ADESSO SE (ADN1.DE) Stock Fundamental Analysis
FRA:ADN1 - Deutsche Boerse Ag - DE000A0Z23Q5 - Common Stock - Currency: EUR
Taking everything into account, ADN1 scores 5 out of 10 in our fundamental rating. ADN1 was compared to 77 industry peers in the IT Services industry. ADN1 has only an average score on both its financial health and profitability. ADN1 is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year ADN1 was profitable.
ADN1 had a positive operating cash flow in the past year.
In the past 5 years ADN1 has always been profitable.
In the past 5 years ADN1 always reported a positive cash flow from operatings.
1.2 Ratios
ADN1's Return On Assets of 1.90% is on the low side compared to the rest of the industry. ADN1 is outperformed by 61.84% of its industry peers.
With a Return On Equity value of 8.43%, ADN1 perfoms like the industry average, outperforming 40.79% of the companies in the same industry.
ADN1 has a Return On Invested Capital of 4.96%. This is in the lower half of the industry: ADN1 underperforms 63.16% of its industry peers.
ADN1 had an Average Return On Invested Capital over the past 3 years of 3.16%. This is significantly below the industry average of 11.17%.
The 3 year average ROIC (3.16%) for ADN1 is below the current ROIC(4.96%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 8.43% | ||
| ROIC | 4.96% |
ROA(3y)1.93%
ROA(5y)3.99%
ROE(3y)6.49%
ROE(5y)13.12%
ROIC(3y)3.16%
ROIC(5y)4.51%
1.3 Margins
With a Profit Margin value of 0.79%, ADN1 is not doing good in the industry: 64.47% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of ADN1 has declined.
ADN1 has a Operating Margin of 2.81%. This is in the lower half of the industry: ADN1 underperforms 65.79% of its industry peers.
In the last couple of years the Operating Margin of ADN1 has declined.
ADN1's Gross Margin of 86.11% is fine compared to the rest of the industry. ADN1 outperforms 78.95% of its industry peers.
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 | 2.81% | ||
| PM (TTM) | 0.79% | ||
| GM | 86.11% |
OM growth 3Y-30%
OM growth 5Y-15.03%
PM growth 3Y-55.28%
PM growth 5Y-30.54%
GM growth 3Y-0.02%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ADN1 is destroying value.
ADN1 has less shares outstanding than it did 1 year ago.
ADN1 has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ADN1 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.54 indicates that ADN1 is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.54, ADN1 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Debt to FCF ratio of ADN1 is 6.11, which is on the high side as it means it would take ADN1, 6.11 years of fcf income to pay off all of its debts.
ADN1 has a Debt to FCF ratio of 6.11. This is in the lower half of the industry: ADN1 underperforms 61.84% of its industry peers.
ADN1 has a Debt/Equity ratio of 1.53. This is a high value indicating a heavy dependency on external financing.
ADN1 has a Debt to Equity ratio of 1.53. This is in the lower half of the industry: ADN1 underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.91
WACC5.45%
2.3 Liquidity
ADN1 has a Current Ratio of 1.20. This is a normal value and indicates that ADN1 is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.20, ADN1 is in line with its industry, outperforming 47.37% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that ADN1 should not have too much problems paying its short term obligations.
ADN1's Quick ratio of 1.20 is in line compared to the rest of the industry. ADN1 outperforms 55.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 188.20% over the past year.
ADN1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.07% yearly.
The Revenue has grown by 13.80% 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 23.60% yearly.
EPS 1Y (TTM)188.2%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%-8.73%
Revenue 1Y (TTM)13.8%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.44%
3.2 Future
The Earnings Per Share is expected to grow by 39.18% on average over the next years. This is a very strong growth
Based on estimates for the next years, ADN1 will show a quite strong growth in Revenue. The Revenue will grow by 9.41% on average per year.
EPS Next Y121.81%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
EPS Next 5Y39.18%
Revenue Next Year9.93%
Revenue Next 2Y10.1%
Revenue Next 3Y9.9%
Revenue Next 5Y9.41%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ADN1 is valuated quite expensively with a Price/Earnings ratio of 36.78.
Compared to the rest of the industry, the Price/Earnings ratio of ADN1 indicates a slightly more expensive valuation: ADN1 is more expensive than 63.16% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADN1 to the average of the S&P500 Index (26.25), we can say ADN1 is valued slightly more expensively.
