ASX:ASH

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 63.2% below its fair value

Earnings have grown 11.6% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (A$58M)



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

ASH

1.5%

AU Professional Services

0.6%

AU Market


1 Year Return

62.0%

ASH

31.1%

AU Professional Services

20.2%

AU Market

Return vs Industry: ASH exceeded the Australian Professional Services industry which returned 29.8% over the past year.

Return vs Market: ASH exceeded the Australian Market which returned 19.4% over the past year.


Shareholder returns

ASHIndustryMarket
7 Day-2.4%1.5%0.6%
30 Day-5.8%3.3%4.3%
90 Day22.7%8.7%4.9%
1 Year76.0%62.0%35.2%31.1%25.6%20.2%
3 Yearn/a63.0%48.9%39.4%20.7%
5 Year-65.9%-73.9%71.1%45.2%60.8%24.6%

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$0.4) is trading below our estimate of fair value (A$1.09)

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 (10.6x) compared to the Professional Services industry average (20.3x).

PE vs Market: ASH is good value based on its PE Ratio (10.6x) compared to the Australian market (18.9x).


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 (2.2x) compared to the AU Professional Services industry average (2.2x).


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?

11.3%

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?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASH has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: ASH has become profitable over the past 5 years, growing earnings by 11.6% per year.

Accelerating Growth: ASH's earnings growth over the past year (13.6%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: ASH earnings growth over the past year (13.6%) underperformed the Professional Services industry 22.2%.


Return on Equity

High ROE: ASH's Return on Equity (20.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ashley Services Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASH's short term assets (A$37.3M) exceed its short term liabilities (A$16.5M).

Long Term Liabilities: ASH's short term assets (A$37.3M) exceed its long term liabilities (A$2.1M).


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 28.4%.

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

Inventory Level: ASH has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if ASH's debt is covered by short term assets.


Next Steps

Dividend

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

6.67%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%2.3%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ASH's dividend (6.75%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: ASH's dividend (6.75%) is in the top 25% of dividend payers in the Australian market (5.47%)


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 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.7%), ASH's dividend 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

What is the CEO of Ashley Services Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Ross Shrimpton 0

3yrs

Tenure

AU$425,000

Compensation

Mr. Ross John Shrimpton has been a Managing Director and Executive Director of Ashley Services Group Limited since January 23, 2017. Mr. Shrimpton served as Managing Director of Ashley Services Group Limit ...


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD293.31K) is about average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Ross's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: ASH's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

Experienced Board: ASH's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellAU$73,77822 Nov 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares264,764
Max PriceAU$0.29
BuyAU$575,74222 Nov 19
Viburnum Funds Pty Ltd.
EntityCompany
Shares1,841,768
Max PriceAU$0.34

Ownership Breakdown

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


Management Team

  • Ron Hollands

    Company Secretary

    • Ross Shrimpton

      MD & Executive Director

      • Tenure: 3yrs
      • Compensation: AU$425.00k
    • Paul Rixon

      Chief Operating Officer – Recruitment & Labour Hire

      • Tenure: 0.8yrs
      • Compensation: AU$419.65k
    • Chris McFadden

      CFO & Executive Director

      • Tenure: 2.8yrs
      • Compensation: AU$641.98k

    Board Members

    • Ross Shrimpton

      MD & Executive Director

      • Tenure: 3yrs
      • Compensation: AU$425.00k
    • Ian Pratt

      Non-Executive Chairman

      • Tenure: 4.3yrs
      • Compensation: AU$225.95k
    • Chris McFadden

      CFO & Executive Director

      • Tenure: 2.8yrs
      • Compensation: AU$641.98k

    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$58.310m
    • 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. The company operates in two segments, Labour Hire and Training. It offers white-collar recruitment services, including permanent, temporary, and contract placements through multi-specialist providers under the Blackadder brand name; and labor hire and workforce solutions under the Action Workforce and Concept Engineering brands. The company also provides nationally accredited qualifications training and assessment services under the Ashley Institute of Training, Integracom, Australian Institute of Vocational Development, National Institute of Training, Tracmin, and Qualitas Education brands. Ashley Services Group Limited was founded in 1968 and is headquartered in Sydney, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 10:45
    End of Day Share Price2020/01/23 00:00
    Earnings2019/06/30
    Annual Earnings2019/06/30


    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.