Is Aston Martin A Buy

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Is Aston Martin A Buy

Is Aston Martin (Aml) A Value Stock?

Aston Martin (AML) shares have shed almost 41% of their value within a year. A quick look over the last 5 years shows the stock is down by a staggering 76%.

Now, the question everyone is asking is whether the Aston Martin (AML) is a value stock or not! Also, is it worth buying Aston Martin (AML) stock now that it has become so cheap? That's what we will explore today.

Aston Martin Stays In Loss

For now, Aston Martin (AML) is facing some serious problems that need to be solved. So, unless these issues are fixed, it is better to wait instead of buying the Aston Martin (AML) right away.

In the last few years, the company has burned a lot of cash and even relied on raising debt & equity to stay functional. Since its IPO in 2018, the company has raised around 3 worth of funding. Despite this, Aston Martin still has around 1 billion worth of debt.

The worst of all? Aston Martin is still not profitable which means it doesn't have much to show for the investors.

To make things even more difficult, the US president announced a major tariff on imported cars. So, that's also something which will weigh heavily on the Aston Martin during the next few years.

But if Aston Martin can fix most of these issues, it would become a buy at the 80p trading price. However, it is best to not buy the Aston Martin as these are long-term problems that can't be fixed overnight.

Meanwhile, other luxury car makers such as Porsche and Ferrari are on the market, and they are already profitable. With these other viable options, there's no reason to pick a stock like Aston Martin.

So, unless Aston Martin can turn a profit and solve some of its issues, it's best to stay away from Aston Martin for now.

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