ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
164.4 EUR
-2.4 (-1.44%)
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of ADS while its profitability can be described as average. ADS has a decent growth rate and is not valued too expensively.
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
ADS's Return On Assets of 6.05% is in line compared to the rest of the industry. ADS outperforms 56.86% of its industry peers.
The Return On Equity of ADS (21.39%) is better than 76.47% of its industry peers.
ADS has a Return On Invested Capital of 12.46%. This is in the better half of the industry: ADS outperforms 72.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 12.60%.
The 3 year average ROIC (5.19%) for ADS is below the current ROIC(12.46%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 4.94%, ADS perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
In the last couple of years the Profit Margin of ADS has declined.
ADS's Operating Margin of 7.89% is in line compared to the rest of the industry. ADS outperforms 43.14% of its industry peers.
ADS's Operating Margin has declined in the last couple of years.
ADS has a Gross Margin of 51.36%. This is in the lower half of the industry: ADS underperforms 70.59% 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.
The number of shares outstanding for ADS has been reduced compared to 5 years ago.
ADS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.33 indicates that ADS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADS (3.33) 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 has a Debt to FCF ratio of 14.32. This is in the lower half of the industry: ADS underperforms 74.51% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 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 | 3.33 |
ROIC/WACC1.89
WACC6.59%
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.
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 64.71% 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.
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
ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.63% yearly.
Based on estimates for the next years, ADS will show a small growth in Revenue. The Revenue will grow by 7.80% on average per year.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y31.63%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
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
Based on the Price/Earnings ratio of 24.25, the valuation of ADS can be described as rather expensive.
ADS's Price/Earnings ratio is a bit cheaper when compared to the industry. ADS is cheaper than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADS to the average of the S&P500 Index (26.59), we can say ADS is valued inline with the index average.
The Price/Forward Earnings ratio is 15.20, which indicates a correct valuation of ADS.
Based on the Price/Forward Earnings ratio, ADS is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
ADS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADS.
ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ADS is more expensive than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.08 | ||
| EV/EBITDA | 10.46 |
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.
ADS's earnings are expected to grow with 44.37% in the coming years. This may justify a more expensive valuation.
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 1.20%.
ADS's Dividend Yield is comparable with the industry average which is at 2.08.
Compared to the average S&P500 Dividend Yield of 1.88, ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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 2Y59.89%
EPS Next 3Y44.37%
FRA:ADS (12/23/2025, 7:00:00 PM)
164.4
-2.4 (-1.44%)
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 Cap29.59B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target234.26 (42.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)-3.84%
PT rev (3m)-4.24%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)8.45%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 15.2 | ||
| P/S | 1.2 | ||
| P/FCF | 78.08 | ||
| P/OCF | 32.48 | ||
| P/B | 5.19 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)6.78
EY4.12%
EPS(NY)10.81
Fwd EY6.58%
FCF(TTM)2.11
FCFY1.28%
OCF(TTM)5.06
OCFY3.08%
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 | 3.33 |
F-Score7
WACC6.59%
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 Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y31.63%
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 5Y7.8%
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 80.59% 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%.