Aston Martin Share Forecast

last updated on

Aston Martin Share Forecast

Can Aston Martin (Aml) Share Price Recover?

Aston Martin (AML) was listed on the UK stock market back in 2018. Since then, the stock price has declined by more than 99%. In other words, the price of one Aston Martin share is now just 1% of what it used to be around 7 years ago.

Now those who had bought the Aston Martin shares at a higher price would have suffered heavy losses. But, this also raises the question of whether it is really possible for the Aston Martin (AML) share price to recover.

Aston Martin Has A Loyal Customer Base

After all, Aston Martin has a long history and is one of the prestigious car brands. The firm also has a very loyal customer base and makes really impressive cars.

But a key issue with Aston Martin is that it has been a loss-making entity ever since it was founded. So while the cars made by Aston Martin look really nice & come with an expensive price tag, it hasn't translated into profit for the firm.

So to fix the issue, the Aston Martin company usually issues new shares in an attempt to raise more funds. This basically dilutes the shares and pushes the stock price to new lows.

This means that unless the company stops issuing new shares for a while, we can't expect the Aston Martin stock to make a comeback.

Aston Martin has also taken a lot of debt and thus has to deal with high interest rates. Recent data shows that Aston Martin has a net debt of around 1.4 billion.

However, Aston Martin believes that it will turn profitable in 2026. They also believe that the free cash flow is expected to improve a lot in the next few quarters.

In fact, even if Aston Martin manages to move towards positive free cash flow, the Aston Martin share price will definitely move higher.

With all things considered, it is best to stay away from Aston Martin shares for now. The risks are too high, and the firm needs to achieve a lot of tough tasks to turn profitable.

Trending Stories