AMMO (POWW) AI Stock Analysis

• Market Cap: $156.76M
• Dividend Yield: N/A
• Average Volume (3M): 549.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: -14.06%
• EPS Growth: -102.73%
• Country: US
• Employees: 374
• Sector: Industrials
• Sector Strength: 70
• Industry: Aerospace & Defense
• EPS (TTM): -0.21
• Shares Outstanding: 118,756,740
• 10 Day Avg. Volume: 416,184
• 30 Day Avg. Volume: 549,840
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): -78.10
• 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: $2.38
• Price Target Upside: 78.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

AMMO's overall stock score reflects significant challenges. Declining revenue and negative profitability weigh heavily on its financial health. Technical analysis suggests bearish momentum, while the valuation remains unattractive. Corporate events offer both opportunities and risks, with the asset sale being a positive step but overshadowed by compliance issues and executive changes.

AMMO Business Overview & Revenue Model

Company Description

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company offers Jesse James ammunition, a jacketed hollow point projectile for self-defense; and Jeff Rann's ammunition for game hunting. Further, its products include armor piercing and hard armor piercing incendiary tactical rounds; and ammunition casings for pistol ammunition through large rifle ammunition. The company is based in Scottsdale, Arizona.

How the Company Makes Money

AMMO, Inc. generates revenue through multiple channels. Its primary revenue stream is the manufacturing and sale of ammunition products to a diverse clientele, including government agencies, law enforcement, and commercial markets. The company also leverages its proprietary technologies and patented designs to offer high-margin, specialized products. Another significant revenue source is GunBroker.com, which earns money through transaction fees and commissions from sales conducted on its platform. Partnerships with other defense contractors and government contracts further bolster the company's earnings, allowing it to tap into large-scale procurement opportunities.

AMMO Financial Statement Overview

Summary

AMMO faced declining revenues and ongoing profitability issues in 2024, with a negative net profit margin and a slight improvement in EBITDA margin. The balance sheet remains robust with low leverage and strong equity, while cash flow management shows slight improvement but needs more aggressive measures.

Income Statement

AMMO's income statement reveals a challenging financial period. The company experienced a decline in total revenue from $191.4 million in 2023 to $145.1 million in 2024, indicating a negative revenue growth rate. The gross profit margin decreased significantly from 28.9% in 2023 to 29.4% in 2024. The net profit margin remains negative, with a net loss of $15.6 million in 2024, signaling ongoing profitability issues. However, there is a slight improvement in EBITDA margin from 7.8% in 2023 to 0.3% in 2024, suggesting some cost management efforts.

Balance Sheet

The balance sheet of AMMO shows a stable equity position with stockholders' equity at $356.6 million in 2024. The debt-to-equity ratio is low at 0.04, indicating a conservative use of leverage. However, the return on equity is negative due to the net loss, and the equity ratio is 89.1%, demonstrating a strong capital structure. The company has maintained a healthy cash position with $55.6 million in cash and short-term investments.

