AIM:ASC

Stock Analysis Report

Executive Summary

ASOS Plc, together with its subsidiaries, operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, and Russia.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

40.6%

ASC

6.5%

GB Online Retail

1.7%

GB Market


1 Year Return

-43.1%

ASC

7.1%

GB Online Retail

2.9%

GB Market

Return vs Industry: ASC underperformed the UK Online Retail industry which returned 7.1% over the past year.

Return vs Market: ASC underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

ASCIndustryMarket
7 Day40.6%6.5%1.7%
30 Day23.6%0.2%-0.7%
90 Day57.9%12.4%-1.8%
1 Year-43.1%-43.1%7.6%7.1%8.0%2.9%
3 Year-33.7%-33.7%50.5%47.6%18.2%3.8%
5 Year60.1%60.1%150.8%139.8%35.6%6.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

116.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ASC (£34.44) is trading above our estimate of fair value (£15.71)

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


Price To Earnings Ratio

PE vs Industry: ASC is poor value based on its PE Ratio (117x) compared to the Online Retail industry average (22.2x).

PE vs Market: ASC is poor value based on its PE Ratio (117x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ASC is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: ASC is overvalued based on its PB Ratio (6.3x) compared to the GB Online Retail industry average (3.5x).


Next Steps

Future Growth

How is ASOS forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASC's forecast earnings growth (29.3% per year) is above the savings rate (1.2%).

Earnings vs Market: ASC's earnings (29.3% per year) are forecast to grow faster than the UK market (12.9% per year).

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

Revenue vs Market: ASC's revenue (12.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ASC's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ASC's Return on Equity is forecast to be low in 3 years time (16.2%).


Next Steps

Past Performance

How has ASOS performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ASC's earnings have grown by 10.5% per year over the past 5 years.

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

Earnings vs Industry: ASC had negative earnings growth (-70.1%) over the past year, making it difficult to compare to the Online Retail industry average (21.4%).


Return on Equity

High ROE: ASC's Return on Equity (5.4%) is considered low.


Return on Assets

ROA vs Industry: ASC's Return on Assets is below or equal to the Online Retail industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is ASOS's financial position?


Financial Position Analysis

Short Term Liabilities: ASC's short term assets (£623.2M) do not cover its short term liabilities (£772.2M)

Long Term Liabilities: ASC's short term assets (623.2M) exceeds its long term liabilities (19.7M)


Debt to Equity History and Analysis

Debt Level: ASC's debt to equity ratio (16.5%) is considered satisfactory

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

Debt Coverage: ASC's debt is well covered by operating cash flow (119.6%).

Interest Coverage: ASC's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASC's debt is covered by short term assets (assets are 8.309330x debt).


Next Steps

Dividend

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

0.11%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage3.3%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ASC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ASC'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 ASC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ASC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Nick Beighton (50yo)

4.1yrs

Tenure

UK£2,904,614

Compensation

Mr. Nicholas Beighton, also known as Nick, has been the Chief Executive Officer of ASOS plc since September 2, 2015 and also serves as its Member of Executive Board. Mr. Beighton served as the Chief Operat ...


CEO Compensation Analysis

Compensation vs. Market: Nick's total compensation ($USD3.74M) is about average for companies of similar size in the UK market ($USD2.31M).

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


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: ASC's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

5.5yrs

Average Tenure

55yo

Average Age

Experienced Board: ASC's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

Insider Buying: ASC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£49,86719 Jul 19
Nicholas Beighton
EntityIndividual
Role
Chief Executive Officer
CEO, Member of Executive Board & Director
Shares2,369
Max PriceUK£21.05
BuyUK£100,12418 Jul 19
Adam Crozier
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares4,200
Max PriceUK£23.84
SellUK£15,262,25017 Apr 19
Nicholas Robertson
EntityIndividual
Role
Member of the Board of Directors
Co-Founder & Non-Executive Director
Shares410,000
Max PriceUK£37.23
BuyUK£14,98319 Dec 18
Hilary Riva
EntityIndividual
Role
Member of the Board of Directors
Independent Non-executive Director
Shares557
Max PriceUK£26.90

Ownership Breakdown


Management Team

  • Nick Robertson

    Co-Founder & Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£55.00k
  • Nick Beighton (50yo)

    CEO, Member of Executive Board & Director

    • Tenure: 4.1yrs
    • Compensation: UK£2.90m
  • Mathew Dunn (44yo)

    CFO & Director

    • Tenure: 0.8yrs
  • Greg Feehely

    Director of Investor Relations

    • Tenure: 4.5yrs
  • Peter Collyer

    People Experience Director

    • Tenure: 4.6yrs
  • Mark Holland

    COO & Member of Executive Board

    • Tenure: 0.8yrs
  • Terri Westlake

    Member of Executive Board

    • Tenure: 0yrs
  • Cliff Cohen

    Chief Information Officer

    • Tenure: 4.4yrs
  • Alison Lygo

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Ian Dyson (57yo)

    Senior Independent & Non-Executive Director

    • Tenure: 6yrs
    • Compensation: UK£70.00k
  • Hilary Riva (61yo)

    Independent Non-executive Director

    • Tenure: 5.5yrs
    • Compensation: UK£65.00k
  • Rita Clifton (61yo)

    Independent Non-executive Director

    • Tenure: 5.5yrs
    • Compensation: UK£55.00k
  • Nick Robertson

    Co-Founder & Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£55.00k
  • Karen Geary (55yo)

    Independent Non-executive Director

    • Tenure: 0yrs
  • Adam Crozier (55yo)

    Non-Executive Chairman

    • Tenure: 0.9yrs
  • Nick Beighton (50yo)

    CEO, Member of Executive Board & Director

    • Tenure: 4.1yrs
    • Compensation: UK£2.90m
  • Mathew Dunn (44yo)

    CFO & Director

    • Tenure: 0.8yrs

Company Information

ASOS Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASOS Plc
  • Ticker: ASC
  • Exchange: AIM
  • Founded: 2000
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: UK£2.887b
  • Shares outstanding: 83.83m
  • Website: https://www.asosplc.com

Number of Employees


Location

  • ASOS Plc
  • Greater London House
  • Hampstead Road
  • London
  • Greater London
  • NW1 7FB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASOM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2001
ASCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2001
DYQDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2001
ASC NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNOct 2001
ASOM.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJun 2010

Biography

ASOS Plc, together with its subsidiaries, operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, and Russia. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:37
End of Day Share Price2019/10/17 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


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.