Trade in Aston Martin shares!
ASTON MARTIN

Analysis before buying or selling Aston Martin shares

Trade in Aston Martin shares!
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In this article devoted entirely to the Aston Martin share, we propose to help you put in place a good analysis of this stock and its future trends as part of the implementation of your long-term investment strategy term. In fact, using the different information we have collected you will be able to understand how this share price will perform on the stock markets. In this article you will learn about this company’s activities, its competitors on the market and its major recent partnerships and alliances. We will also summarise the data required to complete a fundamental analysis of this share price.  

Elements to consider before selling or buying Aston Martin shares

Analysis N°1

It is first of all necessary to follow the progress or changes in the automobile industry throughout the world and learn information such as the number of new registrations.

Analysis N°2

The marketing strategy implemented by Aston Martin together with its communications strategy are also elements to be monitored as they will enable this group to attract new clients.

Analysis N°3

In the same way, the methods used by the group to expand its distribution worldwide are also essential to know.

Analysis N°4

We would also monitor the pricing strategy exercised by this group in this top of the range sector.

Analysis N°5

The fuel commodities market, the crude oil sector in particular should also be carefully monitored if you wish to invest in this asset.

Analysis N°6

We would also follow the competitors of Aston Martin and their major news or announcements.

Analysis N°7

Finally, it is of course necessary to pay careful attention to the innovations achieved by the group relating to products and engineering.

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General presentation of Aston Martin

We now offer you the opportunity to learn more about the Aston Martin Group and its activities. It is in fact through a thorough knowledge of the revenue sources of this company that you will be able to correctly analyse the factors that could influence the share price of this company, either positively or negatively.

The Aston Martin Group is a British holding company that operates in the automobile sector. More precisely, this company is specialised in the creation, development, manufacturing and sales of cars.

The group also produces different ranges of cars with models including the Grand Tourer, the Vantage sports car and the Super GT. It also produces four door sports coupes such as the Rapid S as well as special edition models such as the Vantage GT12, Vantage GT8, Vanquish Zagato Coupe, Vanquish Zagato Volante, Vanquish Zagato Speedster, DB4GT Continuation and Aston Martin Vulcan.

Still relating to the major sources of revenue of the Aston Martin Group we note the provision of maintenance and repair services of vehicles sold as well as the restoration of Aston Martin models through its maintenance company, Aston Martin Works Limited.

This holding company owns and operates a number of subsidiaries including AM Brand Limited, AM Nurburgring Racing Limited, AML Italy Srl, AML Overseas Services Limited, AMWS Limited, Aston Martin Capital Holdings Limited, Aston Martin Capital Limited and Aston Martin Holdings.

This company currently employs 2,450 people.

Analysis before buying or selling Aston Martin shares
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The major competitors of Aston Martin

Before learning about the recent partnerships of this company it is pertinent to learn more about the major competitors of Aston Martin. In fact, this company faces competition from some large and well established luxury and high range vehicle manufacturers such as the following:

Ferrari 

This Italian company is an automobile manufacturer based in Maranello which has existed since 1947. It is particularly specialised in luxury sports vehicles.

Bentley

This British automobile manufacturer, created in 1919, is currently owned by the German Volkswagen Group.

Porsche 

This is also a German automobile manufacturer that was created in 1931 by an engineer who also created the first Volkswagen. Porsche is also renowned for being the most profitable automobile manufacturer in history, it is now owned by the Volkswagen Group.

Jaguar

The Jaguar Group is in fact a British automobile brand that offers luxury and sports cars. This brand has been owned since 2008 by the Indian automobile manufacturing company, Tata Motors.

Lamborghini

This Italian automobile manufacturer was created in 1963 and was previously specialised in agricultural equipment before diversifying then specialising in the emblematic sports cars that we know today.

Maserati

Finally, we also take into account the competition presented by the Italian manufacturer Maserati which is one of the subsidiaries of the Fiat Chrysler Group which is specialised in luxury automobiles, sports cars and racing cars. It was created in 1914.


The major partners of Aston Martin

Of course, the Aston Martin Group also has allies and regularly implements strategic partnerships with other companies with the aim of boosting its sales and growth or developing new technological models. Here are a few of its more recent partnerships:

TAG Heuer

In 2018, it was with this company that Aston Martin Racing became an official partner. This subsidiary of the French luxury products group LVMH thereby became a favoured partner of this automobile brand in the official watches sector.

