ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
158.95 EUR
-0.95 (-0.59%)
Taking everything into account, ADS scores 4 out of 10 in our fundamental rating. ADS was compared to 52 industry peers in the Textiles, Apparel & Luxury Goods industry. While ADS is still in line with the averages on profitability rating, there are concerns on its financial health. ADS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADS was profitable.
ADS had a positive operating cash flow in the past year.
ADS had positive earnings in 4 of the past 5 years.
ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, ADS is in line with its industry, outperforming 59.62% of the companies in the same industry.
With a decent Return On Equity value of 21.39%, ADS is doing good in the industry, outperforming 78.85% of the companies in the same industry.
ADS has a Return On Invested Capital of 12.46%. This is in the better half of the industry: ADS outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.67%.
The last Return On Invested Capital (12.46%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROIC | 12.46% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.19%
ROIC(5y)6.3%
1.3 Margins
Looking at the Profit Margin, with a value of 4.94%, ADS is in line with its industry, outperforming 53.85% of the companies in the same industry.
ADS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.89%, ADS is in line with its industry, outperforming 46.15% of the companies in the same industry.
ADS's Operating Margin has declined in the last couple of years.
The Gross Margin of ADS (51.36%) is worse than 67.31% of its industry peers.
In the last couple of years the Gross Margin of ADS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.89% | ||
| PM (TTM) | 4.94% | ||
| GM | 51.36% |
OM growth 3Y-17.1%
OM growth 5Y-14.1%
PM growth 3Y-31.34%
PM growth 5Y-17.34%
GM growth 3Y0.05%
GM growth 5Y-0.48%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ADS is creating value.
The number of shares outstanding for ADS remains at a similar level compared to 1 year ago.
ADS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.30 indicates that ADS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADS (3.30) is comparable to the rest of the industry.
The Debt to FCF ratio of ADS is 14.32, which is on the high side as it means it would take ADS, 14.32 years of fcf income to pay off all of its debts.
ADS's Debt to FCF ratio of 14.32 is on the low side compared to the rest of the industry. ADS is outperformed by 69.23% of its industry peers.
ADS has a Debt/Equity ratio of 0.74. This is a neutral value indicating ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of ADS (0.74) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.89
WACC6.58%
2.3 Liquidity
ADS has a Current Ratio of 1.31. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
ADS's Current ratio of 1.31 is on the low side compared to the rest of the industry. ADS is outperformed by 71.15% of its industry peers.
ADS has a Quick Ratio of 1.31. This is a bad value and indicates that ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ADS (0.71) is worse than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 219.81% over the past year.
The earnings per share for ADS have been decreasing by -15.76% on average. This is quite bad
Looking at the last year, ADS shows a quite strong growth in Revenue. The Revenue has grown by 9.64% in the last year.
ADS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)219.81%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%5.33%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
3.2 Future
Based on estimates for the next years, ADS will show a very strong growth in Earnings Per Share. The EPS will grow by 31.63% on average per year.
ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y78.74%
EPS Next 2Y59.53%
EPS Next 3Y44.69%
EPS Next 5Y31.63%
Revenue Next Year6.33%
Revenue Next 2Y7.26%
Revenue Next 3Y7.69%
Revenue Next 5Y7.8%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.44, ADS is valued on the expensive side.
65.38% of the companies in the same industry are more expensive than ADS, based on the Price/Earnings ratio.
ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 14.76 indicates a correct valuation of ADS.
Based on the Price/Forward Earnings ratio, ADS is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADS to the average of the S&P500 Index (23.52), we can say ADS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 14.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADS is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 71.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.49 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
ADS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADS's earnings are expected to grow with 44.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y59.53%
EPS Next 3Y44.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, ADS has a reasonable but not impressive dividend return.
ADS's Dividend Yield is comparable with the industry average which is at 3.00.
