Amigo Holdings PLC (AMGO) AI Stock Analysis

• Market Cap: £1.85M
• Dividend Yield: N/A
• Average Volume (3M): 2.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 24
• Sector: Financial
• Sector Strength: 86
• Industry: Financial - Credit Services
• EPS (TTM): -0.01
• Shares Outstanding: 570,352,970
• 10 Day Avg. Volume: 2,507,834
• 30 Day Avg. Volume: 2,121,722
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.36
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Amigo Holdings PLC faces substantial financial difficulties, with declining revenues and pervasive losses highlighting operational and market challenges. The stock's bearish technical indicators and poor valuation metrics reflect these issues. Recent corporate actions, such as changing the accounting date to preserve cash, underscore financial instability and strategic uncertainty, presenting significant risks to investors.

Amigo Holdings PLC Business Overview & Revenue Model

Company Description

Amigo Holdings PLC (AMGO) is a UK-based provider of guarantor loans, a type of personal loan designed for individuals who may have difficulty accessing traditional credit options. Operating within the financial services sector, Amigo offers unsecured loans where a third party, usually a friend or family member, acts as a guarantor to ensure repayment. This model aims to provide credit to those who are underserved by mainstream lenders.

How the Company Makes Money

Amigo Holdings PLC generates revenue primarily through interest income from the loans it issues. The company offers loans with relatively high interest rates compared to traditional lenders, which reflects the higher risk associated with lending to individuals with limited or poor credit histories. Amigo's revenue model is based on the repayment of these loans over time, with the interest charged on the outstanding balance serving as the primary source of income. Additionally, Amigo may generate revenue through fees associated with loan origination or late payments. The involvement of a guarantor reduces the risk of default and enables Amigo to reach a market segment that might not qualify for credit otherwise. However, this model also exposes the company to regulatory scrutiny and the need to ensure responsible lending practices.

Amigo Holdings PLC Financial Statement Overview

Summary

Amigo Holdings PLC's financial statements depict a company undergoing significant financial challenges. The income statement reflects declining revenues and substantial losses, suggesting operational and market difficulties. The balance sheet shows improved equity levels recently, yet past instability raises concerns about long-term financial health. Cash flow analysis reveals positive but declining cash flow generation, which may not be sustainable if revenue and profitability do not recover. Overall, while there are signs of potential stabilization, the company faces considerable financial risks.

Income Statement

Amigo Holdings PLC has experienced significant volatility in revenue and profitability over recent years. The most recent annual report indicates a drastic decline in total revenue from £20.8M to £3.6M, representing a revenue growth rate of -82.69%. Additionally, both gross and net profit margins are negative, with gross profit margin at -172.22% and net profit margin at -350%. Such negative profitability margins highlight considerable financial stress. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a high level of stockholders' equity relative to total assets, with an equity ratio of 100% in the most recent period. This suggests that Amigo Holdings is not heavily leveraged, with a debt-to-equity ratio of 0.0174. However, the large discrepancy between total liabilities and stockholders' equity in previous years, especially in 2021 where equity was negative, indicates historical financial instability. Recent improvements in equity could be a positive sign, but prior volatility raises concerns.

Cash Flow

Despite operational challenges, Amigo Holdings has maintained positive operating cash flow, though significantly reduced in the latest year to £5.4M from £78.8M. The operating cash flow to net income ratio is negative, reflecting that net income is deeply negative while cash flow remains positive, potentially due to non-cash expenses. The free cash flow to net income ratio is also negative. The sharp reduction in free cash flow growth rate and fluctuations in operating cash flow indicate unstable cash flow management.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.60M	20.80M	89.60M	170.90M	294.20M
	Gross Profit
-6.20M	6.20M	63.40M	131.70M	264.80M
	EBIT
-7.10M	-32.60M	27.90M	-252.20M	-5.20M
	EBITDA
-18.90M	-32.20M	180.00M	-213.00M	78.10M
	Net Income Common Stockholders
-12.60M	-34.80M	169.60M	-289.10M	-27.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.40M	62.40M	133.60M	177.90M	64.30M
	Total Assets
178.20M	219.10M	285.00M	538.60M	760.40M
	Total Debt
3.10M	100.00K	50.60M	297.70M	462.00M
	Net Debt
-90.40M	-62.30M	-83.00M	119.80M	397.70M
	Total Liabilities
178.20M	206.50M	237.10M	660.00M	593.00M
	Stockholders Equity
178.20M	12.60M	47.90M	-121.40M	167.40M
Cash Flow		Free Cash Flow
5.40M	78.80M	205.50M	287.20M	120.70M
	Operating Cash Flow
5.40M	78.80M	205.50M	287.70M	122.00M
	Investing Cash Flow
0.00	0.00	300.00K	-500.00K	-1.30M
	Financing Cash Flow
-100.00K	-50.30M	-248.80M	-167.40M	-71.60M

Amigo Holdings PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AMGO, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.39, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 32.02 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AMGO.

Amigo Holdings PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPF	74 Outperform	£274.05M	4.60	12.58%	8.43%	-5.41%	29.23%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%
SUS	56 Neutral	£170.11M	9.04	8.14%	8.21%	10.81%	-42.66%
AMGO	39 Underperform	£1.85M	―	-200.00%	―	―	―

Amigo Holdings PLC Corporate Events

Amigo Holdings PLC Alters Accounting Date Amid Financial Challenges

Amigo Holdings PLC has changed its accounting reference date from 31 March to 30 September to preserve cash, as the company faces a limited financial runway before potential insolvency. This change defers costs associated with producing audited financial statements. The company is actively seeking a reverse takeover target and exploring additional funding options to extend its operational runway. Additionally, Amigo’s Scheme of Arrangement for misselling loans is nearing completion, with the final distribution expected soon, and the scheme’s operating companies are anticipated to enter solvent liquidation.