Mercedes

Another interesting partnership is that implemented by Aston Martin with the Mercedes Group. This particular alliance is a technical partnership with the sports section of this German group. More precisely this partnership has enabled Aston Martin to benefit from access to resources and the AMG engines of Mercedes and thereby the development of new V8 engine blocks in a communal fashion. In return for this contribution from Mercedes, its subsidiary, Daimler, bought 5% of the Aston Martin capital.

Total

Finally, another partnership, an older one this time, was recently renewed by Aston Martin. This is a partnership implemented with the Total Group which is the fourth largest petroleum and gas company worldwide. To summarise, the subsidiary Aston Martin Racing, specialised in sports cars, renewed its 2016 partnership with this company for a few extra years.

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Positive factors for Aston Martin shares
The factors in favour of a rise in the Aston Martin share price:

To be able to anticipate future changes in the Aston Martin share price on the stock market, you need to know about the company and its resources. In this context, it is interesting to understand the main strengths and weaknesses that represent the advantages and disadvantages of this stock.
Let's start by summarising the different advantages of this stock with the strengths of this company:

  • First of all, we can of course talk about Aston Martin's long experience in its industry, which allows it to benefit from a high brand equity and a strong heritage.
  • The brand's historical values also contribute to a strong connection with customers and customer loyalty.
  • The Aston Martin Group's work force is another of its key strengths. The company aims to hire and retain a team of highly skilled engineers and designers, which ensures that it can offer and produce cars that are both stylish and powerful.
  • The brand is also able to stand out from the competition thanks to the luxury and high-end comfort of its vehicles, but also thanks to its services, which are recognised as being of high quality.
  • Innovation is also a strong point of this company. Indeed, the group's vehicles have advanced and innovative technological features, thanks in particular to the company's strong investment in research and development.
  • The strong presence of the Aston Martin group in various racing and motorsport events also enables it to benefit from quality advertising and numerous communication media to attract its customers.
  • Finally, the group also invests heavily in communication and advertising, which helps it maintain a strong brand image with the general public.
Negative factors for Aston Martin shares
The factors in favour of a drop in the Aston Martin share price:
  • Of course, in addition to these advantages, Aston Martin also has a number of flaws and weaknesses that you should take into account in your analysis.
  • Firstly, Aston Martin Group has a slightly lower market penetration than its competitors, particularly in certain geographical areas and especially in certain less affluent customer targets.
  • We can also underline another important element which penalises the group in relation to the competition and which concerns the limitation of its product portfolio. Indeed, in emerging markets, the group's cars are still poorly represented, which represents a significant loss of earnings for the brand.
  • Another element that can weigh on the price of this stock by exerting pressure on sales and therefore on the profitability of the company concerns the price of fuel. Indeed, the group's revenues are often inversely correlated to the price of oil and the current recovery in prices tends to reduce its return.
  • Similarly, government policies and taxes related to the environment can also affect Aston Martin's sales and development.
  • Other major weaknesses include competition from the other major automotive giants, which reduces Aston Martin's ability to gain market share, despite the high barriers to entry in this sector.
  • Finally, with regard to the competition faced by the Aston Martin group, it is worth noting that the product innovations and engineering of the company's competitors are increasingly qualitative.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the principal weak points of Aston Martin shares?

Aston Martin shares do have certain weak points for investors that you should be aware of even though they are relatively few. Firstly they have only lightly penetrated the market compared to the stronger positions occupied by their competitors. We also note that the product range of this group is fairly limited on certain markets including the principal emerging markets where this company is not well represented.

How are Aston Martin’s activities distributed geographically?

The geographical range of its activities and the revenue of the Aston Martin group also represent advantageous information for you to be aware of. We therefore note that that this company achieves 29.6% of its turnover in America, 24.2% in Pacific Asia, 23.2% in Europe and the Middle East/Africa and only 23% in the United Kingdom. This information will enable you to better understand the company’s exposure to geo-economic risk.

What other brand names are owned by Aston Martin?

The Aston Martin Group is above all renowned for its vehicle brand of the same name. However this group also owns the Lagonda brand that has existed since 1906 and is another filial British brand of Aston Martin. This information is important to take into consideration for your analysis of Aston Martin shares as it can strongly influence the price of this asset depending on the number of vehicles sold under this brand name.

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