Aston Martin Lagonda Global Holdings Plc Becoming An Attraction For Potential Investors

  • Jan 13, 2020 GMT
  • Team Kalkine
Aston Martin Lagonda Global Holdings Plc Becoming An Attraction For Potential Investors

Aston Martin Lagonda Global Holdings Plc

Aston Martin Lagonda Holdings Plc (LON: AML) is an automobile company based out of Gaydon, United Kingdom. The company is a Luxury Car manufacturer and is focused on the design, engineering and manufacturing of luxury sports cars. Aston Martin Lagonda has a long tradition of extraordinary design, manufacturing and engineering of luxury sedans and sports cars.

The company is creating and exporting cars in 53 countries around the world. The company has four regional offices located in the Asia Pacific, China, Europe and the Americas. The company is primarily a merged synergy between two car manufacturers, Aston Martin and Lagonda who have revolutionised the Luxury Car space in the United Kingdom, and in fact, the entire world. Both brands have a history of over 100 years.

The Company's primary line-up contains three models, which are Grand Tourer (GT) (DB11), one of the world’s finest automobile and extremely famous model amongst young sports enthusiasts, the sports car (Vantage) and Super GT (DBS Superleggera). It additionally manufactures four-door and four-seat sports roadster called the Rapide S. It also creates and delivers extraordinary release models, for example, Vantage GT12, Vantage GT8, Vanquish Zagato Coupe, Vanquish Zagato Volante, Vanquish Zagato Speedster, DB4GT Continuation and Aston Martin Vulcan. The company also provides support and accidental repair services, as well as the rebuilding of Aston Martin models through its servicing business, Aston Martin Brands Limited.

The company has a long history in terms of being a racing car company, with its first participation in the 1922 French Grand Prix as well as participation in the prestigious Le Mans racing, which is an endurance racing event. The company won the Le Mans race in 1959, which was an extremely competitive time for the race with companies like Ferrari and Ford leading the way. The company also succeeded on the Monza track in Italy with its DB4GT.

How is Aston Martin Lagonda becoming an attraction for potential investors across the world?

On 11th January 2020, various news sources in the automobile space reported that Contemporary Amperex Technology Company Limited, popularly known as CATL Battery, a Chinese battery giant, was interested in buying a stake in the Aston Martin Lagonda Group and its executives had met the AML officials and advisors in the previous week. This followed a recent report that Lawrence Stroll, billionaire and owner of the Racing Point Formula One team, approached the company to buy a 20 per cent stake in the company, by investing approximately £200 million in the group. Another Company, Geely, which is also a Chinese Car Producer, was interested in obtaining an equity stake in the AML Group, as per various reports doing the rounds in the London market. All these companies that seem keen to invest in Aston Martin Lagonda have various strategical objectives to do so, however, the investment, primarily will have to be used by the company to fund the ailing balance sheet.

About CATL - Contemporary Amperex Technology Company Limited (CATL) is a Chinese Automobile company that is primarily focused on the Research and development, as well as the production and selling of Electric Vehicle battery production and energy storage battery systems. The company focuses its entire technological and research capabilities for the purpose of creating a battery product that can utilise least energy to produce maximum power and can be utilised to produce heavyweight electric vehicles such as Electric Busses, Electric Passenger Vehicles and Electric Trucks such as Tesla’s Cyber Truck that was recently presented by Elon musk. The company’s primary strategy to invest in Aston Martin Lagonda revolves around the idea of introducing the company with its electrification technology, which, AML wants to incorporate in its future models, which is a part of the company’s strategy in becoming Carbon Neutral. This will also provide CATL with a significant exposure to luxury car manufacturing space, which could be a potential gamechanger for the company within the industry.

Rooted and listed in China, the company boasts of world-class manufacturing facilities, Research and Development centres as well as Branch offices, across the world especially in countries like the United States of America, Canada and Japan.

AML Trading Update

On 7th January 2020, the company released a trading statement for the Financial Year 2019. The cash balance at the year-end was reported to be at £107 million. The company primarily highlighted that the trading environment, during the period was poor, all throughout the peak delivery period in December, especially around Christmas, which resulted in the reduction of sales followed by lower margins. The company reported that Core wholesales decline by 7 per cent year on year and were at 5809. Geographically, all regions except Europe performed in line with the company’s expectation. The company also highlighted that Earnings Before Interest Taxes Depreciation and Amortisation (EBITDA) for FY 2019 is expected to be in range of £130 million and £140 million, while the board anticipates that the EBITDA Margin will be somewhere in between 12.5 per cent and 13.5 per cent. The company also highlighted that they were reviewing various financing requirement and options and that they were in discussions with potential strategic investors, which might or might not have involved equity injunction into the company.

AML Stock Price Performance

(Source: Thomson Reuters) Daily Chart as on 13-January-20, prior to the closing of the London Stock Exchange

As on 13th January 2020, at 11:10 A.M GMT, by the time of writing, Aston Martin Lagonda Global Holdings Plc’s stock price was reported to have been trading at GBX 478.76 per stock on the London Stock Exchange, an increase in the value of 1.93 per cent or GBX 9.0595 per stock, in comparison to the previous day’s closing price, which was reported at GBX 469.70 per stock. While writing, the stock of Aston Martin Lagonda Global Holdings Plc has been trading 29.01 per cent above the 52-week low stock price, that was reportedly GBX 371.10 per stock and was reached on August 15, 2019. At the time of writing, the stock price has been reported to be at 65.17 per cent below the 52-week high price of GBX 1374.40, that the company was reported to be trading on February 27, 2019. The company’s market capitalisation stood at a value of GBP 1.07 billion with regards to the current stock price.

The company’s stock has shown a negative change of approximately 61.56 per cent, in the previous twelve months, from the price of GBX 1245.40 that the stock hit on January 14, 2019. The Aston Martin Lagonda Global Holdings Plc stock has also displayed a downward change in the last six months of the year, of around 48.42 per cent from the stock price of GBX 928.20 that the stock set on July 12, 2019. The company’s stock depicted a negative change of around 14.02 per cent, within the previous month from the stock price of GBX 556.80 per stock that it hit when the markets closed on December 13, 2019.

Stock Price Performance of peers of the company

ABDP Stock Price Performance

As on 13th January 2020, at 11:15 A.M GMT, by the time of writing, AB Dynamics Plc’s stock price was reported to have been trading at GBX 2065.00 per stock on the London Stock Exchange, an increase in the value of 0.24 per cent or GBX 5.00 per stock, in comparison to the previous day’s closing price, which was reported at GBX 2060.00 per stock. The company’s market capitalisation stood at a value of GBP 462.50 million with regards to the current stock price.

AUTG Stock Price Performance

As on 13th January 2020, at 11:20 A.M GMT, by the time of writing, Autins Group Plc’s stock price was reported to have been trading at GBX 21.00 per stock on the London Stock Exchange, no change in the price of the share, in comparison to the previous day’s closing price. The company’s market capitalisation stood at a value of GBP 8.32 million with regards to the current stock price.

TIFS Stock Price Performance

As on 13th January 2020, at 11:25 A.M GMT, by the time of writing, TI Fluid Systems Plc’s stock price was reported to have been trading at GBX 253.00 per stock on the London Stock Exchange, no change in the price of the share, in comparison to the previous day’s closing price. The company’s market capitalisation stood at a value of GBP 1.316 billion with regards to the current stock price.

Comparative stock price Chart of ABDP, AUTG and TIFS

(Source: Thomson Reuters) Daily Chart as on 13-January-20, prior to the closing of the London Stock Exchange

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK