XTRA:ADS

Stock Analysis Report

Executive Summary

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has adidas's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

ADS

0.3%

DE Luxury

3.9%

DE Market


1 Year Return

41.9%

ADS

33.8%

DE Luxury

3.4%

DE Market

Return vs Industry: ADS exceeded the German Luxury industry which returned 33.8% over the past year.

Return vs Market: ADS exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

ADSIndustryMarket
7 Day1.2%0.3%3.9%
30 Day4.1%2.1%2.1%
90 Day1.1%-1.2%3.7%
1 Year43.8%41.9%36.1%33.8%6.7%3.4%
3 Year83.7%76.8%71.5%63.4%18.9%8.6%
5 Year416.9%380.3%244.2%202.2%41.8%22.5%

Price Volatility Vs. Market

How volatile is adidas's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is adidas undervalued compared to its fair value and its price relative to the market?

30.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: ADS (€282) is trading above our estimate of fair value (€227.7)

Significantly Undervalued: ADS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADS is poor value based on its PE Ratio (30.6x) compared to the Luxury industry average (23x).

PE vs Market: ADS is poor value based on its PE Ratio (30.6x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: ADS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: ADS is overvalued based on its PB Ratio (8.4x) compared to the DE Luxury industry average (1.4x).


Next Steps

Future Growth

How is adidas forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADS's forecast earnings growth (9.9% per year) is above the savings rate (0.2%).

Earnings vs Market: ADS's earnings (9.9% per year) are forecast to grow slower than the German market (12.6% per year).

High Growth Earnings: ADS's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADS's revenue (6.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: ADS's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ADS's Return on Equity is forecast to be high in 3 years time (28.4%)


Next Steps

Past Performance

How has adidas performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ADS's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: ADS's earnings growth over the past year (22.4%) is below its 5-year average (25.2% per year).

Earnings vs Industry: ADS earnings growth over the past year (22.4%) exceeded the Luxury industry -2.9%.


Return on Equity

High ROE: ADS's Return on Equity (27.9%) is considered high.


Return on Assets

ROA vs Industry: ADS has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: ADS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is adidas's financial position?


Financial Position Analysis

Short Term Liabilities: ADS's short term assets (€10.2B) exceeds its short term liabilities (€7.8B)

Long Term Liabilities: ADS's short term assets (10.2B) exceeds its long term liabilities (4.9B)


Debt to Equity History and Analysis

Debt Level: ADS's debt to equity ratio (31.7%) is considered satisfactory

Reducing Debt: ADS's debt to equity ratio has increased from 29.6% to 31.7% over the past 5 years.

Debt Coverage: ADS's debt is well covered by operating cash flow (133.3%).

Interest Coverage: ADS's interest payments on its debt are well covered by EBIT (37.2x coverage).


Balance Sheet

Inventory Level: ADS has a high level of physical assets or inventory.

Debt Coverage by Assets: ADS's debt is covered by short term assets (assets are 4.877020x debt).


Next Steps

Dividend

What is adidas's current dividend yield, its reliability and sustainability?

1.19%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years1.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ADS's dividend (1.19%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: ADS's dividend (1.19%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: ADS's dividend payments have been volatile in the past 10 years.

Growing Dividend: ADS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.3%), ADS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADS's dividends in 3 years are forecast to be well covered by earnings (40.7% payout ratio).


Next Steps

Management

What is the CEO of adidas's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Kasper Rorsted (57yo)

3yrs

Tenure

€6,786,592

Compensation

Mr. Kasper Bo Rorsted is Director at Nestle S.A. since April 12, 2018. He has been Chief Executive Officer of Adidas AG since October 1, 2016 and as its Member of Executive Board since August 1, 2016. He  ...


CEO Compensation Analysis

Compensation vs. Market: Kasper's total compensation ($USD7.55M) is about average for companies of similar size in the German market ($USD4.63M).

