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

-0.9%

ASC

-2.8%

GB Online Retail

0.4%

GB Market


1 Year Return

-54.8%

ASC

0.05%

GB Online Retail

-0.9%

GB Market

ASC underperformed the Online Retail industry which returned 3.2% over the past year.

ASC underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

ASCIndustryMarket
7 Day-0.9%-2.8%0.4%
30 Day14.4%3.4%4.4%
90 Day-10.1%5.6%0.5%
1 Year-54.8%-54.8%0.6%0.05%3.9%-0.9%
3 Year-44.7%-44.7%51.7%48.5%20.5%6.1%
5 Year33.8%33.8%126.8%116.6%33.2%5.1%

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

2 weeks ago | Simply Wall St

These 4 Measures Indicate That ASOS (LON:ASC) Is Using Debt Extensively

Valuation

Is ASOS undervalued based on future cash flows and its price relative to the stock market?

36.32x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

ASOS's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

ASOS's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

ASOS is overvalued based on earnings compared to the GB Online Retail industry average.

ASOS is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

ASOS is poor value based on expected growth next year.


Price Based on Value of Assets

ASOS is overvalued based on assets compared to the GB Online Retail industry average.


Next Steps

Future Growth

How is ASOS expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

ASOS's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

ASOS's earnings are expected to grow significantly at over 20% yearly.

ASOS's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

ASOS's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

ASOS's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

ASOS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has ASOS performed over the past 5 years?

16.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

ASOS's year on year earnings growth rate has been positive over the past 5 years.

ASOS's 1-year earnings growth is negative, it can't be compared to the 5-year average.

ASOS's 1-year earnings growth is negative, it can't be compared to the GB Online Retail industry average.


Return on Equity

ASOS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

ASOS used its assets less efficiently than the GB Online Retail industry average last year based on Return on Assets.


Return on Capital Employed

ASOS's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is ASOS's financial position?


Financial Position Analysis

ASOS's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

ASOS's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

ASOS's level of debt (12.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if ASOS's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (270%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 127.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 9.2x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate ASOS's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate ASOS's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as ASOS has not reported any payouts.

Unable to verify if ASOS's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as ASOS has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of ASOS's dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Nick Beighton (50yo)

4yrs

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

Nick's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Nick's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

The tenure for the ASOS management team is about average.


Board Age and Tenure

5.4yrs

Average Tenure

56yo

Average Age

The tenure for the ASOS board of directors is about average.


Insider Trading

More shares have been bought than sold by ASOS individual insiders 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: 4yrs
    • Compensation: UK£55.00k
  • Nick Beighton (50yo)

    CEO, Member of Executive Board & Director

    • Tenure: 4yrs
    • Compensation: UK£2.90m
  • Mathew Dunn (44yo)

    CFO & Director

    • Tenure: 0.7yrs
  • Greg Feehely

    Director of Investor Relations

    • Tenure: 4.4yrs
  • Peter Collyer

    People Experience Director

    • Tenure: 4.5yrs
  • Mark Holland

    COO & Member of Executive Board

    • Tenure: 0.8yrs
  • Terri Westlake

    Member of Executive Board

    • Tenure: 0yrs
  • Cliff Cohen

    Chief Information Officer

    • Tenure: 4.3yrs
  • Alison Lygo

    Investor Relations Manager

    • Tenure: 0yrs

Board Members

  • Ian Dyson (57yo)

    Senior Independent & Non-Executive Director

    • Tenure: 5.9yrs
    • Compensation: UK£70.00k
  • Hilary Riva (61yo)

    Independent Non-executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£65.00k
  • Rita Clifton (61yo)

    Independent Non-executive Director

    • Tenure: 5.4yrs
    • Compensation: UK£55.00k
  • Nick Robertson

    Co-Founder & Non-Executive Director

    • Tenure: 4yrs
    • Compensation: UK£55.00k
  • Adam Crozier (55yo)

    Non-Executive Chairman

    • Tenure: 0.8yrs
  • Nick Beighton (50yo)

    CEO, Member of Executive Board & Director

    • Tenure: 4yrs
    • Compensation: UK£2.90m
  • Mathew Dunn (44yo)

    CFO & Director

    • Tenure: 0.7yrs

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£2.219b
  • 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 Analysis2019/09/19 20:38
End of Day Share Price2019/09/19 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.