ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
BIT:1ADS - Euronext Milan - DE000A1EWWW0 - Common Stock - Currency: EUR
1ADS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of 1ADS get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, 1ADS is valued expensive at the moment.
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.
1ADS had positive earnings in 4 of the past 5 years.
1ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.70%, 1ADS is in line with its industry, outperforming 52.27% of the companies in the same industry.
The Return On Equity of 1ADS (13.95%) is better than 61.36% of its industry peers.
1ADS has a Return On Invested Capital (9.06%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1ADS is significantly below the industry average of 10.98%.
The 3 year average ROIC (5.53%) for 1ADS is below the current ROIC(9.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 13.95% | ||
| ROIC | 9.06% |
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
The Profit Margin of 1ADS (3.23%) 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 5.65%. This is in the lower half of the industry: 1ADS underperforms 63.64% of its industry peers.
1ADS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 50.77%, 1ADS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 | 5.65% | ||
| PM (TTM) | 3.23% | ||
| GM | 50.77% |
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) just above the Cost of Capital (WACC), 1ADS is creating some value.
1ADS has about the same amout of shares outstanding than it did 1 year ago.
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 3.62 indicates that 1ADS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.62, 1ADS is doing good in the industry, outperforming 70.45% of the companies in the same industry.
1ADS has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as 1ADS would need 2.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.36, 1ADS is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
1ADS has a Debt/Equity ratio of 0.81. This is a neutral value indicating 1ADS is somewhat dependend on debt financing.
1ADS's Debt to Equity ratio of 0.81 is on the low side compared to the rest of the industry. 1ADS is outperformed by 63.64% of its industry peers.
Although 1ADS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.62 |
ROIC/WACC1.38
WACC6.57%
2.3 Liquidity
A Current Ratio of 1.24 indicates that 1ADS should not have too much problems paying its short term obligations.
The Current ratio of 1ADS (1.24) is worse than 72.73% of its industry peers.
A Quick Ratio of 0.72 indicates that 1ADS may have some problems paying its short term obligations.
The Quick ratio of 1ADS (0.72) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 750.62% over the past year.
1ADS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.25% yearly.
Looking at the last year, 1ADS shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
The Revenue has been growing slightly by 0.04% on average over the past years.
EPS 1Y (TTM)750.62%
EPS 3Y-16.73%
EPS 5Y-15.25%
EPS Q2Q%94.48%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%23.64%
3.2 Future
1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.05% yearly.
The Revenue is expected to grow by 7.82% on average over the next years.
EPS Next Y77.78%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
EPS Next 5Y30.05%
Revenue Next Year10.4%
Revenue Next 2Y10.07%
Revenue Next 3Y9.2%
Revenue Next 5Y7.82%
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
With a Price/Earnings ratio of 55.50, 1ADS can be considered very expensive at the moment.
1ADS's Price/Earnings 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.
When comparing the Price/Earnings ratio of 1ADS to the average of the S&P500 Index (29.35), we can say 1ADS is valued expensively.
Based on the Price/Forward Earnings ratio of 31.23, the valuation of 1ADS can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1ADS.
1ADS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.5 | ||
| Fwd PE | 31.23 |
4.2 Price Multiples
1ADS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1ADS is more expensive than 79.55% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ADS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.38 | ||
| EV/EBITDA | 17.6 |
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 48.52% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y62.79%
EPS Next 3Y48.52%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, 1ADS is not a good candidate for dividend investing.
1ADS's Dividend Yield is slightly below the industry average, which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.33, 1ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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
16.36% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP16.36%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
BIT:1ADS (3/6/2025, 7:00:00 PM)
242
+3.4 (+1.42%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners51.74%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap43.56B
Analysts71.89
Price Target268.9 (11.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP16.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.64%
Min EPS beat(2)36.32%
Max EPS beat(2)58.96%
EPS beat(4)3
Avg EPS beat(4)23.64%
Min EPS beat(4)-21.15%
Max EPS beat(4)58.96%
EPS beat(8)5
Avg EPS beat(8)23.94%
EPS beat(12)8
Avg EPS beat(12)11.46%
EPS beat(16)11
Avg EPS beat(16)14.8%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)4.14%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)4.14%
Revenue beat(8)5
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.08%
PT rev (1m)0.57%
PT rev (3m)4.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.5 | ||
| Fwd PE | 31.23 | ||
| P/S | 1.84 | ||
| P/FCF | 18.38 | ||
| P/OCF | 14.97 | ||
| P/B | 7.96 | ||
| P/tB | 11.54 | ||
| EV/EBITDA | 17.6 |
EPS(TTM)4.36
EY1.8%
EPS(NY)7.75
Fwd EY3.2%
FCF(TTM)13.17
FCFY5.44%
OCF(TTM)16.17
OCFY6.68%
SpS131.57
BVpS30.42
TBVpS20.97
PEG (NY)0.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 13.95% | ||
| ROCE | 12.09% | ||
| ROIC | 9.06% | ||
| ROICexc | 13.1% | ||
| ROICexgc | 16.84% | ||
| OM | 5.65% | ||
| PM (TTM) | 3.23% | ||
| GM | 50.77% | ||
| FCFM | 10.01% |
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-Score8
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 44.7% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 114.34% | ||
| Profit Quality | 310.21% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.62 |
F-Score8
WACC6.57%
ROIC/WACC1.38
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)750.62%
EPS 3Y-16.73%
EPS 5Y-15.25%
EPS Q2Q%94.48%
EPS Next Y77.78%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
EPS Next 5Y30.05%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%23.64%
Revenue Next Year10.4%
Revenue Next 2Y10.07%
Revenue Next 3Y9.2%
Revenue Next 5Y7.82%
EBIT growth 1Y398.88%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year152.31%
EBIT Next 3Y57.27%
EBIT Next 5Y33.59%
FCF growth 1Y15.95%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y14.21%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%