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

Fundamentals

Moderate growth potential with acceptable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.1%

AHY

1.3%

AU Personal Products

2.5%

AU Market


1 Year Return

31.5%

AHY

-18.2%

AU Personal Products

11.1%

AU Market

Return vs Industry: AHY exceeded the Australian Personal Products industry which returned -18.2% over the past year.

Return vs Market: AHY exceeded the Australian Market which returned 11.1% over the past year.


Shareholder returns

AHYIndustryMarket
7 Day1.1%1.3%2.5%
30 Day-6.0%0.8%0.7%
90 Day-2.1%-7.2%1.4%
1 Year31.5%31.5%-16.7%-18.2%17.5%11.1%
3 Year-30.0%-36.9%-21.8%-27.8%37.8%19.4%
5 Year-41.2%-52.8%41.4%18.4%51.7%17.6%

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?

22.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: AHY (A$0.94) is trading above our estimate of fair value (A$0.84)

Significantly Undervalued: AHY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AHY is poor value based on its PE Ratio (22.1x) compared to the Personal Products industry average (20.9x).

PE vs Market: AHY is poor value based on its PE Ratio (22.1x) compared to the Australian market (18x).


Price to Earnings Growth Ratio

Low PEG Ratio: AHY is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: AHY is overvalued based on its PB Ratio (3x) compared to the AU Personal Products industry average (2.1x).


Next Steps

Future Growth

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

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AHY's forecast earnings growth (21.8% per year) is above the savings rate (2.3%).

Earnings vs Market: AHY's earnings (21.8% per year) are forecast to grow faster than the Australian market (10.3% per year).

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

Revenue vs Market: AHY's revenue (1.7% per year) is forecast to grow slower than the Australian market (3.6% 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

High Future ROE: AHY's Return on Equity is forecast to be low in 3 years time (17.9%).


Next Steps

Past Performance

How has Asaleo Care performed over the past 5 years?

-18.6%

Historical annual earnings growth


Earnings and Revenue History


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 9.6%.


Return on Equity

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


Return on Assets

ROA vs Industry: AHY has a higher Return on Assets than the Personal Products industry average last year.


Return on Capital Employed

ROCE Improving: AHY's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (A$89.1M)

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

4.26%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%5.6%industryaverage1.9%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Asaleo Care's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Sid Takla 0

1.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: AHY's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

65yo

Average Age

Experienced Board: AHY's board of directors are considered experienced (5.4 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$1,234,41609 Sep 19
Orbis Investment Management Limited
EntityCompany
Shares1,387,254
Max PriceAU$0.89
BuyAU$3,554,13109 Sep 19
Orbis Investment Management Limited
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Shares3,888,402
Max PriceAU$0.95
BuyAU$1,074,56905 Aug 19
Colonial First State Asset Management (Australia) Limited
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Shares1,216,237
Max PriceAU$0.88
SellAU$1,380,03805 Aug 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,546,437
Max PriceAU$0.89
BuyAU$11,564,25117 May 19
Spheria Asset Management Pty Ltd
EntityCompany
Shares12,548,918
Max PriceAU$0.92
BuyAU$2,610,66516 Apr 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares2,847,846
Max PriceAU$0.93
BuyAU$2,097,28216 Apr 19
Realindex Investments Pty Limited
EntityCompany
Shares2,397,740
Max PriceAU$0.87
BuyAU$5,022,58511 Apr 19
Orbis Investment Management Limited
EntityCompany
Shares5,426,899
Max PriceAU$0.98
BuyAU$3,927,23611 Jan 19
Orbis Investment Management Limited
EntityCompany
Shares5,477,778
Max PriceAU$0.78

Ownership Breakdown


Management Team

  • James Orr (55yo)

    General Counsel & Company Secretary

    • Tenure: 5.2yrs
  • Sid Takla

    CEO, MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$658.33k
  • David Griss

    Executive General Manager of People & Corporate Services

    • Tenure: 7.6yrs
  • Campbell Richards

    Chief Financial Officer

    • Tenure: 0.5yrs

Board Members

  • Harry Boon (71yo)

    Independent Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: AU$300.00k
  • Sue Morphet (64yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$130.00k
  • Mats Berencreutz (65yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: AU$110.00k
  • JoAnne Stephenson

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: AU$130.00k
  • Sid Takla

    CEO, MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$658.33k
  • Marie-Laure Mahe

    Non-Executive Director

    • Tenure: 0.2yrs

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$510.535m
  • Shares outstanding: 543.12m
  • Website: https://www.asaleocare.com

Number of Employees


Location

  • Asaleo Care Limited
  • Ailsa Street
  • PO Box 117
  • Box Hill
  • Victoria
  • 3128
  • 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 Isla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 10:44
End of Day Share Price2019/10/17 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.