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ASICS Corp 7936

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Stock XTKS Rating as of
¥‎2,913.50 −58.00 (1.95%)
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As of Delayed Price Closed

Company Report

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Asics: Initiating Coverage With No-Moat Rating and JPY 1,800 Fair Value Estimate; Shares Overvalued

Ivan Su,

We initiate coverage of Asics, a leading athletic footwear producer with a JPY 1,800 fair value estimate, a no-moat rating, and a High Uncertainty Rating. We think Asics is overvalued, with its shares trading at roughly 70% above our fair value estimate. We believe the market is too optimistic about the company’s earnings growth in recent quarters, but whether it could be maintainable in the longer term remains highly uncertain.

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Price vs Fair Value

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7936 is trading at a 528% premium.
Price
¥‎2,915.50
Fair Value
¥‎9,117.00
Uncertainty
High
1-Star Price
¥‎2,146.00
5-Star Price
¥‎2,258.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The rapid growth of its sports style and Onitsuka Tiger brand could accelerate Asics’ sales growth and improve profitability.

Bears

The sportswear market is flooded with competitors. Many of them have large cash reserves and a strong supply chain for quick product development and geographic expansion, threatening Asics’ long-term market position and profitability.

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Trading Information

Previous Close Price
¥‎2,971.50
Day Range
¥‎2,882.50–2,964.50
52-Week Range
¥‎1,053.00–3,096.00
Bid/Ask
¥‎2,913.00 / ¥‎2,920.00
Market Cap
¥‎2.10 Tril
Volume/Avg
3.2 Mil / 9.1 Mil

Key Statistics

Price/Earnings (Normalized)
41.89
Price/Sales
3.49
Dividend Yield (Trailing)
0.67%
Dividend Yield (Forward)
0.67%
Total Yield
1.38%

Company Profile

Founded in 1949 in Kobe, Japan, Asics is a leading sports footwear brand specializing in performance running shoes. Asics is well-known for its stability running shoe Gel-Kayano, which has been popular among runners for over 30 years thanks to its cushioning technology. It also owns Onitsuka Tiger, which is a sports fashion brand named after the company’s founder, Kihachiro Onitsuka. In 2023, Asics had annual sales of over JPY 570 billion, and it operated around 600 self-owned retail stores around the globe.
Sector
Consumer Cyclical
Industry
Footwear & Accessories
Stock Style Box
Large Growth
Total Number of Employees
10,406
Website
http://www.asics.co.jp

Competitors

Valuation

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Metric
7936
NKE
UAA
Price/Earnings (Normalized)
 41.8921.7315.10
Price/Book Value
 8.598.642.02
Price/Sales
 3.492.460.68
Price/Cash Flow
 27.8819.4530.24
Price/Earnings
7936
NKE
UAA

Financial Strength

Metric
7936
NKE
UAA
Quick Ratio
 1.311.420.91
Current Ratio
 2.322.361.73
Interest Coverage
 14.38——
Quick Ratio
7936
NKE
UAA

Profitability

Metric
7936
NKE
UAA
Return on Assets (Normalized)
 15.64%15.60%−0.33%
Return on Equity (Normalized)
 33.60%41.33%−0.79%
Return on Invested Capital (Normalized)
 21.46%21.73%−0.56%
Return on Assets
7936
NKE
UAA

Footwear & Accessories Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Nike Inc Class B
NKE
SvpbxhpjdYxq$120.3 Bil
 adidas AG
ADDDF
YQYtbxfs$46.7 Bil
 adidas AG ADR
ADDYY
RjkbnlbMfrfkqy$46.7 Bil
 Deckers Outdoor Corp
DECK
—Whwq$24.2 Bil
 On Holding AG
ONON
—Rrbfcl$16.1 Bil
 ASICS Corp
ASCCF
—Vfcwpf$14.4 Bil
 ASICS Corp ADR
ASCCY
—Kwhqjw$14.4 Bil
 Skechers USA Inc Class A
SKX
KbjhbthQywbhlk$10.1 Bil
 Birkenstock Holding PLC
BIRK
—Fjrcpd$8.9 Bil
 Crocs Inc
CROX
—Fgs$8.1 Bil

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