ADESSO SE (ADN1.DE) Stock Fundamental Analysis
FRA:ADN1 - Deutsche Boerse Ag - DE000A0Z23Q5 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ADN1. ADN1 was compared to 72 industry peers in the IT Services industry. Both the profitability and the financial health of ADN1 get a neutral evaluation. Nothing too spectacular is happening here. ADN1 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 ADN1 was profitable.
In the past year ADN1 had a positive cash flow from operations.
In the past 5 years ADN1 has always been profitable.
Each year in the past 5 years ADN1 had a positive operating cash flow.
1.2 Ratios
ADN1 has a worse Return On Assets (0.88%) than 61.11% of its industry peers.
ADN1 has a Return On Equity (3.43%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 5.07%, ADN1 is doing worse than 63.89% of the companies in the same industry.
ADN1 had an Average Return On Invested Capital over the past 3 years of 4.44%. This is significantly below the industry average of 11.13%.
The 3 year average ROIC (4.44%) for ADN1 is below the current ROIC(5.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.43% | ||
| ROIC | 5.07% |
ROA(3y)4.43%
ROA(5y)4.87%
ROE(3y)13.62%
ROE(5y)16.03%
ROIC(3y)4.44%
ROIC(5y)5.46%
1.3 Margins
The Profit Margin of ADN1 (0.37%) is worse than 61.11% of its industry peers.
In the last couple of years the Profit Margin of ADN1 has declined.
The Operating Margin of ADN1 (2.41%) is worse than 69.44% of its industry peers.
ADN1's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 86.64%, ADN1 is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Gross Margin of ADN1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.41% | ||
| PM (TTM) | 0.37% | ||
| GM | 86.64% |
OM growth 3Y-35.22%
OM growth 5Y-20.31%
PM growth 3Y-58.69%
PM growth 5Y-40.36%
GM growth 3Y-0.82%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
ADN1 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ADN1 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ADN1 has more shares outstanding
The debt/assets ratio for ADN1 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.49 indicates that ADN1 is not in any danger for bankruptcy at the moment.
ADN1 has a better Altman-Z score (3.49) than 76.39% of its industry peers.
The Debt to FCF ratio of ADN1 is 3.27, which is a good value as it means it would take ADN1, 3.27 years of fcf income to pay off all of its debts.
ADN1 has a Debt to FCF ratio (3.27) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.01 is on the high side and indicates that ADN1 has dependencies on debt financing.
ADN1 has a worse Debt to Equity ratio (1.01) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.49 |
ROIC/WACC0.91
WACC5.59%
2.3 Liquidity
ADN1 has a Current Ratio of 1.02. This is a normal value and indicates that ADN1 is financially healthy and should not expect problems in meeting its short term obligations.
ADN1 has a Current ratio of 1.02. This is in the lower half of the industry: ADN1 underperforms 63.89% of its industry peers.
ADN1 has a Quick Ratio of 1.02. This is a normal value and indicates that ADN1 is financially healthy and should not expect problems in meeting its short term obligations.
ADN1's Quick ratio of 1.02 is in line compared to the rest of the industry. ADN1 outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 |
3. Growth
3.1 Past
ADN1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.43%.
ADN1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.37% yearly.
The Revenue has grown by 16.90% in the past year. This is quite good.
ADN1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.77% yearly.
EPS 1Y (TTM)-64.43%
EPS 3Y-47.47%
EPS 5Y-26.37%
EPS Q2Q%98.31%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y29.47%
Revenue growth 5Y24.77%
Sales Q2Q%14.92%
3.2 Future
ADN1 is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.73% yearly.
Based on estimates for the next years, ADN1 will show a quite strong growth in Revenue. The Revenue will grow by 11.46% on average per year.
EPS Next Y42.48%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
EPS Next 5Y39.73%
Revenue Next Year17.2%
Revenue Next 2Y14.2%
Revenue Next 3Y13.18%
Revenue Next 5Y11.46%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 92.86, which means the current valuation is very expensive for ADN1.
Compared to the rest of the industry, the Price/Earnings ratio of ADN1 indicates a slightly more expensive valuation: ADN1 is more expensive than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.07. ADN1 is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 22.12, ADN1 is valued on the expensive side.
ADN1's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.05. ADN1 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.86 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADN1.
