ASOS plc (ASC) AI Stock Analysis

• Market Cap: £379.32M
• Dividend Yield: N/A
• Average Volume (3M): 200.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -15.86%
• EPS Growth: -18.46%
• Country: UK
• Employees: 3,027
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Specialty Retail
• EPS (TTM): -0.47
• Shares Outstanding: 119,519,970
• 10 Day Avg. Volume: 166,484
• 30 Day Avg. Volume: 200,636
• PEG Ratio: -0.10
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £359.00
• Price Target Upside: 12.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 49 Neutral
• Price Target: 292.00p ▼(-8.18%Downside)

ASOS plc's overall stock score reflects a struggling financial performance with declining revenues and high leverage, significantly impacting its outlook. Although technical analysis offers some stabilization, valuation remains a concern due to negative profitability. However, earnings call insights and corporate events present a strategic shift towards improved profitability, providing some optimism amid ongoing challenges.

Positive Factors

Financial Performance

The company's H1 EBITDA will be ahead of consensus, reflecting a strong gross margin improvement and cost discipline.

Strategic Initiatives

ASOS has made progress on strategic initiatives and reported a return to growth in ASOS Design.

Negative Factors

Profitability Challenges

Despite improvement, the EBITDA margin remains insufficient to reach overall profitability.

Revenue Decline

ASOS' revenue is down by 13% as previously indicated.

ASOS plc Business Overview & Revenue Model

Company Description

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. It is also involved in the employer of marketing staff and payment processing businesses. The company was founded in 2000 and is headquartered in London, the United Kingdom.

How the Company Makes Money

ASOS plc generates revenue primarily through the sale of fashion and beauty products via its online platform. The company operates a direct-to-consumer model, selling its own branded products alongside items from third-party brands. Key revenue streams include retail sales from its website and mobile app, which are bolstered by a strong logistics network that enables efficient global distribution. ASOS also benefits from its ASOS Marketplace, a platform for independent brands and vintage boutiques, which contributes to its revenue. The company invests heavily in marketing, technology, and customer service to enhance customer experience and drive sales. Additionally, ASOS engages in strategic partnerships with various brands and influencers to expand its reach and appeal.

ASOS plc Financial Statement Overview

Summary

ASOS plc faces significant financial challenges with declining revenues and profitability. The income statement shows negative trends with net losses, while the balance sheet reveals high leverage and declining equity. However, there is some improvement in cash flow with positive operating cash flow in 2024, although free cash flow still concerns due to net income losses.

Income Statement

ASOS plc has faced declining revenues and profitability over the past few years. The revenue decreased from 2023 to 2024, marking a significant drop from previous years. The company has also experienced negative EBIT and EBITDA margins, reflecting operational inefficiencies and increased costs. Despite a strong revenue base, the ongoing net losses are concerning and indicate a need for strategic adjustments.

Balance Sheet

The balance sheet shows a moderate level of financial stability with a high debt-to-equity ratio and declining equity base. ASOS has a substantial amount of total debt compared to its stockholders' equity, which may pose challenges in managing financial obligations. However, the company maintains a reasonable cash balance, providing some liquidity cushion.

Cash Flow

ASOS's cash flow performance has shown improvement in operating cash flow, turning positive in 2024 after a negative trend in previous years. The free cash flow has also improved, although it still remains a concern due to the company's net income losses. Effective cash management will be crucial to sustain operations and facilitate strategic investments.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
2.69B	2.90B	3.54B	3.94B	3.91B	3.26B
	Gross Profit
1.07B	1.08B	1.39B	1.57B	1.64B	1.43B
	EBIT
-23.10M	-83.50M	-41.70M	-16.20M	193.60M	160.70M
	EBITDA
-123.00M	-153.60M	-79.50M	140.90M	325.80M	278.10M
	Net Income Common Stockholders
-294.30M	-338.70M	-223.10M	-30.80M	128.40M	113.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
92.00M	382.90M	353.30M	323.00M	662.70M	407.50M
	Total Assets
2.18B	2.27B	2.63B	3.00B	2.88B	1.99B
	Total Debt
329.60M	977.70M	1.00B	856.00M	792.10M	313.10M
	Net Debt
237.60M	594.80M	648.50M	533.00M	129.40M	-94.40M
	Total Liabilities
1.26B	1.75B	1.76B	1.98B	1.85B	1.18B
	Stockholders Equity
924.10M	521.30M	866.70M	1.01B	1.03B	810.30M
Cash Flow		Free Cash Flow
87.10M	160.30M	-190.60M	-313.50M	52.60M	279.20M
	Operating Cash Flow
96.20M	196.70M	-12.70M	-130.60M	209.70M	395.80M
	Investing Cash Flow
40.20M	-133.50M	-177.90M	-182.90M	-443.50M	-116.60M
	Financing Cash Flow
-248.40M	-26.00M	222.70M	-26.30M	489.10M	143.70M

ASOS plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 318.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ASC, the sentiment is Positive. The current price of 318 is above the 20-day moving average (MA) of 311.77, above the 50-day MA of 297.29, and below the 200-day MA of 360.08, indicating a neutral trend. The MACD of 5.32 indicates Positive momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 52.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ASC.

