ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADS - DE000A1EWWW0 - Common Stock
153.25 EUR
-15.2 (-9.02%)
Overall 1ADS gets a fundamental rating of 4 out of 10. We evaluated 1ADS against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. 1ADS has an average financial health and profitability rating. 1ADS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- 1ADS had positive earnings in the past year.
- In the past year 1ADS had a positive cash flow from operations.
- 1ADS had positive earnings in 4 of the past 5 years.
- Of the past 5 years 1ADS 4 years had a positive operating cash flow.
1.2 Ratios
- 1ADS has a Return On Assets of 6.05%. This is comparable to the rest of the industry: 1ADS outperforms 56.86% of its industry peers.
- 1ADS's Return On Equity of 21.39% is fine compared to the rest of the industry. 1ADS outperforms 78.43% of its industry peers.
- The Return On Invested Capital of 1ADS (13.27%) is better than 76.47% of its industry peers.
- 1ADS had an Average Return On Invested Capital over the past 3 years of 5.53%. This is significantly below the industry average of 12.94%.
- The 3 year average ROIC (5.53%) for 1ADS is below the current ROIC(13.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROIC | 13.27% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.53%
ROIC(5y)6.71%
1.3 Margins
- 1ADS has a Profit Margin (4.94%) which is comparable to the rest of the industry.
- 1ADS's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.89%, 1ADS is in line with its industry, outperforming 45.10% of the companies in the same industry.
- 1ADS's Operating Margin has declined in the last couple of years.
- 1ADS has a worse Gross Margin (51.36%) than 66.67% of its industry peers.
- 1ADS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.89% | ||
| PM (TTM) | 4.94% | ||
| GM | 51.36% |
OM growth 3Y-17.1%
OM growth 5Y-14.1%
PM growth 3Y-31.34%
PM growth 5Y-17.34%
GM growth 3Y0.05%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
- 1ADS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 1ADS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, 1ADS has less shares outstanding
- Compared to 1 year ago, 1ADS has an improved debt to assets ratio.
2.2 Solvency
- 1ADS has an Altman-Z score of 3.35. This indicates that 1ADS is financially healthy and has little risk of bankruptcy at the moment.
- 1ADS has a Altman-Z score of 3.35. This is in the better half of the industry: 1ADS outperforms 64.71% of its industry peers.
- 1ADS has a debt to FCF ratio of 14.32. This is a negative value and a sign of low solvency as 1ADS would need 14.32 years to pay back of all of its debts.
- 1ADS's Debt to FCF ratio of 14.32 is on the low side compared to the rest of the industry. 1ADS is outperformed by 66.67% of its industry peers.
- 1ADS has a Debt/Equity ratio of 0.74. This is a neutral value indicating 1ADS is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.74, 1ADS is not doing good in the industry: 60.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.98
WACC6.71%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that 1ADS should not have too much problems paying its short term obligations.
- 1ADS's Current ratio of 1.31 is on the low side compared to the rest of the industry. 1ADS is outperformed by 68.63% of its industry peers.
- A Quick Ratio of 0.71 indicates that 1ADS may have some problems paying its short term obligations.
- 1ADS has a Quick ratio of 0.71. This is in the lower half of the industry: 1ADS underperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 219.81% over the past year.
- Measured over the past years, 1ADS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.76% on average per year.
- 1ADS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.64%.
- Measured over the past years, 1ADS shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
EPS 1Y (TTM)219.81%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%5.33%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
3.2 Future
- 1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.23% yearly.
- The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y30.23%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.45%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- 1ADS is valuated rather expensively with a Price/Earnings ratio of 22.60.
- Based on the Price/Earnings ratio, 1ADS is valued a bit cheaper than 62.75% of the companies in the same industry.
- 1ADS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- 1ADS is valuated correctly with a Price/Forward Earnings ratio of 14.17.
- Based on the Price/Forward Earnings ratio, 1ADS is valued a bit cheaper than 78.43% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, 1ADS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.6 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1ADS.
- Based on the Price/Free Cash Flow ratio, 1ADS is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.78 | ||
| EV/EBITDA | 10.63 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1ADS's earnings are expected to grow with 44.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y59.89%
EPS Next 3Y44.37%
5. Dividend
5.1 Amount
- 1ADS has a Yearly Dividend Yield of 1.23%.
- 1ADS's Dividend Yield is comparable with the industry average which is at 1.98.
- Compared to the average S&P500 Dividend Yield of 1.82, 1ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
5.2 History
- The dividend of 1ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 29.29% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP29.29%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
ADIDAS AG / 1ADS.MI FAQ
What is the ChartMill fundamental rating of ADIDAS AG (1ADS.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1ADS.MI.
What is the valuation status for 1ADS stock?
ChartMill assigns a valuation rating of 4 / 10 to ADIDAS AG (1ADS.MI). This can be considered as Fairly Valued.
What is the profitability of 1ADS stock?
ADIDAS AG (1ADS.MI) has a profitability rating of 4 / 10.
How financially healthy is ADIDAS AG?
The financial health rating of ADIDAS AG (1ADS.MI) is 4 / 10.
Is the dividend of ADIDAS AG sustainable?
The dividend rating of ADIDAS AG (1ADS.MI) is 3 / 10 and the dividend payout ratio is 29.29%.