ADN1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADN1 is cheaper than 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.2 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ADN1's earnings are expected to grow with 58.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.19
PEG (5Y)N/A
EPS Next 2Y64.25%
EPS Next 3Y58.85%
5. Dividend
5.1 Amount
ADN1 has a yearly dividend return of 0.91%, which is pretty low.
ADN1's Dividend Yield is comparable with the industry average which is at 4.21.
Compared to an average S&P500 Dividend Yield of 2.39, ADN1's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of ADN1 is nicely growing with an annual growth rate of 14.71%!
Dividend Growth(5Y)14.71%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
141.72% of the earnings are spent on dividend by ADN1. This is not a sustainable payout ratio.
The dividend of ADN1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP141.72%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
FRA:ADN1 (3/26/2025, 5:24:03 PM)
97.5
-1.8 (-1.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners17.52%
Inst Owner ChangeN/A
Ins Owners51.92%
Ins Owner ChangeN/A
Market Cap635.70M
Analysts80
Price Target125.75 (28.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.81
Dividend Growth(5Y)14.71%
DP141.72%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.12%
PT rev (3m)5.76%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.86 | ||
| Fwd PE | 22.12 | ||
| P/S | 0.34 | ||
| P/FCF | 6.2 | ||
| P/OCF | 4.72 | ||
| P/B | 3.14 | ||
| P/tB | 9.9 | ||
| EV/EBITDA | 8.51 |
EPS(TTM)1.05
EY1.08%
EPS(NY)4.41
Fwd EY4.52%
FCF(TTM)15.72
FCFY16.12%
OCF(TTM)20.64
OCFY21.17%
SpS286.51
BVpS31.05
TBVpS9.85
PEG (NY)2.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.88% | ||
| ROE | 3.43% | ||
| ROCE | 10.52% | ||
| ROIC | 5.07% | ||
| ROICexc | 5.66% | ||
| ROICexgc | 8.87% | ||
| OM | 2.41% | ||
| PM (TTM) | 0.37% | ||
| GM | 86.64% | ||
| FCFM | 5.49% |
ROA(3y)4.43%
ROA(5y)4.87%
ROE(3y)13.62%
ROE(5y)16.03%
ROIC(3y)4.44%
ROIC(5y)5.46%
ROICexc(3y)6.02%
ROICexc(5y)7.27%
ROICexgc(3y)9.54%
ROICexgc(5y)12.32%
ROCE(3y)9.22%
ROCE(5y)11.32%
ROICexcg growth 3Y-40.62%
ROICexcg growth 5Y-48.47%
ROICexc growth 3Y-36.44%
ROICexc growth 5Y-28.67%
OM growth 3Y-35.22%
OM growth 5Y-20.31%
PM growth 3Y-58.69%
PM growth 5Y-40.36%
GM growth 3Y-0.82%
GM growth 5Y-0.69%
F-Score5
Asset Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.86 | ||
| Cap/Depr | 49.48% | ||
| Cap/Sales | 1.72% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 122.53% | ||
| Profit Quality | 1475.03% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.02 | ||
| Altman-Z | 3.49 |
F-Score5
WACC5.59%
ROIC/WACC0.91
Cap/Depr(3y)54.67%
Cap/Depr(5y)51.19%
Cap/Sales(3y)2.8%
Cap/Sales(5y)2.6%
Profit Quality(3y)477.04%
Profit Quality(5y)350.42%
High Growth Momentum
Growth
EPS 1Y (TTM)-64.43%
EPS 3Y-47.47%
EPS 5Y-26.37%
EPS Q2Q%98.31%
EPS Next Y42.48%
EPS Next 2Y64.25%
EPS Next 3Y58.85%
EPS Next 5Y39.73%
Revenue 1Y (TTM)16.9%
Revenue growth 3Y29.47%
Revenue growth 5Y24.77%
Sales Q2Q%14.92%
Revenue Next Year17.2%
Revenue Next 2Y14.2%
Revenue Next 3Y13.18%
Revenue Next 5Y11.46%
EBIT growth 1Y-7.92%
EBIT growth 3Y-16.13%
EBIT growth 5Y-0.57%
EBIT Next Year273.29%
EBIT Next 3Y76.67%
EBIT Next 5Y43.36%
FCF growth 1Y726.09%
FCF growth 3Y-7.75%
FCF growth 5Y36.3%
OCF growth 1Y272.41%
OCF growth 3Y5.77%
OCF growth 5Y33.72%