ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
167.2 EUR
+2.2 (+1.33%)
ADS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 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.
ADS had positive earnings in 4 of the past 5 years.
ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ADS's Return On Assets of 6.05% is in line compared to the rest of the industry. ADS outperforms 56.25% of its industry peers.
With a decent Return On Equity value of 21.39%, ADS is doing good in the industry, outperforming 75.00% of the companies in the same industry.
The Return On Invested Capital of ADS (12.46%) is better than 72.92% of its industry peers.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 12.23%.
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 52.08% of its industry peers.
ADS's Profit Margin has declined in the last couple of years.
ADS's Operating Margin of 7.89% is in line compared to the rest of the industry. ADS outperforms 43.75% of its industry peers.
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 72.92% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
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.
ADS has a Altman-Z score (3.34) which is comparable to the rest of the industry.
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 worse Debt to FCF ratio (14.32) than 75.00% 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.
The Debt to Equity ratio of ADS (0.74) is worse than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.34 |
ROIC/WACC1.86
WACC6.7%
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.
ADS has a worse Current ratio (1.31) than 70.83% 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.
With a Quick ratio value of 0.71, ADS is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 0.04% on average over the past years.
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 31.63% on average per year.
The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y78.74%
EPS Next 2Y59.53%
EPS Next 3Y44.69%
EPS Next 5Y31.63%
Revenue Next Year6.33%
Revenue Next 2Y7.26%
Revenue Next 3Y7.69%
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
With a Price/Earnings ratio of 24.66, ADS is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ADS indicates a somewhat cheap valuation: ADS is cheaper than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.22. ADS is around the same levels.
ADS is valuated correctly with a Price/Forward Earnings ratio of 15.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADS indicates a somewhat cheap valuation: ADS is cheaper than 79.17% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.58. ADS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 15.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADS.
Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 79.41 | ||
| EV/EBITDA | 10.49 |
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 44.69% in the coming years.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y59.53%
EPS Next 3Y44.69%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.22%.
ADS's Dividend Yield is slightly below the industry average, which is at 2.07.
Compared to the average S&P500 Dividend Yield of 1.87, ADS is paying slightly less dividend.
| 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 2Y59.53%
EPS Next 3Y44.69%
FRA:ADS (12/18/2025, 4:26:07 PM)
167.2
+2.2 (+1.33%)
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 Cap30.10B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target236.64 (41.53%)
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)-2.86%
PT rev (3m)-3.27%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)8.45%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.66 | ||
| Fwd PE | 15.53 | ||
| P/S | 1.22 | ||
| P/FCF | 79.41 | ||
| P/OCF | 33.04 | ||
| P/B | 5.28 | ||
| P/tB | 7.4 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)6.78
EY4.06%
EPS(NY)10.77
Fwd EY6.44%
FCF(TTM)2.11
FCFY1.26%
OCF(TTM)5.06
OCFY3.03%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.31
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
WACC6.7%
ROIC/WACC1.86
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 Y78.74%
EPS Next 2Y59.53%
EPS Next 3Y44.69%
EPS Next 5Y31.63%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.98%
Revenue Next Year6.33%
Revenue Next 2Y7.26%
Revenue Next 3Y7.69%
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 78.74% 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%.