AB Dynamics (ABDP) AI Stock Analysis

• Market Cap: £426.95M
• Dividend Yield: 0.41%
• Average Volume (3M): 56.87K
• Price to Earnings (P/E): 43.6
• Beta (1Y): 0.55
• Revenue Growth: 10.41%
• EPS Growth: -11.73%
• Country: UK
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 49
• Industry: Vehicles
• EPS (TTM): 0.42
• Shares Outstanding: 22,954,462
• 10 Day Avg. Volume: 110,709
• 30 Day Avg. Volume: 56,871
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.81
• Price to Cash Flow (P/CF): 14.60
• P/FCF Ratio: 17.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 2,155.00p
• Price Target Upside: 15.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

AB Dynamics exhibits strong financial performance with healthy revenue growth and cash generation. However, technical analysis signals current negative market sentiment, and high valuation metrics may pose risks. The lack of earnings call and corporate event data means these factors are not influencing the score.

Positive Factors

Financial Performance

AB Dynamics has released an impressive set of results, with good momentum in Testing offsetting challenges in Simulation.

Future Prospects

Highlights include an aspiration to double group sales and triple EBITA over the medium-term, which should be taken very well.

Negative Factors

Valuation Concerns

The Underperform rating is primarily due to the stock trading at significant premiums to the sector.

AB Dynamics Business Overview & Revenue Model

Company Description

AB Dynamics (ABDP) is a leading provider of advanced testing systems and measurement products for the global automotive industry. The company specializes in developing and manufacturing sophisticated equipment for vehicle testing, including driving simulators, advanced driver-assistance systems (ADAS) testing platforms, and laboratory testing products. AB Dynamics serves a range of sectors within the automotive industry, including research and development, regulatory compliance, and product development, catering to automotive manufacturers and component suppliers worldwide.

How the Company Makes Money

AB Dynamics generates revenue primarily through the sale of its advanced testing systems and measurement products to automotive manufacturers and suppliers. The company's key revenue streams include the sale of driving simulators, ADAS testing platforms, and laboratory testing equipment. AB Dynamics also offers associated software solutions that enhance the functionality and integration of its hardware products. In addition to direct sales, the company earns income through after-sales services, including maintenance contracts, software updates, and system upgrades. Significant partnerships with automotive companies and research institutions further bolster its revenue by expanding its market reach and enhancing its product offerings.

AB Dynamics Financial Statement Overview

Summary

AB Dynamics demonstrates strong financial health with consistent revenue growth and effective cost management. The balance sheet reflects low leverage and strong equity positioning, while cash flow statements underscore healthy cash generation. Despite these strengths, there is room for improvement in profitability margins and ROE to enhance overall financial performance.

Income Statement

AB Dynamics has shown solid revenue growth, with a 10.39% increase in the latest year. The gross profit margin is strong at 59.59%, indicating efficient cost management. However, net profit margin decreased from the previous year to 8.72%, suggesting potential cost pressures or operational inefficiencies. EBITDA margin remains healthy at 20.45%, reflecting good core business profitability.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.02, highlighting minimal leverage. The equity ratio of 74.57% indicates a solid reliance on equity financing. Return on equity is modest at 7.39%, suggesting room for improvement in effectively generating returns from shareholders' equity.

