ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - FRA:ADS - DE000A1EWWW0 - Common Stock
153.9 EUR
-6.1 (-3.81%)
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 an average financial health and profitability rating. ADS has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.05%, ADS is in line with its industry, outperforming 58.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.39%, ADS is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
ADS has a better Return On Invested Capital (12.46%) than 76.74% 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
The Profit Margin of ADS (4.94%) is comparable to the rest of the industry.
ADS's Profit Margin has declined in the last couple of years.
ADS has a Operating Margin (7.89%) which is comparable to the rest of the industry.
ADS's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 51.36%, ADS is doing worse than 69.77% of the companies in the same industry.
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.
Compared to 1 year ago, ADS has about the same amount of shares outstanding.
The number of shares outstanding for ADS has been reduced compared to 5 years ago.
ADS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.30 indicates that ADS is not in any danger for bankruptcy at the moment.
ADS has a Altman-Z score of 3.30. This is comparable to the rest of the industry: ADS outperforms 58.14% 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.
ADS has a Debt to FCF ratio of 14.32. This is in the lower half of the industry: ADS underperforms 69.77% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that ADS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, ADS perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.85
WACC6.72%
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 69.77% of the companies in the same industry.
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 62.79% 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.
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
The Earnings Per Share is expected to grow by 31.71% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.56% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 22.70, the valuation of ADS can be described as rather expensive.
Based on the Price/Earnings ratio, ADS is valued a bit cheaper than 67.44% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.51, ADS is valued at the same level.
A Price/Forward Earnings ratio of 14.26 indicates a correct valuation of ADS.
76.74% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
ADS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.7 | ||
| Fwd PE | 14.26 |
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 69.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 73.09 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
ADS's 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 45.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
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%.
Compared to an average industry Dividend Yield of 2.88, ADS is paying slightly less dividend.
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
29.29% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP29.29%
EPS Next 2Y59.74%
EPS Next 3Y45.08%
FRA:ADS (11/18/2025, 7:00:00 PM)
153.9
-6.1 (-3.81%)
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 Cap27.70B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target243.61 (58.29%)
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 | 22.7 | ||
| Fwd PE | 14.26 | ||
| P/S | 1.12 | ||
| P/FCF | 73.09 | ||
| P/OCF | 30.41 | ||
| P/B | 4.86 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 10.2 |
EPS(TTM)6.78
EY4.41%
EPS(NY)10.79
Fwd EY7.01%
FCF(TTM)2.11
FCFY1.37%
OCF(TTM)5.06
OCFY3.29%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.29
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
WACC6.72%
ROIC/WACC1.85
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%.