ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
152.55 EUR
-7.3 (-4.57%)
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 51 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of ADS while its profitability can be described as average. ADS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- ADS had positive earnings in the past year.
- ADS had a positive operating cash flow in the past year.
- 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 52.94% of its industry peers.
- ADS's Return On Equity of 21.39% is fine compared to the rest of the industry. ADS outperforms 76.47% of its industry peers.
- The Return On Invested Capital of ADS (12.46%) is better than 72.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 12.94%.
- 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 (4.94%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ADS has declined.
- ADS has a Operating Margin (7.89%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of ADS has declined.
- ADS has a worse Gross Margin (51.36%) than 68.63% 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
- ADS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ADS remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ADS has less shares outstanding
- The debt/assets ratio for ADS has been reduced compared to a year ago.
2.2 Solvency
- ADS has an Altman-Z score of 3.30. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
- ADS has a Altman-Z score (3.30) 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.
- The Debt to FCF ratio of ADS (14.32) is worse than 70.59% 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.
- ADS has a Debt to Equity ratio of 0.74. This is in the lower half of the industry: ADS underperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.82
WACC6.83%
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: 72.55% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.71, ADS is doing worse than 68.63% of the companies in the same industry.
| 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.
- The Revenue has grown by 9.64% in the past year. This is quite good.
- 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 Y80.51%
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
- With a Price/Earnings ratio of 22.50, 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 66.67% of the companies listed in the same industry.
- ADS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 14.12, which indicates a correct valuation of ADS.
- Based on the Price/Forward Earnings ratio, ADS is valued cheaply inside the industry as 80.39% of the companies are valued more expensively.
- ADS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 14.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ADS is valued a bit cheaper than 60.78% of the companies in the same industry.
- 76.47% of the companies in the same industry are cheaper than ADS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.45 | ||
| EV/EBITDA | 10.19 |
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.
- ADS's earnings are expected to grow with 44.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y59.82%
EPS Next 3Y44.22%
5. Dividend
5.1 Amount
- ADS has a Yearly Dividend Yield of 1.23%. Purely for dividend investing, there may be better candidates out there.
- ADS's Dividend Yield is comparable with the industry average which is at 1.98.
- Compared to the average S&P500 Dividend Yield of 1.85, ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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%
FRA:ADS (1/19/2026, 1:21:17 PM)
152.55
-7.3 (-4.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)10-30 2025-10-30/dmh
Earnings (Next)03-04 2026-03-04/amc
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.46B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.57
Price Target234.53 (53.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.23% |
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)-0.89%
PT rev (3m)-3.3%
EPS NQ rev (1m)1.78%
EPS NQ rev (3m)10.61%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 14.12 | ||
| P/S | 1.11 | ||
| P/FCF | 72.45 | ||
| P/OCF | 30.14 | ||
| P/B | 4.82 | ||
| P/tB | 6.75 | ||
| EV/EBITDA | 10.19 |
EPS(TTM)6.78
EY4.44%
EPS(NY)10.81
Fwd EY7.08%
FCF(TTM)2.11
FCFY1.38%
OCF(TTM)5.06
OCFY3.32%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.28
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 | 3.3 |
F-Score7
WACC6.83%
ROIC/WACC1.82
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 Y80.51%
EPS Next 2Y59.82%
EPS Next 3Y44.22%
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 22.5 and the Price/Book (PB) ratio is 4.82.
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%.