DB:KC7

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential and fair value.


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: KC7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

66.9%

KC7

-0.5%

DE Commercial Services

2.2%

DE Market


1 Year Return

-79.2%

KC7

-32.0%

DE Commercial Services

-17.2%

DE Market

Return vs Industry: KC7 underperformed the German Commercial Services industry which returned -31.6% over the past year.

Return vs Market: KC7 underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

KC7IndustryMarket
7 Day66.9%-0.5%2.2%
30 Day-47.9%-22.0%-15.7%
90 Day-74.4%-34.0%-24.0%
1 Year-78.2%-79.2%-29.6%-32.0%-14.9%-17.2%
3 Year-78.1%-80.1%-27.1%-33.4%-16.4%-23.3%
5 Yearn/a-35.0%-44.1%-16.5%-27.8%

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

No news available

Valuation

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

38.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KC7 (€0.13) is trading below our estimate of fair value (€0.21)

Significantly Below Fair Value: KC7 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KC7 is poor value based on its PE Ratio (175.4x) compared to the Commercial Services industry average (95.5x).

PE vs Market: KC7 is poor value based on its PE Ratio (175.4x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: KC7 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: KC7 is good value based on its PB Ratio (0.5x) compared to the DE 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 6 analysts?

83.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KC7's forecast earnings growth (83.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: KC7's earnings (83.7% per year) are forecast to grow faster than the German market (14.4% per year).

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

Revenue vs Market: KC7's revenue (21.1% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: KC7's revenue (21.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KC7's Return on Equity is forecast to be low in 3 years time (12.5%).


Next Steps

Past Performance

How has AMA Group performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KC7 has a large one-off loss of A$3.9M impacting its December 31 2019 financial results.

Growing Profit Margin: KC7's current net profit margins (0.1%) are lower than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: KC7's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: KC7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KC7 had negative earnings growth (-95%) over the past year, making it difficult to compare to the Commercial Services industry average (10.4%).


Return on Equity

High ROE: KC7's Return on Equity (0.07%) is considered low.


Next Steps

Financial Health

How is AMA Group's financial position?


Financial Position Analysis

Short Term Liabilities: KC7's short term assets (A$171.8M) do not cover its short term liabilities (A$201.0M).

Long Term Liabilities: KC7's short term assets (A$171.8M) do not cover its long term liabilities (A$781.2M).


Debt to Equity History and Analysis

Debt Level: KC7's debt to equity ratio (82.1%) is considered high.

Reducing Debt: KC7's debt to equity ratio has increased from 18.6% to 82.1% over the past 5 years.

Debt Coverage: KC7's debt is well covered by operating cash flow (20.9%).

Interest Coverage: KC7's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: KC7 has a high level of physical assets or inventory.

Debt Coverage by Assets: KC7's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

7.08%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate KC7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KC7's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KC7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KC7's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KC7 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KC7's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

0.6yrs

Average management tenure


CEO

Andy Hopkins

1.33s

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 ($USD893.13K) is above average for companies of similar size in the German market ($USD431.45K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Hopkins
Group CEO & Executive Director1.33yrsAU$1.45m5.17% A$5.9m
Steven Becker
Group Chief Financial Officer1.08yrsAU$642.28k0.0068% A$7.8k
Raymond Malone
Consultant0.58yrAU$1.76mno data
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 Acquisitions0.25yrno datano data
Steven Bubulj
Panel Division CEO0.67yrno datano data
Fiona van Wyk
Company Secretary0.33yrno datano data

0.6yrs

Average Tenure

Experienced Management: KC7's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Hopkins
Group CEO & Executive Director1.33yrsAU$1.45m5.17% A$5.9m
Simon Moore
Deputy Chairman of the Board1.33yrsAU$58.33k3.69% A$4.2m
A. McLellan
Independent Non-Executive Director1.33yrsAU$210.37kno data
Carl Bizon
Independent Non-Executive Director0.083yrno datano data
Leath Nicholson
Non-Executive Director4.25yrsAU$100.00k0.22% A$252.7k
Nicole Cook
Independent Non-Executive Director0.25yrno data0.0075% A$8.6k
Anthony Day
Chairman0.50yrAU$58.33k0.071% A$81.2k

1.3yrs

Average Tenure

55yo

Average Age

Experienced Board: KC7's board of directors are not considered experienced ( 1.3 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: KC7 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 16%.


Top Shareholders

Company Information

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


Key Information

  • Name: AMA Group Limited
  • Ticker: KC7
  • Exchange: DB
  • Founded: 2005
  • Industry: Diversified Support Services
  • Sector: Commercial Services
  • Market Cap: AU$204.823m
  • Listing Market Cap: AU$114.342m
  • Shares outstanding: 731.51m
  • 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/commercial accessories; and distributes automotive electrical and 4WD accessories. It also provides motor vehicle component remanufacturing and repair services; and automotive workshops and performance products. The company was formerly known as Allomak Limited and changed its name to AMA Group Limited in December 2009. AMA Group Limited was incorporated in 2005 and is headquartered in Bundall, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:40
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.