AML LN

Aston Martin Lagonda Global Holdings Plc

Industrial/Transportation, Consumer


Presented:01/21/2021
Price:£18.00
Cap:$3.18B
Current Price:£1.09
Cap:$1.38B

Presented

Date01/21/2021
Price£18.00
Market Cap$3.18B
Ent Value$3.99B
P/E RatioN/A
Book Value£2.64
Div Yield0%
Shares O/S114.93M
Ave Daily Vol780,401
Short IntN/A

Current

Price£1.09
Market Cap$1.38B
Aston Martin Lagonda Global Holdings Plc engages in designing, engineering and manufacturing luxury cars. Its current line-up comprises three core models of the new generation of products: one grand tourer (GT) (DB11), one sports car (Vantage), and one super GT (DBS Superleggera). The company also produces one four-door, four-seat sports coupe (Rapide S), Aston Martin Vulcan and Vanquish Zagato models. The company was founded in 1913 and is headquartered in Warwick, the United Kingdom.

Publicly traded companies mentioned herein: Aston Martin Lagonda Global Holdings PLC (AML LN), Daimler AG (DAI GR), Ferrari NV (RACE)

Highlights

The presenter is long shares of Aston Martin Lagonda Global Holdings PLC (AML LN). He views this as a turnaround story, noting that market sentiment is justifiably negative given the company’s history. AML was founded in 1913 and has gone bankrupt seven times. Leading up to its 2018 IPO, management laid out its plan to sell ~6,000 high end sports cars per year vs. its historical ~4,000 run rate. AML stuffed the dealers ahead of the IPO, which shorts realized, and the stock’s current ~GBp1,800 share price is down meaningfully from its ~GBp11,000 IPO price. In 2020, the company needed two rights issues to avoid another bankruptcy, the most recent issue coming in December 2020. Also in 2020, AML replaced its management team, brought in £500MM of new equity, and refinanced £1.3B of debt. Behind its new leadership team and a fresh plan, the presenter is bullish that market sentiment will improve if/ as AML beats on earnings this March, and presents details around its long-term plan focused on its recently launched DBX, creating a path for the stock to double in the next year.

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Idea Discussion

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