AIM:ASC

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

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


Market Performance


7 Day Return

-10.7%

ASC

-0.5%

GB Online Retail

0.6%

GB Market


1 Year Return

-2.4%

ASC

31.9%

GB Online Retail

12.1%

GB Market

Return vs Industry: ASC underperformed the UK Online Retail industry which returned 37.5% over the past year.

Return vs Market: ASC underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

ASCIndustryMarket
7 Day-10.7%-0.5%0.6%
30 Day-7.0%4.8%1.5%
90 Day-15.5%6.2%8.1%
1 Year-2.4%-2.4%32.6%31.9%18.0%12.1%
3 Year-42.4%-42.4%55.2%52.0%23.9%8.1%
5 Year12.3%12.3%89.7%81.8%41.7%8.8%

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?

100.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASC (£33.26) is trading above our estimate of fair value (£16.5)

Significantly Below Fair Value: 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 (113x) compared to the Online Retail industry average (28.4x).

PE vs Market: ASC is poor value based on its PE Ratio (113x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

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 (6.1x) compared to the GB Online Retail industry average (4.6x).


Next Steps

Future Growth

How is ASOS forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASC's forecast earnings growth (28.3% per year) is above the savings rate (0.5%).

Earnings vs Market: ASC's earnings (28.3% per year) are forecast to grow faster than the UK market (11.7% per year).

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

Revenue vs Market: ASC's revenue (12% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ASC's revenue (12% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASC's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has ASOS performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASC has a high level of non-cash earnings.

Growing Profit Margin: ASC's current net profit margins (0.9%) are lower than last year (3.4%).


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 (-7.2%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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) exceed its long term liabilities (£19.7M).


Debt to Equity History and Analysis

Debt Level: ASC's debt to equity ratio (20%) 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 (99.1%).

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 6.9x 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%1.8%markettop25%4.9%industryaverage3.5%forecastin3Years0.1%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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?

2.7yrs

Average management tenure


CEO

Nick Beighton (50yo)

4.3yrs

Tenure

UK£796,921

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 ($USD1.04M) is below average for companies of similar size in the UK market ($USD2.25M).

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


Management Age and Tenure

2.7yrs

Average Tenure

49yo

Average Age

Experienced Management: ASC's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ASC's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if 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

Ownership Breakdown

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


Management Team

  • Nick Robertson

    Co-Founder & Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: UK£56.04k
  • Nick Beighton (50yo)

    CEO, Member of Executive Board & Director

    • Tenure: 4.3yrs
    • Compensation: UK£796.92k
  • Robert Birge (49yo)

    Chief Growth Officer

    • Tenure: 0.2yrs
  • Mat Dunn (45yo)

    CFO & Director

    • Tenure: 0.8yrs
    • Compensation: UK£849.06k
  • Peter Collyer

    People Experience Director

    • Tenure: 4.8yrs
  • Mark Holland

    COO & Member of Executive Board

    • Tenure: 1.1yrs
  • Terri Westlake

    Member of Executive Board

    • Cliff Cohen

      Chief Information Officer

      • Tenure: 4.7yrs
    • Alison Lygon

      Head of Investor Relations

      • Anna Suchopar

        General Counsel & Company Secretary

        • Tenure: 0.6yrs

      Board Members

      • Ian Dyson (57yo)

        Senior Independent & Non-Executive Director

        • Tenure: 6.3yrs
        • Compensation: UK£70.47k
      • Hilary Riva (61yo)

        Independent Non-executive Director

        • Tenure: 5.8yrs
        • Compensation: UK£65.20k
      • Rita Clifton (61yo)

        Independent Non-executive Director

        • Tenure: 5.8yrs
        • Compensation: UK£57.01k
      • Nick Robertson

        Co-Founder & Non-Executive Director

        • Tenure: 4.3yrs
        • Compensation: UK£56.04k
      • Karen Geary (55yo)

        Independent Non-executive Director

        • Tenure: 0.3yrs
      • Adam Crozier (55yo)

        Non-Executive Chairman

        • Tenure: 1.2yrs
        • Compensation: UK£265.54k
      • Nick Beighton (50yo)

        CEO, Member of Executive Board & Director

        • Tenure: 4.3yrs
        • Compensation: UK£796.92k
      • Luke Giles Jensen (53yo)

        Independent Non-Executive Director

        • Tenure: 0.2yrs
      • Mat Dunn (45yo)

        CFO & Director

        • Tenure: 0.8yrs
        • Compensation: UK£849.06k
      • Rowenna Fyfield (50yo)

        Independent Non-Executive Director

        • Tenure: 0.2yrs

      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£2.486b
      • Shares outstanding: 83.69m
      • 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 operates as an online fashion retailer in the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, and Russia. It offers womenswear and menswear products. The company sells approximately 85,000 branded and ASOS brand products primarily through its Website, asos.com, as well as through social media platforms. It is also involved in marketing staff employment and payment processing businesses. The company was founded in 2000 and is headquartered in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 20:42
      End of Day Share Price2020/01/21 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.