ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - FRA:ADS - DE000A1EWWW0 - Common Stock
180.7 EUR
+1.9 (+1.06%)
We assign a fundamental rating of 4 out of 10 to ADS. ADS was compared to 45 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 is not valued too expensively and it also shows a decent 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.
Of the past 5 years ADS 4 years were profitable.
Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADS (6.16%) is better than 62.22% of its industry peers.
ADS's Return On Equity of 23.12% is fine compared to the rest of the industry. ADS outperforms 77.78% of its industry peers.
With a decent Return On Invested Capital value of 12.10%, ADS is doing good in the industry, outperforming 75.56% of the companies in the same industry.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 10.76%.
The last Return On Invested Capital (12.10%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROIC | 12.1% |
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 (4.90%) 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 (7.39%) is worse than 60.00% of its industry peers.
ADS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 51.22%, ADS is not doing good in the industry: 71.11% of the companies in the same industry are doing better.
ADS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 4.9% | ||
| GM | 51.22% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADS is still creating some value.
The number of shares outstanding for ADS remains at a similar level compared to 1 year ago.
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
ADS has an Altman-Z score of 3.42. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.42, ADS is in line with its industry, outperforming 60.00% of the companies in the same industry.
ADS has a debt to FCF ratio of 7.91. This is a slightly negative value and a sign of low solvency as ADS would need 7.91 years to pay back of all of its debts.
ADS has a Debt to FCF ratio of 7.91. This is in the lower half of the industry: ADS underperforms 60.00% of its industry peers.
ADS has a Debt/Equity ratio of 0.81. This is a neutral value indicating ADS is somewhat dependend on debt financing.
ADS has a Debt to Equity ratio of 0.81. This is in the lower half of the industry: ADS underperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 3.42 |
ROIC/WACC1.69
WACC7.14%
2.3 Liquidity
ADS has a Current Ratio of 1.25. 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 (1.25) than 77.78% of its industry peers.
ADS has a Quick Ratio of 1.25. This is a bad value and indicates that ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
ADS has a Quick ratio of 0.67. This is in the lower half of the industry: ADS underperforms 75.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 515.74% 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.
The Revenue has grown by 10.95% in the past year. This is quite good.
Measured over the past years, ADS shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
EPS 1Y (TTM)515.74%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%86.24%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
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 31.30% on average per year.
ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.75% yearly.
EPS Next Y80.94%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
EPS Next 5Y31.3%
Revenue Next Year7.49%
Revenue Next 2Y8.13%
Revenue Next 3Y8.29%
Revenue Next 5Y7.75%
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
The Price/Earnings ratio is 27.17, which means the current valuation is very expensive for ADS.
Compared to the rest of the industry, the Price/Earnings ratio of ADS is on the same level as its industry peers.
ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
ADS is valuated correctly with a Price/Forward Earnings ratio of 16.42.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADS indicates a somewhat cheap valuation: ADS is cheaper than 73.33% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ADS to the average of the S&P500 Index (22.70), we can say ADS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 16.42 |
4.2 Price Multiples
ADS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ADS is more expensive than 60.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADS is valued a bit more expensive than 68.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47 | ||
| EV/EBITDA | 11.72 |
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.
A more expensive valuation may be justified as ADS's earnings are expected to grow with 46.03% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y61.3%
EPS Next 3Y46.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.12%, ADS has a reasonable but not impressive dividend return.
ADS's Dividend Yield is slightly below the industry average, which is at 3.12.
With a Dividend Yield of 1.12, ADS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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
29.73% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP29.73%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
FRA:ADS (9/18/2025, 9:19:12 AM)
180.7
+1.9 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners52.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.53B
Analysts78.33
Price Target244.64 (35.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.73%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.55%
Min EPS beat(2)3.46%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)15.31%
Min EPS beat(4)3.46%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)3.54%
EPS beat(12)8
Avg EPS beat(12)7.68%
EPS beat(16)11
Avg EPS beat(16)9.52%
Revenue beat(2)0
Avg Revenue beat(2)-3.26%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.94%
Revenue beat(12)5
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.7%
PT rev (1m)-2.39%
PT rev (3m)-6.96%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-16.21%
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.17 | ||
| Fwd PE | 16.42 | ||
| P/S | 1.33 | ||
| P/FCF | 47 | ||
| P/OCF | 26.53 | ||
| P/B | 6.26 | ||
| P/tB | 9.12 | ||
| EV/EBITDA | 11.72 |
EPS(TTM)6.65
EY3.68%
EPS(NY)11
Fwd EY6.09%
FCF(TTM)3.84
FCFY2.13%
OCF(TTM)6.81
OCFY3.77%
SpS136.16
BVpS28.86
TBVpS19.82
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROCE | 17.19% | ||
| ROIC | 12.1% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 17.27% | ||
| OM | 7.39% | ||
| PM (TTM) | 4.9% | ||
| GM | 51.22% | ||
| FCFM | 2.82% |
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%
ROICexcg growth 3Y-9.6%
ROICexcg 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-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | 44.21% | ||
| Cap/Sales | 2.18% | ||
| Interest Coverage | 8.01 | ||
| Cash Conversion | 40.61% | ||
| Profit Quality | 57.62% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 3.42 |
F-Score8
WACC7.14%
ROIC/WACC1.69
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)515.74%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%86.24%
EPS Next Y80.94%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
EPS Next 5Y31.3%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
Revenue Next Year7.49%
Revenue Next 2Y8.13%
Revenue Next 3Y8.29%
Revenue Next 5Y7.75%
EBIT growth 1Y153.64%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y33.45%
FCF growth 1Y497.7%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y221.79%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%