Report
Daniel Ragonese

Cost Headwinds are Likely to Weigh on Asaleo Care's Near-Term Earnings

Following modest price appreciation during the past few months, shares in no-moat Asaleo Care are now overvalued relative to our unchanged AUD 1.20 per share fair value estimate. The near earnings outlook is clouded by cost pressures and an intense competitive environment. The company has implemented several initiatives to mitigate these pressures including: (1) exiting everyday pricing, or EDP, and cutting prices to defend its market share; (2) focusing on efficiency gains to offset cost pressu...
Underlying
Asaleo Care

Asaleo Care is a personal care and hygiene company. Co. is engaged in manufacturing, marketing, distributing and selling of everyday consumer products across the Feminine Care, Incontinence Care, Baby Care, Consumer Tissue and Professional Hygiene product categories. Co. has two reporting segments: Tissue, which manufactures and markets personal toilet tissue, paper towel, facial tissue, napkins and other tableware products within Australia, New Zealand and Pacific Islands; and Personal Care, which manufactures and markets personal hygiene products and nappies within Australia and New Zealand.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Daniel Ragonese

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