Aston Martin Lagonda (LON: AML) share price has continued to lag behind the performance of other luxury vehicle companies this year as woes mount.
The stock has already plunged by more than 36% this year while Ferrari has soared by over 25%, giving it a market cap of over $74 billion. In German, Porsche shares have dropped by 10% this year.
Aston Martin vs Ferrari vs Porsche
Aston Martin’s performance goes from way back, a move that has seen it plunge from a record high of 4,562p in 2019 to the current 142p. Along the way, the company has shed billions of dollars in value.
The company’s challenges are reflected in the number of CEOs it has had in the past few years. In March, Aston Martin announced that Adrian Hallmark would become the new CEO. He came from Bentley while Amedeo was from Ferrari.
Aston Martin’s business has continued to struggle as sales plunged. The most recent data showed that the sales dropped by 26% to £945 million while its adjusted EBITDA plunged by 34% to £19.9 million. Its losses jumped to over £138.8 million.
This performance as the company’s vehicles continued to see mixed demand. For example, its sport and GT wholesales rose to 650 units while its specials like Valour and Valkyries rose slightly. SUV wholesales dropped by 63% in the first quarter.
Aston Martin share price also plunged after the company continued to have balance sheet issues as its free cash outflows soared to £160 million. Its net debt jumped to over £1.04 billion, up from £814 million in the previous quarter.
Ferrari, on the other hand, is doing well, helped by the robust demand. Its total sales jumped to €1.58 billion in Q1 from €1.42 billion in the same period in 2023. It also increased its net profit from €381 million to €440 million while its balance sheet is strong with over €1.36 billion in cash.
Porsche, like Aston Martin, is not doing very well as its investments in electric vehicles disappoint. Its deliveries dropped to 77,640 in Q1 from 80,767 in the same quarter in 2023. However, Porsche still has a solid balance sheet to help it in its recovery.
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