ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ADS - DE000A1EWWW0 - Common Stock
166.1 EUR
-0.55 (-0.33%)
We assign a fundamental rating of 5 out of 10 to ADS. ADS was compared to 51 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.
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 58.82% of its industry peers.
The Return On Equity of ADS (21.39%) is better than 80.39% of its industry peers.
ADS's Return On Invested Capital of 12.46% is fine compared to the rest of the industry. ADS outperforms 74.51% 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 11.80%.
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's Profit Margin of 4.94% is in line compared to the rest of the industry. ADS outperforms 54.90% of its industry peers.
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.
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 64.71% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADS is creating value.
Compared to 1 year ago, ADS has about the same amount of shares outstanding.
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 3.35. 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 3.35, ADS is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
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 worse Debt to FCF ratio (14.32) than 68.63% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of ADS (0.74) is worse than 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.87
WACC6.66%
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.
With a Current ratio value of 1.31, ADS is not doing good in the industry: 70.59% 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.
Looking at the Quick ratio, with a value of 0.71, ADS is doing worse than 66.67% 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.
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.
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)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.
The Revenue is expected to grow by 7.45% on average over the next years.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y30.23%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.45%
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
A Price/Earnings ratio of 24.50 indicates a rather expensive valuation of ADS.
62.75% of the companies in the same industry are more expensive than ADS, based on the Price/Earnings ratio.
ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 15.36, which indicates a correct valuation of ADS.
Based on the Price/Forward Earnings ratio, ADS is valued cheaper than 80.39% 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 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 15.36 |
4.2 Price Multiples
ADS's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 68.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.89 | ||
| EV/EBITDA | 10.59 |
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 44.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y59.89%
EPS Next 3Y44.37%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.94, ADS has a dividend in line with its industry peers.
ADS's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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 2Y59.89%
EPS Next 3Y44.37%
FRA:ADS (1/12/2026, 5:29:59 PM)
166.1
-0.55 (-0.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.91%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap29.90B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.57
Price Target234.26 (41.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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)-1.01%
PT rev (3m)-3.41%
EPS NQ rev (1m)2.47%
EPS NQ rev (3m)11.37%
EPS NY rev (1m)1.03%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.5 | ||
| Fwd PE | 15.36 | ||
| P/S | 1.21 | ||
| P/FCF | 78.89 | ||
| P/OCF | 32.82 | ||
| P/B | 5.25 | ||
| P/tB | 7.35 | ||
| EV/EBITDA | 10.59 |
EPS(TTM)6.78
EY4.08%
EPS(NY)10.81
Fwd EY6.51%
FCF(TTM)2.11
FCFY1.27%
OCF(TTM)5.06
OCFY3.05%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.3
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 | 3.35 |
F-Score7
WACC6.66%
ROIC/WACC1.87
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 Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
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 24.5 and the Price/Book (PB) ratio is 5.25.
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%.