ASX:AHY

Stock Analysis Report

Executive Summary

Asaleo Care Limited, together with its subsidiaries, manufactures, markets, distributes, and sells hygiene, personal care, and consumer tissue products in Australia, New Zealand, Fiji, and the Pacific Islands.

Rewards

Trading at 3.6% below its fair value

Earnings are forecast to grow 22.05% per year

Earnings grew by 37.7% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results



Snowflake Analysis

Acceptable track record with moderate growth potential.

Share Price & News

How has Asaleo Care's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AHY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

AHY

-6.5%

AU Personal Products

1.4%

AU Market


1 Year Return

4.3%

AHY

-18.3%

AU Personal Products

16.1%

AU Market

Return vs Industry: AHY exceeded the Australian Personal Products industry which returned -18.3% over the past year.

Return vs Market: AHY underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

AHYIndustryMarket
7 Day0.9%-6.5%1.4%
30 Day1.4%-7.1%0.5%
90 Day12.4%-1.9%4.8%
1 Year4.3%4.3%-16.8%-18.3%21.2%16.1%
3 Year-14.7%-23.1%-14.6%-21.5%37.0%18.6%
5 Year-24.6%-39.4%44.8%19.6%51.7%17.8%

Price Volatility Vs. Market

How volatile is Asaleo Care's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Asaleo Care undervalued compared to its fair value and its price relative to the market?

3.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AHY (A$1.09) is trading below our estimate of fair value (A$1.13)

Significantly Below Fair Value: AHY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AHY is poor value based on its PE Ratio (25.5x) compared to the Personal Products industry average (23.8x).

PE vs Market: AHY is poor value based on its PE Ratio (25.5x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: AHY is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AHY is overvalued based on its PB Ratio (3.5x) compared to the AU Personal Products industry average (2.6x).


Next Steps

Future Growth

How is Asaleo Care forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHY's forecast earnings growth (22.1% per year) is above the savings rate (1.1%).

Earnings vs Market: AHY's earnings (22.1% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AHY's revenue (2% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: AHY's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AHY's Return on Equity is forecast to be low in 3 years time (18.3%).


Next Steps

Past Performance

How has Asaleo Care performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AHY has a large one-off loss of A$14.0M impacting its June 30 2019 financial results.

Growing Profit Margin: AHY's current net profit margins (5.6%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: AHY's earnings have declined by -18.6% per year over the past 5 years.

Accelerating Growth: AHY's earnings growth over the past year (37.7%) exceeds its 5-year average (-18.6% per year).

Earnings vs Industry: AHY earnings growth over the past year (37.7%) exceeded the Personal Products industry 20.8%.


Return on Equity

High ROE: AHY's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Asaleo Care's financial position?


Financial Position Analysis

Short Term Liabilities: AHY's short term assets (A$165.8M) exceed its short term liabilities (A$89.1M).

Long Term Liabilities: AHY's short term assets (A$165.8M) do not cover its long term liabilities (A$208.0M).


Debt to Equity History and Analysis

Debt Level: AHY's debt to equity ratio (107%) is considered high.

Reducing Debt: AHY's debt to equity ratio has reduced from 305.6% to 107% over the past 5 years.

Debt Coverage: AHY's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: AHY's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet

Inventory Level: AHY has a high level of physical assets or inventory.

Debt Coverage by Assets: AHY's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Asaleo Care's current dividend yield, its reliability and sustainability?

4.24%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%5.5%industryaverage1.8%forecastin3Years4.2%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AHY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AHY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AHY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AHY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AHY is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AHY's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Sid Takla 0

1.8yrs

Tenure

AU$658,334

Compensation

Mr. Sid Takla has been Chief Executive Officer, Managing Director and Director at Asaleo Care Ltd since October 23, 2018. Mr. Takla was the Chief Operating Officer of Asaleo Care Limited since August 28, 2 ...


CEO Compensation Analysis

Compensation vs Market: Sid's total compensation ($USD442.34K) is below average for companies of similar size in the Australian market ($USD704.85K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sid Takla
CEO, MD & Director1.8yrsAU$658.33k0.11% A$666.7k
Campbell Richards
Chief Financial Officer0.8yrsno datano data
James Orr
General Counsel & Company Secretary5.5yrsno datano data
David Griss
Executive General Manager of People & Corporate Services7.9yrsno datano data

3.6yrs

Average Tenure

Experienced Management: AHY's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sid Takla
CEO, MD & Director1.8yrsAU$658.33k0.11% A$666.7k
Harry Boon
Independent Non-Executive Chairman0yrsAU$300.00k0.027% A$159.4k
Sue Morphet
Independent Non-Executive Director5.8yrsAU$130.00k0.0086% A$50.6k
Mats Berencreutz
Non-Executive Director5.9yrsAU$110.00kno data
JoAnne Stephenson
Independent Non-Executive Director5.8yrsAU$130.00k0.0092% A$54.5k
Marie-Laure Mahe
Non-Executive Director0.5yrsno datano data

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: AHY's board of directors are considered experienced (5.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

Asaleo Care Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asaleo Care Limited
  • Ticker: AHY
  • Exchange: ASX
  • Founded: 1932
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: AU$592.004m
  • Shares outstanding: 543.12m
  • Website: https://www.asaleocare.com

Number of Employees


Location

  • Asaleo Care Limited
  • 30-32 Westall Road
  • Springvale
  • Victoria
  • 3171
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AHYASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJun 2014
AHYCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJun 2014
AL4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
ASLE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014

Biography

Asaleo Care Limited, together with its subsidiaries, manufactures, markets, distributes, and sells hygiene, personal care, and consumer tissue products in Australia, New Zealand, Fiji, and the Pacific Islands. It operates through Retail and Business to Business segments. The company manufactures and markets consumer brands, including Sorbent toilet and facial tissue, Handee paper towel, Deeko disposable tableware, Purex toilet tissue, and Treasures nappies; personal hygiene products under the Libra feminine hygiene brand and the TENA incontinence brand. It also provides Tork hygiene solutions to the commercial, public, health care, food service, and industrial segments; and supplies dispensers, paper towels, toilet tissues, soaps, napkins, and industrial and kitchen wipers under the Tork brand. In addition, the company offers tampons, pads, and liners; distributes a range of consumer tissues; and produces toilet rolls, kitchen towels, serviettes, and facial tissues under the Orchid and Viti brands. It sells its products through retail stores, as well as through a distributor network to business end users, including schools, restaurants, shopping centers, airports, industrial companies, aged care facilities, and hospitals. The company was formerly known as PEPSCA Limited and changed its name to Asaleo Care Limited in May 2014. Asaleo Care Limited was founded in 1932 and is based in Springvale, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:44
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.