ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
BIT:1ADS - Euronext Milan - DE000A1EWWW0 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1ADS. 1ADS was compared to 44 industry peers in the Textiles, Apparel & Luxury Goods industry. 1ADS has only an average score on both its financial health and profitability. 1ADS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ADS was profitable.
1ADS had a positive operating cash flow in the past year.
1ADS had positive earnings in 4 of the past 5 years.
1ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.09%, 1ADS is in line with its industry, outperforming 59.09% of the companies in the same industry.
1ADS has a better Return On Equity (17.90%) than 63.64% of its industry peers.
With a Return On Invested Capital value of 10.84%, 1ADS perfoms like the industry average, outperforming 56.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1ADS is significantly below the industry average of 10.71%.
The 3 year average ROIC (5.53%) for 1ADS is below the current ROIC(10.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROIC | 10.84% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.53%
ROIC(5y)6.71%
1.3 Margins
1ADS's Profit Margin of 4.19% is in line compared to the rest of the industry. 1ADS outperforms 45.45% of its industry peers.
1ADS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.61%, 1ADS 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 Operating Margin of 1ADS has declined.
1ADS has a Gross Margin of 51.01%. This is in the lower half of the industry: 1ADS underperforms 70.45% of its industry peers.
1ADS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1ADS is creating some value.
1ADS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ADS has been reduced compared to 5 years ago.
1ADS has a better debt/assets ratio than last year.
2.2 Solvency
1ADS has an Altman-Z score of 3.48. This indicates that 1ADS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1ADS (3.48) is better than 70.45% of its industry peers.
The Debt to FCF ratio of 1ADS is 3.47, which is a good value as it means it would take 1ADS, 3.47 years of fcf income to pay off all of its debts.
1ADS's Debt to FCF ratio of 3.47 is fine compared to the rest of the industry. 1ADS outperforms 65.91% of its industry peers.
1ADS has a Debt/Equity ratio of 0.75. This is a neutral value indicating 1ADS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, 1ADS is not doing good in the industry: 61.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.53
WACC7.09%
2.3 Liquidity
1ADS has a Current Ratio of 1.29. This is a normal value and indicates that 1ADS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.29, 1ADS is not doing good in the industry: 70.45% of the companies in the same industry are doing better.
A Quick Ratio of 0.72 indicates that 1ADS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, 1ADS is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
1ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1114.89%, which is quite impressive.
The earnings per share for 1ADS have been decreasing by -15.76% on average. This is quite bad
The Revenue has grown by 12.80% 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)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
3.2 Future
1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.72% yearly.
Based on estimates for the next years, 1ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.32% on average per year.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
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 34.74, 1ADS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1ADS is valued a bit more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, 1ADS is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 17.43, the valuation of 1ADS can be described as rather expensive.
Based on the Price/Forward Earnings ratio, 1ADS is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
1ADS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 17.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ADS is valued a bit more expensive than 72.73% of the companies in the same industry.
70.45% of the companies in the same industry are cheaper than 1ADS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 13.61 |
4.3 Compensation for Growth
1ADS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1ADS's earnings are expected to grow with 47.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
1ADS has a Yearly Dividend Yield of 1.04%. Purely for dividend investing, there may be better candidates out there.
1ADS's Dividend Yield is slightly below the industry average, which is at 3.24.
With a Dividend Yield of 1.04, 1ADS pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
5.2 History
The dividend of 1ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
12.23% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP12.23%
EPS Next 2Y64%
EPS Next 3Y47.1%
BIT:1ADS (6/30/2025, 7:00:00 PM)
198.35
-0.85 (-0.43%)
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 Cap35.70B
Analysts78.38
Price Target264.64 (33.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.04% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP12.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.73%
Min EPS beat(2)5.82%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)5.82%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)26.41%
EPS beat(12)8
Avg EPS beat(12)7.56%
EPS beat(16)11
Avg EPS beat(16)10.75%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)0.93%
PT rev (3m)-1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.74 | ||
| Fwd PE | 17.43 | ||
| P/S | 1.46 | ||
| P/FCF | 22.22 | ||
| P/OCF | 16.66 | ||
| P/B | 6.25 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 13.61 |
EPS(TTM)5.71
EY2.88%
EPS(NY)11.38
Fwd EY5.74%
FCF(TTM)8.93
FCFY4.5%
OCF(TTM)11.91
OCFY6%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROCE | 14.45% | ||
| ROIC | 10.84% | ||
| ROICexc | 13.37% | ||
| ROICexgc | 16.4% | ||
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% | ||
| FCFM | 6.59% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.53%
ROIC(5y)6.71%
ROICexc(3y)6.96%
ROICexc(5y)9.19%
ROICexgc(3y)8.67%
ROICexgc(5y)11.56%
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-Score9
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 75.78% | ||
| Profit Quality | 157.24% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.48 |
F-Score9
WACC7.09%
ROIC/WACC1.53
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)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.32%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.31%
FCF growth 1Y222.67%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y426.18%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%