ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADS - DE000A1EWWW0 - Common Stock
168.45 EUR
+4.3 (+2.62%)
We assign a fundamental rating of 4 out of 10 to 1ADS. 1ADS was compared to 46 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of 1ADS while its profitability can be described as average. 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.
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 6.05% is in line compared to the rest of the industry. 1ADS outperforms 54.90% of its industry peers.
The Return On Equity of 1ADS (21.39%) is better than 74.51% of its industry peers.
1ADS's Return On Invested Capital of 13.27% is fine compared to the rest of the industry. 1ADS outperforms 74.51% 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 13.28%.
The last Return On Invested Capital (13.27%) for 1ADS is above the 3 year average (5.53%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.94%, 1ADS is in line with its industry, outperforming 49.02% of the companies in the same industry.
1ADS's Profit Margin has declined in the last couple of years.
1ADS has a Operating Margin (7.89%) which is comparable to the rest of the industry.
1ADS's Operating Margin has declined in the last couple of years.
1ADS's Gross Margin of 51.36% is on the low side compared to the rest of the industry. 1ADS is outperformed by 72.55% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ADS is creating value.
Compared to 1 year ago, 1ADS has about the same amount of shares outstanding.
1ADS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ADS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.35 indicates that 1ADS is not in any danger for bankruptcy at the moment.
1ADS's Altman-Z score of 3.35 is in line compared to the rest of the industry. 1ADS outperforms 56.86% of its industry peers.
The Debt to FCF ratio of 1ADS is 14.32, which is on the high side as it means it would take 1ADS, 14.32 years of fcf income to pay off 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 72.55% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 1ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of 1ADS (0.74) is worse than 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.35 |
ROIC/WACC2
WACC6.65%
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 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
1ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 219.81%, which is quite impressive.
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.
The Revenue has grown by 9.64% in the past year. This is quite good.
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 31.63% yearly.
1ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y31.63%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.8%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.85 indicates a rather expensive valuation of 1ADS.
Based on the Price/Earnings ratio, 1ADS is valued a bit cheaper than the industry average as 62.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. 1ADS is around the same levels.
1ADS is valuated correctly with a Price/Forward Earnings ratio of 15.58.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ADS indicates a somewhat cheap valuation: 1ADS is cheaper than 76.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. 1ADS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
1ADS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1ADS is valued a bit more expensive than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80 | ||
| EV/EBITDA | 10.57 |
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 44.37% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y59.89%
EPS Next 3Y44.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.22%, 1ADS has a reasonable but not impressive dividend return.
1ADS's Dividend Yield is comparable with the industry average which is at 2.06.
1ADS's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
1ADS pays out 29.29% of its income as dividend. This is a sustainable payout ratio.
DP29.29%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
BIT:1ADS (12/29/2025, 7:00:00 PM)
168.45
+4.3 (+2.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.32B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target236.11 (40.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.29%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-3.88%
Max EPS beat(2)3.46%
EPS beat(4)3
Avg EPS beat(4)5.26%
Min EPS beat(4)-3.88%
Max EPS beat(4)15.64%
EPS beat(8)5
Avg EPS beat(8)1.66%
EPS beat(12)8
Avg EPS beat(12)13.15%
EPS beat(16)11
Avg EPS beat(16)9.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.83%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-2.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)2.63%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.62%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-1.19%
PT rev (3m)-3.7%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)11.13%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 15.58 | ||
| P/S | 1.23 | ||
| P/FCF | 80 | ||
| P/OCF | 33.28 | ||
| P/B | 5.32 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)6.78
EY4.02%
EPS(NY)10.81
Fwd EY6.42%
FCF(TTM)2.11
FCFY1.25%
OCF(TTM)5.06
OCFY3%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.31
PEG (5Y)N/A
Graham Number69.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROCE | 17.7% | ||
| ROIC | 13.27% | ||
| ROICexc | 15.69% | ||
| ROICexgc | 19.03% | ||
| OM | 7.89% | ||
| PM (TTM) | 4.94% | ||
| GM | 51.36% | ||
| FCFM | 1.53% |
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%
ROICexgc growth 3Y-9.6%
ROICexgc 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-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 45.32% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 8.36 | ||
| Cash Conversion | 29.17% | ||
| Profit Quality | 31.09% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.35 |
F-Score7
WACC6.65%
ROIC/WACC2
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)219.81%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%5.33%
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y31.63%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.8%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year155.69%
EBIT Next 3Y51.76%
EBIT Next 5Y33.25%
FCF growth 1Y-70.96%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y-49.25%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%
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 3 / 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%.