ADESSO SE (ADN1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADN1 - DE000A0Z23Q5 - Common Stock
84.8 EUR
+0.4 (+0.47%)
ADN1 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year ADN1 was profitable.
- ADN1 had a positive operating cash flow in the past year.
- 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 has a Return On Equity of 10.90%. This is comparable to the rest of the industry: ADN1 outperforms 47.14% of its industry peers.
- ADN1 has a worse Return On Invested Capital (5.23%) 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 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
- The Profit Margin of ADN1 (0.99%) is worse than 70.00% of its industry peers.
- ADN1's Profit Margin has declined in the last couple of years.
- ADN1 has a worse Operating Margin (2.96%) than 72.86% of its industry peers.
- In the last couple of years the Operating Margin of ADN1 has declined.
- The Gross Margin of ADN1 (85.30%) is better than 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
- ADN1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- With a decent Altman-Z score value of 3.60, ADN1 is doing good in the industry, outperforming 74.29% 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 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 has a Debt to Equity ratio of 1.60. This is in the lower half of the industry: ADN1 underperforms 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
WACC5.61%
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.
- The Current ratio of ADN1 (1.30) is comparable to the rest of the industry.
- A Quick Ratio of 1.30 indicates that ADN1 should not have too much problems paying its short term obligations.
- ADN1's Quick ratio of 1.30 is fine compared to the rest 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
- 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.
- ADN1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.60%.
- 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
- The Earnings Per Share is expected to grow by 39.34% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 10.28% on average over the next years. This is quite good.
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
- With a Price/Earnings ratio of 26.58, ADN1 can be considered very expensive at the moment.
- ADN1's Price/Earnings ratio is in line with the industry average.
- ADN1's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 15.65 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 | 26.58 | ||
| Fwd PE | 15.65 |
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.
- Based on the Price/Free Cash Flow ratio, ADN1 is valued a bit cheaper than 65.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.85 | ||
| EV/EBITDA | 6.4 |
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.
- With a Dividend Yield of 0.87, ADN1 pays less dividend than the S&P500 average, which is at 1.82.
| 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 26.58 and the Price/Book (PB) ratio is 2.9.
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.