ASOS plc (ASC) AI Stock Analysis

• Market Cap: £329.66M
• Dividend Yield: N/A
• Average Volume (3M): 302.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.36
• Revenue Growth: -14.89%
• EPS Growth: 12.08%
• Country: UK
• Employees: 3,027
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.34
• Shares Outstanding: 119,613,846
• 10 Day Avg. Volume: 250,882
• 30 Day Avg. Volume: 302,802
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £346.82
• Price Target Upside: 25.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 282.00p ▲(2.17% Upside)

ASOS plc's overall stock score reflects a mix of financial challenges and strategic improvements. The most significant factor is the company's precarious financial health, with high leverage and persistent losses. However, positive technical indicators and strategic initiatives highlighted in the earnings call, such as improved profitability and consumer engagement, provide some optimism. The stock's valuation remains a concern due to its negative P/E ratio.

Positive Factors

Debt Reduction and Restructuring

The reduction and restructuring of debt enhance ASOS's financial flexibility and liquidity, supporting long-term stability and growth.

Gross Margin Improvement

Improved gross margins indicate better cost management and pricing power, contributing to sustainable profitability.

Expansion of Test & React Model

Expanding the Test & React model allows ASOS to quickly adapt to market trends, enhancing competitive advantage and customer satisfaction.

Negative Factors

Decline in GMV

A decline in GMV suggests challenges in maintaining sales volume, which could impact revenue growth and market position.

Challenges in the U.S. Market

Significant challenges in the U.S. market may hinder ASOS's international expansion efforts and limit growth opportunities.

High Leverage

High leverage poses financial risks, especially in volatile markets, potentially affecting ASOS's ability to invest in growth initiatives.

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 generates revenue primarily through the sale of apparel and accessories on its e-commerce platform. The company's revenue model is focused on direct-to-consumer sales, which allows it to maintain higher margins compared to traditional retail. Key revenue streams include the sale of ASOS's own branded products and the sales of third-party brands through its marketplace. The company also benefits from international expansion, with significant sales from overseas markets. Strategic partnerships with various fashion brands and collaborations further enhance product offerings and drive sales. Additionally, ASOS invests in technology and marketing to improve customer acquisition and retention, contributing to its overall revenue growth.

ASOS plc Financial Statement Overview

Summary

ASOS plc is facing financial challenges with declining revenues and consistent net losses. The balance sheet shows high leverage, which may limit financial flexibility. However, there is some improvement in cash flow, providing a slight positive outlook.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46B	2.46B	2.90B	3.54B	3.94B	3.91B
Gross Profit	995.10M	995.10M	1.08B	1.39B	1.57B	1.64B
EBITDA	-47.70M	-47.70M	-153.60M	-79.50M	140.90M	325.80M
Net Income	-298.40M	-298.40M	-338.70M	-223.10M	-30.80M	128.40M
Balance Sheet
Total Assets	1.67B	1.67B	2.27B	2.63B	3.00B	2.88B
Cash, Cash Equivalents and Short-Term Investments	318.90M	318.90M	382.90M	353.30M	323.00M	662.70M
Total Debt	728.10M	728.10M	977.70M	1.00B	856.00M	792.10M
Total Liabilities	1.46B	1.46B	1.75B	1.76B	1.98B	1.85B
Stockholders Equity	212.40M	212.40M	521.30M	866.70M	1.01B	1.03B
Cash Flow
Free Cash Flow	117.80M	117.80M	160.30M	-190.60M	-313.50M	52.60M
Operating Cash Flow	125.70M	125.70M	196.70M	-12.70M	-130.60M	209.70M
Investing Cash Flow	49.10M	49.10M	-133.50M	-177.90M	-182.90M	-443.50M
Financing Cash Flow	-246.90M	-246.90M	-26.00M	222.70M	-26.30M	489.10M

ASOS plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 276.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 276 is above the 20-day moving average (MA) of 251.20, above the 50-day MA of 247.80, and below the 200-day MA of 284.91, indicating a neutral trend. The MACD of 5.98 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 is Negative, 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	71 Outperform	£1.36B	10.59	6.16%	1.18%	9.51%	-31.96%
AO	63 Neutral	£612.13M	52.10	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THG	60 Neutral	£763.65M	-4.36	-18.75%	―	-20.36%	44.33%
ASC	59 Neutral	£329.66M	-1.10	-81.34%	―	-14.89%	12.08%
MOON	56 Neutral	£640.92M	14.29	―	1.40%	3.94%	―
DEBS	46 Neutral	£266.52M	-1.33	-172.24%	―	-65.42%	27.73%

ASOS plc Corporate Events

ASOS Announces Strategic Board Changes to Drive Growth

ASOS plc has announced significant changes to its Board, appointing Natasja Laheij as the new Chair and William Barker as Deputy Chair. These appointments are part of a strategic move to strengthen the company’s leadership as it continues to focus on sustainable and profitable growth. Natasja brings extensive experience in international commercial and financial management, while William’s expertise in building and turning around digitally-enabled businesses will support ASOS’s strategic initiatives. The changes are expected to enhance ASOS’s operational capabilities and drive long-term competitive advantage.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £4.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Appoints KPMG as New External Auditor

ASOS plc has announced the appointment of KPMG LLP as its new external auditor following a competitive tender process, with the transition set to occur for the year ending 29 August 2027. PricewaterhouseCoopers LLP, the current auditor since 2008, will continue in their role until the audits for the years ending 31 August 2025 and 30 August 2026 are completed. This change reflects ASOS’s commitment to rigorous financial oversight and may impact its operational transparency and stakeholder confidence.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £450.00 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Grants CFO Award Under Value Creation Plan

ASOS Plc announced that Aaron Izzard, the Chief Financial Officer, has been granted an award under the ASOS Plc Value Creation Plan (VCP), which was approved by shareholders in August 2024. This award allows Izzard to potentially receive 5% of the growth in value above £6.70 of 5.5% of the company’s issued share capital. This move is part of ASOS’s strategy to align executive incentives with shareholder interests, potentially impacting the company’s operational focus and market positioning by motivating key leadership to drive value growth.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £4.60 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.

ASOS Appoints Aaron Izzard as New CFO Amid Strategic Transition

ASOS has announced a significant leadership transition with Aaron Izzard appointed as the new Chief Financial Officer and Executive Director, effective from July 1, 2025. This change marks a strategic move as ASOS transitions from financial recovery to a focus on sustained operational execution and long-term growth. Aaron’s extensive experience in retail and e-commerce, particularly in driving cost-efficiency and operational improvements, positions him as a key asset for ASOS’s continued transformation. The outgoing CFO, Dave Murray, is recognized for his contributions to the company’s financial strengthening and stock reduction, leaving ASOS in a more robust and resilient state.

The most recent analyst rating on (GB:ASC) stock is a Hold with a £4.60 price target. To see the full list of analyst forecasts on ASOS plc stock, see the GB:ASC Stock Forecast page.