DB:ASI1

Stock Analysis Report

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Executive Summary

ASICS Corporation manufactures and sells sports goods in Japan, the Americas, Europe, Oceania/Southeast and South Asia Area, East Asia, and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ASI1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.3%

ASI1

7.6%

DE Luxury

5.0%

DE Market


1 Year Return

2.5%

ASI1

-2.0%

DE Luxury

4.1%

DE Market

Return vs Industry: ASI1 exceeded the German Luxury industry which returned -5.8% over the past year.

Return vs Market: ASI1 exceeded the German Market which returned 0.5% over the past year.


Shareholder returns

ASI1IndustryMarket
7 Day6.3%7.6%5.0%
30 Day21.2%28.1%13.8%
90 Day7.8%-0.9%3.3%
1 Year4.6%2.5%-1.9%-2.0%5.8%4.1%
3 Year-28.7%-32.1%43.8%38.7%-0.9%-8.5%
5 Year-50.8%-54.0%179.7%153.2%10.5%-3.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASI1 (€10.5) is trading below our estimate of fair value (€13.75)

Significantly Below Fair Value: ASI1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASI1 is poor value based on its PE Ratio (94.7x) compared to the Luxury industry average (28x).

PE vs Market: ASI1 is poor value based on its PE Ratio (94.7x) compared to the German market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: ASI1 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: ASI1 is overvalued based on its PB Ratio (1.6x) compared to the DE Luxury industry average (1.6x).


Next Steps

Future Growth

How is ASICS forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

56.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASI1's forecast earnings growth (56.7% per year) is above the savings rate (0.2%).

Earnings vs Market: ASI1's earnings (56.7% per year) are forecast to grow faster than the German market (21.8% per year).

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

Revenue vs Market: ASI1's revenue (6.2% per year) is forecast to grow faster than the German market (5.7% per year).

High Growth Revenue: ASI1's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASI1's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has ASICS performed over the past 5 years?

-52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASI1 has a large one-off loss of ¥850.0M impacting its March 31 2020 financial results.

Growing Profit Margin: ASI1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: ASI1's earnings have declined by -52.3% per year over the past 5 years.

Accelerating Growth: ASI1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: ASI1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (-27%).


Return on Equity

High ROE: ASI1's Return on Equity (1.9%) is considered low.


Next Steps

Financial Health

How is ASICS's financial position?


Financial Position Analysis

Short Term Liabilities: ASI1's short term assets (¥216.6B) exceed its short term liabilities (¥90.2B).

Long Term Liabilities: ASI1's short term assets (¥216.6B) exceed its long term liabilities (¥81.8B).


Debt to Equity History and Analysis

Debt Level: ASI1's debt to equity ratio (45%) is considered high.

Reducing Debt: ASI1's debt to equity ratio has increased from 32.4% to 45% over the past 5 years.

Debt Coverage: ASI1's debt is well covered by operating cash flow (22.7%).

Interest Coverage: ASI1's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

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

2.36%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ASI1's dividend (2.36%) is higher than the bottom 25% of dividend payers in the German market (1.27%).

High Dividend: ASI1's dividend (2.36%) is low compared to the top 25% of dividend payers in the German market (3.86%).


Stability and Growth of Payments

Stable Dividend: ASI1's dividend payments have been volatile in the past 10 years.

Growing Dividend: ASI1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (179.1%), ASI1's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Motoi Oyama (68yo)

9.17yrs

Tenure

JP¥113,000,000

Compensation

Mr. Motoi Oyama serves as the President at ASICS Oceania Pty Ltd. Mr. Oyama serves as Chief Executive Officer and President at ASICS America Corporation. Mr. Oyama had been the President of ASICS Corp. fro ...


CEO Compensation Analysis

Compensation vs Market: Motoi's total compensation ($USD1.04M) is below average for companies of similar size in the German market ($USD1.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Motoi Oyama
Chairman9.17yrsJP¥113.00m0.062% ¥1.2m
Yasuhito Hirota
President2.25yrsno data0.017% ¥330.2k
Tsuyoshi Nishiwaki
Managing Executive Officer0.42yrno datano data
Megumi Ohta
Executive Officerno datano datano data
Junji Kobayashi
Executive Officer2.42yrsno datano data
Naoki Matsushita
Managing Executive Officer & Senior GM of Sport Marketing Divisionno datano data0.0045% ¥86.6k
Manabu Kuramoto
Executive Officer2.42yrsno datano data
Kenichi Harano
Executive Officer2.42yrsno datano data
Gary Fukumoto
Executive Officer2.42yrsno datano data
Shinji Senda
Managing Executive Officer0.42yrno data0.00044% ¥8.4k

2.4yrs

Average Tenure

63yo

Average Age

Experienced Management: ASI1's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Motoi Oyama
Chairman9.17yrsJP¥113.00m0.062% ¥1.2m
Yasuhito Hirota
President2.25yrsno data0.017% ¥330.2k
Hitoshi Kashiwaki
Independent Outside Director4.25yrsno data0.0032% ¥60.7k
Kazuo Sumi
Independent Outside Director2.25yrsno data0.0018% ¥34.5k
Miwa Suto
Outside Director0.42yrno datano data
Makiko Yamamoto
Outside Director0.42yrno datano data
Noriatsu Yoshimi
Directorno datano data0.0057% ¥108.6k
Yasushi Yokoi
Outside Director0.42yrno datano data

2.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: ASI1's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ASICS Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASICS Corporation
  • Ticker: ASI1
  • Exchange: DB
  • Founded: 1949
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: JP¥231.761b
  • Listing Market Cap: JP¥1.909b
  • Shares outstanding: 182.63m
  • Website: https://corp.asics.com/jp

Number of Employees


Location

  • ASICS Corporation
  • 1-1, Minatojima-Nakamachi 7-chome
  • Chuo-ku
  • Kobe
  • Hyogo
  • 650-8555
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
7936TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
ASI1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
ASCC.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
ASCC.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2014

Biography

ASICS Corporation manufactures and sells sports goods in Japan, the Americas, Europe, Oceania/Southeast and South Asia Area, East Asia, and internationally. The company offers sports shoes, sportswear, and sports equipment. It also manufactures and sells outdoor products. The company sells its products under the ASICS, ASICSTIGER, Onitsuka Tiger, and Haglöfs brands through 899 own retail stores, as well as through online. ASICS Corporation was founded in 1949 and is headquartered in Kobe, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 21:52
End of Day Share Price2020/06/03 00:00
Earnings2020/03/31
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.