The Price/Forward Earnings ratio is 15.32, which indicates a correct valuation of ADN1.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ADN1 indicates a somewhat cheap valuation: ADN1 is cheaper than 63.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, ADN1 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.78 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
64.47% of the companies in the same industry are more expensive than ADN1, based on the Enterprise Value to EBITDA ratio.
69.74% of the companies in the same industry are more expensive than ADN1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.86 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
ADN1'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 ADN1's earnings are expected to grow with 65.85% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y77.37%
EPS Next 3Y65.85%
5. Dividend
5.1 Amount
ADN1 has a yearly dividend return of 0.86%, which is pretty low.
ADN1's Dividend Yield is comparable with the industry average which is at 6.55.
With a Dividend Yield of 0.86, ADN1 pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of ADN1 is nicely growing with an annual growth rate of 15.65%!
Dividend Growth(5Y)15.65%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
41.03% of the earnings are spent on dividend by ADN1. This is a bit on the high side, but may be sustainable.
ADN1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP41.03%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
FRA:ADN1 (5/30/2025, 7:00:00 PM)
87.9
+0.6 (+0.69%)
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 Cap573.11M
Analysts80
Price Target125.61 (42.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
Yearly Dividend0.94
Dividend Growth(5Y)15.65%
DP41.03%
Div Incr Years5
Div Non Decr Years6
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%
PT rev (3m)-0.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.78 | ||
| Fwd PE | 15.32 | ||
| P/S | 0.29 | ||
| P/FCF | 9.86 | ||
| P/OCF | 6.47 | ||
| P/B | 3.11 | ||
| P/tB | 12.64 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)2.39
EY2.72%
EPS(NY)5.74
Fwd EY6.53%
FCF(TTM)8.91
FCFY10.14%
OCF(TTM)13.58
OCFY15.45%
SpS303.77
BVpS28.27
TBVpS6.95
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 8.43% | ||
| ROCE | 11.28% | ||
| ROIC | 4.96% | ||
| ROICexc | 5.55% | ||
| ROICexgc | 8.11% | ||
| OM | 2.81% | ||
| PM (TTM) | 0.79% | ||
| GM | 86.11% | ||
| FCFM | 2.93% |
ROA(3y)1.93%
ROA(5y)3.99%
ROE(3y)6.49%
ROE(5y)13.12%
ROIC(3y)3.16%
ROIC(5y)4.51%
ROICexc(3y)4.06%
ROICexc(5y)6.01%
ROICexgc(3y)6.65%
ROICexgc(5y)10.11%
ROCE(3y)7.2%
ROCE(5y)10.26%
ROICexcg growth 3Y-20.34%
ROICexcg growth 5Y-12.01%
ROICexc growth 3Y-21.84%
ROICexc growth 5Y-11.01%
OM growth 3Y-30%
OM growth 5Y-15.03%
PM growth 3Y-55.28%
PM growth 5Y-30.54%
GM growth 3Y-0.02%
GM growth 5Y-0.7%
F-Score5
Asset Turnover2.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.53 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 43.76% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 4.12 | ||
| Cash Conversion | 70.77% | ||
| Profit Quality | 373.76% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.54 |
F-Score5
WACC5.45%
ROIC/WACC0.91
Cap/Depr(3y)52.06%
Cap/Depr(5y)49.68%
Cap/Sales(3y)2.64%
Cap/Sales(5y)2.54%
Profit Quality(3y)790.41%
Profit Quality(5y)538.39%
High Growth Momentum
Growth
EPS 1Y (TTM)188.2%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%-8.73%
EPS Next Y121.81%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
EPS Next 5Y39.18%
Revenue 1Y (TTM)13.8%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.44%
Revenue Next Year9.93%
Revenue Next 2Y10.1%
Revenue Next 3Y9.9%
Revenue Next 5Y9.41%
EBIT growth 1Y40.74%
EBIT growth 3Y-13.12%
EBIT growth 5Y5.01%
EBIT Next Year308.55%
EBIT Next 3Y80.4%
EBIT Next 5Y42.52%
FCF growth 1Y788.49%
FCF growth 3Y40.19%
FCF growth 5Y49.54%
OCF growth 1Y154.02%
OCF growth 3Y32.14%
OCF growth 5Y37.69%