ASOS plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CURY	74 Outperform	£1.33B	6.79	2.95%	―	-10.46%	396.13%
MOON	64 Neutral	£825.20M	―	890.75%	0.40%	5.32%	-152.26%
AO	63 Neutral	£575.75M	22.00	20.28%	―	-0.39%	2.68%
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
ASC	49 Neutral	£379.32M	―	-62.59%	―	-15.86%	-18.46%
THG	49 Neutral	£363.39M	―	-27.20%	―	-14.37%	-28.78%
DEBS	48 Neutral	£268.39M	―	-96.36%	―	-16.32%	-202.39%

ASOS plc Corporate Events

ASOS plc Announces Change in Major Holdings

ASOS plc has announced a change in its major holdings, with Aktieselskabet af 5.5.2010 and Nine United Properties UK Ltd. increasing their voting rights to 29.012157%. This acquisition of voting rights reflects a slight increase from the previous position and indicates a consolidation of influence by entities associated with Anders Holch Povlsen. This development could impact ASOS’s strategic decisions and stakeholder dynamics, given the significant voting power now held by these entities.

ASOS PLC Announces Change in Voting Rights Structure

ASOS PLC has announced a change in the breakdown of its voting rights, with Aktieselskabet af 5.5.2010 and Nine United Properties UK Ltd. being the entities involved. The notification indicates that the total voting rights held by these entities have slightly decreased from 29.032636% to 28.993269%, which may impact the company’s governance dynamics and stakeholder influence.

ASOS Announces Total Voting Rights Update

ASOS Plc has announced that, as of May 1, 2025, its issued and fully paid share capital consists of 119,519,975 ordinary shares, each with a nominal value of 3.5 pence and one voting right per share. This total number of voting rights should be used by shareholders to determine their notification requirements under FCA Disclosure and Transparency Rules. This announcement provides clarity on the company’s share structure, which is crucial for shareholders in managing their investments and ensuring compliance with regulatory requirements.

ASOS Reports Profitability Transformation Amid Strategic Initiatives

ASOS plc has reported a significant transformation in profitability for the first half of the fiscal year 2025, driven by a new commercial model and cost discipline. Despite a 13% decline in adjusted group revenue, the company achieved a positive adjusted EBITDA of £42.5 million, a notable improvement from the previous year’s loss. The company’s strategic initiatives, including the scaling of its Test & React model and the introduction of new brands, have contributed to a 9% increase in ASOS Design sales in the UK. ASOS is also enhancing its US market proposition and expects continued growth in full-price sales and profitability in the coming years.

Frasers Group Increases Stake in ASOS to Over 25%

ASOS plc announced that Frasers Group Plc has increased its stake in the company, crossing a significant threshold of 25.13% of voting rights. This acquisition of voting rights indicates Frasers Group’s growing influence within ASOS, potentially impacting the company’s strategic decisions and market positioning.

ASOS Projects Profitability Boost in H1 FY25 Amid Strategic Growth

ASOS plc announced that it will release its H1 FY25 results on April 24, 2025, expecting significant profitability improvements despite volume challenges. The company attributes this to strong gross margin development, reduced markdown activity, and increased full-price sales, particularly in its own brands. ASOS’s Test & React model has been instrumental in driving growth, allowing the company to offer trend-setting products to its fashion-focused customer base. The anticipated revenue growth aligns with consensus expectations, with adjusted EBITDA projected to surpass consensus estimates.

ASOS plc Sees Shift in Major Shareholder Holdings

ASOS plc has announced a change in its major holdings, with Aktieselskabet af 5.5.2010 increasing its voting rights from 27.1% to 28.01%. This acquisition highlights a significant shift in the company’s shareholder structure, potentially impacting its strategic decisions and market positioning. The notification indicates a consolidation of control by Anders Holch Povlsen, who holds significant influence through various controlled undertakings. This development may have implications for stakeholders, as it could affect future corporate governance and decision-making processes within ASOS.

Frasers Group Increases Stake in ASOS PLC

ASOS PLC has announced a change in its major holdings, with Frasers Group Plc increasing its stake in the company. The acquisition of additional voting rights by Frasers Group, led by Michael Ashley, raises their total voting rights in ASOS to 24.21%. This move could potentially impact ASOS’s strategic decisions and influence its market positioning, reflecting Frasers Group’s growing interest and investment in the fashion retail sector.