ADESSO SE (ADN1.DE) Stock Fundamental Analysis
FRA:ADN1 - Deutsche Boerse Ag - DE000A0Z23Q5 - Common Stock - Currency: EUR
Overall ADN1 gets a fundamental rating of 4 out of 10. We evaluated ADN1 against 70 industry peers in the IT Services industry. While ADN1 seems to be doing ok healthwise, there are quite some concerns on its profitability. ADN1 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years ADN1 always reported a positive cash flow from operatings.
1.2 Ratios
ADN1's Return On Assets of 0.88% is on the low side compared to the rest of the industry. ADN1 is outperformed by 61.33% of its industry peers.
The Return On Equity of ADN1 (3.43%) is worse than 60.00% of its industry peers.
ADN1's Return On Invested Capital of 5.07% is on the low side compared to the rest of the industry. ADN1 is outperformed by 64.00% of its industry peers.
ADN1 had an Average Return On Invested Capital over the past 3 years of 4.44%. This is significantly below the industry average of 11.01%.
The last Return On Invested Capital (5.07%) for ADN1 is above the 3 year average (4.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.43% | ||
| ROIC | 5.07% |
ROA(3y)4.43%
ROA(5y)4.87%
ROE(3y)13.62%
ROE(5y)16.03%
ROIC(3y)4.44%
ROIC(5y)5.46%
1.3 Margins
Looking at the Profit Margin, with a value of 0.37%, ADN1 is doing worse than 61.33% of the companies in the same industry.
In the last couple of years the Profit Margin of ADN1 has declined.
Looking at the Operating Margin, with a value of 2.41%, ADN1 is doing worse than 69.33% of the companies in the same industry.
In the last couple of years the Operating Margin of ADN1 has declined.
With a decent Gross Margin value of 86.64%, ADN1 is doing good in the industry, outperforming 77.33% of the companies in the same industry.
ADN1's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 0.37% | ||
| GM | 86.64% |
OM growth 3Y-35.22%
OM growth 5Y-20.31%
PM growth 3Y-58.69%
PM growth 5Y-40.36%
GM growth 3Y-0.82%
GM growth 5Y-0.69%
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 about the same amout of shares outstanding than it did 1 year ago.
ADN1 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADN1 is higher compared to a year ago.
2.2 Solvency
ADN1 has an Altman-Z score of 3.42. This indicates that ADN1 is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ADN1 (3.42) is better than 76.00% of its industry peers.
The Debt to FCF ratio of ADN1 is 3.27, which is a good value as it means it would take ADN1, 3.27 years of fcf income to pay off all of its debts.
ADN1's Debt to FCF ratio of 3.27 is in line compared to the rest of the industry. ADN1 outperforms 58.67% of its industry peers.
A Debt/Equity ratio of 1.01 is on the high side and indicates that ADN1 has dependencies on debt financing.
ADN1's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. ADN1 is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.42 |
ROIC/WACC0.92
WACC5.53%
2.3 Liquidity
A Current Ratio of 1.02 indicates that ADN1 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.02, ADN1 is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.02 indicates that ADN1 should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.02, ADN1 is in line with its industry, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ADN1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.43%.
The earnings per share for ADN1 have been decreasing by -26.37% on average. This is quite bad
ADN1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.90%.
Measured over the past years, ADN1 shows a very strong growth in Revenue. The Revenue has been growing by 24.77% on average per year.
EPS 1Y (TTM)-64.43%
EPS 3Y-47.47%
EPS 5Y-26.37%
EPS Q2Q%98.31%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y29.47%
Revenue growth 5Y24.77%
Sales Q2Q%14.92%
3.2 Future
ADN1 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.56% yearly.
ADN1 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.32% yearly.
EPS Next Y42.48%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
EPS Next 5Y42.56%
Revenue Next Year17.2%
Revenue Next 2Y14.2%
Revenue Next 3Y13.18%
Revenue Next 5Y13.32%
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
Based on the Price/Earnings ratio of 84.95, the valuation of ADN1 can be described as expensive.
ADN1's Price/Earnings ratio is a bit more expensive when compared to the industry. ADN1 is more expensive than 61.33% of the companies in the same industry.
ADN1's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 20.23, which indicates a rather expensive current valuation of ADN1.
