ADIDAS AG (ADS.DE) Stock Fundamental Analysis
FRA:ADS - Deutsche Boerse Ag - DE000A1EWWW0 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ADS. ADS was compared to 41 industry peers in the Textiles, Apparel & Luxury Goods industry. ADS has an average financial health and profitability rating. ADS is quite expensive at the moment. 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 has a Return On Assets of 5.09%. This is in the better half of the industry: ADS outperforms 60.98% of its industry peers.
ADS has a Return On Equity of 17.90%. This is in the better half of the industry: ADS outperforms 65.85% 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 56.10% of its industry peers.
ADS had an Average Return On Invested Capital over the past 3 years of 5.19%. This is below the industry average of 10.00%.
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 of 4.19%. This is comparable to the rest of the industry: ADS outperforms 43.90% of its industry peers.
ADS's Profit Margin has declined in the last couple of years.
ADS has a Operating Margin (6.61%) which is in line with its industry peers.
In the last couple of years the Operating Margin of ADS has declined.
The Gross Margin of ADS (51.01%) is worse than 68.29% of its industry peers.
ADS's Gross Margin has been stable in the last couple of years.
| 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.
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 3.49 indicates that ADS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.49, ADS is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
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 60.98% 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 has a worse Debt to Equity ratio (0.75) than 60.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 3.47 | ||
| Altman-Z | 3.49 |
ROIC/WACC1.47
WACC6.9%
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.
ADS has a Current ratio of 1.29. This is in the lower half of the industry: ADS underperforms 73.17% of its industry peers.
A Quick Ratio of 0.72 indicates that ADS may have some problems paying its short term obligations.
ADS's Quick ratio of 0.72 is in line compared to the rest of the industry. ADS outperforms 48.78% of 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 1114.89%, 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.
Looking at the last year, ADS shows a quite strong growth in Revenue. The Revenue has grown by 12.80% in the last year.
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
The Earnings Per Share is expected to grow by 33.20% on average over the next years. This is a very strong growth
Based on estimates for the next years, ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.71% on average per year.
EPS Next Y79%
EPS Next 2Y64%
EPS Next 3Y47.1%
EPS Next 5Y33.2%
Revenue Next Year9.81%
Revenue Next 2Y9.7%
Revenue Next 3Y9.34%
Revenue Next 5Y8.71%
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
ADS is valuated quite expensively with a Price/Earnings ratio of 35.03.
Compared to the rest of the industry, the Price/Earnings ratio of ADS indicates a slightly more expensive valuation: ADS is more expensive than 60.98% of the companies listed in the same industry.
ADS is valuated rather expensively when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
ADS is valuated rather expensively with a Price/Forward Earnings ratio of 17.58.
75.61% 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 valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.03 | ||
| Fwd PE | 17.58 |
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 70.73% of the companies listed in the same industry.
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 70.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.4 | ||
| EV/EBITDA | 13.71 |
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)0.44
PEG (5Y)N/A
EPS Next 2Y64%
EPS Next 3Y47.1%
5. Dividend
5.1 Amount
With a yearly dividend of 0.97%, ADS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.42, ADS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, ADS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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 (6/13/2025, 7:00:00 PM)
200
-5.7 (-2.77%)
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 Cap36.00B
Analysts78.38
Price Target262.95 (31.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
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)0.58%
PT rev (3m)-2.69%
EPS NQ rev (1m)-4.96%
EPS NQ rev (3m)-8.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)-0.96%
Revenue NQ rev (3m)-3.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.03 | ||
| Fwd PE | 17.58 | ||
| P/S | 1.48 | ||
| P/FCF | 22.4 | ||
| P/OCF | 16.8 | ||
| P/B | 6.3 | ||
| P/tB | 8.92 | ||
| EV/EBITDA | 13.71 |
EPS(TTM)5.71
EY2.86%
EPS(NY)11.38
Fwd EY5.69%
FCF(TTM)8.93
FCFY4.46%
OCF(TTM)11.91
OCFY5.95%
SpS135.43
BVpS31.72
TBVpS22.43
PEG (NY)0.44
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 | 3.49 |
F-Score9
WACC6.9%
ROIC/WACC1.47
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 5Y33.2%
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 5Y8.71%
EBIT growth 1Y196.14%
EBIT growth 3Y-14.03%
EBIT growth 5Y-14.07%
EBIT Next Year161.6%
EBIT Next 3Y52.56%
EBIT Next 5Y35.79%
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%