ASOS Plc (ASC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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ASOS Plc

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Why is ASOS Plc ?

Weak Long Term Fundamental Strength with a -178.62% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 4.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -178.62% of over the last 5 years

Flat results in Feb 25

ROCE(HY) Lowest at -62.59%
NET SALES(Q) Lowest at GBP 1,291.6 MM
CASH AND EQV(HY) Lowest at GBP 220.7 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -34.57%, its profits have risen by 65.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.57% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is ASOS Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ASOS Plc

-34.57%

-1.81

50.23%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.46%

EBIT Growth (5y)

-178.62%

EBIT to Interest (avg)

5.40

Debt to EBITDA (avg)

3.02

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

2.75

Tax Ratio

16.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.02%

ROE (avg)

4.74%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.03

EV to EBIT

-18.72

EV to EBITDA

4.68

EV to Capital Employed

1.02

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.43%

ROE (Latest)

-8.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.62% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.23%

PRE-TAX PROFIT(Q)

At GBP -71.6 MM has Grown at 42.9%

NET PROFIT(Q)

At GBP -28.9 MM has Grown at 70.69%

-8What is not working for the Company

ROCE(HY)

Lowest at -62.59%

NET SALES(Q)

Lowest at GBP 1,291.6 MM

CASH AND EQV(HY)

Lowest at GBP 220.7 MM

DEBT-EQUITY RATIO (HY)

Highest at 159.32 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 34.31%

INTEREST(Q)

Highest at GBP 31.2 MM

Here's what is working for ASOS Plc

Pre-Tax Profit

At GBP -71.6 MM has Grown at 42.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

At GBP -28.9 MM has Grown at 70.69%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

Inventory Turnover Ratio

Highest at 3.23%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.62% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for ASOS Plc

Net Sales

Lowest at GBP 1,291.6 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (GBP MM)

Interest

Highest at GBP 31.2 MM

in the last five periods and Increased by 13.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv

Lowest at GBP 220.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 159.32 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 34.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio