ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - FRA:ADS - DE000A1EWWW0 - Common Stock
161.65 EUR
-1.75 (-1.07%)
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 43 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has a medium profitability rating, but doesn't score so well on its financial health evaluation. ADS has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADS was profitable.
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 has a Return On Assets (6.05%) which is comparable to the rest of the industry.
ADS's Return On Equity of 21.39% is fine compared to the rest of the industry. ADS outperforms 78.72% of its industry peers.
ADS has a better Return On Invested Capital (12.46%) than 78.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADS is significantly below the industry average of 11.78%.
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 53.19% 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.
The Gross Margin of ADS (51.36%) is worse than 68.09% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADS 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.
Compared to 1 year ago, ADS has an improved debt to assets ratio.
2.2 Solvency
ADS has an Altman-Z score of 3.31. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
ADS has a Altman-Z score (3.31) which 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's Debt to FCF ratio of 14.32 is on the low side compared to the rest of the industry. ADS is outperformed by 70.21% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of ADS (0.74) is worse than 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.31 |
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.
Looking at the Current ratio, with a value of 1.31, ADS is doing worse than 70.21% of the companies in the same industry.
A Quick Ratio of 0.71 indicates that ADS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.71, ADS is doing worse than 63.83% of the companies in the same industry.
| 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.
The Revenue has grown by 9.64% in the past year. This is quite good.
Measured over the past years, ADS shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
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 31.71% on average per year.
ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y79.21%
EPS Next 2Y59.74%
EPS Next 3Y45.08%
EPS Next 5Y31.71%
Revenue Next Year6.47%
Revenue Next 2Y7.4%
Revenue Next 3Y7.84%
Revenue Next 5Y7.56%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 23.84, which indicates a rather expensive current valuation of ADS.
63.83% of the companies in the same industry are more expensive than ADS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ADS to the average of the S&P500 Index (25.89), we can say ADS is valued inline with the index average.
With a Price/Forward Earnings ratio of 14.98, ADS is valued correctly.
74.47% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. ADS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 14.98 |
4.2 Price Multiples
ADS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than the industry average as 70.21% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.77 | ||
| EV/EBITDA | 10.3 |
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 45.08% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y59.74%
EPS Next 3Y45.08%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
ADS's Dividend Yield is comparable with the industry average which is at 2.88.
Compared to an average S&P500 Dividend Yield of 2.44, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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 2Y59.74%
EPS Next 3Y45.08%
FRA:ADS (11/14/2025, 7:00:00 PM)
161.65
-1.75 (-1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.10B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target243.61 (50.7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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)0.45%
PT rev (3m)-2.79%
EPS NQ rev (1m)6.29%
EPS NQ rev (3m)22.64%
EPS NY rev (1m)-1.12%
EPS NY rev (3m)0.12%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 14.98 | ||
| P/S | 1.18 | ||
| P/FCF | 76.77 | ||
| P/OCF | 31.94 | ||
| P/B | 5.11 | ||
| P/tB | 7.16 | ||
| EV/EBITDA | 10.3 |
EPS(TTM)6.78
EY4.19%
EPS(NY)10.79
Fwd EY6.68%
FCF(TTM)2.11
FCFY1.3%
OCF(TTM)5.06
OCFY3.13%
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 | 3.31 |
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 Y79.21%
EPS Next 2Y59.74%
EPS Next 3Y45.08%
EPS Next 5Y31.71%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.47%
Revenue Next 2Y7.4%
Revenue Next 3Y7.84%
Revenue Next 5Y7.56%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year154.98%
EBIT Next 3Y52.03%
EBIT Next 5Y33.1%
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 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 earnings growth outlook for ADIDAS AG?
The Earnings per Share (EPS) of ADIDAS AG (ADS.DE) is expected to grow by 79.21% in the next year.
Can you provide the dividend sustainability for ADS stock?
The dividend rating of ADIDAS AG (ADS.DE) is 2 / 10 and the dividend payout ratio is 29.29%.