LSE:ASAI

Stock Analysis Report

Executive Summary

ASA International Group plc provides microfinancing services in 12 countries across Africa and Asia.

Snowflake

Fundamentals

Proven track record with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.8%

ASAI

5.0%

GB Consumer Finance

0.2%

GB Market


1 Year Return

-32.2%

ASAI

-39.3%

GB Consumer Finance

1.7%

GB Market

Return vs Industry: ASAI exceeded the UK Consumer Finance industry which returned -39.3% over the past year.

Return vs Market: ASAI underperformed the UK Market which returned 1.7% over the past year.


Shareholder returns

ASAIIndustryMarket
7 Day-3.8%5.0%0.2%
30 Day-20.8%2.4%-1.7%
90 Day-12.1%-10.8%-3.1%
1 Year-31.1%-32.2%-36.9%-39.3%6.7%1.7%
3 Yearn/a-63.2%-73.8%17.7%3.1%
5 Yearn/a-51.7%-68.0%36.1%5.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASAI (£3.05) is trading below our estimate of fair value (£3.41)

Significantly Below Fair Value: ASAI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ASAI is poor value based on its PE Ratio (18.5x) compared to the Consumer Finance industry average (11x).

PE vs Market: ASAI is poor value based on its PE Ratio (18.5x) compared to the UK market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: ASAI is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: ASAI is overvalued based on its PB Ratio (4.4x) compared to the GB Consumer Finance industry average (1.5x).


Next Steps

Future Growth

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

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASAI's forecast earnings growth (19.2% per year) is above the savings rate (1.2%).

Earnings vs Market: ASAI's earnings (19.2% per year) are forecast to grow faster than the UK market (12.4% per year).

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

Revenue vs Market: ASAI's revenue (18.3% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ASAI's revenue (18.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASAI's Return on Equity is forecast to be high in 3 years time (39.1%)


Next Steps

Past Performance

How has ASA International Group performed over the past 5 years?

17.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASAI's earnings have grown by 17.8% per year over the past 5 years.

Accelerating Growth: ASAI's earnings growth over the past year (28.1%) exceeds its 5-year average (17.8% per year).

Earnings vs Industry: ASAI earnings growth over the past year (28.1%) exceeded the Consumer Finance industry 7.8%.


Return on Equity

High ROE: Whilst ASAI's Return on Equity (34.5%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: ASAI has a higher Return on Assets than the Consumer Finance industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ASAI's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is ASA International Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ASAI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ASAI's debt is covered by short term assets (assets are 1.657300x debt).


Financial Institutions Analysis

Asset Level: ASAI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ASAI has a sufficient allowance for bad loans.

Low Risk Liabilities: ASAI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ASAI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ASAI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ASAI has an appropriate level of bad loans.


Next Steps

Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%2.0%markettop25%5.4%industryaverage5.7%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ASAI's dividend (1.84%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.99%).

High Dividend: ASAI's dividend (1.84%) is low compared to the top 25% of dividend payers in the UK market (5.37%).

Stable Dividend: Too early to tell whether ASAI's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ASAI's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.2%), ASAI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ASAI's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).


Next Steps

Management

What is the CEO of ASA International Group's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Dirk Brouwer (56yo)

0yrs

Tenure

0

Mr. Dirk Machgielis Brouwer is Chief Executive Officer of ASA International Group PLC. He co-founded ASA International Group PLC in 2007 and its Executive Director since 2007. He is also the Managing Direc ...


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: ASAI's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

61yo

Average Age

Experienced Board: ASAI's board of directors are considered experienced (6.8 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.


Ownership Breakdown


Management Team

  • Mohammed Hossain (55yo)

    Director of Investments

    • Tenure: 12.8yrs
    • Compensation: US$85.16k
  • Dirk Brouwer (56yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Martijn Bollen (47yo)

    General Counsel

    • Tenure: 12.8yrs
  • Mischa Assink (44yo)

    Chief Accountant

    • Tenure: 0yrs
  • Tanwir Rahman (46yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$78.02k
  • Aminur Rashid (55yo)

    Executive Director of Operations & Executive Director

    • Tenure: 8.1yrs
  • Md. Haque (63yo)

    Chief Operating Officer

    • Tenure: 1.8yrs
    • Compensation: US$96.66k
  • Jillur Rahman

    Head of Information Technology

    • Tenure: 7.8yrs
  • Md. Rahman

    Chief Technology Officer

    • Tenure: 1.8yrs
  • Kamal Sarker

    Chief Group Internal Auditor

    • Tenure: 0yrs

Board Members

  • Guy Dawson (66yo)

    Senior Independent Non-Executive Director

    • Tenure: 6.8yrs
  • Praful Patel (73yo)

    Independent Non-Executive Director

    • Tenure: 6.8yrs
  • Md. Shafiqual Choudhury (70yo)

    Non-Executive Chairman

    • Tenure: 12.5yrs
  • Dirk Brouwer (56yo)

    CEO & Executive Director

    • Tenure: 0yrs
  • Gavin Laws (61yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
  • Aminur Rashid (55yo)

    Executive Director of Operations & Executive Director

    • Tenure: 8.1yrs
  • Hanny Kemna (57yo)

    Independent Non-Executive Director

    • Tenure: 1.4yrs

Company Information

ASA International Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASA International Group PLC
  • Ticker: ASAI
  • Exchange: LSE
  • Founded: 2007
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: UK£305.000m
  • Shares outstanding: 100.00m
  • Website: https://www.asa-international.com

Number of Employees


Location

  • ASA International Group PLC
  • 42-50 Hersham Road
  • Walton-On-Thames
  • Surrey
  • KT12 1RZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASAILSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2018
ASAILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2018

Biography

ASA International Group plc provides microfinancing services in 12 countries across Africa and Asia. The company offers small loans to 1.8 million female micro-entrepreneurs and small business owners. As o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 22:08
End of Day Share Price2019/10/21 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.