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.


Snowflake Analysis

Proven track record with limited growth.

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

5.1%

AHY

-2.5%

AU Personal Products

0.7%

AU Market


1 Year Return

23.2%

AHY

-3.3%

AU Personal Products

15.8%

AU Market

Return vs Industry: AHY exceeded the Australian Personal Products industry which returned -3.3% over the past year.

Return vs Market: AHY exceeded the Australian Market which returned 15.8% over the past year.


Shareholder returns

AHYIndustryMarket
7 Day5.1%-2.5%0.7%
30 Day4.1%-9.6%0.4%
90 Day14.6%-3.0%6.5%
1 Year23.2%23.2%-1.6%-3.3%21.0%15.8%
3 Year-18.2%-26.2%-10.9%-18.2%37.4%19.1%
5 Year-23.3%-38.4%40.4%15.9%50.7%17.1%

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?

21.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AHY (A$1.14) is trading above our estimate of fair value (A$1.07)

Significantly Below Fair Value: AHY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AHY is good value based on its PE Ratio (21.7x) compared to the Personal Products industry average (22.2x).

PE vs Market: AHY is poor value based on its PE Ratio (21.7x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AHY is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AHY is overvalued based on its PB Ratio (3.4x) compared to the AU Personal Products industry average (2.7x).


Next Steps

Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHY's forecast earnings growth (11.4% per year) is above the savings rate (1.1%).

Earnings vs Market: AHY's earnings (11.4% per year) are forecast to grow faster than the Australian market (9.2% per year).

High Growth Earnings: AHY's earnings are forecast to grow, but not significantly.

Revenue vs Market: AHY's revenue (1.7% per year) is forecast to grow slower than the Australian market (4.2% per year).

High Growth Revenue: AHY's revenue (1.7% 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 (19.7%).


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 high quality earnings.

Growing Profit Margin: AHY's current net profit margins (6.8%) are higher than last year (0.2%).


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 (3410.6%) exceeds its 5-year average (-18.6% per year).

Earnings vs Industry: AHY earnings growth over the past year (3410.6%) exceeded the Personal Products industry 25.4%.


Return on Equity

High ROE: AHY's Return on Equity (15.6%) 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$171.3M) exceed its short term liabilities (A$90.5M).

Long Term Liabilities: AHY's short term assets (A$171.3M) do not cover its long term liabilities (A$208.3M).


Debt to Equity History and Analysis

Debt Level: AHY's debt to equity ratio (94%) is considered high.

Reducing Debt: AHY's debt to equity ratio has increased from 69.5% to 94% over the past 5 years.

Debt Coverage: AHY's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: AHY's interest payments on its debt are well covered by EBIT (5x 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 1x debt).


Next Steps

Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AHY's dividend (1.75%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: AHY's dividend (1.75%) is low compared to the top 25% of dividend payers in the Australian market (5.42%).


Stability and Growth of Payments

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

Growing Dividend: AHY has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.2%), AHY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AHY's dividends in 3 years are forecast to be covered by earnings (74.7% payout ratio).


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 ($USD439.50K) is below average for companies of similar size in the Australian market ($USD708.07K).

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$697.2k
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$697.2k
Harry Boon
Independent Non-Executive Chairman0yrsAU$300.00k0.027% A$166.7k
Sue Morphet
Independent Non-Executive Director5.8yrsAU$130.00k0.0086% A$52.9k
Mats Berencreutz
Non-Executive Director5.9yrsAU$110.00kno data
JoAnne Stephenson
Independent Non-Executive Director5.8yrsAU$130.00k0.0092% A$57.0k
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$619.160m
  • 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 Retail segment manufactures and markets toilet and facial tissues, wipes, paper towels, napkins, disposable table wares, and personal hygiene products for feminine; and incontinence including pads, tampons and liners, and nappies to retail customers. The Business to Business segment manufactures and distributes tissue and hygiene products, including hand towels, napkins, soaps, facial and toilet tissue, and other hygiene accessories through a distributor network to business end users personal, including schools, restaurants, shopping centres, airports, industrial companies, aged care facilities, and hospitals. This segment also provides incontinence products and support services to healthcare professionals in residential aged care and community care facilities, and hospitals. The company offers its product s under the Libra, Purex, Treasures, Viti, Orchid, TENA, and Tork brands. 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 Analysis2020/02/20 10:48
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.