ADESSO SE (ADN1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADN1 - DE000A0Z23Q5 - Common Stock
84.4 EUR
-1.5 (-1.75%)
We assign a fundamental rating of 5 out of 10 to ADN1. ADN1 was compared to 70 industry peers in the IT Services industry. ADN1 has an average financial health and profitability rating. ADN1 is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- ADN1 had positive earnings in the past year.
- In the past year ADN1 had a positive cash flow from operations.
- Each year in the past 5 years ADN1 has been profitable.
- In the past 5 years ADN1 always reported a positive cash flow from operatings.
1.2 Ratios
- ADN1 has a Return On Assets of 2.45%. This is in the lower half of the industry: ADN1 underperforms 64.47% of its industry peers.
- ADN1 has a Return On Equity of 10.90%. This is comparable to the rest of the industry: ADN1 outperforms 46.05% of its industry peers.
- ADN1's Return On Invested Capital of 5.23% is on the low side compared to the rest of the industry. ADN1 is outperformed by 65.79% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADN1 is significantly below the industry average of 26.75%.
- The last Return On Invested Capital (5.23%) for ADN1 is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 10.9% | ||
| ROIC | 5.23% |
ROA(3y)1.93%
ROA(5y)3.99%
ROE(3y)6.49%
ROE(5y)13.12%
ROIC(3y)3.16%
ROIC(5y)4.51%
1.3 Margins
- ADN1 has a worse Profit Margin (0.99%) than 67.11% of its industry peers.
- In the last couple of years the Profit Margin of ADN1 has declined.
- Looking at the Operating Margin, with a value of 2.96%, ADN1 is doing worse than 68.42% of the companies in the same industry.
- In the last couple of years the Operating Margin of ADN1 has declined.
- ADN1 has a Gross Margin of 85.30%. This is in the better half of the industry: ADN1 outperforms 76.32% of its industry peers.
- In the last couple of years the Gross Margin of ADN1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.96% | ||
| PM (TTM) | 0.99% | ||
| GM | 85.3% |
OM growth 3Y-30%
OM growth 5Y-15.03%
PM growth 3Y-55.28%
PM growth 5Y-30.54%
GM growth 3Y-0.02%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADN1 is destroying value.
- ADN1 has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, ADN1 has more shares outstanding
- Compared to 1 year ago, ADN1 has an improved debt to assets ratio.
2.2 Solvency
- ADN1 has an Altman-Z score of 3.60. This indicates that ADN1 is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.60, ADN1 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- The Debt to FCF ratio of ADN1 is 7.88, which is on the high side as it means it would take ADN1, 7.88 years of fcf income to pay off all of its debts.
- ADN1 has a Debt to FCF ratio of 7.88. This is in the lower half of the industry: ADN1 underperforms 69.74% of its industry peers.
- ADN1 has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
- ADN1's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. ADN1 is outperformed by 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | 7.88 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.93
WACC5.6%
2.3 Liquidity
- ADN1 has a Current Ratio of 1.30. This is a normal value and indicates that ADN1 is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.30, ADN1 perfoms like the industry average, outperforming 51.32% of the companies in the same industry.
- ADN1 has a Quick Ratio of 1.30. This is a normal value and indicates that ADN1 is financially healthy and should not expect problems in meeting its short term obligations.
- ADN1 has a better Quick ratio (1.30) than 61.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- ADN1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 200.98%, which is quite impressive.
- ADN1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.02% yearly.
- ADN1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.60%.
- ADN1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.60% yearly.
EPS 1Y (TTM)200.98%
EPS 3Y-45.14%
EPS 5Y-15.02%
EPS Q2Q%9.8%
Revenue 1Y (TTM)12.6%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%13.44%
3.2 Future
- ADN1 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.34% yearly.
- ADN1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.28% yearly.
EPS Next Y83.56%
EPS Next 2Y72.36%
EPS Next 3Y59.33%
EPS Next 5Y39.34%
Revenue Next Year10.53%
Revenue Next 2Y10.3%
Revenue Next 3Y10.23%
Revenue Next 5Y10.28%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.46, which means the current valuation is very expensive for ADN1.
- ADN1's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, ADN1 is valued at the same level.
- ADN1 is valuated correctly with a Price/Forward Earnings ratio of 15.58.
- The rest of the industry has a similar Price/Forward Earnings ratio as ADN1.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ADN1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADN1 is valued a bit cheaper than the industry average as 69.74% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, ADN1 is valued a bit cheaper than the industry average as 65.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.79 | ||
| EV/EBITDA | 6.4 |
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 ADN1's earnings are expected to grow with 59.33% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y72.36%
EPS Next 3Y59.33%
5. Dividend
5.1 Amount
- ADN1 has a yearly dividend return of 0.87%, which is pretty low.
- ADN1's Dividend Yield is comparable with the industry average which is at 2.27.
- With a Dividend Yield of 0.87, ADN1 pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
- On average, the dividend of ADN1 grows each year by 15.65%, which is quite nice.
Dividend Growth(5Y)15.65%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
- 31.75% of the earnings are spent on dividend by ADN1. This is a low number and sustainable payout ratio.
- The dividend of ADN1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.75%
EPS Next 2Y72.36%
EPS Next 3Y59.33%
ADESSO SE / ADN1.DE FAQ
What is the ChartMill fundamental rating of ADESSO SE (ADN1.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to ADN1.DE.
Can you provide the valuation status for ADESSO SE?
ChartMill assigns a valuation rating of 5 / 10 to ADESSO SE (ADN1.DE). This can be considered as Fairly Valued.
What is the profitability of ADN1 stock?
ADESSO SE (ADN1.DE) has a profitability rating of 4 / 10.
What are the PE and PB ratios of ADESSO SE (ADN1.DE) stock?
The Price/Earnings (PE) ratio for ADESSO SE (ADN1.DE) is 26.46 and the Price/Book (PB) ratio is 2.88.
Can you provide the expected EPS growth for ADN1 stock?
The Earnings per Share (EPS) of ADESSO SE (ADN1.DE) is expected to grow by 83.56% in the next year.