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ADIDAS AG (1ADS.MI) Stock Fundamental Analysis

BIT:1ADS - Borsa Italiana Milan - DE000A1EWWW0 - Common Stock - Currency: EUR

252.5  -3.4 (-1.33%)

Fundamental Rating

4

Overall 1ADS gets a fundamental rating of 4 out of 10. We evaluated 1ADS against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. While 1ADS seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, 1ADS is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

1ADS had positive earnings in the past year.
1ADS had a positive operating cash flow in the past year.
Of the past 5 years 1ADS 4 years were profitable.
Of the past 5 years 1ADS 4 years had a positive operating cash flow.
1ADS.MI Yearly Net Income VS EBIT VS OCF VS FCF1ADS.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B 3B

1.2 Ratios

Looking at the Return On Assets, with a value of 2.16%, 1ADS is in line with its industry, outperforming 45.00% of the companies in the same industry.
With a Return On Equity value of 8.22%, 1ADS perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
With a Return On Invested Capital value of 6.08%, 1ADS perfoms like the industry average, outperforming 42.50% of the companies in the same industry.
1ADS had an Average Return On Invested Capital over the past 3 years of 6.48%. This is below the industry average of 11.32%.
Industry RankSector Rank
ROA 2.16%
ROE 8.22%
ROIC 6.08%
ROA(3y)4.05%
ROA(5y)4.75%
ROE(3y)12.92%
ROE(5y)14.91%
ROIC(3y)6.48%
ROIC(5y)8.45%
1ADS.MI Yearly ROA, ROE, ROIC1ADS.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20

1.3 Margins

The Profit Margin of 1ADS (1.88%) is worse than 65.00% of its industry peers.
Looking at the Operating Margin, with a value of 4.01%, 1ADS is doing worse than 65.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ADS has declined.
With a Gross Margin value of 49.72%, 1ADS is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
1ADS's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 4.01%
PM (TTM) 1.88%
GM 49.72%
OM growth 3Y-36.06%
OM growth 5Y-35.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y-1.73%
1ADS.MI Yearly Profit, Operating, Gross Margins1ADS.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30 40 50

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5

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.
Compared to 1 year ago, 1ADS has less shares outstanding
The number of shares outstanding for 1ADS has been reduced compared to 5 years ago.
The debt/assets ratio for 1ADS has been reduced compared to a year ago.
1ADS.MI Yearly Shares Outstanding1ADS.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
1ADS.MI Yearly Total Debt VS Total Assets1ADS.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

2.2 Solvency

An Altman-Z score of 3.79 indicates that 1ADS is not in any danger for bankruptcy at the moment.
1ADS has a Altman-Z score of 3.79. This is in the better half of the industry: 1ADS outperforms 65.00% of its industry peers.
The Debt to FCF ratio of 1ADS is 2.55, which is a good value as it means it would take 1ADS, 2.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.55, 1ADS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
1ADS has a Debt/Equity ratio of 0.94. This is a neutral value indicating 1ADS is somewhat dependend on debt financing.
1ADS has a worse Debt to Equity ratio (0.94) than 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 2.55
Altman-Z 3.79
ROIC/WACC0.97
WACC6.26%
1ADS.MI Yearly LT Debt VS Equity VS FCF1ADS.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

2.3 Liquidity

1ADS has a Current Ratio of 1.32. This is a normal value and indicates that 1ADS is financially healthy and should not expect problems in meeting its short term obligations.
1ADS has a Current ratio of 1.32. This is in the lower half of the industry: 1ADS underperforms 75.00% of its industry peers.
1ADS has a Quick Ratio of 1.32. This is a bad value and indicates that 1ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
1ADS's Quick ratio of 0.78 is in line compared to the rest of the industry. 1ADS outperforms 47.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.32
Quick Ratio 0.78
1ADS.MI Yearly Current Assets VS Current Liabilites1ADS.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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5

3. Growth

3.1 Past

1ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 340.91%, which is quite impressive.
1ADS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.24%.
1ADS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.45% yearly.
EPS 1Y (TTM)340.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.29%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.14%
Revenue growth 5Y-0.45%
Sales Q2Q%7.32%

3.2 Future

Based on estimates for the next years, 1ADS will show a very strong growth in Earnings Per Share. The EPS will grow by 90.75% on average per year.
Based on estimates for the next years, 1ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.58% on average per year.
EPS Next Y732.23%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
EPS Next 5Y90.75%
Revenue Next Year7.69%
Revenue Next 2Y8.79%
Revenue Next 3Y9.02%
Revenue Next 5Y8.58%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
1ADS.MI Yearly Revenue VS Estimates1ADS.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B
1ADS.MI Yearly EPS VS Estimates1ADS.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 5 10 15 20

