ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
ADS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 42 industry peers in the Textiles, Apparel & Luxury Goods industry. While ADS seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, ADS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
ADS had positive earnings in the past year.
In the past year ADS had a positive cash flow from operations.
Of the past 5 years ADS 4 years were profitable.
ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ADS has a Return On Assets (2.16%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.22%, ADS is doing worse than 60.00% of the companies in the same industry.
With a Return On Invested Capital value of 5.71%, ADS is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
ADS had an Average Return On Invested Capital over the past 3 years of 6.08%. This is significantly below the industry average of 11.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 8.22% | ||
| ROIC | 5.71% |
ROA(3y)4.05%
ROA(5y)4.75%
ROE(3y)12.92%
ROE(5y)14.91%
ROIC(3y)6.08%
ROIC(5y)7.93%
1.3 Margins
ADS's Profit Margin of 1.88% is on the low side compared to the rest of the industry. ADS is outperformed by 67.50% of its industry peers.
ADS has a Operating Margin of 4.01%. This is in the lower half of the industry: ADS underperforms 67.50% of its industry peers.
ADS's Operating Margin has declined in the last couple of years.
ADS's Gross Margin of 49.72% is on the low side compared to the rest of the industry. ADS is outperformed by 70.00% of its industry peers.
In the last couple of years the Gross Margin of ADS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.01% | ||
| PM (TTM) | 1.88% | ||
| GM | 49.72% |
OM growth 3Y-36.06%
OM growth 5Y-35.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
ADS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ADS has less shares outstanding
The number of shares outstanding for ADS has been reduced compared to 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 3.79 indicates that ADS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.79, ADS is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
ADS has a debt to FCF ratio of 2.55. This is a good value and a sign of high solvency as ADS would need 2.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.55, ADS is in the better half of the industry, outperforming 72.50% of the companies in the same industry.
ADS has a Debt/Equity ratio of 0.94. This is a neutral value indicating ADS is somewhat dependend on debt financing.
ADS's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. ADS is outperformed by 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.55 | ||
| Altman-Z | 3.79 |
ROIC/WACC0.91
WACC6.25%
2.3 Liquidity
A Current Ratio of 1.32 indicates that ADS should not have too much problems paying its short term obligations.
ADS has a Current ratio of 1.32. This is in the lower half of the industry: ADS underperforms 77.50% of its industry peers.
A Quick Ratio of 0.78 indicates that ADS may have some problems paying its short term obligations.
With a Quick ratio value of 0.78, ADS perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 340.91%, which is quite impressive.
Looking at the last year, ADS shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
ADS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.45% yearly.
EPS 1Y (TTM)340.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.29%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.14%
Revenue growth 5Y-0.45%
Sales Q2Q%7.32%
3.2 Future
The Earnings Per Share is expected to grow by 90.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.58% on average over the next years. This is quite good.
EPS Next Y732.23%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
EPS Next 5Y90.75%
Revenue Next Year7.69%
Revenue Next 2Y8.79%
Revenue Next 3Y9.02%
Revenue Next 5Y8.58%
3.3 Evolution
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 119.01, ADS can be considered very expensive at the moment.
ADS's Price/Earnings ratio is a bit more expensive when compared to the industry. ADS is more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. ADS is valued rather expensively when compared to this.
ADS is valuated quite expensively with a Price/Forward Earnings ratio of 32.34.
ADS's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, ADS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.01 | ||
| Fwd PE | 32.34 |
4.2 Price Multiples
ADS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ADS is more expensive than 77.50% of the companies in the same industry.
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 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.71 | ||
| EV/EBITDA | 22.96 |
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.
ADS's earnings are expected to grow with 166.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y269.38%
EPS Next 3Y166.79%
5. Dividend
5.1 Amount
ADS has a yearly dividend return of 0.27%, which is pretty low.
ADS's Dividend Yield is slightly below the industry average, which is at 2.87.
Compared to an average S&P500 Dividend Yield of 2.28, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
The dividend of ADS decreases each year by -23.22%.
Dividend Growth(5Y)-23.22%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ADS pays out 29.48% of its income as dividend. This is a sustainable payout ratio.
