ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
BIT:1ADS - Euronext Milan - DE000A1EWWW0 - Common Stock - Currency: EUR
Taking everything into account, 1ADS scores 4 out of 10 in our fundamental rating. 1ADS was compared to 44 industry peers in the Textiles, Apparel & Luxury Goods industry. 1ADS has only an average score on both its financial health and profitability. 1ADS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ADS was profitable.
In the past year 1ADS had a positive cash flow from operations.
Of the past 5 years 1ADS 4 years were profitable.
Of the past 5 years 1ADS 4 years had a positive operating cash flow.
1.2 Ratios
1ADS's Return On Assets of 5.09% is fine compared to the rest of the industry. 1ADS outperforms 61.36% of its industry peers.
Looking at the Return On Equity, with a value of 17.90%, 1ADS is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
The Return On Invested Capital of 1ADS (10.84%) is comparable to the rest of the industry.
1ADS had an Average Return On Invested Capital over the past 3 years of 5.53%. This is significantly below the industry average of 10.71%.
The last Return On Invested Capital (10.84%) for 1ADS is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROIC | 10.84% |
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 (4.19%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 1ADS has declined.
1ADS has a Operating Margin of 6.61%. This is comparable to the rest of the industry: 1ADS outperforms 40.91% of its industry peers.
1ADS's Operating Margin has declined in the last couple of years.
1ADS has a worse Gross Margin (51.01%) than 68.18% of its industry peers.
In the last couple of years the Gross Margin of 1ADS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
1ADS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1ADS has less shares outstanding
The debt/assets ratio for 1ADS has been reduced compared to a year ago.
2.2 Solvency
1ADS has an Altman-Z score of 3.48. This indicates that 1ADS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.48, 1ADS is in the better half of the industry, outperforming 70.45% of the companies in the same industry.
1ADS has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as 1ADS would need 3.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.47, 1ADS is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
1ADS has a Debt/Equity ratio of 0.75. This is a neutral value indicating 1ADS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, 1ADS is doing worse than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.53
WACC7.09%
2.3 Liquidity
1ADS has a Current Ratio of 1.29. This is a normal value and indicates that 1ADS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1ADS (1.29) is worse than 70.45% of its industry peers.
1ADS has a Quick Ratio of 1.29. This is a bad value and indicates that 1ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.72, 1ADS perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
1ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1114.89%, which is quite impressive.
1ADS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.76% yearly.
The Revenue has grown by 12.80% in the past year. This is quite good.
1ADS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
3.2 Future
1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.72% yearly.
Based on estimates for the next years, 1ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 quite expensively with a Price/Earnings ratio of 34.74.
61.36% of the companies in the same industry are cheaper than 1ADS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.15, 1ADS is valued a bit more expensive.
1ADS is valuated rather expensively with a Price/Forward Earnings ratio of 17.43.
72.73% of the companies in the same industry are more expensive than 1ADS, based on the Price/Forward Earnings ratio.
1ADS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADS is valued a bit more expensive than the industry average as 70.45% of the companies are valued more cheaply.
1ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1ADS is more expensive than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
1ADS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1ADS's earnings are expected to grow with 47.10% in the coming years.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.04%, 1ADS has a reasonable but not impressive dividend return.
1ADS's Dividend Yield is slightly below the industry average, which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.42, 1ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
12.23% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP12.23%
EPS Next 2Y64%
EPS Next 3Y47.1%
BIT:1ADS (6/30/2025, 7:00:00 PM)
198.35
-0.85 (-0.43%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners52.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap35.70B
Analysts78.38
Price Target264.64 (33.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP12.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.73%
Min EPS beat(2)5.82%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)5.82%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)26.41%
EPS beat(12)8
Avg EPS beat(12)7.56%
EPS beat(16)11
Avg EPS beat(16)10.75%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.93%
PT rev (3m)-1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 17.43 | ||
| P/S | 1.46 | ||
| P/FCF | 22.22 | ||
| P/OCF | 16.66 | ||
| P/B | 6.25 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)5.71
EY2.88%
EPS(NY)11.38
Fwd EY5.74%
FCF(TTM)8.93
FCFY4.5%
OCF(TTM)11.91
OCFY6%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROCE | 14.45% | ||
| ROIC | 10.84% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 16.4% | ||
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% | ||
| FCFM | 6.59% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.53%
ROIC(5y)6.71%
ROICexc(3y)6.96%
ROICexc(5y)9.19%
ROICexgc(3y)8.67%
ROICexgc(5y)11.56%
ROCE(3y)7.37%
ROCE(5y)8.95%
ROICexcg growth 3Y-9.6%
ROICexcg growth 5Y-13.31%
ROICexc growth 3Y-10.88%
ROICexc growth 5Y-12.05%
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%
F-Score9
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 75.78% | ||
| Profit Quality | 157.24% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.48 |
F-Score9
WACC7.09%
ROIC/WACC1.53
Cap/Depr(3y)45.61%
Cap/Depr(5y)45.44%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.31%
FCF growth 1Y222.67%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y426.18%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%