ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
Taking everything into account, ADS scores 5 out of 10 in our fundamental rating. ADS was compared to 50 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ADS was profitable.
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 in line compared to the rest of the industry. ADS outperforms 56.00% of its industry peers.
ADS has a Return On Equity of 17.90%. This is in the better half of the industry: ADS outperforms 70.00% of its industry peers.
The Return On Invested Capital of ADS (10.17%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADS is significantly below the industry average of 10.51%.
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
ADS has a Profit Margin (4.19%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ADS has declined.
ADS has a Operating Margin of 6.61%. This is in the lower half of the industry: ADS underperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of ADS has declined.
Looking at the Gross Margin, with a value of 51.01%, ADS is doing worse than 66.00% of the companies in the same industry.
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.
The number of shares outstanding for ADS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ADS has less shares outstanding
The debt/assets ratio for ADS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.25 indicates that ADS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.25, ADS is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
ADS has a debt to FCF ratio of 3.47. This is a good value and a sign of high solvency as ADS would need 3.47 years to pay back of all of its debts.
The Debt to FCF ratio of ADS (3.47) is comparable to the rest of the industry.
ADS has a Debt/Equity ratio of 0.75. This is a neutral value indicating ADS is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, ADS is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.46
WACC6.98%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ADS should not have too much problems paying its short term obligations.
ADS has a Current ratio of 1.29. This is in the lower half of the industry: ADS underperforms 72.00% of its industry peers.
A Quick Ratio of 0.72 indicates that ADS may have some problems paying its short term obligations.
ADS has a Quick ratio (0.72) which is in line with its industry peers.
| 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 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 10.53% 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)515.74%
EPS 3Y-17.56%
EPS 5Y-15.76%
EPS Q2Q%86.24%
Revenue 1Y (TTM)10.53%
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 32.72% yearly.
The Revenue is expected to grow by 8.32% on average over the next years. This is quite good.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue Next Year9.08%
Revenue Next 2Y9.17%
Revenue Next 3Y8.94%
Revenue Next 5Y8.32%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 25.24, which means the current valuation is very expensive for ADS.
Compared to the rest of the industry, the Price/Earnings ratio of ADS is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.93. ADS is around the same levels.
A Price/Forward Earnings ratio of 14.75 indicates a correct valuation of ADS.
68.00% of the companies in the same industry are more expensive than ADS, based on the Price/Forward Earnings ratio.
ADS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 14.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 70.00% of the companies listed in the same industry.
ADS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.8 | ||
| EV/EBITDA | 11.68 |
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.
A more expensive valuation may be justified as ADS's earnings are expected to grow with 47.10% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.20%.
The stock price of ADS dropped by -23.39% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.29, ADS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
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 (8/14/2025, 7:00:00 PM)
167.85
-0.15 (-0.09%)
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 Cap30.21B
Analysts77.22
Price Target250.62 (49.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend0.7
Dividend Growth(5Y)-26.93%
DP12.23%
Div Incr Years0
Div Non Decr Years2
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)-4.75%
PT rev (3m)-4.66%
EPS NQ rev (1m)3.12%
EPS NQ rev (3m)-3.13%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-1.43%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 14.75 | ||
| P/S | 1.24 | ||
| P/FCF | 18.8 | ||
| P/OCF | 14.1 | ||
| P/B | 5.29 | ||
| P/tB | 7.48 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)6.65
EY3.96%
EPS(NY)11.38
Fwd EY6.78%
FCF(TTM)8.93
FCFY5.32%
OCF(TTM)11.91
OCFY7.09%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.32
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 | 3.25 |
F-Score9
WACC6.98%
ROIC/WACC1.46
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 Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y32.72%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y3.71%
Revenue growth 5Y0.04%
Sales Q2Q%2.23%
Revenue Next Year9.08%
Revenue Next 2Y9.17%
Revenue Next 3Y8.94%
Revenue Next 5Y8.32%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.31%
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%