ASOS (LSE:ASC) - Share price, News & Analysis

ASC fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

ASC Stock Overview

ASOS Plc operates as an online fashion retailer worldwide.

Rewards

Trading at 9.7% below our estimate of its fair value

Earnings are forecast to grow 50.06% per year

Risk Analysis

Highly volatile share price over the past 3 months

Profit margins (0.8%) are lower than last year (4.7%)

ASOS Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ASOS
Historical stock prices
Current Share Price	UK£8.89
52 Week High	UK£52.43
52 Week Low	UK£7.75
Beta	2.61
1 Month Change	-40.17%
3 Month Change	-42.83%
1 Year Change	-81.85%
3 Year Change	-65.16%
5 Year Change	-84.55%
Change since IPO	3,454.00%

Recent News & Updates

Jun 09

ASOS (LON:ASC) Could Be Struggling To Allocate Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	ASC	GB Online Retail	GB Market
7D	0.6%	3.7%	2.3%
1Y	-81.8%	-75.5%	-8.6%

Return vs Industry: ASC underperformed the UK Online Retail industry which returned -75.5% over the past year.

Return vs Market: ASC underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is ASC's price volatile compared to industry and market?
ASC volatility
ASC Average Weekly Movement	13.8%
Online Retail Industry Average Movement	10.0%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: ASC is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: ASC's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of UK stocks.

About the Company

Founded	Employees	CEO	Website
2000	3,126	Jose Antonio Calamonte	https://www.asosplc.com

ASOS Plc operates as an online fashion retailer worldwide. It offers womenswear and menswear products. The company sells its products under the ASOS Design, ASOS Edition, ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and HIIT brands, as well as through third-party brands.

ASOS Fundamentals Summary

How do ASOS's earnings and revenue compare to its market cap?
ASC fundamental statistics
Market Cap	UK£885.87m
Earnings (TTM)	UK£33.10m
Revenue (TTM)	UK£3.94b

26.8x

P/E Ratio

0.2x

P/S Ratio

Is ASC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASC income statement (TTM)
Revenue	UK£3.94b
Cost of Revenue	UK£2.19b
Gross Profit	UK£1.75b
Other Expenses	UK£1.72b
Earnings	UK£33.10m

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

Oct 12, 2022

Earnings per share (EPS)	0.33
Gross Margin	44.42%
Net Profit Margin	0.84%
Debt/Equity Ratio	44.8%

How did ASC perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ASC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ASC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ASC. This is calculated by dividing ASC's market cap by their current preferred multiple.
What is ASC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£885.87m

ASC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.3x
Enterprise Value/EBITDA	10x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does ASC's PE Ratio compare to its peers?

ASC PE Ratio vs Peers

The above table shows the PE ratio for ASC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	43.5x

Forward PE

Price-To-Earnings vs Peers: ASC is good value based on its Price-To-Earnings Ratio (26.8x) compared to the peer average (43.5x).

Price to Earnings Ratio vs Industry

How does ASC's PE Ratio compare vs other companies in the Online Retail Industry?

Price-To-Earnings vs Industry: ASC is expensive based on its Price-To-Earnings Ratio (26.8x) compared to the European Online Retail industry average (21x)

Price to Earnings Ratio vs Fair Ratio

What is ASC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ASC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	26.8x
Fair PE Ratio	37.4x

Price-To-Earnings vs Fair Ratio: ASC is good value based on its Price-To-Earnings Ratio (26.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).

Share Price vs Fair Value

What is the Fair Price of ASC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ASC (£8.89) is trading below our estimate of fair value (£9.84)

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

Price to Earnings Growth Ratio

PEG Ratio: ASC is good value based on its PEG Ratio (0.5x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

50.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASC's forecast earnings growth (50.1% per year) is above the savings rate (0.9%).

Earnings vs Market: ASC's earnings (50.1% per year) are forecast to grow faster than the UK market (10.9% per year).

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

Revenue vs Market: ASC's revenue (11.2% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: ASC's revenue (11.2% 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 (10.9%).

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Past Performance

How has ASOS performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASC has high quality earnings.

Growing Profit Margin: ASC's current net profit margins (0.8%) are lower than last year (4.7%).

Past Earnings Growth Analysis

Earnings Trend: ASC's earnings have grown by 16.2% 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 (-80.8%) over the past year, making it difficult to compare to the Online Retail industry average (-14.5%).

Return on Equity

High ROE: ASC's Return on Equity (3.2%) is considered low.

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Financial Health

How is ASOS's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ASC's short term assets (£1.5B) exceed its short term liabilities (£959.8M).

Long Term Liabilities: ASC's short term assets (£1.5B) exceed its long term liabilities (£881.4M).

Debt to Equity History and Analysis

Debt Level: ASC's net debt to equity ratio (6%) 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 not well covered by operating cash flow (8.4%).

Interest Coverage: ASC's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ASC has not reported any payouts.

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Management

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

3.0yrs

Average management tenure

CEO

Jose Antonio Calamonte (49 yo)

no data

Tenure

Mr. Jose Antonio Ramos Calamonte is Chief Executive Officer and Director of ASOS plc since June 16, 2022 and served as its Chief Commercial Officer since January 04, 2021 until June 16, 2022. He served as...

Leadership Team

Experienced Management: ASC's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: ASC's board of directors are not considered experienced ( 2.6 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: ASC insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/02/28
Annual Earnings	2021/08/31