ADN1's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. ADN1 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.95 | ||
| Fwd PE | 20.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADN1 is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
ADN1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADN1 is cheaper than 88.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.67 | ||
| EV/EBITDA | 7.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ADN1 does not grow enough to justify the current Price/Earnings ratio.
ADN1's earnings are expected to grow with 58.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)N/A
EPS Next 2Y64.25%
EPS Next 3Y58.85%
5. Dividend
5.1 Amount
ADN1 has a yearly dividend return of 0.82%, which is pretty low.
ADN1's Dividend Yield is comparable with the industry average which is at 4.29.
With a Dividend Yield of 0.82, ADN1 pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
The dividend of ADN1 is nicely growing with an annual growth rate of 14.71%!
Dividend Growth(5Y)14.71%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ADN1 pays out 141.72% of its income as dividend. This is not a sustainable payout ratio.
ADN1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP141.72%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
FRA:ADN1 (3/7/2025, 7:00:00 PM)
89.2
-2.1 (-2.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners17.52%
Inst Owner ChangeN/A
Ins Owners51.92%
Ins Owner ChangeN/A
Market Cap581.58M
Analysts80
Price Target125.75 (40.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.81
Dividend Growth(5Y)14.71%
DP141.72%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.12%
PT rev (3m)5.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.95 | ||
| Fwd PE | 20.23 | ||
| P/S | 0.31 | ||
| P/FCF | 5.67 | ||
| P/OCF | 4.32 | ||
| P/B | 2.87 | ||
| P/tB | 9.06 | ||
| EV/EBITDA | 7.91 |
EPS(TTM)1.05
EY1.18%
EPS(NY)4.41
Fwd EY4.94%
FCF(TTM)15.72
FCFY17.62%
OCF(TTM)20.64
OCFY23.13%
SpS286.51
BVpS31.05
TBVpS9.85
PEG (NY)2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.43% | ||
| ROCE | 10.52% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.66% | ||
| ROICexgc | 8.87% | ||
| OM | 2.41% | ||
| PM (TTM) | 0.37% | ||
| GM | 86.64% | ||
| FCFM | 5.49% |
ROA(3y)4.43%
ROA(5y)4.87%
ROE(3y)13.62%
ROE(5y)16.03%
ROIC(3y)4.44%
ROIC(5y)5.46%
ROICexc(3y)6.02%
ROICexc(5y)7.27%
ROICexgc(3y)9.54%
ROICexgc(5y)12.32%
ROCE(3y)9.22%
ROCE(5y)11.32%
ROICexcg growth 3Y-40.62%
ROICexcg growth 5Y-48.47%
ROICexc growth 3Y-36.44%
ROICexc growth 5Y-28.67%
OM growth 3Y-35.22%
OM growth 5Y-20.31%
PM growth 3Y-58.69%
PM growth 5Y-40.36%
GM growth 3Y-0.82%
GM growth 5Y-0.69%
F-Score5
Asset Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 49.48% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 122.53% | ||
| Profit Quality | 1475.03% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.42 |
F-Score5
WACC5.53%
ROIC/WACC0.92
Cap/Depr(3y)54.67%
Cap/Depr(5y)51.19%
Cap/Sales(3y)2.8%
Cap/Sales(5y)2.6%
Profit Quality(3y)477.04%
Profit Quality(5y)350.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-64.43%
EPS 3Y-47.47%
EPS 5Y-26.37%
EPS Q2Q%98.31%
EPS Next Y42.48%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
EPS Next 5Y42.56%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y29.47%
Revenue growth 5Y24.77%
Sales Q2Q%14.92%
Revenue Next Year17.2%
Revenue Next 2Y14.2%
Revenue Next 3Y13.18%
Revenue Next 5Y13.32%
EBIT growth 1Y-7.92%
EBIT growth 3Y-16.13%
EBIT growth 5Y-0.57%
EBIT Next Year273.29%
EBIT Next 3Y76.67%
EBIT Next 5Y45.94%
FCF growth 1Y726.09%
FCF growth 3Y-7.75%
FCF growth 5Y36.3%
OCF growth 1Y272.41%
OCF growth 3Y5.77%
OCF growth 5Y33.72%