ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
145.7 EUR
+1.95 (+1.36%)
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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- ADS had positive earnings in the past year.
- In the past year ADS had a positive cash flow from operations.
- 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
- ADS has a Return On Assets of 6.05%. This is comparable to the rest of the industry: ADS outperforms 57.69% of its industry peers.
- Looking at the Return On Equity, with a value of 21.39%, ADS belongs to the top of the industry, outperforming 80.77% of the companies in the same industry.
- The Return On Invested Capital of ADS (12.46%) is better than 75.00% 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 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 of 4.94%. This is comparable to the rest of the industry: ADS outperforms 53.85% of its industry peers.
- ADS's Profit Margin has declined in the last couple of years.
- ADS has a Operating Margin of 7.89%. This is comparable to the rest of the industry: ADS outperforms 46.15% of its industry peers.
- In the last couple of years the Operating Margin of ADS has declined.
- ADS's Gross Margin of 51.36% is on the low side compared to the rest of the industry. ADS is outperformed by 67.31% 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.
- Compared to 1 year ago, ADS has about the same amount of shares outstanding.
- ADS has less shares outstanding than it did 5 years ago.
- ADS has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.18 indicates that ADS is not in any danger for 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.
- 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.
- 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.
- ADS has a worse Debt to Equity ratio (0.74) than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.82
WACC6.86%
2.3 Liquidity
- A Current Ratio of 1.31 indicates that ADS should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.31, ADS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- A Quick Ratio of 0.71 indicates that ADS may have some problems paying its short term obligations.
- The Quick ratio of ADS (0.71) is worse than 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.
- 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%.
- 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.
- 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
- A Price/Earnings ratio of 21.49 indicates a rather expensive valuation of ADS.
- Compared to the rest of the industry, the Price/Earnings ratio of ADS indicates a somewhat cheap valuation: ADS is cheaper than 76.92% of the companies listed in the same industry.
- ADS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 13.48, the valuation of ADS can be described as correct.
- Based on the Price/Forward Earnings ratio, ADS is valued cheaper than 84.62% of the companies in the same industry.
- ADS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.49 | ||
| Fwd PE | 13.48 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADS is valued a bit cheaper than 61.54% of the companies in the same industry.
- 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 | 69.2 | ||
| EV/EBITDA | 9.27 |
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.
- In the last 3 months the price of ADS has falen by -23.29%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- ADS's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to the average S&P500 Dividend Yield of 1.81, 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
- ADS pays out 29.29% of its income as dividend. This is a 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 4 / 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 21.49 and the Price/Book (PB) ratio is 4.6.
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%.