ADIDAS AG (1ADS.MI) Stock Fundamental Analysis
Europe - BIT:1ADS - DE000A1EWWW0 - Common Stock
180.25 EUR
+7.05 (+4.07%)
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. There are concerns on the financial health of 1ADS while its profitability can be described as average. 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.
1ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1ADS has a Return On Assets of 6.16%. This is comparable to the rest of the industry: 1ADS outperforms 59.09% of its industry peers.
1ADS's Return On Equity of 23.12% is fine compared to the rest of the industry. 1ADS outperforms 77.27% of its industry peers.
With a decent Return On Invested Capital value of 12.89%, 1ADS is doing good in the industry, outperforming 75.00% 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 12.56%.
The last Return On Invested Capital (12.89%) for 1ADS is above the 3 year average (5.53%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROIC | 12.89% |
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
Looking at the Profit Margin, with a value of 4.90%, 1ADS 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 1ADS has declined.
1ADS has a Operating Margin of 7.39%. This is in the lower half of the industry: 1ADS underperforms 63.64% of its industry peers.
In the last couple of years the Operating Margin of 1ADS has declined.
1ADS's Gross Margin of 51.22% is on the low side compared to the rest of the industry. 1ADS is outperformed by 65.91% of its industry peers.
1ADS'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
1ADS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1ADS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, 1ADS has less shares outstanding
The debt/assets ratio for 1ADS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.43 indicates that 1ADS is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.43, 1ADS perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
The Debt to FCF ratio of 1ADS is 7.91, which is on the high side as it means it would take 1ADS, 7.91 years of fcf income to pay off all of its debts.
1ADS's Debt to FCF ratio of 7.91 is on the low side compared to the rest of the industry. 1ADS is outperformed by 63.64% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that 1ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of 1ADS (0.81) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 3.43 |
ROIC/WACC1.77
WACC7.28%
2.3 Liquidity
1ADS has a Current Ratio of 1.25. 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 1.25, 1ADS is not doing good in the industry: 77.27% of the companies in the same industry are doing better.
1ADS has a Quick Ratio of 1.25. 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 Quick ratio of 0.67. This is in the lower half of the industry: 1ADS underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
1ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 515.74%, which is quite impressive.
1ADS 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, 1ADS 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
1ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.30% yearly.
The Revenue is expected to grow by 7.75% on average over the next years.
EPS Next Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
EPS Next 5Y31.3%
Revenue Next Year7.49%
Revenue Next 2Y8.13%
Revenue Next 3Y8.29%
Revenue Next 5Y7.75%
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
With a Price/Earnings ratio of 27.11, 1ADS can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1ADS is on the same level as its industry peers.
When comparing the Price/Earnings ratio of 1ADS to the average of the S&P500 Index (27.86), we can say 1ADS is valued inline with the index average.
1ADS is valuated correctly with a Price/Forward Earnings ratio of 16.39.
75.00% of the companies in the same industry are more expensive than 1ADS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1ADS to the average of the S&P500 Index (23.29), we can say 1ADS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 16.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ADS is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1ADS is valued a bit more expensive than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.89 | ||
| EV/EBITDA | 11.8 |
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.
A more expensive valuation may be justified as 1ADS's earnings are expected to grow with 45.81% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y61.22%
EPS Next 3Y45.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.08%, 1ADS has a reasonable but not impressive dividend return.
The stock price of 1ADS dropped by -30.05% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
1ADS's Dividend Yield is slightly below the industry average, which is at 2.84.
Compared to an average S&P500 Dividend Yield of 2.41, 1ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
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
1ADS pays out 29.73% of its income as dividend. This is a sustainable payout ratio.
DP29.73%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
BIT:1ADS (9/25/2025, 7:00:00 PM)
180.25
+7.05 (+4.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap32.45B
Analysts78.33
Price Target245.19 (36.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.08% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.73%
Div Incr Years0
Div Non Decr Years0
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)-1.58%
PT rev (3m)-7.35%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-16.21%
EPS NY rev (1m)0.17%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-4.93%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.11 | ||
| Fwd PE | 16.39 | ||
| P/S | 1.32 | ||
| P/FCF | 46.89 | ||
| P/OCF | 26.46 | ||
| P/B | 6.25 | ||
| P/tB | 9.09 | ||
| EV/EBITDA | 11.8 |
EPS(TTM)6.65
EY3.69%
EPS(NY)10.99
Fwd EY6.1%
FCF(TTM)3.84
FCFY2.13%
OCF(TTM)6.81
OCFY3.78%
SpS136.16
BVpS28.86
TBVpS19.82
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROCE | 17.19% | ||
| ROIC | 12.89% | ||
| ROICexc | 15.08% | ||
| ROICexgc | 18.4% | ||
| 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)5.53%
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-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 | 3.43 |
F-Score8
WACC7.28%
ROIC/WACC1.77
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 Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
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 Year154.98%
EBIT Next 3Y52.03%
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%