ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
ADS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 44 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has only an average score on both its financial health and profitability. ADS is quite expensive at the moment. It does show 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
With a Return On Assets value of 3.70%, ADS perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
ADS's Return On Equity of 13.95% is fine compared to the rest of the industry. ADS outperforms 63.64% of its industry peers.
With a Return On Invested Capital value of 8.51%, ADS perfoms like the industry average, outperforming 52.27% 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 10.84%.
The last Return On Invested Capital (8.51%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 13.95% | ||
| ROIC | 8.51% |
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
Looking at the Profit Margin, with a value of 3.23%, ADS is in line with its industry, outperforming 47.73% of the companies in the same industry.
In the last couple of years the Profit Margin of ADS has declined.
ADS's Operating Margin of 5.65% is on the low side compared to the rest of the industry. ADS is outperformed by 61.36% of its industry peers.
ADS's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 50.77%, ADS is not doing good in the industry: 61.36% of the companies in the same industry are doing better.
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 | 5.65% | ||
| PM (TTM) | 3.23% | ||
| GM | 50.77% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
ADS has about the same amout of shares outstanding than it did 1 year ago.
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 3.58 indicates that ADS is not in any danger for bankruptcy at the moment.
ADS has a better Altman-Z score (3.58) than 68.18% of its industry peers.
The Debt to FCF ratio of ADS is 2.36, which is a good value as it means it would take ADS, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADS (2.36) is better than 77.27% 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's Debt to Equity ratio of 0.81 is on the low side compared to the rest of the industry. ADS is outperformed by 65.91% of its industry peers.
Although ADS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.31
WACC6.52%
2.3 Liquidity
ADS has a Current Ratio of 1.24. 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 Current ratio of 1.24. This is in the lower half of the industry: ADS underperforms 75.00% of its industry peers.
A Quick Ratio of 0.72 indicates that ADS may have some problems paying its short term obligations.
ADS has a Quick ratio (0.72) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 750.62% over the past year.
Measured over the past years, ADS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.25% on average per year.
ADS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.53%.
The Revenue has been growing slightly by 0.04% on average over the past years.
EPS 1Y (TTM)750.62%
EPS 3Y-16.73%
EPS 5Y-15.25%
EPS Q2Q%94.48%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%23.64%
3.2 Future
ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.05% yearly.
Based on estimates for the next years, ADS will show a small growth in Revenue. The Revenue will grow by 7.82% on average per year.
EPS Next Y77.78%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
EPS Next 5Y30.05%
Revenue Next Year10.4%
Revenue Next 2Y10.07%
Revenue Next 3Y9.2%
Revenue Next 5Y7.82%
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 54.22 indicates a quite expensive valuation of ADS.
ADS's Price/Earnings ratio is a bit more expensive when compared to the industry. ADS is more expensive than 65.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of ADS to the average of the S&P500 Index (29.35), we can say ADS is valued expensively.
A Price/Forward Earnings ratio of 30.50 indicates a quite expensive valuation of ADS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADS is on the same level as its industry peers.
ADS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.22 | ||
| Fwd PE | 30.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADS is valued a bit more expensive than the industry average as 77.27% of the companies are valued more cheaply.
ADS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.95 | ||
| EV/EBITDA | 17.2 |
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 48.52% in the coming years.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y62.79%
EPS Next 3Y48.52%
5. Dividend
5.1 Amount
ADS has a yearly dividend return of 0.29%, which is pretty low.
Compared to an average industry Dividend Yield of 3.09, ADS is paying slightly less dividend.
With a Dividend Yield of 0.29, ADS pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
The dividend of ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
16.36% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP16.36%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
FRA:ADS (3/7/2025, 7:00:00 PM)
236.4
-4.8 (-1.99%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners51.74%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap42.55B
Analysts71.89
Price Target270.21 (14.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP16.36%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)47.64%
Min EPS beat(2)36.32%
Max EPS beat(2)58.96%
EPS beat(4)3
Avg EPS beat(4)23.64%
Min EPS beat(4)-21.15%
Max EPS beat(4)58.96%
EPS beat(8)5
Avg EPS beat(8)23.94%
EPS beat(12)8
Avg EPS beat(12)11.46%
EPS beat(16)11
Avg EPS beat(16)14.8%
Revenue beat(2)1
Avg Revenue beat(2)1.62%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)4.14%
Revenue beat(4)2
Avg Revenue beat(4)0.61%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)4.14%
Revenue beat(8)5
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.13%
Revenue beat(16)8
Avg Revenue beat(16)0.08%
PT rev (1m)0.91%
PT rev (3m)5.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.16%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)3.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)2.12%
Revenue NY rev (3m)2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.22 | ||
| Fwd PE | 30.5 | ||
| P/S | 1.8 | ||
| P/FCF | 17.95 | ||
| P/OCF | 14.62 | ||
| P/B | 7.77 | ||
| P/tB | 11.28 | ||
| EV/EBITDA | 17.2 |
EPS(TTM)4.36
EY1.84%
EPS(NY)7.75
Fwd EY3.28%
FCF(TTM)13.17
FCFY5.57%
OCF(TTM)16.17
OCFY6.84%
SpS131.57
BVpS30.42
TBVpS20.97
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.7% | ||
| ROE | 13.95% | ||
| ROCE | 12.09% | ||
| ROIC | 8.51% | ||
| ROICexc | 12.29% | ||
| ROICexgc | 15.8% | ||
| OM | 5.65% | ||
| PM (TTM) | 3.23% | ||
| GM | 50.77% | ||
| FCFM | 10.01% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 44.7% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 6.16 | ||
| Cash Conversion | 114.34% | ||
| Profit Quality | 310.21% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.58 |
F-Score8
WACC6.52%
ROIC/WACC1.31
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)750.62%
EPS 3Y-16.73%
EPS 5Y-15.25%
EPS Q2Q%94.48%
EPS Next Y77.78%
EPS Next 2Y62.79%
EPS Next 3Y48.52%
EPS Next 5Y30.05%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%23.64%
Revenue Next Year10.4%
Revenue Next 2Y10.07%
Revenue Next 3Y9.2%
Revenue Next 5Y7.82%
EBIT growth 1Y398.88%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year152.31%
EBIT Next 3Y57.27%
EBIT Next 5Y33.59%
FCF growth 1Y15.95%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y14.21%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%