Aston Martin Lagonda (LSE:AML) stock sticks out like a sore thumb in the FTSE 250. And the reason the thumb is sore is because the share price has been hammered.
In this respect, Aston Martin has been remarkably consistent. It’s down over three months (-25%), six months (-42%), one year (-53%), three years (-90%), and five years (-95%). Since the 2018 IPO, it’s lost 99% of its value!
But with the luxury carmaker now showing genuine progress on its latest turnaround efforts, is the stock now a screaming bargain at just over 35p?
What progress?
Aston Martin has suffered from persistent operational losses, production delays, profit warnings, and heavy dilution from multiple emergency capital raises. More recently, US tariffs and the Middle East conflict have added to the challenges.
However, in the first half of 2026, the loss-making firm did make noticeable progress. Wholesale volumes rose 21%, including 43% in Q2, driving revenue up 38% to £627m. Gross profit jumped 68% to £213m, pushing the gross margin to 33.8% (from 27.9%).
Notably, Q2’s free cash outflow narrowed significantly to £81m (from £201m the year before). And Aston Martin says free cash outflow is expected to “materially improve“ in FY26. For context, the outflow in FY25 was £410m.
This financial improvement was driven by 220 deliveries of the high-margin Valhalla supercars. These have sold like hotcakes while overwhelmingly getting positive reviews from motoring journalists.
We like the Valhalla…Overall, it’s a wickedly desirable car and looks quite stunning amongst normal traffic…Aston Martin is on a roll lately, but the Valhalla is next level.
Top Gear.
Digging deeper
Speaking of the next level though, the financial health drops off significantly as we move our eyes down the numbers. Because despite significantly higher revenues and gross profit, the pre-tax loss widened to £154m. And worryingly, net debt rose 12% to £1.54bn.
The irony is that the Aston Martin brand hasn’t taken as big a hit as some other struggling FTSE 250 names like Dr Martens. In fact, it largely remains top-notch, and the firm’s new models are sensational.
There are recent YouTube videos showing Gordon Ramsay driving his new Valhalla around Central London. It’s more photographed than the celebrity chef inside!
Importantly, well-heeled customers are spending increasing amounts on high-margin personalisation options (bespoke paintwork, hand-stitched interiors, etc). In H1, customer personalisation accounted for approximately 17% of core revenue.
This has also been an important driver of Ferrari‘s growth in recent years, so this is good to see.
However, the massive debt and interest payments put me off, despite the undoubtedly impressive work being done in difficult circumstances by CEO Adrian Hallmark and the team.
Is Aston Martin worth a punt?
Sometimes, when I watch an old James Bond movie and the cool spy is tearing about in his DB5, I’m tempted to reach for my phone and snap up a few shares.
Why? Just in case there’s a Hollywood-style turnaround, which is possible if cash flows turn positive and demand for Aston Martin’s special-model sportscars remains strong.
Then the Bond film ends, reality returns, and when I think about it, I see far better and safer opportunities for my money elsewhere in the FTSE 250.
I just hope I don’t miss out on the turnaround of the century…
Should you invest £5,000 in Aston Martin Lagonda Global Plc right now?
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Ben McPoland owns shares of Ferrari.
