Aston Martin (LSE: AML) appears to have so much going for it. Its glossy automobiles promote for a excessive price due to a well-heeled buyer base. The identical nonetheless, can’t be stated of its shares. The Aston Martin share price has tumbled 44% thus far in 2025 and 88% over the previous 5 years.

Promoting for pennies, may this be a restoration play that deserves a spot in my portfolio?

The issue with Aston Martin shares

For now, a minimum of, my reply is a agency no. The share price fall displays a variety of issues confronted by Aston Martin. As I see it although, one drawback looms above all others. Briefly, the corporate has not but demonstrated it might probably convert gross sales into income.

I’m additionally postpone my the stability sheet. The posh carmaker ended final yr with internet debt of £1.1bn, near double its present market capitalisation of £563m.

However once more, I see the issue as being the enterprise mannequin. If Aston Martin may work out how to earn money, it might be in a stronger place to pay down that debt.

For now although, the enterprise stays closely lossmaking. Final yr noticed the pre-tax loss rise to £289m.

The corporate has some potential fixes

Up to now, the corporate has raised money by issuing extra shares. It may resolve to try this once more and use the proceeds to enhance its stability sheet, though that might dilute present shareholders. That might harm not assist the Aston Martin share price within the quick time period, though over the long run I believe a more healthy stability sheet is within the firm’s finest pursuits.

However even setting apart the debt, Aston Martin’s enterprise mannequin is at present not working, for my part. Final yr, the working loss was £100m. That was a slight enchancment on the earlier yr, however it nonetheless means the corporate is shedding over £16k on common for each automobile it offered on a wholesale foundation.

Possibly that’s fixable. The enterprise’s premium model and constant following offers it pricing energy. It may enhance the promoting price of autos with out essentially hurting gross sales.

It additionally sells pricy particular version automobiles – by altering the combo of merchandise offered, Aston Martin might be able to generate extra income with out essentially needing to promote increased volumes.

Issues could worsen from right here

However that has been true for some years already and the corporate has not but confirmed its enterprise mannequin will be persistently worthwhile. In the meantime, financial uncertainty may now dent demand for high-end autos.

Tariffs are one other threat. The Americas was the corporate’s key gross sales territory final yr, representing 32% of wholesale volumes. Aston Martin makes its automobiles in England so the newest tariff disputes may harm gross sales within the US.

Heading right into a potential disaster from a place of energy will be difficult sufficient. However I reckon Aston Martin probably faces critical short-term challenges to its gross sales whereas the bottom enterprise is already failing to earn money.

I would favor to put money into a confirmed firm that I believe has increased possibilities of long-term success. Regardless of the price being in pennies, I can’t be including Aston Martin shares to my portfolio.