Cash Flow

Free cash flow has grown by 23.39%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 2.42, showing robust cash conversion efficiency. However, the free cash flow to net income ratio is 2.03, suggesting a potential need for better alignment of cash flow with profitability metrics.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
103.98M	111.25M	100.77M	80.31M	65.38M	61.51M
	Gross Profit
55.86M	66.28M	59.93M	46.22M	37.11M	35.92M
	EBIT
5.14M	12.74M	12.55M	5.23M	4.19M	5.41M
	EBITDA
15.06M	22.76M	23.30M	15.29M	11.32M	10.61M
	Net Income Common Stockholders
13.63M	9.71M	10.99M	4.74M	2.98M	4.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.08M	31.80M	33.49M	30.14M	23.28M	31.18M
	Total Assets
121.37M	175.96M	170.64M	141.26M	131.97M	118.90M
	Total Debt
968.00K	3.24M	1.48M	943.00K	967.00K	1.23M
	Net Debt
-33.12M	-28.57M	-32.01M	-29.20M	-22.32M	-29.96M
	Total Liabilities
18.75M	44.70M	45.49M	29.30M	26.98M	16.15M
	Stockholders Equity
102.62M	131.25M	125.16M	111.96M	104.99M	102.75M
Cash Flow		Free Cash Flow
17.82M	19.68M	15.95M	14.10M	8.58M	-3.26M
	Operating Cash Flow
21.70M	23.50M	19.34M	17.91M	15.22M	4.90M
	Investing Cash Flow
-9.00M	-20.80M	-14.05M	-8.92M	-20.97M	-10.98M
	Financing Cash Flow
-9.83M	-4.38M	-1.92M	-2.04M	2.97M	950.00K

AB Dynamics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1860.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ABDP, the sentiment is Positive. The current price of 1860 is above the 20-day moving average (MA) of 1797.75, above the 50-day MA of 1811.71, and below the 200-day MA of 1932.58, indicating a neutral trend. The MACD of 2.62 indicates Negative momentum. The RSI at 60.30 is Neutral, neither overbought nor oversold. The STOCH value of 83.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ABDP.

AB Dynamics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABDP	68 Neutral	£426.95M	43.62	7.57%	0.41%	10.41%	-11.73%
AVON	66 Neutral	£427.90M	185.35	1.82%	1.27%	9.11%	―
OXIG	65 Neutral	$1.07B	21.06	14.23%	1.10%	7.18%	-13.14%
TRCS	63 Neutral	£107.90M	194.44	0.72%	0.76%	-1.22%	-92.99%
Sector *	60 Neutral	$12.39B	10.47	1.07%	3.58%	1.64%	-18.33%
GHH	56 Neutral	£118.62M	41.70	2.87%	2.85%	-8.41%	-31.29%

AB Dynamics Corporate Events

Octopus Investments Increases Stake in AB Dynamics

AB Dynamics PLC has announced a change in the voting rights held by Octopus Investments Limited, which has increased its stake to 11.1% from a previous 10.72%. This acquisition of voting rights signifies a strengthened position for Octopus Investments in the company, potentially impacting the strategic decisions and influence within AB Dynamics.

Octopus Investments Increases Stake in AB Dynamics

AB Dynamics PLC has announced a change in the voting rights held by Octopus Investments Limited, which has increased its stake from 9.92% to 10.72%. This acquisition of voting rights signifies a strengthened position for Octopus Investments in AB Dynamics, potentially impacting the company’s governance and strategic decisions.

AB Dynamics Successfully Passes AGM Resolutions

AB Dynamics announced that all resolutions were passed at their recent Annual General Meeting. Key decisions included the approval of the director’s report, remuneration, and a final dividend, along with the reappointment of several directors and auditors. These resolutions affirm the company’s strategic direction and governance, supporting its continued role in the automotive testing and simulation industry.

AB Dynamics Reports Strong Start to FY 2025

AB Dynamics plc has reported positive trading momentum in the first four months of FY 2025, with strong order intake especially in Asia Pacific and North America. The company is confident in its financial and strategic progress for the year, supported by a robust cash position and long-term growth drivers in active safety and autonomous systems.

AB Dynamics Issues Bonus and LTIP Awards to Leadership

AB Dynamics announced the issuance of bonus shares to directors as part of their annual bonus, along with the exercise of Long Term Incentive Plan (LTIP) awards and related sales. The company also granted new LTIP awards to several senior executives, aligning with performance criteria such as earnings per share growth and cash conversion. These moves reflect the company’s strategy to incentivize its leadership and align their interests with shareholder value, potentially impacting stakeholder perceptions positively.