ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
162.6 EUR
+2.45 (+1.53%)
Taking everything into account, ADS scores 5 out of 10 in our fundamental rating. ADS was compared to 51 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 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.
- Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
- ADS has a Return On Assets of 6.05%. This is comparable to the rest of the industry: ADS outperforms 58.82% of its industry peers.
- Looking at the Return On Equity, with a value of 21.39%, ADS belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
- ADS's Return On Invested Capital of 12.46% is fine compared to the rest of the industry. ADS outperforms 74.51% 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 11.80%.
- 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
- ADS has a Profit Margin of 4.94%. This is comparable to the rest of the industry: ADS outperforms 54.90% of its industry peers.
- ADS's Profit Margin has declined in the last couple of years.
- ADS's Operating Margin of 7.89% is in line compared to the rest of the industry. ADS outperforms 47.06% of its industry peers.
- ADS's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 51.36%, ADS is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- ADS's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, ADS has about the same amount of shares outstanding.
- ADS has less shares outstanding than it did 5 years ago.
- ADS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.30 indicates that ADS is not in any danger for bankruptcy at the moment.
- ADS has a Altman-Z score of 3.30. This is in the better half of the industry: ADS outperforms 62.75% of its industry peers.
- 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 68.63% 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.
- ADS has a worse Debt to Equity ratio (0.74) than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.87
WACC6.65%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that ADS should not have too much problems paying 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 70.59% of its industry peers.
- A Quick Ratio of 0.71 indicates that ADS may have some problems paying its short term obligations.
- ADS has a worse Quick ratio (0.71) than 66.67% 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.
- ADS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.76% yearly.
- ADS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.64%.
- 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 30.23% on average per year.
- ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y30.23%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.45%
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.
- 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
- A Price/Earnings ratio of 23.98 indicates a rather expensive valuation of ADS.
- ADS's Price/Earnings ratio is a bit cheaper when compared to the industry. ADS is cheaper than 68.63% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.33. ADS is around the same levels.
- The Price/Forward Earnings ratio is 15.04, which indicates a correct valuation of ADS.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ADS indicates a rather cheap valuation: ADS is cheaper than 80.39% of the companies listed in the same industry.
- ADS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 15.04 |
4.2 Price Multiples
- ADS's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 77.22 | ||
| EV/EBITDA | 10.21 |
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.
- A more expensive valuation may be justified as ADS's earnings are expected to grow with 44.37% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y59.89%
EPS Next 3Y44.37%
5. Dividend
5.1 Amount
- ADS has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
- ADS's Dividend Yield is comparable with the industry average which is at 1.94.
- ADS's Dividend Yield is slightly below the S&P500 average, which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 2Y59.89%
EPS Next 3Y44.37%
FRA:ADS (1/15/2026, 4:14:07 PM)
162.6
+2.45 (+1.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-30 2025-10-30/dmh
Earnings (Next)03-04 2026-03-04/amc
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.27B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.57
Price Target234.26 (44.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)-1.01%
PT rev (3m)-3.41%
EPS NQ rev (1m)2.47%
EPS NQ rev (3m)11.37%
EPS NY rev (1m)1.03%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.98 | ||
| Fwd PE | 15.04 | ||
| P/S | 1.18 | ||
| P/FCF | 77.22 | ||
| P/OCF | 32.13 | ||
| P/B | 5.14 | ||
| P/tB | 7.2 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)6.78
EY4.17%
EPS(NY)10.81
Fwd EY6.65%
FCF(TTM)2.11
FCFY1.29%
OCF(TTM)5.06
OCFY3.11%
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
WACC6.65%
ROIC/WACC1.87
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 Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y30.23%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.45%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year155.69%
EBIT Next 3Y51.76%
EBIT Next 5Y32.71%
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 5 / 10 to ADS.DE.
What is the valuation status for ADS stock?
ChartMill assigns a valuation rating of 5 / 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 valuation of ADIDAS AG based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ADIDAS AG (ADS.DE) is 23.98 and the Price/Book (PB) ratio is 5.14.
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%.