OTCPK:POWW

Stock Analysis Report

Executive Summary

Ammo, Inc. designs, develops, manufactures, markets, and sells ammunition products primarily for the sporting industry in the United States and internationally.

Rewards

Revenue grew by 101.4% over the past year

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: POWW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.1%

POWW

4.8%

US Leisure

1.1%

US Market


1 Year Return

-54.4%

POWW

14.5%

US Leisure

17.8%

US Market

Return vs Industry: POWW underperformed the US Leisure industry which returned 14.5% over the past year.

Return vs Market: POWW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

POWWIndustryMarket
7 Day-7.1%4.8%1.1%
30 Day23.8%8.7%1.4%
90 Day-25.6%-0.6%3.9%
1 Year-54.4%-54.4%16.5%14.5%20.3%17.8%
3 Yearn/a-3.9%-8.7%44.8%35.4%
5 Yearn/a12.5%0.3%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

2.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate POWW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate POWW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: POWW is unprofitable, so we can't compare its PE Ratio to the Leisure industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: POWW is good value based on its PB Ratio (2.3x) compared to the US Leisure industry average (2.6x).


Next Steps

Future Growth

How is AMMO forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

30.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AMMO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Take a look at our analysis of POWW’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access AMMO's filings and announcements here.
  • Explore growth companies in the Consumer Durables industry.

Past Performance

How has AMMO performed over the past 5 years?

-121.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: POWW is currently unprofitable.

Growing Profit Margin: POWW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if POWW's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: POWW is unprofitable, making it difficult to compare its past year earnings growth to the Leisure industry (3.7%).


Return on Equity

High ROE: POWW has a negative Return on Equity (-60.53%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AMMO's financial position?


Financial Position Analysis

Short Term Liabilities: POWW's short term assets ($9.1M) do not cover its short term liabilities ($15.5M).

Long Term Liabilities: POWW's short term assets ($9.1M) exceed its long term liabilities ($4.7M).


Debt to Equity History and Analysis

Debt Level: POWW's debt to equity ratio (34.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if POWW's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: POWW's debt is covered by short term assets (assets are 1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: POWW has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: POWW has less than a year of cash runway if free cash flow continues to reduce at historical rates of -20.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate POWW'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 POWW's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Fred Wagenhals (78yo)

3yrs

Tenure

US$276,375

Compensation

Mr. Fred W. Wagenhals has been the Chief Executive Officer of Ammo, Inc. since December 15, 2016 and serves as its Chairman. Mr. Wagenhals has been Chief Executive Officer of Retrospettiva, Inc. since Dece ...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD276.38K) is below average for companies of similar size in the US market ($USD529.29K).

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


Management Age and Tenure

1.8yrs

Average Tenure

63yo

Average Age

Experienced Management: POWW's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

64yo

Average Age

Experienced Board: POWW's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 47.6%.


Management Team

  • Fred Wagenhals (78yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$276.38k
  • Steve Hilko (63yo)

    Chief Operating Officer

    • Tenure: 2.8yrs
    • Compensation: US$120.00k
  • Mark Hanish

    President of Global Commercial Sales & Marketing

    • Tenure: 0.9yrs
  • Rob Wiley (27yo)

    Controller & CFO

    • Tenure: 0.9yrs
    • Compensation: US$154.31k

Board Members

  • Fred Wagenhals (78yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$276.38k
  • Rob Goodmanson (65yo)

    Independent Director

    • Tenure: 0.6yrs
  • Rusty Wallace (62yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$69.50k
  • Randy Luth (64yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$69.50k
  • Harry Markley (56yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$69.50k

Company Information

AMMO, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AMMO, Inc.
  • Ticker: POWW
  • Exchange: OTCPK
  • Founded: 1990
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: US$59.496m
  • Shares outstanding: 45.77m
  • Website: https://www.ammoinc.com

Number of Employees


Location

  • AMMO, Inc.
  • 7681 East Gray Road
  • Suite 106
  • Scottsdale
  • Arizona
  • 85260
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POWWOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2017

Biography

Ammo, Inc. designs, develops, manufactures, markets, and sells ammunition products primarily for the sporting industry in the United States and internationally. It provides ammunitions in the form of cartr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:57
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.