ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - DE000A1EWWW0 - Common Stock
173.15 EUR
+1.15 (+0.67%)
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 43 industry peers in the Textiles, Apparel & Luxury Goods industry. There are concerns on the financial health of ADS while its profitability can be described as average. ADS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ADS had positive earnings in the past year.
ADS had a positive operating cash flow in the past year.
ADS had positive earnings in 4 of the past 5 years.
Of the past 5 years ADS 4 years had a positive operating cash flow.
1.2 Ratios
ADS has a better Return On Assets (6.16%) than 60.47% of its industry peers.
Looking at the Return On Equity, with a value of 23.12%, ADS is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.10%, ADS is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is significantly below the industry average of 10.82%.
The last Return On Invested Capital (12.10%) for ADS is above the 3 year average (5.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROIC | 12.1% |
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
The Profit Margin of ADS (4.90%) is comparable to the rest of the industry.
ADS's Profit Margin has declined in the last couple of years.
ADS has a Operating Margin of 7.39%. This is in the lower half of the industry: ADS underperforms 62.79% of its industry peers.
In the last couple of years the Operating Margin of ADS has declined.
ADS's Gross Margin of 51.22% is on the low side compared to the rest of the industry. ADS is outperformed by 69.77% of its industry peers.
ADS'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADS is creating some value.
ADS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ADS has been reduced compared to 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 3.37. This indicates that ADS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, ADS is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
The Debt to FCF ratio of ADS is 7.91, which is on the high side as it means it would take ADS, 7.91 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ADS (7.91) is worse than 62.79% of its industry peers.
ADS has a Debt/Equity ratio of 0.81. This is a neutral value indicating ADS is somewhat dependend on debt financing.
The Debt to Equity ratio of ADS (0.81) is worse than 67.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.7
WACC7.12%
2.3 Liquidity
A Current Ratio of 1.25 indicates that ADS should not have too much problems paying its short term obligations.
ADS has a worse Current ratio (1.25) than 79.07% of its industry peers.
A Quick Ratio of 0.67 indicates that ADS may have some problems paying its short term obligations.
ADS's Quick ratio of 0.67 is on the low side compared to the rest of the industry. ADS is outperformed by 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 515.74% over the past year.
Measured over the past years, ADS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.76% on average per year.
Looking at the last year, ADS shows a quite strong growth in Revenue. The Revenue has grown by 10.95% in the last year.
The Revenue has been growing slightly by 0.04% on average over the past years.
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
ADS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.27% yearly.
Based on estimates for the next years, ADS will show a small growth in Revenue. The Revenue will grow by 7.73% on average per year.
EPS Next Y80.94%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
EPS Next 5Y31.27%
Revenue Next Year7.8%
Revenue Next 2Y8.4%
Revenue Next 3Y8.44%
Revenue Next 5Y7.73%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.04, the valuation of ADS can be described as expensive.
ADS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.03. ADS is around the same levels.
The Price/Forward Earnings ratio is 15.73, which indicates a correct valuation of ADS.
76.74% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
ADS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 15.73 |
4.2 Price Multiples
72.09% of the companies in the same industry are cheaper than ADS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 72.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.04 | ||
| EV/EBITDA | 11.31 |
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 46.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y61.3%
EPS Next 3Y46.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, ADS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, ADS is paying slightly less dividend.
With a Dividend Yield of 1.18, ADS pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of ADS decreases each year by -26.93%.
Dividend Growth(5Y)-26.93%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
ADS pays out 29.73% of its income as dividend. This is a sustainable payout ratio.
DP29.73%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
FRA:ADS (9/4/2025, 7:00:00 PM)
173.15
+1.15 (+0.67%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners52.77%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap31.17B
Analysts77.22
Price Target249.42 (44.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP29.73%
Div Incr Years0
Div Non Decr Years2
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)-5.26%
PT rev (3m)-4.59%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-16.36%
EPS NY rev (1m)1.09%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-1.18%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 15.73 | ||
| P/S | 1.27 | ||
| P/FCF | 45.04 | ||
| P/OCF | 25.42 | ||
| P/B | 6 | ||
| P/tB | 8.74 | ||
| EV/EBITDA | 11.31 |
EPS(TTM)6.65
EY3.84%
EPS(NY)11
Fwd EY6.36%
FCF(TTM)3.84
FCFY2.22%
OCF(TTM)6.81
OCFY3.93%
SpS136.16
BVpS28.86
TBVpS19.82
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 23.12% | ||
| ROCE | 17.19% | ||
| ROIC | 12.1% | ||
| ROICexc | 14.15% | ||
| ROICexgc | 17.27% | ||
| 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)5.19%
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-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 | 3.37 |
F-Score8
WACC7.12%
ROIC/WACC1.7
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 Y80.94%
EPS Next 2Y61.3%
EPS Next 3Y46.03%
EPS Next 5Y31.27%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
Revenue Next Year7.8%
Revenue Next 2Y8.4%
Revenue Next 3Y8.44%
Revenue Next 5Y7.73%
EBIT growth 1Y153.64%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y33.42%
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%