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 119.10, which means the current valuation is very expensive for 1ADS.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADS indicates a slightly more expensive valuation: 1ADS is more expensive than 62.50% of the companies listed in the same industry.
1ADS's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.47.
1ADS is valuated quite expensively with a Price/Forward Earnings ratio of 32.37.
1ADS's Price/Forward Earnings ratio is in line with the industry average.
1ADS is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 119.1
Fwd PE 32.37
1ADS.MI Price Earnings VS Forward Price Earnings1ADS.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 1ADS is valued a bit more expensive than 75.00% of the companies in the same industry.
1ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1ADS is more expensive than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.73
EV/EBITDA 22.86
1ADS.MI Per share data1ADS.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

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.
A more expensive valuation may be justified as 1ADS's earnings are expected to grow with 166.79% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y269.38%
EPS Next 3Y166.79%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.27%, 1ADS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.87, 1ADS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.28, 1ADS's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.27%

5.2 History

The dividend of 1ADS decreases each year by -23.22%.
Dividend Growth(5Y)-23.22%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

29.48% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP29.48%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
1ADS.MI Yearly Income VS Free CF VS Dividend1ADS.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B
1ADS.MI Dividend Payout.1ADS.MI Dividend Payout, showing the Payout Ratio.1ADS.MI Dividend Payout.PayoutRetained Earnings

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ADIDAS AG

BIT:1ADS (2/3/2025, 7:00:00 PM)

252.5

-3.4 (-1.33%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-29 2024-10-29/bmo
Earnings (Next)N/A N/A
Inst Owners50.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.45B
Analysts71.67
Price Target267.37 (5.89%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.27%
Yearly Dividend0.7
Dividend Growth(5Y)-23.22%
DP29.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.38%
Min EPS beat(2)20.45%
Max EPS beat(2)36.32%
EPS beat(4)2
Avg EPS beat(4)-1.94%
Min EPS beat(4)-43.37%
Max EPS beat(4)36.32%
EPS beat(8)5
Avg EPS beat(8)17.09%
EPS beat(12)8
Avg EPS beat(12)11.14%
EPS beat(16)11
Avg EPS beat(16)12.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.62%
PT rev (1m)4.75%
PT rev (3m)9.42%
EPS NQ rev (1m)25.42%
EPS NQ rev (3m)39.72%
EPS NY rev (1m)9.58%
EPS NY rev (3m)23.9%
Revenue NQ rev (1m)5.39%
Revenue NQ rev (3m)5.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE 119.1
Fwd PE 32.37
P/S 2.02
P/FCF 20.73
P/OCF 16.82
P/B 8.81
P/tB 12.92
EV/EBITDA 22.86
EPS(TTM)2.12
EY0.84%
EPS(NY)7.8
Fwd EY3.09%
FCF(TTM)12.18
FCFY4.83%
OCF(TTM)15.01
OCFY5.94%
SpS125.16
BVpS28.67
TBVpS19.54
PEG (NY)0.16
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.16%
ROE 8.22%
ROCE 8.11%
ROIC 6.08%
ROICexc 7.93%
ROICexgc 9.82%
OM 4.01%
PM (TTM) 1.88%
GM 49.72%
FCFM 9.73%
ROA(3y)4.05%
ROA(5y)4.75%
ROE(3y)12.92%
ROE(5y)14.91%
ROIC(3y)6.48%
ROIC(5y)8.45%
ROICexc(3y)8.61%
ROICexc(5y)11.34%
ROICexgc(3y)10.45%
ROICexgc(5y)14.7%
ROCE(3y)8.64%
ROCE(5y)11.27%
ROICexcg growth 3Y-35.74%
ROICexcg growth 5Y-42.93%
ROICexc growth 3Y-33.59%
ROICexc growth 5Y-40.01%
OM growth 3Y-36.06%
OM growth 5Y-35.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y-1.73%
F-Score7
Asset Turnover1.15
Health
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 2.55
Debt/EBITDA 2.34
Cap/Depr 43.14%
Cap/Sales 2.26%
Interest Coverage 5.16
Cash Conversion 129.72%
Profit Quality 517.22%
Current Ratio 1.32
Quick Ratio 0.78
Altman-Z 3.79
F-Score7
WACC6.26%
ROIC/WACC0.97
Cap/Depr(3y)50.06%
Cap/Depr(5y)48.17%
Cap/Sales(3y)2.86%
Cap/Sales(5y)2.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)340.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.29%
EPS Next Y732.23%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
EPS Next 5Y90.75%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.14%
Revenue growth 5Y-0.45%
Sales Q2Q%7.32%
Revenue Next Year7.69%
Revenue Next 2Y8.79%
Revenue Next 3Y9.02%
Revenue Next 5Y8.58%
EBIT growth 1Y1243.04%
EBIT growth 3Y-32.77%
EBIT growth 5Y-36.17%
EBIT Next Year794.7%
EBIT Next 3Y145.69%
EBIT Next 5Y79.45%
FCF growth 1Y662.31%
FCF growth 3Y25.18%
FCF growth 5Y0.64%
OCF growth 1Y549.52%
OCF growth 3Y19.72%
OCF growth 5Y-1.06%