AMMO, Inc. (POWW) AI Stock Analysis

AMMO, Inc. specializes in the design, manufacturing, and marketing of ammunition and ammunition components for sport shooters, hunters, personal protection, law enforcement, and military agencies. Its proprietary products include STREAK Visual Ammunition for real-time visual trajectory tracking and Stelth Subsonic rounds engineered for suppressed firearms. The company also produces Jesse James self-defense rounds, Jeff Rann game hunting ammunition, tactical armor-piercing rounds, and brass casings across various calibers. In addition to manufacturing, AMMO, Inc. operates GunBroker.com, an online auction platform facilitating the lawful sale of firearms, ammunition, and shooting accessories.

Revenue declined from $240.3M in FY2022 to $49.4M in FY2025, reflecting a 5-year revenue CAGR of -3.9%, before climbing 3.5% to $51.1M in FY2026. Gross margin stood at 59.1% in FY2026, down from 86.9% in FY2025. Operating margin improved from -120.9% in FY2025 to -1.6% in FY2026, while net income rose from -$130.8M to -$3.5M over the same timeframe. In the latest quarter ending June 30, 2026, quarterly revenue growth accelerated to 22.1% year-over-year to reach $53.7M in trailing twelve-month revenue. However, quarterly earnings growth fell 75.0% year-over-year, leaving trailing EPS at $0.01.

As of June 30, 2026, AMMO, Inc. held $68.8M in cash and short-term investments alongside $10.9M in total debt, creating a net cash surplus of $57.9M. The balance sheet shows a current ratio of 4.74 and a low debt-to-equity ratio of 0.05 against $236.0M in shareholders' equity. In FY2026, operating cash flow turned positive at $1.5M, while free cash flow was -$1.4M. Capital expenditures reached $2.9M, share buybacks totaled $1.3M, and dividends paid were $2.9M.

POWW trades at a trailing P/E of 218.0x and a forward P/E of 76.9x, both well above the median of its US-listed Industrials peers of 24.8x and 17.2x, respectively. Its price-to-sales multiple is 4.7x compared to the peer median of 1.5x, while its EV/EBITDA of 9.0x sits below the peer median of 13.9x. The stock closed at $2.18, gaining 39.7% over the past year compared to a 16.8% return for the S&P 500 (SPY). Over a 5-year period, POWW returned -64.8%, lagging the 83.0% gain of SPY.

Wall Street sentiment includes 2 Strong Buy ratings and no Buy, Hold, or Sell ratings. The mean price target is $3.50, representing an upside of 60.6% over the last close of $2.18. For the fiscal year ending March 31, 2027, 2 analysts project revenue of $56.6M and EPS of $0.05, representing 200.0% EPS growth. Over the last four quarters, AMMO beat EPS estimates 3 times. The company's next earnings report is scheduled for November 16, 2026.

This page is an AI-written research summary of AMMO, Inc. (POWW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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