ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - FRA:ADS - DE000A1EWWW0 - Common Stock
189.85 EUR
+0.65 (+0.34%)
ADS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has only an average score on both its financial health and profitability. ADS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ADS was profitable.
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
The Return On Assets of ADS (6.16%) is better than 64.58% of its industry peers.
ADS has a better Return On Equity (23.12%) than 83.33% of its industry peers.
ADS has a better Return On Invested Capital (12.10%) than 77.08% of its industry peers.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 11.21%.
The last Return On Invested Capital (12.10%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROIC | 12.1% |
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
ADS has a Profit Margin (4.90%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ADS has declined.
With a Operating Margin value of 7.39%, ADS perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
In the last couple of years the Operating Margin of ADS has declined.
ADS has a Gross Margin of 51.22%. This is in the lower half of the industry: ADS underperforms 68.75% 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 | 7.39% | ||
| PM (TTM) | 4.9% | ||
| GM | 51.22% |
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.
ADS has about the same amout of shares outstanding than it did 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 3.50 indicates that ADS is not in any danger for bankruptcy at the moment.
ADS has a better Altman-Z score (3.50) than 64.58% of its industry peers.
The Debt to FCF ratio of ADS is 7.91, which is on the high side as it means it would take ADS, 7.91 years of fcf income to pay off all of its debts.
ADS has a Debt to FCF ratio of 7.91. This is comparable to the rest of the industry: ADS outperforms 41.67% of its industry peers.
ADS has a Debt/Equity ratio of 0.81. This is a neutral value indicating ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of ADS (0.81) is worse than 64.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 3.5 |
ROIC/WACC1.81
WACC6.69%
2.3 Liquidity
ADS has a Current Ratio of 1.25. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ADS (1.25) is worse than 70.83% of its industry peers.
A Quick Ratio of 0.67 indicates that ADS may have some problems paying its short term obligations.
ADS has a worse Quick ratio (0.67) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 515.74%, which is quite impressive.
Measured over the past years, ADS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.76% on average per year.
Looking at the last year, ADS shows a quite strong growth in Revenue. The Revenue has grown by 10.95% in the last year.
Measured over the past years, ADS shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
EPS 1Y (TTM)515.74%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%86.24%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
3.2 Future
The Earnings Per Share is expected to grow by 31.18% on average over the next years. This is a very strong growth
ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.70% yearly.
EPS Next Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
EPS Next 5Y31.18%
Revenue Next Year7.18%
Revenue Next 2Y7.92%
Revenue Next 3Y8.12%
Revenue Next 5Y7.7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ADS is valuated quite expensively with a Price/Earnings ratio of 28.55.
ADS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ADS to the average of the S&P500 Index (27.67), we can say ADS is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 17.27, the valuation of ADS can be described as rather expensive.
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 (23.33), we can say ADS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 17.27 |
4.2 Price Multiples
ADS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.38 | ||
| EV/EBITDA | 12.34 |
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 45.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y61.22%
EPS Next 3Y45.81%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.07, ADS is paying slightly less dividend.
With a Dividend Yield of 1.04, ADS pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
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
ADS pays out 29.73% of its income as dividend. This is a sustainable payout ratio.
DP29.73%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
FRA:ADS (10/23/2025, 7:00:00 PM)
189.85
+0.65 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.17B
Revenue(TTM)24.51B
Net Income(TTM)1.20B
Analysts79.44
Price Target242.53 (27.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.73%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.55%
Min EPS beat(2)3.46%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)15.31%
Min EPS beat(4)3.46%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)3.54%
EPS beat(12)8
Avg EPS beat(12)7.68%
EPS beat(16)11
Avg EPS beat(16)9.52%
Revenue beat(2)0
Avg Revenue beat(2)-3.26%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-0.86%
PT rev (3m)-7.82%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 17.27 | ||
| P/S | 1.39 | ||
| P/FCF | 49.38 | ||
| P/OCF | 27.87 | ||
| P/B | 6.58 | ||
| P/tB | 9.58 | ||
| EV/EBITDA | 12.34 |
EPS(TTM)6.65
EY3.5%
EPS(NY)10.99
Fwd EY5.79%
FCF(TTM)3.84
FCFY2.02%
OCF(TTM)6.81
OCFY3.59%
SpS136.16
BVpS28.86
TBVpS19.82
PEG (NY)0.35
PEG (5Y)N/A
Graham Number65.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROCE | 17.19% | ||
| ROIC | 12.1% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 17.27% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.9% | ||
| GM | 51.22% | ||
| FCFM | 2.82% |
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-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 44.21% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 8.01 | ||
| Cash Conversion | 40.61% | ||
| Profit Quality | 57.62% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.5 |
F-Score8
WACC6.69%
ROIC/WACC1.81
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)515.74%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%86.24%
EPS Next Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
EPS Next 5Y31.18%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
Revenue Next Year7.18%
Revenue Next 2Y7.92%
Revenue Next 3Y8.12%
Revenue Next 5Y7.7%
EBIT growth 1Y153.64%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year154.98%
EBIT Next 3Y52.03%
EBIT Next 5Y33.33%
FCF growth 1Y497.7%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y221.79%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%