ADESSO SE (ADN1.DE) Stock Fundamental Analysis
FRA:ADN1 - Deutsche Boerse Ag - DE000A0Z23Q5 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to ADN1. ADN1 was compared to 69 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
ADN1 had positive earnings in the past year.
ADN1 had a positive operating cash flow in the past year.
ADN1 had positive earnings in each of the past 5 years.
ADN1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.97%, ADN1 is in line with its industry, outperforming 40.58% of the companies in the same industry.
ADN1 has a Return On Equity of 8.33%. This is comparable to the rest of the industry: ADN1 outperforms 42.03% of its industry peers.
ADN1 has a worse Return On Invested Capital (5.45%) than 60.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADN1 is significantly below the industry average of 10.77%.
The 3 year average ROIC (3.16%) for ADN1 is below the current ROIC(5.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.33% | ||
| ROIC | 5.45% |
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
ADN1's Profit Margin of 0.81% is on the low side compared to the rest of the industry. ADN1 is outperformed by 62.32% of its industry peers.
In the last couple of years the Profit Margin of ADN1 has declined.
Looking at the Operating Margin, with a value of 2.94%, ADN1 is doing worse than 63.77% of the companies in the same industry.
In the last couple of years the Operating Margin of ADN1 has declined.
Looking at the Gross Margin, with a value of 86.36%, ADN1 is in the better half of the industry, outperforming 76.81% 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 | 2.94% | ||
| PM (TTM) | 0.81% | ||
| GM | 86.36% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADN1 is destroying value.
Compared to 1 year ago, ADN1 has less shares outstanding
ADN1 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADN1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.61 indicates that ADN1 is not in any danger for bankruptcy at the moment.
ADN1 has a better Altman-Z score (3.61) than 73.91% of its industry peers.
ADN1 has a debt to FCF ratio of 4.07. This is a neutral value as ADN1 would need 4.07 years to pay back of all of its debts.
ADN1 has a Debt to FCF ratio of 4.07. This is comparable to the rest of the industry: ADN1 outperforms 50.72% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that ADN1 has dependencies on debt financing.
The Debt to Equity ratio of ADN1 (1.29) is worse than 72.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.07 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.95
WACC5.76%
2.3 Liquidity
A Current Ratio of 1.11 indicates that ADN1 should not have too much problems paying its short term obligations.
ADN1 has a Current ratio of 1.11. This is in the lower half of the industry: ADN1 underperforms 60.87% of its industry peers.
A Quick Ratio of 1.11 indicates that ADN1 should not have too much problems paying its short term obligations.
ADN1 has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
ADN1 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.92%, which is quite impressive.
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 14.41% in the past year. This is quite good.
Measured over the past years, ADN1 shows a very strong growth in Revenue. The Revenue has been growing by 23.60% on average per year.
EPS 1Y (TTM)52.92%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%101.85%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.07%
3.2 Future
Based on estimates for the next years, ADN1 will show a very strong growth in Earnings Per Share. The EPS will grow by 39.18% on average per year.
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
The Price/Earnings ratio is 41.23, which means the current valuation is very expensive for ADN1.
Based on the Price/Earnings ratio, ADN1 is valued a bit more expensive than 60.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.12, ADN1 is valued quite expensively.
ADN1 is valuated rather expensively with a Price/Forward Earnings ratio of 24.77.
The rest of the industry has a similar Price/Forward Earnings ratio as ADN1.
ADN1 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.23 | ||
| Fwd PE | 24.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADN1 is valued a bit cheaper than 68.12% of the companies in the same industry.
ADN1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADN1 is cheaper than 72.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.02 | ||
| EV/EBITDA | 7.06 |
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.
ADN1's earnings are expected to grow with 65.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y77.37%
EPS Next 3Y65.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, ADN1 is not a good candidate for dividend investing.
ADN1's Dividend Yield is comparable with the industry average which is at 7.38.
With a Dividend Yield of 0.77, ADN1 pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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 Years5
5.3 Sustainability
ADN1 pays out 38.59% of its income as dividend. This is a sustainable payout ratio.
ADN1's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.59%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
FRA:ADN1 (5/8/2025, 7:00:00 PM)
100.2
+0.4 (+0.4%)
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 Cap653.30M
Analysts80
Price Target125.61 (25.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Yearly Dividend0.94
Dividend Growth(5Y)15.65%
DP38.59%
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)-0.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.49%
EPS NY rev (3m)-8.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.22%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.23 | ||
| Fwd PE | 24.77 | ||
| P/S | 0.34 | ||
| P/FCF | 8.02 | ||
| P/OCF | 5.91 | ||
| P/B | 3.44 | ||
| P/tB | 12.71 | ||
| EV/EBITDA | 7.06 |
EPS(TTM)2.43
EY2.43%
EPS(NY)4.05
Fwd EY4.04%
FCF(TTM)12.49
FCFY12.46%
OCF(TTM)16.96
OCFY16.92%
SpS298.21
BVpS29.14
TBVpS7.89
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 8.33% | ||
| ROCE | 12.41% | ||
| ROIC | 5.45% | ||
| ROICexc | 6.87% | ||
| ROICexgc | 11.06% | ||
| OM | 2.94% | ||
| PM (TTM) | 0.81% | ||
| GM | 86.36% | ||
| FCFM | 4.19% |
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-Score7
Asset Turnover2.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 4.07 | ||
| Debt/EBITDA | 1.96 | ||
| Cap/Depr | 43.16% | ||
| Cap/Sales | 1.5% | ||
| Interest Coverage | 4.29 | ||
| Cash Conversion | 88.62% | ||
| Profit Quality | 514.37% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 3.61 |
F-Score7
WACC5.76%
ROIC/WACC0.95
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)52.92%
EPS 3Y-45.19%
EPS 5Y-15.07%
EPS Q2Q%101.85%
EPS Next Y121.81%
EPS Next 2Y77.37%
EPS Next 3Y65.85%
EPS Next 5Y39.18%
Revenue 1Y (TTM)14.41%
Revenue growth 3Y24.12%
Revenue growth 5Y23.6%
Sales Q2Q%11.07%
Revenue Next Year9.93%
Revenue Next 2Y10.1%
Revenue Next 3Y9.9%
Revenue Next 5Y9.41%
EBIT growth 1Y35.34%
EBIT growth 3Y-13.12%
EBIT growth 5Y5.01%
EBIT Next Year311.47%
EBIT Next 3Y78.96%
EBIT Next 5Y42.52%
FCF growth 1Y91.51%
FCF growth 3Y40.19%
FCF growth 5Y49.54%
OCF growth 1Y43.84%
OCF growth 3Y32.14%
OCF growth 5Y37.69%