ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 44 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. ADS is quite expensive at the moment. It does show a decent 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.
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
With a Return On Assets value of 5.09%, ADS perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.90%, ADS is in line with its industry, outperforming 59.09% of the companies in the same industry.
ADS has a Return On Invested Capital (10.17%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.04%.
The 3 year average ROIC (5.19%) for ADS is below the current ROIC(10.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROIC | 10.17% |
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 4.19%, ADS perfoms like the industry average, outperforming 43.18% of the companies in the same industry.
ADS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.61%, ADS is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
ADS's Operating Margin has declined in the last couple of years.
The Gross Margin of ADS (51.01%) is worse than 68.18% 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 | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% |
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 just above the Cost of Capital (WACC), which means it is creating some 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
ADS has an Altman-Z score of 3.58. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.58, ADS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ADS is 3.47, which is a good value as it means it would take ADS, 3.47 years of fcf income to pay off all of its debts.
ADS has a Debt to FCF ratio (3.47) which is comparable to the rest of the industry.
ADS has a Debt/Equity ratio of 0.75. This is a neutral value indicating ADS is somewhat dependend on debt financing.
ADS's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. ADS is outperformed by 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.46
WACC6.97%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ADS should not have too much problems paying its short term obligations.
ADS has a worse Current ratio (1.29) than 72.73% of its industry peers.
A Quick Ratio of 0.72 indicates that ADS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, ADS is in line with its industry, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1114.89%, 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 12.80% 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)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 32.72% on average over the next years. This is a very strong growth
Based on estimates for the next years, ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
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 36.46, the valuation of ADS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 68.18% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADS to the average of the S&P500 Index (27.30), we can say ADS is valued slightly more expensively.
A Price/Forward Earnings ratio of 18.30 indicates a rather expensive valuation of ADS.
68.18% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, ADS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 18.3 |
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 70.45% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.32 | ||
| EV/EBITDA | 14.49 |
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 47.10% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, ADS is not a good candidate for dividend investing.
ADS's Dividend Yield is comparable with the industry average which is at 3.03.
Compared to an average S&P500 Dividend Yield of 2.37, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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
12.23% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP12.23%
EPS Next 2Y64%
EPS Next 3Y47.1%
FRA:ADS (7/11/2025, 7:00:00 PM)
208.2
-4 (-1.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners52.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap37.48B
Analysts76.76
Price Target263.11 (26.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP12.23%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.73%
Min EPS beat(2)5.82%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)5.82%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)26.41%
EPS beat(12)8
Avg EPS beat(12)7.56%
EPS beat(16)11
Avg EPS beat(16)10.75%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.64%
PT rev (3m)-3.07%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-7.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.38%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)-3.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.46 | ||
| Fwd PE | 18.3 | ||
| P/S | 1.54 | ||
| P/FCF | 23.32 | ||
| P/OCF | 17.49 | ||
| P/B | 6.56 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 14.49 |
EPS(TTM)5.71
EY2.74%
EPS(NY)11.38
Fwd EY5.46%
FCF(TTM)8.93
FCFY4.29%
OCF(TTM)11.91
OCFY5.72%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROCE | 14.45% | ||
| ROIC | 10.17% | ||
| ROICexc | 12.55% | ||
| ROICexgc | 15.39% | ||
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% | ||
| FCFM | 6.59% |
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%
ROICexcg growth 3Y-9.6%
ROICexcg 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-Score9
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 75.78% | ||
| Profit Quality | 157.24% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.58 |
F-Score9
WACC6.97%
ROIC/WACC1.46
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)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.31%
FCF growth 1Y222.67%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y426.18%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%