Compared to an average S&P500 Dividend Yield of 2.31, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
The dividend of ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
29.29% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP29.29%
EPS Next 2Y59.53%
EPS Next 3Y44.69%
FRA:ADS (12/10/2025, 12:22:21 PM)
158.95
-0.95 (-0.59%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap28.61B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target236.64 (48.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.29%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-3.88%
Max EPS beat(2)3.46%
EPS beat(4)3
Avg EPS beat(4)5.26%
Min EPS beat(4)-3.88%
Max EPS beat(4)15.64%
EPS beat(8)5
Avg EPS beat(8)1.66%
EPS beat(12)8
Avg EPS beat(12)13.15%
EPS beat(16)11
Avg EPS beat(16)9.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.83%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-2.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)2.63%
Revenue beat(8)2
Avg Revenue beat(8)-1.26%
Revenue beat(12)5
Avg Revenue beat(12)-0.62%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.86%
PT rev (3m)-5.12%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)13.53%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 14.76 | ||
| P/S | 1.16 | ||
| P/FCF | 75.49 | ||
| P/OCF | 31.41 | ||
| P/B | 5.02 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)6.78
EY4.27%
EPS(NY)10.77
Fwd EY6.77%
FCF(TTM)2.11
FCFY1.32%
OCF(TTM)5.06
OCFY3.18%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.3
PEG (5Y)N/A
Graham Number69.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROCE | 17.7% | ||
| ROIC | 12.46% | ||
| ROICexc | 14.73% | ||
| ROICexgc | 17.86% | ||
| OM | 7.89% | ||
| PM (TTM) | 4.94% | ||
| GM | 51.36% | ||
| FCFM | 1.53% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.19%
ROIC(5y)6.3%
ROICexc(3y)6.53%
ROICexc(5y)8.63%
ROICexgc(3y)8.14%
ROICexgc(5y)10.85%
ROCE(3y)7.37%
ROCE(5y)8.95%
ROICexgc growth 3Y-9.6%
ROICexgc growth 5Y-13.31%
ROICexc growth 3Y-10.88%
ROICexc growth 5Y-12.05%
OM growth 3Y-17.1%
OM growth 5Y-14.1%
PM growth 3Y-31.34%
PM growth 5Y-17.34%
GM growth 3Y0.05%
GM growth 5Y-0.48%
F-Score7
Asset Turnover1.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 45.32% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 8.36 | ||
| Cash Conversion | 29.17% | ||
| Profit Quality | 31.09% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 3.3 |
F-Score7
WACC6.58%
ROIC/WACC1.89
Cap/Depr(3y)45.61%
Cap/Depr(5y)45.44%
Cap/Sales(3y)2.57%
Cap/Sales(5y)2.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)219.81%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%5.33%
EPS Next Y78.74%
EPS Next 2Y59.53%
EPS Next 3Y44.69%
EPS Next 5Y31.63%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.33%
Revenue Next 2Y7.26%
Revenue Next 3Y7.69%
Revenue Next 5Y7.8%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year154.21%
EBIT Next 3Y51.84%
EBIT Next 5Y33.25%
FCF growth 1Y-70.96%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y-49.25%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%
ADIDAS AG / ADS.DE FAQ
What is the ChartMill fundamental rating of ADIDAS AG (ADS.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADS.DE.
Can you provide the valuation status for ADIDAS AG?
ChartMill assigns a valuation rating of 4 / 10 to ADIDAS AG (ADS.DE). This can be considered as Fairly Valued.
What is the profitability of ADS stock?
ADIDAS AG (ADS.DE) has a profitability rating of 4 / 10.
What is the earnings growth outlook for ADIDAS AG?
The Earnings per Share (EPS) of ADIDAS AG (ADS.DE) is expected to grow by 78.74% in the next year.
Can you provide the dividend sustainability for ADS stock?
The dividend rating of ADIDAS AG (ADS.DE) is 3 / 10 and the dividend payout ratio is 29.29%.