ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:ADS • DE000A1EWWW0
149.15 EUR
+5.65 (+3.94%)
Last: Jan 30, 2026, 07:00 PM
ADS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has only an average score on both its financial health and profitability. ADS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ADS was profitable.
- ADS had a positive operating cash flow in the past year.
- ADS had positive earnings in 4 of the past 5 years.
- Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 6.05%, ADS perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
- ADS's Return On Equity of 21.39% is amongst the best of the industry. ADS outperforms 80.77% of its industry peers.
- ADS's Return On Invested Capital of 12.46% is fine compared to the rest of the industry. ADS outperforms 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.64%.
- 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 has a Profit Margin (4.94%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ADS has declined.
- The Operating Margin of ADS (7.89%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ADS has declined.
- Looking at the Gross Margin, with a value of 51.36%, ADS is doing worse than 67.31% of the companies in the same industry.
- 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
- ADS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 3.18. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
- ADS's Altman-Z score of 3.18 is fine compared to the rest of the industry. ADS outperforms 61.54% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 14.32, ADS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- ADS has a Debt/Equity ratio of 0.74. This is a neutral value indicating ADS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.74, ADS is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.82
WACC6.86%
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.
- The Current ratio of ADS (1.31) is worse than 69.23% of its industry peers.
- A Quick Ratio of 0.71 indicates that ADS may have some problems paying its short term obligations.
- ADS has a Quick ratio of 0.71. This is in the lower half of the industry: ADS underperforms 65.38% 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.
- The earnings per share for ADS have been decreasing by -15.76% on average. This is quite bad
- The Revenue has grown by 9.64% in the past year. This is quite good.
- 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
- ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.23% yearly.
- ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y80.51%
EPS Next 2Y59.82%
EPS Next 3Y44.22%
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.
- 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
- ADS is valuated rather expensively with a Price/Earnings ratio of 22.00.
- Based on the Price/Earnings ratio, ADS is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.30. ADS is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 13.80, the valuation of ADS can be described as correct.
- 84.62% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
- ADS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 13.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADS is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.84 | ||
| EV/EBITDA | 9.25 |
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 44.22% in the coming years.
PEG (NY)0.27
PEG (5Y)N/A
EPS Next 2Y59.82%
EPS Next 3Y44.22%
5. Dividend
5.1 Amount
- ADS has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.99, ADS has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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
- 29.29% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP29.29%
EPS Next 2Y59.82%
EPS Next 3Y44.22%
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 22 and the Price/Book (PB) ratio is 4.71.
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%.