ASOS plc (ASC) AI Stock Analysis

• Market Cap: £274.50M
• Dividend Yield: N/A
• Average Volume (3M): 302.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: 119,519,970
• 10 Day Avg. Volume: 250,882
• 30 Day Avg. Volume: 302,802
• PEG Ratio: -0.04
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 2.69
• 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: £354.00
• Price Target Upside: 45.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: 301.00p ▲(24.12% Upside)

ASOS plc's overall stock score is primarily impacted by its financial performance, which is currently weak due to declining revenues and high leverage. While there are positive signs from recent strategic initiatives and improved cash flow, the technical analysis and valuation remain concerning. The earnings call provides some optimism with operational improvements, but challenges in sales and market performance persist.

Positive Factors

EBITDA Growth

The significant improvement in EBITDA reflects successful strategic initiatives, enhancing profitability and providing a stronger financial foundation for future growth.

Gross Margin Expansion

The increase in gross margin indicates improved pricing strategies and cost management, which can lead to sustained profitability and competitive advantage.

Operational Efficiency

Enhanced operational efficiency through reduced supply chain costs strengthens ASOS's ability to manage expenses and improve overall financial health.

Negative Factors

Revenue Decline

The decline in sales suggests challenges in market demand and competition, which could impact long-term revenue growth and market position.

High Leverage

High leverage limits financial flexibility, posing risks to ASOS's ability to invest in growth opportunities and manage economic downturns.

Weak US Market Performance

The significant drop in US sales highlights regional market challenges, potentially affecting ASOS's global expansion and revenue diversification strategies.

ASOS plc Business Overview & Revenue Model

Company Description

ASOS plc is a British online fashion and cosmetic retailer headquartered in London, specializing in offering a wide range of clothing, footwear, accessories, and beauty products. Targeting primarily young adults, ASOS operates in the e-commerce sector and provides its customers with an extensive selection of both branded and own-label products. The company is known for its innovative digital marketing strategies and user-friendly online shopping experience, catering to a global audience with a significant presence in Europe, the United States, and other international markets.

How the Company Makes Money

ASOS generates revenue primarily through online sales of fashion and beauty products. The company operates a direct-to-consumer model, allowing it to sell its own brand products as well as products from third-party brands. Key revenue streams include the sale of clothing, footwear, accessories, and beauty items, with a strong focus on fast fashion and trend-driven products. Additionally, ASOS benefits from international shipping, attracting global customers. The company also engages in strategic partnerships with various brands and influencers to enhance its product offerings and marketing reach, contributing to its overall earnings. Seasonal promotions, discounts, and loyalty programs further drive sales and customer retention.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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
EBITDA	-123.00M	-153.60M	-79.50M	140.90M	325.80M	278.10M
Net Income	-294.30M	-338.70M	-223.10M	-30.80M	128.40M	113.30M
Balance Sheet
Total Assets	1.72B	2.27B	2.63B	3.00B	2.88B	1.99B
Cash, Cash Equivalents and Short-Term Investments	220.70M	382.90M	353.30M	323.00M	662.70M	407.50M
Total Debt	731.80M	977.70M	1.00B	856.00M	792.10M	313.10M
Total Liabilities	1.40B	1.75B	1.76B	1.98B	1.85B	1.18B
Stockholders Equity	320.80M	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: Neutral
• Last Price: 242.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 242.5 is above the 20-day moving average (MA) of 238.67, below the 50-day MA of 252.73, and below the 200-day MA of 290.74, indicating a neutral trend. The MACD of -4.21 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 40.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:ASC.

ASOS plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AO	63 Neutral	£577.26M	55.74	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CURY	60 Neutral	£1.39B	13.21	5.01%	1.14%	2.71%	-34.19%
THG	55 Neutral	£700.25M	-4.54	-18.75%	―	-20.36%	44.33%
MOON	47 Neutral	£668.98M	-70.37	―	1.42%	2.62%	-129.82%
ASC	46 Neutral	£274.50M	-0.93	-81.34%	―	-14.89%	12.08%
DEBS	40 Underperform	£154.49M	-0.46	-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.