£5,000 invested in Aston Martin shares at the start of 2025 is now worth…
Should I buy Aston Martin (LSE:AML) shares? This is a question I’ve asked myself a few times over the years.
Fortunately, the answer has always been no after digging into the investment case. I say ‘fortunately’ because the share price has literally fallen off a cliff since the James Bond carmaker went public in 2018.
We’re looking at a plunge of 98.5%!
The more recent performance hasn’t been any better, with the FTSE 250 stock down around 40% since the start of 2025. This means a £5,000 investment made back then is now worth just £3,000.
But with the share price trading near an all-time low, is it time I finally invested?
I love the brand
When I look at Aston Martin, I see a handful of things I like. The most obvious one is that it makes truly beautiful cars that get noticed.
I saw this recently when a green DB12 Volante motored past, turning almost every head as it went by. Not many cars do that, and I imagine the reaction would be even more pronounced in summer with the roof down.
Meanwhile, the iconic brand will forever be associated with James Bond, making it unique. As a big 007 fan myself, I’d think nothing of buying a couple of Astons if my numbers came up on the EuroMillions jackpot this week.
A higher-performance DB12 S was unveiled late last year, hot on the heels of the Vantage S and DBX S. The company has also started deliveries of its Valhalla hypercar, whose cost reportedly exceeds £1m after personalisation.Â
These new models and limited-edition supercars have the potential to increase the firm’s profitability moving forward, assuming they sell.
What about the stock?
If most of that sounded a bit like a gushing Top Gear piece, itâs because the cars are far more impressive than Aston Martin the company right now.
In 2025, it was battered by gale-force headwinds. These included US tariffs, weak demand in China, where it has been hit with a change in luxury taxation, and a global slowdown in the luxury car market. It has suffered production delays and repeatedly issued profit warnings.
Due to these setbacks, loss-making Aston Martin scrapped its goal of becoming free cash flow positive in the second half of 2025. And while it’s optimising the cost base, it still expects to report a full-year underlying operating loss of at least £110m.
Meanwhile, the balance sheet worries me here. Net debt increased 14% in Q3 to £1.38bn, and the financing costs are very high. For context, the firmâs market cap is only £635m!
Finally, the carmaker has pushed back plans for its first EVs, which has raised serious doubts about its long-term electrification strategy.
My move
The best companies are the ones that consistently set a target and overdeliver. For Aston Martin, it has been the opposite, with a track record of overpromising and under-delivering.
However, management says 2026 will be the year it expects âprofitability and cash flow to materially improveâ. This will be driven by approximately 500 Valhalla deliveries.Â
Personally, I need to see convincing evidence that the firm has turned a corner before I would consider investing. I see far better opportunities for my ISA elsewhere in the FTSE 250 today.
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Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
