ADESSO SE (ADN1.DE) Stock Fundamental Analysis
FRA:ADN1 - Deutsche Boerse Ag - DE000A0Z23Q5 - Common Stock - Currency: EUR
Taking everything into account, ADN1 scores 4 out of 10 in our fundamental rating. ADN1 was compared to 65 industry peers in the IT Services industry. While ADN1 seems to be doing ok healthwise, there are quite some concerns on its profitability. ADN1 is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
In the past 5 years ADN1 has always been profitable.
In the past 5 years ADN1 always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.97%, ADN1 is not doing good in the industry: 64.62% of the companies in the same industry are doing better.
With a Return On Equity value of 8.33%, ADN1 is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
ADN1 has a Return On Invested Capital of 5.45%. This is in the lower half of the industry: ADN1 underperforms 64.62% 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 10.96%.
The last Return On Invested Capital (5.45%) for ADN1 is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.33% | ||
| ROIC | 5.45% |
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 (0.81%) is worse than 67.69% of its industry peers.
In the last couple of years the Profit Margin of ADN1 has declined.
The Operating Margin of ADN1 (2.94%) is worse than 69.23% of its industry peers.
ADN1's Operating Margin has declined in the last couple of years.
ADN1 has a Gross Margin of 86.36%. This is in the better half of the industry: ADN1 outperforms 75.38% 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 | 2.94% | ||
| PM (TTM) | 0.81% | ||
| GM | 86.36% |
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.
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 73.85% of its industry peers.
The Debt to FCF ratio of ADN1 is 4.07, which is a neutral value as it means it would take ADN1, 4.07 years of fcf income to pay off all of its debts.
ADN1's Debt to FCF ratio of 4.07 is in line compared to the rest of the industry. ADN1 outperforms 50.77% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that ADN1 has dependencies on debt financing.
ADN1 has a worse Debt to Equity ratio (1.29) than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.6 |
ROIC/WACC0.95
WACC5.74%
2.3 Liquidity
A Current Ratio of 1.11 indicates that ADN1 should not have too much problems paying its short term obligations.
ADN1's Current ratio of 1.11 is on the low side compared to the rest of the industry. ADN1 is outperformed by 64.62% of its industry peers.
ADN1 has a Quick Ratio of 1.11. 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 1.11. This is comparable to the rest of the industry: ADN1 outperforms 44.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 52.92% over the past year.
Measured over the past years, ADN1 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.07% on average per year.
ADN1 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.41%.
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)52.92%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%101.85%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.07%
3.2 Future
Based on estimates for the next years, ADN1 will show a very strong growth in Earnings Per Share. The EPS will grow by 39.18% on average per year.
Based on estimates for the next years, ADN1 will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y121.81%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
EPS Next 5Y39.18%
Revenue Next Year9.93%
Revenue Next 2Y10.1%
Revenue Next 3Y9.9%
Revenue Next 5Y9.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.53, the valuation of ADN1 can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADN1 indicates a slightly more expensive valuation: ADN1 is more expensive than 66.15% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADN1 to the average of the S&P500 Index (28.79), we can say ADN1 is valued slightly more expensively.
A Price/Forward Earnings ratio of 24.35 indicates a rather expensive valuation of ADN1.
ADN1's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, ADN1 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.53 | ||
| Fwd PE | 24.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADN1 is valued a bit cheaper than the industry average as 67.69% of the companies are valued more expensively.
ADN1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADN1 is cheaper than 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 6.99 |
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 65.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y77.37%
EPS Next 3Y65.85%
5. Dividend
5.1 Amount
ADN1 has a yearly dividend return of 0.75%, which is pretty low.
ADN1's Dividend Yield is slightly below the industry average, which is at 7.47.
With a Dividend Yield of 0.75, ADN1 pays less dividend than the S&P500 average, which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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 Years5
5.3 Sustainability
ADN1 pays out 38.59% of its income as dividend. This is a sustainable payout ratio.
The dividend of ADN1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.59%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
FRA:ADN1 (4/25/2025, 7:00:00 PM)
98.5
-1.5 (-1.5%)
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 Cap642.22M
Analysts80
Price Target125.61 (27.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.94
Dividend Growth(5Y)15.65%
DP38.59%
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)3.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.49%
EPS NY rev (3m)-9.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.53 | ||
| Fwd PE | 24.35 | ||
| P/S | 0.33 | ||
| P/FCF | 7.89 | ||
| P/OCF | 5.81 | ||
| P/B | 3.38 | ||
| P/tB | 12.49 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)2.43
EY2.47%
EPS(NY)4.05
Fwd EY4.11%
FCF(TTM)12.49
FCFY12.68%
OCF(TTM)16.96
OCFY17.21%
SpS298.21
BVpS29.14
TBVpS7.89
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.33% | ||
| ROCE | 12.41% | ||
| ROIC | 5.45% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 11.06% | ||
| OM | 2.94% | ||
| PM (TTM) | 0.81% | ||
| GM | 86.36% | ||
| FCFM | 4.19% |
ROA(3y)1.93%
ROA(5y)3.99%
ROE(3y)6.49%
ROE(5y)13.12%
ROIC(3y)3.16%
ROIC(5y)4.51%
ROICexc(3y)4.06%
ROICexc(5y)6.01%
ROICexgc(3y)6.65%
ROICexgc(5y)10.11%
ROCE(3y)7.2%
ROCE(5y)10.26%
ROICexcg growth 3Y-20.34%
ROICexcg growth 5Y-12.01%
ROICexc growth 3Y-21.84%
ROICexc growth 5Y-11.01%
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%
F-Score7
Asset Turnover2.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.07 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 43.16% | ||
| Cap/Sales | 1.5% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 88.62% | ||
| Profit Quality | 514.37% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 3.6 |
F-Score7
WACC5.74%
ROIC/WACC0.95
Cap/Depr(3y)52.06%
Cap/Depr(5y)49.68%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.54%
Profit Quality(3y)790.41%
Profit Quality(5y)538.39%
High Growth Momentum
Growth
EPS 1Y (TTM)52.92%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%101.85%
EPS Next Y121.81%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
EPS Next 5Y39.18%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.07%
Revenue Next Year9.93%
Revenue Next 2Y10.1%
Revenue Next 3Y9.9%
Revenue Next 5Y9.41%
EBIT growth 1Y35.34%
EBIT growth 3Y-13.12%
EBIT growth 5Y5.01%
EBIT Next Year311.47%
EBIT Next 3Y78.96%
EBIT Next 5Y42.52%
FCF growth 1Y91.51%
FCF growth 3Y40.19%
FCF growth 5Y49.54%
OCF growth 1Y43.84%
OCF growth 3Y32.14%
OCF growth 5Y37.69%