AIM:ASC

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

ASC

-2.9%

GB Online Retail

-1.0%

GB Market


1 Year Return

42.4%

ASC

41.7%

GB Online Retail

-14.8%

GB Market

Return vs Industry: ASC matched the UK Online Retail industry which returned 42.4% over the past year.

Return vs Market: ASC exceeded the UK Market which returned -14.5% over the past year.


Shareholder returns

ASCIndustryMarket
7 Day-7.9%-2.9%-1.0%
30 Day-2.2%-8.2%-1.6%
90 Day41.1%12.7%-3.6%
1 Year42.4%42.4%42.2%41.7%-11.6%-14.8%
3 Year-11.5%-11.5%96.2%91.4%-8.9%-20.2%
5 Year58.1%58.1%190.6%175.4%16.2%-10.0%

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?

39.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ASC (£49.54) is trading above our estimate of fair value (£31.77)

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 (39.2x) compared to the GB Online Retail industry average (29.2x).

PE vs Market: ASC is poor value based on its PE Ratio (39.2x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ASC is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: ASC is overvalued based on its PB Ratio (5.9x) compared to the GB Online Retail industry average (3.9x).


Next Steps

Future Growth

How is ASOS forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASC's forecast earnings growth (12.9% per year) is above the savings rate (1.2%).

Earnings vs Market: ASC's earnings (12.9% per year) are forecast to grow slower than the UK market (24.2% per year).

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

Revenue vs Market: ASC's revenue (12.6% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: ASC's revenue (12.6% 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 (14.8%).


Next Steps

Past Performance

How has ASOS performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASC has high quality earnings.

Growing Profit Margin: ASC's current net profit margins (3.5%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: ASC's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: ASC's earnings growth over the past year (358.5%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: ASC earnings growth over the past year (358.5%) exceeded the Online Retail industry -0.6%.


Return on Equity

High ROE: ASC's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is ASOS's financial position?


Financial Position Analysis

Short Term Liabilities: ASC's short term assets (£1.0B) exceed its short term liabilities (£854.1M).

Long Term Liabilities: ASC's short term assets (£1.0B) exceed its long term liabilities (£325.0M).


Debt to Equity History and Analysis

Debt Level: ASC is debt free.

Reducing Debt: ASC had no debt 5 years ago.

Debt Coverage: ASC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ASC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ASC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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

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

1.5yrs

Average management tenure


CEO

Nick Beighton (51 yo)

5.08yrs

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 ($USD1.03M) is below average for companies of similar size in the UK market ($USD2.85M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Beighton
CEO, Member of Executive Board & Director5.08yrsUK£796.92k0.18%
£ 8.9m
Nicholas Robertson
Co-Founder & Non-Executive Director5.08yrsUK£56.04k3.65%
£ 180.1m
Mathew Dunn
CFO & Director1.5yrsUK£849.06k0.012%
£ 594.4k
Mark Holland
COO & Member of Executive Board1.83yrsno datano data
Terri Westlake
Member of Executive Boardno datano datano data
Cliff Cohen
Chief Information Officer5.42yrsno datano data
Alison Lygon
Head of Investor Relationsno datano datano data
Anna Suchopar
General Counsel & Company Secretary1.33yrsno datano data
Jo Butler
Chief People Officer0.50yrno datano data
Robert Birge
Chief Growth Officer0.92yrno datano data
Patrik Silén
Chief Strategy Officer0.42yrno datano data

1.5yrs

Average Tenure

50yo

Average Age

Experienced Management: ASC's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Nicholas Beighton
CEO, Member of Executive Board & Director5.08yrsUK£796.92k0.18%
£ 8.9m
Nicholas Robertson
Co-Founder & Non-Executive Director5.08yrsUK£56.04k3.65%
£ 180.1m
Mathew Dunn
CFO & Director1.5yrsUK£849.06k0.012%
£ 594.4k
Ian Dyson
Senior Independent & Non-Executive Director7yrsUK£70.47k0.0047%
£ 233.1k
Eugenia Ulasewicz
Non-Executive Director0.50yrno datano data
Karen Geary
Independent Non-executive Director1yrno data0.00064%
£ 31.5k
Adam Crozier
Non-Executive Chairman1.92yrsUK£265.54k0.021%
£ 1.0m
Luke Giles Jensen
Independent Non-Executive Director0.92yrno data0.0098%
£ 485.5k
Rowenna Fyfield
Independent Non-Executive Director0.92yrno data0.0020%
£ 99.1k

1.5yrs

Average Tenure

55yo

Average Age

Experienced Board: ASC's board of directors are not considered experienced ( 1.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.7%.


Top Shareholders

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£4.929b
  • Shares outstanding: 99.49m
  • 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
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 pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 21:36
End of Day Share Price2020/10/20 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


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.