Aston Martin: Discover the iconic luxury car brand

Aston Martin Lagonda Global Holdings PLC is the iconic British manufacturer of luxury sports cars and grand tourers. Using the latest technology, craftsmanship and beautiful styling, the company has created admired luxury models such as the Vantage, DB11, DBS and DBX and its first hypercar, the Aston Martin Valkyrie. Their sports cars remain British cultural icon

Lagonda and Aston Martin

Lagonda was founded in 1899 and Aston Martin in 1913 by Lionel Martin and Robert Bamford. The two brands became one in 1947 when they were purchased by the late Sir David Brown. The company is now listed on the London Stock Exchange as Aston Martin Lagonda Global Holdings plc. In the 1950s and 1960s, the brand became associated with expensive grand touring cars and with the fictional character of James Bond after he drove a DB5 model in the 1964 film Goldfinger.

Since 1982, Aston Martin has held a Royal Warrant as the vendor of motorcars to Charles III. As a global brand, it has more than 160 car dealerships across 53 countries. In 2003, it was recognised for its contribution to international trade with the Queen’s Award for Enterprise. Despite its seven bankruptcies throughout the years, the company remains strong and continues to design, create and export cars from its base in Gaydon, Warwickshire, England. Its luxury DBX SUV range is manufactured in St Athan, Wales.

The old 3.6-acre (1.5 ha) facility in Newport Pagnell, Buckinghamshire is the current home of the Aston Martin Works classic car department. The department deals with heritage sales, service, spares and restoration operations. In its 90-acre (36 ha) factory in St Athan, Wales, the company produced Aston Martin’s first-ever SUV, the DBX. By 2025, Aston Martin plans on building electric vehicles on both its Gaydon and St Athan factories.

In 2020, Lawrence Stroll became the company’s Executive Chairman, and new investments led to the creation of the Aston Martin Cognizant Formula One™ Team and initiated a new era for the iconic British brand.

Aston Martin stock price falls in 2023

While the company has experienced a sharp fall from its highest point in 2023, it has seen strong demand for its vehicles and Bloomberg expects Aston Martin to become profitable in 2024.

In 2023, though, Aston Martin Lagonda (LON: AML) share price didn’t recover as there were worries about its its balance sheet. The stock initially rose from a low of 84.10p in 2022 to a high of 396p in July. But it erased some of those gains in 2023.

Luxury brands do well when global assets are up

The amazing performance of such luxury brands as Porsche and Ferrari attest to the boom that the luxury vehicle industry is currently experiencing. This trend is anticipated to continue if global stocks continue their uptrend. In the US, the Dow Jones, Nasdaq 100, and S&P 500 have reached all-time highs. In Europe, Italy’s FTSE MIB, DAX index, and CAC 40 have also all risen. When global assets are doing well and there is strong demand from investors and consumer confidence is high, luxury brands also increase.

Strong demand for Aston Martin

While the company’s stock experienced a poor performance, Aston Martin Lagonda does not have any revenue issues and there is strong demand for its cars. The latest results showed that the company’s revenue increased by 21% in the first three quarters of the year. Its gross profit rose by 30% while its EBITDA came in higher by 64% to £131 million.

There is also strong demand for its cars since wholesale vehicles reached 4,398 units and its revenue rose to £1.04 billion. Its Valkyrie models are sold out while there is robust demand for its luxury SUV, the Aston Martin DBX.

The main challenges that the company is facing is its balance sheet and scale. While the company has managed to reduce its total debt from over £1.2 billion to £750 million, there are worries that it may need to raise additional funds in 2024 or 2025There are also significant profitability challenges.

Bloomberg analysts remain positive and optimistic. They believe that there is a strong possibility that the company will become profitable this year. They anticipate operating profit margin to rise by 25% this year, followed by 30% in 2026-27. In his respect, the stock may rise higher if profitability is higher, leverage is reduced and demand increases.  

Aston Martin models

The brand currently lists on its website the following models. Its SUV line includes the DBX707 and the DBX V8. The DB12 and DB12 Volante embody its iconic glory days, while DBS are its more powerful line characterised by speed, performance, and raw power. As they describe them on their website, the DBS “meticulously balances beauty and beast in perfect symmetry.” Aston Martin Vantage is a two-seater sports car. Valour, Valkyrie, Valhalla and the 2023 Formula 1 car Aston Martin AMR23 complete the list of the luxury models. The Aston Martin Valhalla is planned to be produced in 2024 and has been developed by Aston Martin in collaboration with Red Bull Racing. The Aston Martin Valkyrie (also known as AM-RB 001 and Nebula) is a limited production hybrid sports car built by Aston Martin in collaboration with Red Bull Racing Advanced Technologies and several others. Valour is an extremely limited-edition celebratory car celebrating 110 years of Aston Martin. The V12-engined Aston Martin Valour is limited to just 110 units, costing more than £1million each.

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