ADESSO SE (ADN1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADN1 - DE000A0Z23Q5 - Common Stock
84.3 EUR
-0.1 (-0.12%)
We assign a fundamental rating of 5 out of 10 to ADN1. ADN1 was compared to 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 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.
- ADN1 had a positive operating cash flow in the past year.
- Each year in the past 5 years ADN1 has been profitable.
- ADN1 had a positive operating cash flow in each of the past 5 years.
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.
- With a Return On Equity value of 10.90%, ADN1 perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
- The Return On Invested Capital of ADN1 (5.23%) is worse than 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
- With a Profit Margin value of 0.99%, ADN1 is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
- In the last couple of years the Profit Margin of ADN1 has declined.
- ADN1 has a worse Operating Margin (2.96%) than 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.
- 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.
- Compared to 1 year ago, ADN1 has less shares outstanding
- 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
- An Altman-Z score of 3.60 indicates that ADN1 is not in any danger for bankruptcy at the moment.
- ADN1 has a Altman-Z score of 3.60. This is in the better half of the industry: ADN1 outperforms 74.29% of its industry peers.
- 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 worse Debt to FCF ratio (7.88) than 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.
- The Debt to Equity ratio of ADN1 (1.60) is worse than 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 of 1.30. This is comparable to the rest of the industry: ADN1 outperforms 57.14% of its industry peers.
- 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 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 200.98% over the past year.
- ADN1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.02% yearly.
- Looking at the last year, ADN1 shows a quite strong growth in Revenue. The Revenue has grown by 12.60% in the last year.
- Measured over the past years, ADN1 shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
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
- ADN1 is valuated quite expensively with a Price/Earnings ratio of 26.43.
- 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 27.21.
- The Price/Forward Earnings ratio is 15.56, which indicates a correct valuation of ADN1.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADN1 is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, ADN1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.43 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADN1 is valued a bit cheaper than 68.57% of the companies in the same industry.
- 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 | 11.78 | ||
| 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
- With a yearly dividend of 0.87%, ADN1 is not a good candidate for dividend investing.
- ADN1's Dividend Yield is comparable with the industry average which is at 2.27.
- Compared to an average S&P500 Dividend Yield of 1.81, ADN1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
- The dividend of ADN1 is nicely growing with an annual growth rate of 15.65%!
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 26.43 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.