Compensation vs Earnings: Kasper's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ADS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ADS's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jan Runau

    Chief Corporate Communications Officer

    • Tenure: 0yrs
  • Andreas Gellner

    Managing Director of South East Europe Operations

    • Tenure: 8.4yrs
  • Kasper Rorsted (57yo)

    CEO & Member of Executive Board

    • Tenure: 3yrs
    • Compensation: €6.79m
  • Harm Ohlmeyer (51yo)

    CFO, Labor Director & Member of Executive Board

    • Tenure: 2.4yrs
    • Compensation: €2.37m
  • Nicole Vollebregt

    Senior Vice President of Global Purpose

    • Tenure: 3.7yrs
  • Eric Liedtke (53yo)

    Head of Global Brands & Member of Executive Board

    • Tenure: 5.6yrs
    • Compensation: €3.33m
  • Roland Auschel (56yo)

    Head of Global Sales & Member of Executive Board

    • Tenure: 6yrs
    • Compensation: €3.05m
  • Karen Parkin (54yo)

    Chief Global Human Resources Officer & Member of Executive Board

    • Tenure: 2.4yrs
    • Compensation: €2.36m
  • Sebastian Steffen

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Martin Shankland

    Chief of Global Operations & Member of Executive Board

    • Tenure: 0.6yrs

Board Members

  • Igor Landau (75yo)

    Chairman of the Supervisory Board

    • Tenure: 10.4yrs
    • Compensation: €329.00k
  • Thomas Rabe (54yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0.8yrs
  • Ian Gallienne (48yo)

    Member of Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €169.00k
  • Herbert Kauffmann (68yo)

    Member of Supervisory Board

    • Tenure: 10.4yrs
    • Compensation: €252.00k
  • Nassef Onssy Sawiris (58yo)

    Member of Supervisory Board

    • Tenure: 3.3yrs
    • Compensation: €87.00k
  • Roland Nosko (61yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 15.4yrs
    • Compensation: €129.00k
  • Kathrin Menges (55yo)

    Member of Supervisory Board

    • Tenure: 5.4yrs
    • Compensation: €86.00k
  • Guenter Weigl (54yo)

    Member of Supervisory Board and SVP of Global Sports Marketing & Brand Relations

    • Tenure: 0.8yrs
  • Udo Mueller (59yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 0.8yrs
    • Compensation: €87.00k
  • Frank Scheiderer (42yo)

    Director for Head Office of Group Functions Finance & Member of the Supervisory Board

    • Tenure: 0.8yrs

Company Information

adidas AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: adidas AG
  • Ticker: ADS
  • Exchange: XTRA
  • Founded: 1920
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: €55.153b
  • Shares outstanding: 195.58m
  • Website: https://www.adidas-group.com

Number of Employees


Location

  • adidas AG
  • Adi-Dassler-Strasse 1
  • Herzogenaurach
  • Bavaria
  • 91074
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADDD.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDNov 1995
ADSWBAG (Wiener Boerse AG)YesBearer SharesATEURNov 1995
ADSDB (Deutsche Boerse AG)YesBearer SharesDEEURNov 1995
ADSXTRA (XETRA Trading Platform)YesBearer SharesDEEURNov 1995
ADSSWX (SIX Swiss Exchange)YesBearer SharesCHCHFNov 1995
0OLDLSE (London Stock Exchange)YesBearer SharesGBEURNov 1995
ADSBIT (Borsa Italiana)YesBearer SharesITEURNov 1995
ADSDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURNov 1995
ADIDASBUSE (Budapest Stock Exchange)YesBearer SharesHUHUFNov 1995
ADS NBMV (Bolsa Mexicana de Valores)YesBearer SharesMXMXNNov 1995
ADDY.YOTCPK (Pink Sheets LLC)ADR EA REP 1/2 ORD NPVUSUSDJan 2005
ADS1BST (Boerse-Stuttgart)ADR EA REP 1/2 ORD NPVDEEURJan 2005

Biography

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. The company operates in 10 segments: Europe, North America Adidas, Nort ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:58
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.