ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
Taking everything into account, ADS scores 4 out of 10 in our fundamental rating. ADS was compared to 45 industry peers in the Textiles, Apparel & Luxury Goods industry. Both the profitability and the financial health of ADS get a neutral evaluation. Nothing too spectacular is happening here. ADS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ADS had positive earnings in the past year.
In the past year ADS had a positive cash flow from operations.
Of the past 5 years ADS 4 years were profitable.
ADS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ADS's Return On Assets of 5.09% is fine compared to the rest of the industry. ADS outperforms 60.87% of its industry peers.
ADS has a Return On Equity of 17.90%. This is in the better half of the industry: ADS outperforms 67.39% of its industry peers.
ADS's Return On Invested Capital of 10.17% is in line compared to the rest of the industry. ADS outperforms 52.17% of its industry peers.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 10.46%.
The last Return On Invested Capital (10.17%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROIC | 10.17% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.19%
ROIC(5y)6.3%
1.3 Margins
Looking at the Profit Margin, with a value of 4.19%, ADS is in line with its industry, outperforming 45.65% of the companies in the same industry.
In the last couple of years the Profit Margin of ADS has declined.
ADS has a Operating Margin (6.61%) which is comparable to the rest of the industry.
ADS's Operating Margin has declined in the last couple of years.
ADS has a Gross Margin of 51.01%. This is in the lower half of the industry: ADS underperforms 65.22% of its industry peers.
In the last couple of years the Gross Margin of ADS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% |
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
ADS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ADS has about the same amout of shares outstanding than it did 1 year ago.
ADS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADS has been reduced compared to a year ago.
2.2 Solvency
ADS has an Altman-Z score of 3.59. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
ADS has a Altman-Z score of 3.59. This is in the better half of the industry: ADS outperforms 67.39% of its industry peers.
The Debt to FCF ratio of ADS is 3.47, which is a good value as it means it would take ADS, 3.47 years of fcf income to pay off all of its debts.
ADS has a better Debt to FCF ratio (3.47) than 60.87% of its industry peers.
ADS has a Debt/Equity ratio of 0.75. This is a neutral value indicating ADS is somewhat dependend on debt financing.
ADS's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. ADS is outperformed by 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.59 |
ROIC/WACC1.54
WACC6.6%
2.3 Liquidity
ADS has a Current Ratio of 1.29. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.29, ADS is doing worse than 73.91% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that ADS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.72, ADS is in line with its industry, outperforming 45.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1114.89%, which is quite impressive.
ADS 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 12.80% in the past year. This is quite good.
ADS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.04% yearly.
EPS 1Y (TTM)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
3.2 Future
Based on estimates for the next years, ADS will show a very strong growth in Earnings Per Share. The EPS will grow by 34.20% on average per year.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y34.2%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.07%
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
Based on the Price/Earnings ratio of 37.48, the valuation of ADS can be described as expensive.
ADS's Price/Earnings ratio is a bit more expensive when compared to the industry. ADS is more expensive than 63.04% of the companies in the same industry.
ADS is valuated rather expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
ADS is valuated rather expensively with a Price/Forward Earnings ratio of 18.81.
Based on the Price/Forward Earnings ratio, ADS is valued a bit cheaper than the industry average as 63.04% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ADS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADS is valued a bit more expensive than the industry average as 69.57% of the companies are valued more cheaply.
ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ADS is more expensive than 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.97 | ||
| EV/EBITDA | 14.6 |
4.3 Compensation for Growth
ADS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADS's earnings are expected to grow with 47.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, ADS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, ADS is paying slightly less dividend.
With a Dividend Yield of 0.92, ADS pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
5.2 History
The dividend of ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
12.23% of the earnings are spent on dividend by ADS. This is a low number and sustainable payout ratio.
DP12.23%
EPS Next 2Y64%
EPS Next 3Y47.1%
FRA:ADS (5/23/2025, 7:00:00 PM)
214
-4.3 (-1.97%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners51.74%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap38.52B
Analysts77.22
Price Target261.43 (22.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP12.23%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.73%
Min EPS beat(2)5.82%
Max EPS beat(2)15.64%
EPS beat(4)4
Avg EPS beat(4)19.56%
Min EPS beat(4)5.82%
Max EPS beat(4)36.32%
EPS beat(8)6
Avg EPS beat(8)26.41%
EPS beat(12)8
Avg EPS beat(12)7.56%
EPS beat(16)11
Avg EPS beat(16)10.75%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)0.2%
Min Revenue beat(4)-1.17%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-0.31%
PT rev (1m)-3.69%
PT rev (3m)-2.74%
EPS NQ rev (1m)-6.33%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-3.64%
Revenue NY rev (1m)-0.9%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.48 | ||
| Fwd PE | 18.81 | ||
| P/S | 1.58 | ||
| P/FCF | 23.97 | ||
| P/OCF | 17.97 | ||
| P/B | 6.75 | ||
| P/tB | 9.54 | ||
| EV/EBITDA | 14.6 |
EPS(TTM)5.71
EY2.67%
EPS(NY)11.38
Fwd EY5.32%
FCF(TTM)8.93
FCFY4.17%
OCF(TTM)11.91
OCFY5.56%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.09% | ||
| ROE | 17.9% | ||
| ROCE | 14.45% | ||
| ROIC | 10.17% | ||
| ROICexc | 12.55% | ||
| ROICexgc | 15.39% | ||
| OM | 6.61% | ||
| PM (TTM) | 4.19% | ||
| GM | 51.01% | ||
| FCFM | 6.59% |
ROA(3y)2.1%
ROA(5y)3.58%
ROE(3y)8.19%
ROE(5y)11.88%
ROIC(3y)5.19%
ROIC(5y)6.3%
ROICexc(3y)6.53%
ROICexc(5y)8.63%
ROICexgc(3y)8.14%
ROICexgc(5y)10.85%
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-Score9
Asset Turnover1.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Debt/EBITDA | 1.52 | ||
| Cap/Depr | 44.04% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 75.78% | ||
| Profit Quality | 157.24% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.59 |
F-Score9
WACC6.6%
ROIC/WACC1.54
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)1114.89%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%154.17%
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y34.2%
Revenue 1Y (TTM)12.8%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%12.73%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.07%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.3%
FCF growth 1Y222.67%
FCF growth 3Y-2.1%
FCF growth 5Y2.35%
OCF growth 1Y426.18%
OCF growth 3Y-3.05%
OCF growth 5Y0.64%