DP29.48%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
ADIDAS AG
FRA:ADS (2/5/2025, 5:35:15 PM)
252.3
-1.3 (-0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners50.26%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap45.41B
Analysts71.67
Price Target267.79 (6.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.7
Dividend Growth(5Y)-23.22%
DP29.48%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.38%
Min EPS beat(2)20.45%
Max EPS beat(2)36.32%
EPS beat(4)2
Avg EPS beat(4)-1.94%
Min EPS beat(4)-43.37%
Max EPS beat(4)36.32%
EPS beat(8)5
Avg EPS beat(8)17.09%
EPS beat(12)8
Avg EPS beat(12)11.14%
EPS beat(16)11
Avg EPS beat(16)12.23%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.98%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.24%
Revenue beat(8)4
Avg Revenue beat(8)-0.15%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.62%
PT rev (1m)4.83%
PT rev (3m)4.9%
EPS NQ rev (1m)25.42%
EPS NQ rev (3m)39.72%
EPS NY rev (1m)9.58%
EPS NY rev (3m)23.9%
Revenue NQ rev (1m)5.39%
Revenue NQ rev (3m)5.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 119.01 | ||
| Fwd PE | 32.34 | ||
| P/S | 2.02 | ||
| P/FCF | 20.71 | ||
| P/OCF | 16.81 | ||
| P/B | 8.8 | ||
| P/tB | 12.91 | ||
| EV/EBITDA | 22.96 |
EPS(TTM)2.12
EY0.84%
EPS(NY)7.8
Fwd EY3.09%
FCF(TTM)12.18
FCFY4.83%
OCF(TTM)15.01
OCFY5.95%
SpS125.16
BVpS28.67
TBVpS19.54
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 8.22% | ||
| ROCE | 8.11% | ||
| ROIC | 5.71% | ||
| ROICexc | 7.44% | ||
| ROICexgc | 9.22% | ||
| OM | 4.01% | ||
| PM (TTM) | 1.88% | ||
| GM | 49.72% | ||
| FCFM | 9.73% |
ROA(3y)4.05%
ROA(5y)4.75%
ROE(3y)12.92%
ROE(5y)14.91%
ROIC(3y)6.08%
ROIC(5y)7.93%
ROICexc(3y)8.08%
ROICexc(5y)10.65%
ROICexgc(3y)9.81%
ROICexgc(5y)13.8%
ROCE(3y)8.64%
ROCE(5y)11.27%
ROICexcg growth 3Y-35.74%
ROICexcg growth 5Y-42.93%
ROICexc growth 3Y-33.59%
ROICexc growth 5Y-40.01%
OM growth 3Y-36.06%
OM growth 5Y-35.88%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.69%
GM growth 5Y-1.73%
F-Score7
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.55 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 43.14% | ||
| Cap/Sales | 2.26% | ||
| Interest Coverage | 5.16 | ||
| Cash Conversion | 129.72% | ||
| Profit Quality | 517.22% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.78 | ||
| Altman-Z | 3.79 |
F-Score7
WACC6.25%
ROIC/WACC0.91
Cap/Depr(3y)50.06%
Cap/Depr(5y)48.17%
Cap/Sales(3y)2.86%
Cap/Sales(5y)2.8%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)340.91%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%74.29%
EPS Next Y732.23%
EPS Next 2Y269.38%
EPS Next 3Y166.79%
EPS Next 5Y90.75%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y5.14%
Revenue growth 5Y-0.45%
Sales Q2Q%7.32%
Revenue Next Year7.69%
Revenue Next 2Y8.79%
Revenue Next 3Y9.02%
Revenue Next 5Y8.58%
EBIT growth 1Y1243.04%
EBIT growth 3Y-32.77%
EBIT growth 5Y-36.17%
EBIT Next Year794.7%
EBIT Next 3Y145.69%
EBIT Next 5Y79.45%
FCF growth 1Y662.31%
FCF growth 3Y25.18%
FCF growth 5Y0.64%
OCF growth 1Y549.52%
OCF growth 3Y19.72%
OCF growth 5Y-1.06%