ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
165.85 EUR
+0.2 (+0.12%)
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. Both the profitability and the financial health of ADS get a neutral evaluation. Nothing too spectacular is happening here. ADS is not valued too expensively and it also shows 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.
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 better Return On Equity (21.39%) than 80.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.46%, ADS is in the better half of the industry, outperforming 74.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.80%.
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
ADS's Profit Margin of 4.94% is in line compared 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.
The Operating Margin of ADS (7.89%) is comparable to the rest of the industry.
ADS's Operating Margin has declined in the last couple of years.
ADS's Gross Margin of 51.36% is on the low side compared to the rest of the industry. ADS is outperformed by 64.71% 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
ADS has an Altman-Z score of 3.34. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.34, ADS is in the better half of the industry, outperforming 62.75% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 14.32, ADS is doing worse than 68.63% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that ADS is somewhat dependend on debt financing.
ADS's Debt to Equity ratio of 0.74 is on the low side compared to the rest of the industry. ADS is outperformed by 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.87
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.31 indicates that ADS should not have too much problems paying its short term obligations.
ADS has a worse Current ratio (1.31) than 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.
The Quick ratio of ADS (0.71) is worse than 66.67% 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.
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
The Earnings Per Share is expected to grow by 30.23% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.45% on average over the next years.
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
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 24.46, the valuation of ADS can be described as rather expensive.
64.71% of the companies in the same industry are more expensive than ADS, based on the Price/Earnings ratio.
ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
ADS is valuated correctly with a Price/Forward Earnings ratio of 15.34.
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.
The average S&P500 Price/Forward Earnings ratio is at 23.98. ADS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.46 | ||
| Fwd PE | 15.34 |
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 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.77 | ||
| EV/EBITDA | 10.53 |
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 44.37% 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
With a Yearly Dividend Yield of 1.21%, ADS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.94, ADS has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, ADS is paying slightly less dividend.
| 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
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 (1/13/2026, 10:12:44 AM)
165.85
+0.2 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.85B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.57
Price Target234.26 (41.25%)
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 | 24.46 | ||
| Fwd PE | 15.34 | ||
| P/S | 1.21 | ||
| P/FCF | 78.77 | ||
| P/OCF | 32.77 | ||
| P/B | 5.24 | ||
| P/tB | 7.34 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)6.78
EY4.09%
EPS(NY)10.81
Fwd EY6.52%
FCF(TTM)2.11
FCFY1.27%
OCF(TTM)5.06
OCFY3.05%
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 | 3.34 |
F-Score7
WACC6.66%
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 24.46 and the Price/Book (PB) ratio is 5.24.
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%.