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I took an absolute battering at the hands of the Aston Martin (LSE: AML) share price, until I finally sold my depleted stake for parts six months ago.
I feared the FTSE 250-listed James Bond car maker might deliver the final insult by rebounding the moment I offloaded my stake, but it couldn’t even manage that.
Aston Martin shares are down around 95% over five years, 60% over 12 months and almost 20% over six months. Today, they trade at about 34p, valuing the company at just £340m.
That’s a stunning collapse from its IPO price of £19 in the hopeful days of October 2018, when the group was valued at £4.33bn.
It’s been a horrible ride
Almost everything that could go wrong has. It has repeatedly needed fresh money, including support from chairman Lawrence Stroll. Aston Martin has also been pummelled by tariffs, weaker demand, higher costs and its half-hearted but expensive shift towards electrification.
Revenue’s been going the wrong way:
- 2025 – £1.26bn
- 2024 – £1.58bn
- 2023 – £1.63bn
- 2022 – £1.38bn
- 2021 – £1.10bn
Net income was negative over the same period, slipping 52% in 2025 to a £493.2m loss.
Net debt hit £1.38bn at the end of 2025, and accelerated to £1.545bn by 30 June. The board burned through £198m of free cash in the first half of 2026, but that was a marked improvement on £321m in H1 2025, largely due to high-margin Valhalla hybrid supercar deliveries scaling up.
FTSE 250 recovery stock hope
I don’t want to write Aston Martin off. The product range is arguably the strongest for years, with the Vantage, DB12 and Vanquish all refreshed, while the much-delayed Valhalla began deliveries in the fourth quarter of 2025. Aston Martin delivered 152 Valhallas last year and expects around 500 more in 2026.
The shares could mount a spectacular recovery if management can stabilise cash flow and start cutting debt. But higher interest rates are adding to the debt burden, while higher fuel prices and inflation aren’t helping.
Here’s a glimmer of hope. Latest analyst consensus target is around 41p, which is around 21% above today’s price. Yet out of 11 brokers, only one calls it a Buy. Nine say Hold and there’s one Strong Sell.
Reasons the shares could recover:
- Successful Valhalla deliveries could lift margins and reinforce the brand’s ultra-luxury credentials.
- Falling interest rates would reduce the cost of servicing its enormous debt pile.
- A stronger global economy could put wealthy consumers back into spending mode.
…But there are also serious challenges:
- Aston Martin could need more capital, creating further dilution for existing shareholders.
- US tariffs could squeeze already thin margins.
- Another weak sales period would leave the balance sheet looking even more fragile.
I made my decision six months ago and I haven’t regretted it. If the global economy starts to shine again, this play on conspicuous consumption could take off. But that feels a long way off, and I still don’t think Aston Martin is worth considering today. I can see far more tempting FTSE growth stocks out there.
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Harvey Jones does not hold any positions in the companies mentioned.
This story originally appeared on Motley Fool
