ASX:ASH

Stock Analysis Report

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Executive Summary

Ashley Services Group Limited provides labor hire, recruitment, and training services in Australia. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Ashley Services Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASH is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: ASH's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-4.0%

ASH

-1.6%

AU Professional Services

0.5%

AU Market


1 Year Return

-5.3%

ASH

-5.4%

AU Professional Services

0.9%

AU Market

Return vs Industry: ASH matched the Australian Professional Services industry which returned -5.4% over the past year.

Return vs Market: ASH underperformed the Australian Market which returned 0.9% over the past year.


Shareholder returns

ASHIndustryMarket
7 Day-4.0%-1.6%0.5%
30 Day12.5%3.9%9.3%
90 Day2.9%10.3%12.3%
1 Year1.2%-5.3%-2.6%-5.4%4.3%0.9%
3 Year129.4%80.0%17.4%5.3%23.0%7.9%
5 Year162.2%105.7%50.5%24.5%59.8%27.5%

Long-Term Price Volatility Vs. Market

How volatile is Ashley Services Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ashley Services Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASH (A$0.36) is trading below our estimate of fair value (A$6.74)

Significantly Below Fair Value: ASH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASH is good value based on its PE Ratio (11.1x) compared to the AU Professional Services industry average (18x).

PE vs Market: ASH is good value based on its PE Ratio (11.1x) compared to the Australian market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ASH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ASH is good value based on its PB Ratio (2x) compared to the AU Professional Services industry average (3.4x).


Next Steps

Future Growth

How is Ashley Services Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.0%

Forecasted Commercial Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ashley Services Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ashley Services Group performed over the past 5 years?

61.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASH has high quality earnings.

Growing Profit Margin: ASH's current net profit margins (1.4%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: ASH has become profitable over the past 5 years, growing earnings by 61.1% per year.

Accelerating Growth: ASH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ASH had negative earnings growth (-14.2%) over the past year, making it difficult to compare to the Professional Services industry average (-5.6%).


Return on Equity

High ROE: ASH's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is Ashley Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASH's short term assets (A$39.4M) exceed its short term liabilities (A$25.1M).

Long Term Liabilities: ASH's short term assets (A$39.4M) exceed its long term liabilities (A$5.9M).


Debt to Equity History and Analysis

Debt Level: ASH is debt free.

Reducing Debt: ASH has no debt compared to 5 years ago when its debt to equity ratio was 0.6%.

Debt Coverage: ASH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ASH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ashley Services Group current dividend yield, its reliability and sustainability?

7.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ASH's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Australian market (2.07%).

High Dividend: ASH's dividend (7.5%) is in the top 25% of dividend payers in the Australian market (5%)


Stability and Growth of Payments

Stable Dividend: ASH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ASH has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.3%), ASH's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Ross Shrimpton

3.92yrs

Tenure

AU$450,000

Compensation

Mr. Ross John Shrimpton, BComm (UNSW), CA, MAICD is the Founder of Ashley Services Group Limited and has been its Managing Director and Executive Director since January 23, 2017. Mr. Shrimpton served as...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD334.52K) is about average for companies of similar size in the Australian market ($USD284.56K).

Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ross Shrimpton
MD & Executive Director3.92yrsAU$450.00k56.8%
A$ 29.4m
Christopher McFadden
CFO, Joint Company Secretary & Executive Director3.67yrsAU$568.29k0.49%
A$ 252.0k
Paul Rixon
Chief Operating Officer – Recruitment & Labour Hire1.75yrsAU$366.10k0.029%
A$ 14.9k
Ronald Hollands
Company Secretaryno datano datano data

3.9yrs

Average Tenure

Experienced Management: ASH's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ross Shrimpton
MD & Executive Director3.92yrsAU$450.00k56.8%
A$ 29.4m
Christopher McFadden
CFO, Joint Company Secretary & Executive Director3.67yrsAU$568.29k0.49%
A$ 252.0k
Ian Pratt
Non-Executive Chairman5.17yrsAU$225.00k0.010%
A$ 5.4k

5.2yrs

Average Tenure

Experienced Board: ASH's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ASH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ashley Services Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ashley Services Group Limited
  • Ticker: ASH
  • Exchange: ASX
  • Founded: 1968
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: AU$51.831m
  • Shares outstanding: 143.98m
  • Website: https://www.ashleyservicesgroup.com.au

Location

  • Ashley Services Group Limited
  • 92 Pitt Street
  • Level 10
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2014
ASHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2014

Biography

Ashley Services Group Limited provides labor hire, recruitment, and training services in Australia. It operates through two segments, Labor Hire and Training. The company offers white-collar recruitment se...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/05 07:06
End of Day Share Price2020/12/04 00:00
Earnings2020/07/05
Annual Earnings2020/07/05


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.