ADIDAS AG (ADS.DE) Stock Fundamental Analysis
Europe - FRA:ADS - DE000A1EWWW0 - Common Stock
184.4 EUR
-2.95 (-1.57%)
Overall ADS gets a fundamental rating of 4 out of 10. We evaluated ADS against 49 industry peers in the Textiles, Apparel & Luxury Goods industry. While ADS is still in line with the averages on profitability rating, there are concerns on its financial health. ADS is not valued too expensively and it also shows a decent growth rate.
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 Return On Assets of 6.16%. This is in the better half of the industry: ADS outperforms 65.31% of its industry peers.
ADS has a Return On Equity of 23.12%. This is amongst the best in the industry. ADS outperforms 83.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.10%, ADS is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 11.40%.
The 3 year average ROIC (5.19%) for ADS is below the current ROIC(12.10%), indicating increased profibility in the last year.
| 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
With a Profit Margin value of 4.90%, ADS perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
ADS's Profit Margin has declined in the last couple of years.
ADS has a Operating Margin of 7.39%. This is comparable to the rest of the industry: ADS outperforms 46.94% of its industry peers.
In the last couple of years the Operating Margin of ADS has declined.
ADS has a Gross Margin of 51.22%. This is in the lower half of the industry: ADS underperforms 69.39% 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 | 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ADS is creating value.
ADS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADS has less shares outstanding
Compared to 1 year ago, ADS has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.48 indicates that ADS is not in any danger for bankruptcy at the moment.
The Altman-Z score of ADS (3.48) is comparable to the rest of the 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 61.22% of its industry peers.
A Debt/Equity ratio of 0.81 indicates that ADS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.81, ADS is doing worse than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.81 | ||
| Debt/FCF | 7.91 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.81
WACC6.68%
2.3 Liquidity
ADS has a Current Ratio of 1.25. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ADS (1.25) is worse than 75.51% of its industry peers.
A Quick Ratio of 0.67 indicates that ADS may have some problems paying its short term obligations.
ADS has a Quick ratio of 0.67. This is in the lower half of the industry: ADS underperforms 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 515.74%, which is quite impressive.
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.
The Revenue has grown by 10.95% in the past year. This is quite good.
Measured over the past years, ADS shows a small growth in Revenue. The Revenue has been growing by 0.04% on average per year.
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 31.18% yearly.
The Revenue is expected to grow by 7.70% on average over the next years.
EPS Next Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
EPS Next 5Y31.18%
Revenue Next Year7.18%
Revenue Next 2Y7.92%
Revenue Next 3Y8.12%
Revenue Next 5Y7.7%
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
With a Price/Earnings ratio of 27.73, ADS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as ADS.
Compared to an average S&P500 Price/Earnings ratio of 27.08, ADS is valued at the same level.
ADS is valuated correctly with a Price/Forward Earnings ratio of 16.77.
75.51% 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 23.09, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 16.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADS.
ADS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. ADS is more expensive than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.97 | ||
| EV/EBITDA | 12.23 |
4.3 Compensation for Growth
The 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 ADS's earnings are expected to grow with 45.81% in the coming years.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y61.22%
EPS Next 3Y45.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, ADS has a reasonable but not impressive dividend return.
ADS's Dividend Yield is slightly below the industry average, which is at 3.02.
Compared to an average S&P500 Dividend Yield of 2.30, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 2Y61.22%
EPS Next 3Y45.81%
FRA:ADS (10/28/2025, 5:35:30 PM)
184.4
-2.95 (-1.57%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryTextiles, Apparel & Luxury Goods
Earnings (Last)
Earnings (Next)
Inst Owners54.09%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap33.19B
Revenue(TTM)24.51B
Net Income(TTM)1.20B
Analysts79.44
Price Target242.53 (31.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-0.86%
PT rev (3m)-7.88%
EPS NQ rev (1m)-1%
EPS NQ rev (3m)-3.72%
EPS NY rev (1m)0%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.73 | ||
| Fwd PE | 16.77 | ||
| P/S | 1.35 | ||
| P/FCF | 47.97 | ||
| P/OCF | 27.07 | ||
| P/B | 6.39 | ||
| P/tB | 9.3 | ||
| EV/EBITDA | 12.23 |
EPS(TTM)6.65
EY3.61%
EPS(NY)10.99
Fwd EY5.96%
FCF(TTM)3.84
FCFY2.08%
OCF(TTM)6.81
OCFY3.69%
SpS136.16
BVpS28.86
TBVpS19.82
PEG (NY)0.34
PEG (5Y)N/A
Graham Number65.71
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%
ROICexgc growth 3Y-9.6%
ROICexgc 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 | 3.48 |
F-Score8
WACC6.68%
ROIC/WACC1.81
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 Y81.25%
EPS Next 2Y61.22%
EPS Next 3Y45.81%
EPS Next 5Y31.18%
Revenue 1Y (TTM)10.95%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
Revenue Next Year7.18%
Revenue Next 2Y7.92%
Revenue Next 3Y8.12%
Revenue Next 5Y7.7%
EBIT growth 1Y153.64%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year154.98%
EBIT Next 3Y52.03%
EBIT Next 5Y33.33%
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%
ADIDAS AG / ADS.DE FAQ
What is the ChartMill fundamental rating of ADIDAS AG (ADS.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to ADS.DE.
Can you provide the valuation status for ADIDAS AG?
ChartMill assigns a valuation rating of 4 / 10 to ADIDAS AG (ADS.DE). This can be considered as Fairly Valued.
What is the profitability of ADS stock?
ADIDAS AG (ADS.DE) has a profitability rating of 5 / 10.
What is the earnings growth outlook for ADIDAS AG?
The Earnings per Share (EPS) of ADIDAS AG (ADS.DE) is expected to grow by 81.25% in the next year.
Can you provide the dividend sustainability for ADS stock?
The dividend rating of ADIDAS AG (ADS.DE) is 2 / 10 and the dividend payout ratio is 29.73%.