ASX:AMA

Stock Analysis Report

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Executive Summary

AMA Group Limited provides automotive aftercare services and accessories in Australia and New Zealand. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.1%

AMA

-1.3%

AU Commercial Services

0.3%

AU Market


1 Year Return

-47.5%

AMA

-16.1%

AU Commercial Services

-5.4%

AU Market

Return vs Industry: AMA underperformed the Australian Commercial Services industry which returned -17.3% over the past year.

Return vs Market: AMA underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

AMAIndustryMarket
7 Day8.1%-1.3%0.3%
30 Day11.5%4.4%6.3%
90 Day28.1%2.1%3.7%
1 Year-47.5%-47.5%-13.9%-16.1%-2.1%-5.4%
3 Year-16.4%-22.3%13.1%1.0%18.3%3.3%
5 Year-19.5%-28.8%37.3%12.0%43.1%14.0%

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?

1.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: AMA (A$0.73) is trading above our estimate of fair value (A$0.12)

Significantly Below Fair Value: AMA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AMA is unprofitable, so we can't compare its PE Ratio to the AU Commercial Services industry average.

PE vs Market: AMA is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AMA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AMA is good value based on its PB Ratio (1.6x) compared to the AU Commercial Services industry average (2x).


Next Steps

Future Growth

How is AMA Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

99.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: AMA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AMA's is expected to become profitable in the next 3 years.

Revenue vs Market: AMA's revenue (13.9% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: AMA's revenue (13.9% per year) is forecast to grow slower 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 (11.1%).


Next Steps

Past Performance

How has AMA Group performed over the past 5 years?

-28.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMA is currently unprofitable.

Growing Profit Margin: AMA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AMA is unprofitable, and losses have increased over the past 5 years at a rate of 28.8% per year.

Accelerating Growth: Unable to compare AMA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AMA is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (2.6%).


Return on Equity

High ROE: AMA has a negative Return on Equity (-20.5%), as it is currently unprofitable.


Next Steps

Financial Health

How is AMA Group's financial position?


Financial Position Analysis

Short Term Liabilities: AMA's short term assets (A$237.4M) exceed its short term liabilities (A$223.9M).

Long Term Liabilities: AMA's short term assets (A$237.4M) do not cover its long term liabilities (A$820.7M).


Debt to Equity History and Analysis

Debt Level: AMA's debt to equity ratio (112.4%) is considered high.

Reducing Debt: AMA's debt to equity ratio has increased from 36.8% to 112.4% over the past 5 years.

Debt Coverage: AMA's debt is well covered by operating cash flow (31.7%).

Interest Coverage: AMA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

1.00%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AMA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AMA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AMA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AMA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AMA is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AMA's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Andy Hopkins

1.92yrs

Tenure

AU$1,623,304

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 17, 2015. He served as t ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD1.14M) is above average for companies of similar size in the Australian market ($USD711.63K).

Compensation vs Earnings: Andy's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Hopkins
Group CEO & Executive Director1.92yrsAU$1.62m5.15%
A$ 26.6m
Steven Becker
Group Chief Financial Officer1.67yrsAU$615.05k0.0083%
A$ 43.1k
Raymond Malone
Consultant1.17yrsAU$827.01kno data
Campbell Jones
Chief Executive Officer of Automotive Parts & Accessories0.92yrAU$444.50k0.0045%
A$ 23.4k
David Marino
Chief Executive Officer of Capital Smart0.92yrAU$619.05kno data
Steven Bubulj
CEO of AMA Panel1.25yrsAU$479.37k0.039%
A$ 201.4k
Andy Sibley
Chief Financial Officer of Automotive Components & Accessories Divisionno datano datano data
Stephen Harding-Smith
Chief Financial Officer of Vehicle Panel Repairs Divisionno datano datano data
Darrel Maloney
Head of Acquisitions0.83yrno datano data
Fiona van Wyk
Company Secretary0.92yrno datano data

1.0yrs

Average Tenure

Experienced Management: AMA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Hopkins
Group CEO & Executive Director1.92yrsAU$1.62m5.15%
A$ 26.6m
Simon Moore
Non-Executive Director1.92yrsAU$50.00k4.13%
A$ 21.4m
Carl Bizon
Independent Non-Executive Director0.67yrAU$38.33kno data
Leath Nicholson
Non-Executive Director4.83yrsAU$96.67k0.22%
A$ 1.1m
Nicole Cook
Independent Non-Executive Director0.83yrAU$55.00k0.0075%
A$ 38.8k
Anthony Day
Non-Executive Chairman1.08yrsAU$222.08k0.071%
A$ 366.1k

1.5yrs

Average Tenure

Experienced Board: AMA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.7%.


Top Shareholders

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$517.402m
  • Shares outstanding: 733.90m
  • Website: https://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 Australia and New Zealand. It operates through Vehicle Panel Repairs, and Automotive Parts and Accessories segments. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:40
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.