Cash Flow

AMMO's cash flow statement indicates a decrease in operating cash flow from $35.6 million in 2023 to $32.6 million in 2024. Free cash flow has improved slightly from $23.0 million in 2023 to $24.6 million in 2024, showing better cash management. The operating cash flow to net income ratio is positive, although free cash flow growth is modest. The cash flow dynamics highlight the company's efforts to manage its cash amidst profitability challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
141.75M	145.05M	191.44M	240.27M	62.48M	14.78M
	Gross Profit
31.56M	42.62M	55.41M	88.76M	11.39M	-3.68M
	EBIT
-26.63M	-18.58M	-3.23M	37.15M	-3.80M	-13.84M
	EBITDA
-7.89M	380.36K	14.92M	54.49M	1.07M	-9.38M
	Net Income Common Stockholders
-21.53M	-15.57M	-4.60M	33.25M	-11.40M	-15.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
0.00	55.59M	39.13M	23.28M	118.34M	884.27K
	Total Assets
0.00	399.90M	412.34M	414.18M	179.38M	41.11M
	Total Debt
140.00K	13.10M	14.86M	5.14M	10.61M	14.32M
	Net Debt
140.00K	-42.49M	-24.28M	-18.14M	-107.73M	13.44M
	Total Liabilities
174.44K	43.35M	39.74M	39.87M	19.03M	21.85M
	Stockholders Equity
-174.44K	356.56M	372.60M	374.30M	160.35M	19.26M
Cash Flow		Free Cash Flow
10.96M	24.61M	23.02M	-16.37M	-21.85M	-5.82M
	Operating Cash Flow
19.09M	32.63M	35.56M	2.85M	-14.42M	-5.36M
	Investing Cash Flow
-8.13M	-8.02M	-12.54M	-69.68M	-7.44M	-462.38K
	Financing Cash Flow
-8.21M	-8.66M	-6.66M	-28.24M	139.31M	4.52M

AMMO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.33
• 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 POWW, the sentiment is Negative. The current price of 1.33 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.54, and below the 200-day MA of 1.44, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POWW.

AMMO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGR	70 Outperform	$639.14M	21.55	9.39%	1.83%	-1.49%	-34.38%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
SWBI	59 Neutral	$392.50M	13.72	8.05%	5.83%	-5.77%	14.45%
OLN	58 Neutral	$2.26B	21.61	5.10%	4.07%	-4.29%	-74.85%
CVU	52 Neutral	$45.87M	13.34	13.74%	―	-6.23%	-80.67%
AOUT	50 Neutral	$140.34M	―	-2.43%	―	4.91%	58.25%
POWW	48 Neutral	$156.76M	―	-4.37%	―	-14.06%	-102.73%

AMMO Corporate Events

AMMO Chairman Resigns Amid Nasdaq Compliance Issues

On April 2, 2025, AMMO, Inc. received a deficiency notification from Nasdaq for failing to hold an annual stockholders meeting within the required timeframe, risking potential delisting if compliance is not achieved by September 29, 2025. The company plans to submit a compliance plan by May 19, 2025, and the notice currently does not affect the listing of its stock. On April 4, 2025, Fred W. Wagenhals resigned as Executive Chairman and Chairman of the Board, effective immediately, without any disagreements with the company. He entered a Separation Agreement entitling him to certain benefits, including a $700,000 cash severance payment, in exchange for a release of claims and adherence to confidentiality and non-disparagement covenants.

Spark’s Take on POWW Stock

According to Spark, TipRanks’ AI Analyst, POWW is a Neutral.

AMMO’s overall stock score of 46 reflects challenging financial performance, with declining revenue and profitability issues. While the balance sheet is strong, technical indicators suggest bearish momentum. Valuation is unattractive due to negative earnings. Corporate events offer mixed effects, with asset sales providing potential growth opportunities but compliance issues posing risks.

To see Spark’s full report on POWW stock, click here.

AMMO Faces Nasdaq Compliance Deadline Amid Investigation

On February 19, 2025, AMMO, Inc. received a deficiency notification from Nasdaq for failing to timely file its quarterly report for the period ending December 31, 2024. The delay is due to the need to restate financial statements and an ongoing independent investigation. The company has until March 6, 2025, to submit a plan to regain compliance, with a possible extension until May 19, 2025. While the notice does not immediately affect AMMO’s stock listing, failure to comply could lead to delisting actions.

AMMO Sells Ammunition Assets to Olin-Winchester

On January 20, 2025, AMMO, Inc. announced the sale of its ammunition manufacturing assets to Olin-Winchester for $75 million. The transaction, anticipated to conclude in the second quarter of 2025, aims to streamline AMMO’s operations and enhance its focus on the profitable GunBroker.com marketplace. This strategic move is expected to improve the company’s cash flow and operational efficiency, positioning it for growth within the expanding firearms e-commerce sector.