Ray Smith-Roberts

    CEO of Automotive Components & Accessories Division and Executive Director

    • Tenure: 5.8yrs
    • Compensation: AU$1.46m
  • Andy Hopkins

    Group CEO & Executive Director

    • Tenure: 1yrs
    • Compensation: AU$1.45m
  • Leath Nicholson

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$100.00k
  • Anthony Day

    Chairman

    • Tenure: 0.2yrs
    • Compensation: AU$58.33k

Company Information

AMA Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AMA Group Limited
  • Ticker: AMA
  • Exchange: ASX
  • Founded: 2005
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$977.022m
  • Shares outstanding: 731.85m
  • Website: https://www.amagroupltd.com

Location

  • AMA Group Limited
  • 130 Bundall Road
  • Level 4
  • Bundall
  • Queensland
  • 4217
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2006
AMACHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2006
KC7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2006

Biography

AMA Group Limited provides automotive aftercare services and accessories in Australasia. The company offers motor vehicle panel repair services; manufactures motor vehicle protection products and Ute/comme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 10:33
End of Day Share Price2019/11/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.