INVESTMENT HIGHLIGHTS
Stock Information
| Price as of 10/27/21 | $6.10 |
| 52 Wk High – Low | $1.96 – $10.37 |
| Est. Shares Outstanding | 113.28M |
| Market Capitalization | $690.41M |
| Average Volume | 2.13M |
| Exchange: | NASDAQ |
Ammo, Inc. designs, develops, manufactures, markets, and sells ammunition and ammunition component products for use in handguns and long guns in the United States and internationally. The company offers STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; One Precise Shot ammunition, which is designed to meet various engagement scenarios experienced by law enforcement personnel in the line of duty; and Stelth Subsonic ammunition that is designed primarily for suppressed firearms.
Near-Term Catalysts
- Raised guidance by 9% to $55M for current quarter ending 9/30/21
- Announced military contract in September for specialized munitions
- Completed transformational acquisition of GunBroker.com
- Record demand for munitions and ammunition continues across multiple market verticals
- Massive opportunity to extend GunBroker.com market reach, tapping into 6 million active user base
- Targets $400 million revenue target in next 24 months
- One of few companies offering American-made munitions and ammunition to substantial market demand. Expects to deliver more than 750 million rounds in 2021
- Announced that the holders of record of its 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock
- Substantial $238 million order backlog reported at the end of last quarter
- Posted a NET INCOME of $9.5 million that smashed its ($3.1 million) loss in the same period last year
- Sales presence in more than 1600 direct-to-consumer locations
AMMO, Inc. Snapshot
Topping the list of attributes at AMMO, Inc. right now is corporate strength and its targeting robust market opportunities. Nearing a top five ammunition and munitions supplier in the US, AMMO benefits from being a well-respected and trusted supplier of products to law enforcement, military, and consumer markets.
That’s a consideration not to be underappreciated, especially with billions in military contracts typically up for grabs each year. And while AMMO has grown into its $714 million market cap, it’s deserving of more on a revenues-multiple basis. Its accelerating growth in revenues and best ever earnings is worthy of a significant premium.
Competitive Analysis
AMMO proves its worth, expecting to sell upwards of 750 million rounds of ammunition this year. And that’s not including its recently announced military contract that could exponentially increase those totals.
Better yet, as AMMO integrates its Gunbroker.com asset, the company is in its best position ever to capitalize on the $32 billion in sales from its core target markets.
Thus, despite its massive gains in 2021, AMMO stock remains a bargain. Record sales, highest ever profits, and a backlog of near $240 million, justify that premise.
Moreover, the sum of its parts puts it 52-week high of $10.37 in its crosshairs.
Catalyst Watch
Comments made during its most recent earnings call gave every indication that AMMO, Inc. is in hyper-growth mode. Better still, they have substantial growth targets in its crosshairs.
That optimistic posture comes through its intimate market knowledge targeting multiple market verticals, and its Gunbroker.com asset that has far more to contribute once fully integrated. Currently, only about $12 million of high-margin marketplace revenue came through its Gunbroker.com acquisition last quarter. Expectations are for that number to surge in coming quarters.
Notably, despite the massive active user base at Gunbroker.com, ammunition sales accounted for only 3% of its revenues last year. Hence, AMMO is exploiting an enormous revenue-generating opportunity from that group alone.
Further, the company is positioning to maximize the value from its new facility, which is expected to potentially quadruple production to meet demand from its presence in more than 1600 direct-to-consumer locations. Also, bullish sentiment comes from the near-unprecedented levels of new gun permits that should strengthen an already strong business tailwind into the next few quarters.
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