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AX1

Accent GroupASX:AX1 Stock Report

Market Cap

AU$1.3b

7D

-7.1%

1Y

17.5%

Updated

27 Nov, 2021

Data

Company Financials +
AX1 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends5/6

AX1 Stock Overview

Accent Group Limited engages in the retail, distribution, and franchise of lifestyle footwear, apparel, and accessories in Australia and New Zealand.

Accent Group Competitors

Premier Investments

ASX:PMV

AU$4.9b

Universal Store Holdings

ASX:UNI

AU$571.7m

Mosaic Brands

ASX:MOZ

AU$70.6m

Wesfarmers

ASX:WES

AU$66.4b

Price History & Performance

Summary of all time highs, changes and price drops for Accent Group
Historical stock prices
Current Share PriceAU$2.49
52 Week HighAU$3.08
52 Week LowAU$2.03
Beta1.5
1 Month Change0.81%
3 Month Change13.70%
1 Year Change17.45%
3 Year Change93.77%
5 Year Change85.82%
Change since IPO336.84%

Recent News & Updates

Nov 12
Shareholders May Not Be So Generous With Accent Group Limited's (ASX:AX1) CEO Compensation And Here's Why

Shareholders May Not Be So Generous With Accent Group Limited's (ASX:AX1) CEO Compensation And Here's Why

Under the guidance of CEO Daniel Agostinelli, Accent Group Limited ( ASX:AX1 ) has performed reasonably well recently...

Sep 19
Is Accent Group Limited (ASX:AX1) Potentially Undervalued?

Is Accent Group Limited (ASX:AX1) Potentially Undervalued?

While Accent Group Limited ( ASX:AX1 ) might not be the most widely known stock at the moment, it saw significant share...

Aug 22
Revenue Beat: Accent Group Limited Exceeded Revenue Forecasts By 7.9% And Analysts Are Updating Their Estimates

Revenue Beat: Accent Group Limited Exceeded Revenue Forecasts By 7.9% And Analysts Are Updating Their Estimates

It's been a sad week for Accent Group Limited ( ASX:AX1 ), who've watched their investment drop 18% to AU$2.18 in the...

Shareholder Returns

AX1AU Specialty RetailAU Market
7D-7.1%-6.3%-1.6%
1Y17.5%26.3%11.7%

Return vs Industry: AX1 underperformed the Australian Specialty Retail industry which returned 26.3% over the past year.

Return vs Market: AX1 exceeded the Australian Market which returned 11.7% over the past year.

Price Volatility

Is AX1's price volatile compared to industry and market?
AX1 volatility
AX1 Average Weekly Movement5.7%
Specialty Retail Industry Average Movement5.1%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.8%
10% least volatile stocks in AU Market3.7%

Stable Share Price: AX1 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AX1's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19815,321Daniel Agostinellihttps://www.accentgr.com.au

Accent Group Limited engages in the retail, distribution, and franchise of lifestyle footwear, apparel, and accessories in Australia and New Zealand. The company brands and banners include The Athlete’s Foot, Platypus Shoes, Hype DC, Skechers, Merrell, CAT, Vans, Dr. Martens, Saucony, Timberland, Sperry, Palladium, Stance, Supra, Subtype, The Trybe, PIVOT, Stylerunner, Glue Store, and Autry. As of June 27, 2021, it operated through 600 stores, including 26 different retail banners and distribution rights for 18 international brands.

Accent Group Fundamentals Summary

How do Accent Group's earnings and revenue compare to its market cap?
AX1 fundamental statistics
Market CapAU$1.35b
Earnings (TTM)AU$76.92m
Revenue (TTM)AU$992.75m

17.5x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AX1 income statement (TTM)
RevenueAU$992.75m
Cost of RevenueAU$425.08m
Gross ProfitAU$567.68m
ExpensesAU$490.75m
EarningsAU$76.92m

Last Reported Earnings

Jun 27, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.14
Gross Margin57.18%
Net Profit Margin7.75%
Debt/Equity Ratio23.6%

How did AX1 perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

79%

Payout Ratio

Valuation

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

49.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AX1 (A$2.49) is trading below our estimate of fair value (A$4.92)

Significantly Below Fair Value: AX1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AX1 is poor value based on its PE Ratio (17.5x) compared to the Australian Specialty Retail industry average (10.6x).

PE vs Market: AX1 is good value based on its PE Ratio (17.5x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: AX1 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: AX1 is good value based on its PB Ratio (3.1x) compared to the AU Specialty Retail industry average (3.6x).


Future Growth

How is Accent Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AX1's forecast earnings growth (14.1% per year) is above the savings rate (1.9%).

Earnings vs Market: AX1's earnings (14.1% per year) are forecast to grow faster than the Australian market (11.6% per year).

High Growth Earnings: AX1's earnings are forecast to grow, but not significantly.

Revenue vs Market: AX1's revenue (9% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: AX1's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AX1's Return on Equity is forecast to be high in 3 years time (22.4%)


Past Performance

How has Accent Group performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AX1 has a large one-off gain of A$31.1M impacting its June 27 2021 financial results.

Growing Profit Margin: AX1's current net profit margins (7.7%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: AX1's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: AX1's earnings growth over the past year (38.6%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: AX1 earnings growth over the past year (38.6%) underperformed the Specialty Retail industry 91.8%.


Return on Equity

High ROE: AX1's Return on Equity (17.9%) is considered low.


Financial Health

How is Accent Group's financial position?


Financial Position Analysis

Short Term Liabilities: AX1's short term assets (A$304.8M) do not cover its short term liabilities (A$340.2M).

Long Term Liabilities: AX1's short term assets (A$304.8M) do not cover its long term liabilities (A$343.0M).


Debt to Equity History and Analysis

Debt Level: AX1's net debt to equity ratio (15.6%) is considered satisfactory.

Reducing Debt: AX1's debt to equity ratio has increased from 17% to 23.6% over the past 5 years.

Debt Coverage: AX1's debt is well covered by operating cash flow (157.6%).

Interest Coverage: AX1's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

What is Accent Group current dividend yield, its reliability and sustainability?

4.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AX1's dividend (4.52%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: AX1's dividend (4.52%) is low compared to the top 25% of dividend payers in the Australian market (5.55%).


Stability and Growth of Payments

Stable Dividend: AX1's dividends per share have been stable in the past 10 years.

Growing Dividend: AX1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.2%), AX1's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AX1's dividends in 3 years are forecast to be covered by earnings (80.3% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Daniel Agostinelli

3.67yrs

Tenure

AU$3,823,656

Compensation

Mr. Daniel John Agostinelli has been Chief Executive Officer of Accent Group Limited (formerly, RCG Corporation Limited) since March 31, 2018 and oversees its day to day operations. Mr. Agostinelli served...


CEO Compensation Analysis

Compensation vs Market: Daniel's total compensation ($USD2.72M) is above average for companies of similar size in the Australian market ($USD975.56K).

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


Leadership Team

Experienced Management: AX1's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: AX1's board of directors are considered experienced (4 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

Accent Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Accent Group Limited
  • Ticker: AX1
  • Exchange: ASX
  • Founded: 1981
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: AU$1.349b
  • Shares outstanding: 541.67m
  • Website: https://www.accentgr.com.au

Number of Employees


Location

  • Accent Group Limited
  • 2/64 Balmain Street
  • Richmond
  • Melbourne
  • Victoria
  • 3121
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 07:00
End of Day Share Price2021/11/26 00:00
Earnings2021/06/27
Annual Earnings2021/06/27


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.