ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADS - DE000A1EWWW0 - Common Stock
152.7 EUR
-0.95 (-0.62%)
Taking everything into account, 1ADS scores 4 out of 10 in our fundamental rating. 1ADS was compared to 48 industry peers in the Textiles, Apparel & Luxury Goods industry. While 1ADS is still in line with the averages on profitability rating, there are concerns on its financial health. 1ADS has a decent growth rate and is not valued too expensively.
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.
1.2 Ratios
1ADS has a Return On Assets (6.05%) which is comparable to the rest of the industry.
1ADS has a better Return On Equity (21.39%) than 75.00% of its industry peers.
With a decent Return On Invested Capital value of 13.27%, 1ADS is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ADS is significantly below the industry average of 12.19%.
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.
The Operating Margin of 1ADS (7.89%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 1ADS has declined.
1ADS has a Gross Margin of 51.36%. This is in the lower half of the industry: 1ADS underperforms 72.92% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ADS 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 3.24. This indicates that 1ADS is financially healthy and has little risk of bankruptcy at the moment.
1ADS has a Altman-Z score of 3.24. This is comparable to the rest of the industry: 1ADS outperforms 56.25% 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 has a Debt to FCF ratio of 14.32. This is in the lower half of the industry: 1ADS underperforms 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.
The Debt to Equity ratio of 1ADS (0.74) is worse than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.24 |
ROIC/WACC1.92
WACC6.93%
2.3 Liquidity
A Current Ratio of 1.31 indicates that 1ADS should not have too much problems paying its short term obligations.
The Current ratio of 1ADS (1.31) is worse than 68.75% of its industry peers.
1ADS has a Quick Ratio of 1.31. This is a bad value and indicates that 1ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.71, 1ADS is doing worse than 62.50% of the companies in the same industry.
| 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.
The Revenue has grown by 9.64% in the past year. This is quite good.
The Revenue has been growing slightly by 0.04% on average over the past years.
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
The Earnings Per Share is expected to grow by 31.71% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1ADS will show a small growth in Revenue. The Revenue will grow by 7.56% on average per year.
EPS Next Y79.21%
EPS Next 2Y59.74%
EPS Next 3Y45.08%
EPS Next 5Y31.71%
Revenue Next Year6.47%
Revenue Next 2Y7.4%
Revenue Next 3Y7.84%
Revenue Next 5Y7.56%
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
With a Price/Earnings ratio of 22.52, 1ADS is valued on the expensive side.
Based on the Price/Earnings ratio, 1ADS is valued a bit cheaper than 72.92% of the companies in the same industry.
1ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
The Price/Forward Earnings ratio is 14.15, which indicates a correct valuation of 1ADS.
Based on the Price/Forward Earnings ratio, 1ADS is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
1ADS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 14.15 |
4.2 Price Multiples
60.42% of the companies in the same industry are more expensive than 1ADS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADS indicates a slightly more expensive valuation: 1ADS is more expensive than 72.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.52 | ||
| EV/EBITDA | 9.78 |
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 45.08% in the coming years.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y59.74%
EPS Next 3Y45.08%
5. Dividend
5.1 Amount
1ADS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
The stock price of 1ADS dropped by -29.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1ADS's Dividend Yield is slightly below the industry average, which is at 2.91.
With a Dividend Yield of 1.31, 1ADS pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 2Y59.74%
EPS Next 3Y45.08%
BIT:1ADS (11/20/2025, 7:00:00 PM)
152.7
-0.95 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.49B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target238.95 (56.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)-1.59%
PT rev (3m)-4.09%
EPS NQ rev (1m)5.57%
EPS NQ rev (3m)18.62%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.52 | ||
| Fwd PE | 14.15 | ||
| P/S | 1.11 | ||
| P/FCF | 72.52 | ||
| P/OCF | 30.17 | ||
| P/B | 4.82 | ||
| P/tB | 6.76 | ||
| EV/EBITDA | 9.78 |
EPS(TTM)6.78
EY4.44%
EPS(NY)10.79
Fwd EY7.07%
FCF(TTM)2.11
FCFY1.38%
OCF(TTM)5.06
OCFY3.31%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.28
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 | 3.24 |
F-Score7
WACC6.93%
ROIC/WACC1.92
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 Y79.21%
EPS Next 2Y59.74%
EPS Next 3Y45.08%
EPS Next 5Y31.71%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.47%
Revenue Next 2Y7.4%
Revenue Next 3Y7.84%
Revenue Next 5Y7.56%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year154.98%
EBIT Next 3Y52.03%
EBIT Next 5Y33.1%
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 of ADIDAS AG (1ADS.MI) stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the PE and PB ratios for 1ADS stock?
The Price/Earnings (PE) ratio for ADIDAS AG (1ADS.MI) is 22.52 and the Price/Book (PB) ratio is 4.82.
Can you provide the financial health for 1ADS stock?
The financial health rating of ADIDAS AG (1ADS.MI) is 3 / 10.