ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
145.55 EUR
-1.5 (-1.02%)
ADS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has an average financial health and profitability rating. ADS has a correct valuation and a medium growth rate.
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.
- Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of ADS (6.05%) is comparable to the rest of the industry.
- ADS has a Return On Equity of 21.39%. This is in the better half of the industry: ADS outperforms 78.85% of its industry peers.
- ADS has a better Return On Invested Capital (12.46%) than 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.64%.
- 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 (4.94%) which is comparable to the rest of the industry.
- ADS's Profit Margin has declined in the last couple of years.
- The Operating Margin of ADS (7.89%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ADS has declined.
- ADS has a Gross Margin of 51.36%. This is in the lower half of the industry: ADS underperforms 69.23% 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
- ADS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- ADS has a better debt/assets ratio than last year.
2.2 Solvency
- ADS has an Altman-Z score of 3.20. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
- ADS's Altman-Z score of 3.20 is fine compared to the rest of the industry. ADS outperforms 63.46% of its industry peers.
- ADS has a debt to FCF ratio of 14.32. This is a negative value and a sign of low solvency as ADS would need 14.32 years to pay back of all of its debts.
- ADS has a Debt to FCF ratio of 14.32. This is in the lower half of the industry: ADS underperforms 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.
- ADS has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: ADS underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.2 |
ROIC/WACC1.81
WACC6.87%
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.
- With a Current ratio value of 1.31, ADS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- 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.
- ADS has a Quick ratio of 0.71. This is in the lower half of the industry: ADS underperforms 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 219.81%, 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 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 30.23% on average per year.
- The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y80.51%
EPS Next 2Y59.82%
EPS Next 3Y44.22%
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.
- 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
- ADS is valuated rather expensively with a Price/Earnings ratio of 21.47.
- Based on the Price/Earnings ratio, ADS is valued a bit cheaper than 71.15% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, ADS is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 13.47, the valuation of ADS can be described as correct.
- Based on the Price/Forward Earnings ratio, ADS is valued cheaper than 82.69% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.95. ADS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.47 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
- ADS's Enterprise Value to EBITDA ratio is in line with the industry average.
- ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ADS is more expensive than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.13 | ||
| EV/EBITDA | 9.46 |
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.
- A more expensive valuation may be justified as ADS's earnings are expected to grow with 44.22% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y59.82%
EPS Next 3Y44.22%
5. Dividend
5.1 Amount
- ADS has a Yearly Dividend Yield of 1.31%.
- ADS's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to the average S&P500 Dividend Yield of 1.82, ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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 29.29% of its income as dividend. This is a sustainable payout ratio.
DP29.29%
EPS Next 2Y59.82%
EPS Next 3Y44.22%
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 21.47 and the Price/Book (PB) ratio is 4.6.
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%.