ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ADS - DE000A1EWWW0 - Common Stock
168.45 EUR
+2.05 (+1.23%)
Taking everything into account, 1ADS scores 4 out of 10 in our fundamental rating. 1ADS was compared to 49 industry peers in the Textiles, Apparel & Luxury Goods industry. While 1ADS is still in line with the averages on profitability rating, there are concerns on its financial health. 1ADS has a correct valuation and a medium 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.
Of the past 5 years 1ADS 4 years were profitable.
Of the past 5 years 1ADS 4 years had a positive operating cash flow.
1.2 Ratios
1ADS's Return On Assets of 6.05% is in line compared to the rest of the industry. 1ADS outperforms 57.14% of its industry peers.
With a decent Return On Equity value of 21.39%, 1ADS is doing good in the industry, outperforming 75.51% of the companies in the same industry.
1ADS has a better Return On Invested Capital (13.27%) than 77.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ADS is significantly below the industry average of 12.08%.
The 3 year average ROIC (5.53%) for 1ADS is below the current ROIC(13.27%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROIC | 13.27% |
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 has a Profit Margin of 4.94%. This is comparable to the rest of the industry: 1ADS outperforms 51.02% of its industry peers.
1ADS's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.89%, 1ADS perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
In the last couple of years the Operating Margin of 1ADS has declined.
The Gross Margin of 1ADS (51.36%) is worse than 67.35% of its industry peers.
In the last couple of years the Gross Margin of 1ADS has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ADS is creating value.
Compared to 1 year ago, 1ADS has about the same amount of shares outstanding.
1ADS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ADS has an improved debt to assets ratio.
2.2 Solvency
1ADS has an Altman-Z score of 3.36. This indicates that 1ADS is financially healthy and has little risk of bankruptcy at the moment.
1ADS has a Altman-Z score (3.36) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1ADS is 14.32, which is on the high side as it means it would take 1ADS, 14.32 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1ADS (14.32) is worse than 67.35% of its industry peers.
A Debt/Equity ratio of 0.74 indicates that 1ADS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.74, 1ADS is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 14.32 | ||
| Altman-Z | 3.36 |
ROIC/WACC1.93
WACC6.89%
2.3 Liquidity
1ADS has a Current Ratio of 1.31. This is a normal value and indicates that 1ADS is financially healthy and should not expect problems in meeting its short term obligations.
1ADS has a worse Current ratio (1.31) than 69.39% of its industry peers.
1ADS has a Quick Ratio of 1.31. This is a bad value and indicates that 1ADS is not financially healthy enough and could expect problems in meeting its short term obligations.
1ADS has a worse Quick ratio (0.71) than 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
1ADS 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 1ADS have been decreasing by -15.76% on average. This is quite bad
Looking at the last year, 1ADS shows a quite strong growth in Revenue. The Revenue has grown by 9.64% in the last year.
Measured over the past years, 1ADS 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
1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.63% yearly.
1ADS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y80.59%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
EPS Next 5Y31.63%
Revenue Next Year6.1%
Revenue Next 2Y7.08%
Revenue Next 3Y7.54%
Revenue Next 5Y7.8%
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 24.85, which indicates a rather expensive current valuation of 1ADS.
1ADS's Price/Earnings is on the same level as the industry average.
1ADS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 15.58, 1ADS is valued correctly.
1ADS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1ADS is cheaper than 77.55% of the companies in the same industry.
1ADS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 15.58 |
4.2 Price Multiples
1ADS's Enterprise Value to EBITDA ratio is in line with the industry average.
1ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1ADS is more expensive than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80 | ||
| EV/EBITDA | 10.69 |
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 44.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)N/A
EPS Next 2Y59.89%
EPS Next 3Y44.37%
5. Dividend
5.1 Amount
1ADS has a Yearly Dividend Yield of 1.22%.
1ADS's Dividend Yield is slightly below the industry average, which is at 2.09.
1ADS's Dividend Yield is slightly below the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
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
29.29% of the earnings are spent on dividend by 1ADS. This is a low number and sustainable payout ratio.
DP29.29%
EPS Next 2Y59.89%
EPS Next 3Y44.37%
BIT:1ADS (12/29/2025, 7:00:00 PM)
168.45
+2.05 (+1.23%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.95%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap30.32B
Revenue(TTM)24.70B
Net Income(TTM)1.22B
Analysts80.56
Price Target236.11 (40.17%)
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 Years0
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)-1.19%
PT rev (3m)-3.7%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)11.13%
EPS NY rev (1m)0.77%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 15.58 | ||
| P/S | 1.23 | ||
| P/FCF | 80 | ||
| P/OCF | 33.28 | ||
| P/B | 5.32 | ||
| P/tB | 7.46 | ||
| EV/EBITDA | 10.69 |
EPS(TTM)6.78
EY4.02%
EPS(NY)10.81
Fwd EY6.42%
FCF(TTM)2.11
FCFY1.25%
OCF(TTM)5.06
OCFY3%
SpS137.22
BVpS31.66
TBVpS22.58
PEG (NY)0.31
PEG (5Y)N/A
Graham Number69.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.05% | ||
| ROE | 21.39% | ||
| ROCE | 17.7% | ||
| ROIC | 13.27% | ||
| ROICexc | 15.69% | ||
| ROICexgc | 19.03% | ||
| 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)5.53%
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%
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 | 3.36 |
F-Score7
WACC6.89%
ROIC/WACC1.93
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 5Y31.63%
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 5Y7.8%
EBIT growth 1Y115.84%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year155.69%
EBIT Next 3Y51.76%
EBIT Next 5Y33.25%
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 / 1ADS.MI FAQ
What is the ChartMill fundamental rating of ADIDAS AG (1ADS.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1ADS.MI.
What is the valuation status for 1ADS stock?
ChartMill assigns a valuation rating of 4 / 10 to ADIDAS AG (1ADS.MI). This can be considered as Fairly Valued.
What is the profitability of 1ADS stock?
ADIDAS AG (1ADS.MI) has a profitability rating of 4 / 10.
How financially healthy is ADIDAS AG?
The financial health rating of ADIDAS AG (1ADS.MI) is 3 / 10.
Is the dividend of ADIDAS AG sustainable?
The dividend rating of ADIDAS AG (1ADS.MI) is 2 / 10 and the dividend payout ratio is 29.29%.