ASX:ASG

Stock Analysis Report

Autosports Group

Executive Summary

Autosports Group Limited operates in the retail automotive industry in Australia.

Rewards

Trading at 27.3% below its fair value

Earnings are forecast to grow 22.67% per year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Profit margins (0.9%) are lower than last year (1.5%)



Snowflake Analysis

Good value with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.2%

ASG

-0.2%

AU Specialty Retail

0.8%

AU Market


1 Year Return

61.2%

ASG

39.0%

AU Specialty Retail

15.3%

AU Market

Return vs Industry: ASG exceeded the Australian Specialty Retail industry which returned 39% over the past year.

Return vs Market: ASG exceeded the Australian Market which returned 15.3% over the past year.


Shareholder returns

ASGIndustryMarket
7 Day1.2%-0.2%0.8%
30 Day3.8%-1.2%0.3%
90 Day2.8%4.1%5.3%
1 Year67.0%61.2%45.5%39.0%20.5%15.3%
3 Year-27.9%-35.7%34.1%16.9%37.4%18.8%
5 Yearn/a87.2%51.1%50.7%16.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASG (A$1.66) is trading below our estimate of fair value (A$2.28)

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


Price To Earnings Ratio

PE vs Industry: ASG is poor value based on its PE Ratio (21.3x) compared to the Specialty Retail industry average (16.8x).

PE vs Market: ASG is poor value based on its PE Ratio (21.3x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: ASG is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ASG is good value based on its PB Ratio (0.7x) compared to the AU Specialty Retail industry average (2.3x).


Next Steps

Future Growth

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

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASG's forecast earnings growth (22.7% per year) is above the savings rate (1.1%).

Earnings vs Market: ASG's earnings (22.7% per year) are forecast to grow faster than the Australian market (9.4% per year).

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

Revenue vs Market: ASG's revenue (7.3% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: ASG's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASG's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has Autosports Group performed over the past 5 years?

12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASG has high quality earnings.

Growing Profit Margin: ASG's current net profit margins (0.9%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: ASG's earnings have grown by 12.1% per year over the past 5 years.

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

Earnings vs Industry: ASG had negative earnings growth (-40%) over the past year, making it difficult to compare to the Specialty Retail industry average (-2.3%).


Return on Equity

High ROE: ASG's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Autosports Group's financial position?


Financial Position Analysis

Short Term Liabilities: ASG's short term assets (A$469.2M) do not cover its short term liabilities (A$508.2M).

Long Term Liabilities: ASG's short term assets (A$469.2M) exceed its long term liabilities (A$68.2M).


Debt to Equity History and Analysis

Debt Level: ASG's debt to equity ratio (93.9%) is considered high.

Reducing Debt: Insufficient data to determine if ASG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ASG's debt is not well covered by operating cash flow (4.9%).

Interest Coverage: ASG's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASG's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

3.01%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.3%markettop25%5.5%industryaverage3.9%forecastin3Years4.4%

Current dividend yield vs market & industry

Notable Dividend: ASG's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Australian market (2.29%).

High Dividend: ASG's dividend (3.01%) is low compared to the top 25% of dividend payers in the Australian market (5.49%).


Stability and Growth of Payments

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

Growing Dividend: ASG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.2%), ASG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASG's dividends in 3 years are forecast to be covered by earnings (57.7% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Nick Pagent 0

3.5yrs

Tenure

AU$923,554

Compensation

Mr. Nicholas Ian Pagent, also known as Nick, has served as Managing Director, Chief Executive Officer and Director at Autosports Group Limited since August 29, 2016. Mr. Pagent is Co-Owner of NIP Parramatt ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD617.97K) is above average for companies of similar size in the Australian market ($USD444.90K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Pagent
CEO, MD & Director3.5yrsAU$923.55k0.10% A$345.8k
Aaron Murray
Chief Financial Officer11.1yrsAU$543.92k0.83% A$2.8m
James Pagent
Executive Director3.5yrsAU$587.29k20.13% A$67.2m
Caroline Raw
Company Secretary & General Counsel2yrsno datano data

3.5yrs

Average Tenure

Experienced Management: ASG's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Pagent
CEO, MD & Director3.5yrsAU$923.55k0.10% A$345.8k
James Pagent
Executive Director3.5yrsAU$587.29k20.13% A$67.2m
Thomas Pockett
Independent Chairman3.5yrsAU$200.00k0.083% A$276.7k
Marina Go
Independent Non-Executive Director3.3yrsAU$120.00k0.031% A$103.7k
Robert Quant
Independent Non-Executive Director3.5yrsAU$120.00k0.031% A$103.7k

3.5yrs

Average Tenure

Experienced Board: ASG's board of directors are considered experienced (3.5 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

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


Key Information

  • Name: Autosports Group Limited
  • Ticker: ASG
  • Exchange: ASX
  • Founded: 2016
  • Industry: Automotive Retail
  • Sector: Retail
  • Market Cap: AU$333.660m
  • Shares outstanding: 201.00m
  • Website: https://autosportsgroup.com.au

Number of Employees


Location

  • Autosports Group Limited
  • 565 Parramatta Road
  • Leichhardt
  • New South Wales
  • 2040
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASGASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2016
ASGCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2016

Biography

Autosports Group Limited operates in the retail automotive industry in Australia. It sells new and used motor vehicles, aftermarket products, and spare parts; distributes finance and insurance products; and provides motor vehicle servicing and collision repair services. The company was founded in 2016 and is based in Leichhardt, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 10:49
End of Day Share Price2020/02/19 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.