ADESSO SE (ADN1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADN1 - DE000A0Z23Q5 - Common Stock
84.1 EUR
0 (0%)
Overall ADN1 gets a fundamental rating of 5 out of 10. We evaluated ADN1 against 70 industry peers in the IT Services industry. Both the profitability and the financial health of ADN1 get a neutral evaluation. Nothing too spectacular is happening here. ADN1 is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year ADN1 was profitable.
- In the past year ADN1 had a positive cash flow from operations.
- ADN1 had positive earnings in each of the past 5 years.
- Each year in the past 5 years ADN1 had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.45%, ADN1 is doing worse than 67.14% of the companies in the same industry.
- ADN1's Return On Equity of 10.90% is in line compared to the rest of the industry. ADN1 outperforms 47.14% of its industry peers.
- ADN1 has a Return On Invested Capital of 5.23%. This is in the lower half of the industry: ADN1 underperforms 68.57% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ADN1 is significantly below the industry average of 26.75%.
- The 3 year average ROIC (3.16%) for ADN1 is below the current ROIC(5.23%), indicating increased profibility in the last year.
| 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 70.00% of its industry peers.
- In the last couple of years the Profit Margin of ADN1 has declined.
- ADN1 has a Operating Margin of 2.96%. This is in the lower half of the industry: ADN1 underperforms 72.86% of its industry peers.
- ADN1's Operating Margin has declined in the last couple of years.
- ADN1 has a Gross Margin of 85.30%. This is in the better half of the industry: ADN1 outperforms 74.29% of its industry peers.
- ADN1's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADN1 is destroying value.
- ADN1 has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ADN1 has been increased compared to 5 years ago.
- 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.
- ADN1 has a Altman-Z score of 3.60. This is in the better half of the industry: ADN1 outperforms 72.86% of its industry peers.
- ADN1 has a debt to FCF ratio of 7.88. This is a slightly negative value and a sign of low solvency as ADN1 would need 7.88 years to pay back of all of its debts.
- ADN1's Debt to FCF ratio of 7.88 is on the low side compared to the rest of the industry. ADN1 is outperformed by 70.00% 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 75.71% 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
- A Current Ratio of 1.30 indicates that ADN1 should not have too much problems paying its short term obligations.
- ADN1 has a Current ratio (1.30) which is comparable to the rest of the 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 Quick ratio of 1.30. This is in the better half of the industry: ADN1 outperforms 64.29% 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.
- Measured over the past years, ADN1 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.02% on average per year.
- The Revenue has grown by 12.60% in the past year. This is quite good.
- The Revenue has been growing by 23.60% on average over the past years. This is a very strong growth!
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
- 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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 26.36 indicates a quite expensive valuation of ADN1.
- ADN1's Price/Earnings is on the same level as the industry average.
- ADN1's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.82.
- Based on the Price/Forward Earnings ratio of 15.52, the valuation of ADN1 can be described as correct.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADN1 is on the same level as its industry peers.
- ADN1's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.36 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are more expensive than ADN1, based on the Enterprise Value to EBITDA ratio.
- ADN1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADN1 is cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
- ADN1's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ADN1's earnings are expected to grow with 59.33% in the coming years. This may justify a more expensive valuation.
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.
- Compared to an average industry Dividend Yield of 2.27, ADN1 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, ADN1's dividend is way lower than the S&P500 average.
| 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.
- ADN1's earnings are growing more than its dividend. This makes the dividend growth 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 26.36 and the Price/Book (PB) ratio is 2.87.
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.