We are maintaining our fair value estimate for no-moat Asos as the company reported a decline in sales in the first half of the year but some progress on clearing out stock, improving speed to market and cost control, which should be beneficial for growth going forward. Trading at 13 times forward earnings, the shares look attractive.
Asos has significant room for expansion outside its home market to the rest of Europe and the U.S., where it has low-single-digit share in the online market.
Asos operates in the midmarket segment, the slowest-growing segment of apparel. This can hurt the company’s growth as customers trade up and down.
|
Metric
|
ASC
|
AMZN
|
ZAL
|
|---|---|---|---|
Price/Earnings (Normalized) | — | 50.72 | 29.35 |
Price/Book Value | 0.70 | 8.82 | 2.76 |
Price/Sales | 0.13 | 3.29 | 0.69 |
Price/Cash Flow | 15.97 | 18.27 | 11.28 |
|
Metric
|
ASC
|
AMZN
|
ZAL
|
|---|---|---|---|
Quick Ratio | 0.61 | 0.83 | 0.96 |
Current Ratio | 1.51 | 1.07 | 1.53 |
Interest Coverage | −3.66 | 15.35 | 2.51 |
|
Metric
|
ASC
|
AMZN
|
ZAL
|
|---|---|---|---|
Return on Assets (Normalized) | −1.65% | 11.69% | 2.45% |
Return on Equity (Normalized) | −5.91% | 31.44% | 7.96% |
Return on Invested Capital (Normalized) | 0.29% | 17.95% | 5.12% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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