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ADS

adidasXTRA:ADS Stock Report

Market Cap

€54.0b

7D

4.3%

1Y

2.6%

Updated

26 Oct, 2021

Data

Company Financials +
ADS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends4/6

ADS Overview

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

adidas Competitors

Hugo Boss

XTRA:BOSS

€3.7b

GERRY WEBER International

XTRA:GWI2

€37.1m

Ming Le Sports

DB:ML2

€4.1m

LVMH Moët Hennessy - Louis Vuitton Société Européenne

ENXTPA:MC

€335.0b

Price History & Performance

Summary of all time highs, changes and price drops for adidas
Historical stock prices
Current Share Price€279.95
52 Week High€252.05
52 Week Low€336.25
Beta0.88
1 Month Change-0.73%
3 Month Change-9.55%
1 Year Change2.58%
3 Year Change38.52%
5 Year Change90.31%
Change since IPO2,596.63%

Recent News & Updates

Sep 28
Should You Think About Buying adidas AG (ETR:ADS) Now?

Should You Think About Buying adidas AG (ETR:ADS) Now?

adidas AG ( ETR:ADS ) saw significant share price movement during recent months on the XTRA, rising to highs of €336...

Sep 15
Are adidas AG (ETR:ADS) Investors Paying Above The Intrinsic Value?

Are adidas AG (ETR:ADS) Investors Paying Above The Intrinsic Value?

Today we will run through one way of estimating the intrinsic value of adidas AG ( ETR:ADS ) by taking the expected...

Jul 26
Some Investors May Be Worried About adidas' (ETR:ADS) Returns On Capital

Some Investors May Be Worried About adidas' (ETR:ADS) Returns On Capital

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

Jul 13
These 4 Measures Indicate That adidas (ETR:ADS) Is Using Debt Reasonably Well

These 4 Measures Indicate That adidas (ETR:ADS) Is Using Debt Reasonably Well

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

ADSDE LuxuryDE Market
7D4.3%2.3%1.3%
1Y2.6%9.4%29.1%

Return vs Industry: ADS underperformed the German Luxury industry which returned 9.4% over the past year.

Return vs Market: ADS underperformed the German Market which returned 29.1% over the past year.

Price Volatility

Is ADS's price volatile compared to industry and market?
ADS volatility
ADS Beta0.88
Industry Beta0.86
Market Beta1

Stable Share Price: ADS is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ADS's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192058,007Kasper Rorstedhttps://www.adidas-group.com

adidas AG, together with its subsidiaries, designs, develops, distributes, and markets athletic and sports lifestyle products worldwide. The company operates through ten segments: Europe, North America Adidas, North America Reebok, Asia-Pacific, Russia/CIS, Latin America, Emerging Markets, Adidas Golf, Runtastic, and Other Centrally Managed Businesses. It offers footwear; apparel; accessories and gear, such as bags, balls, and fitness equipment; and golf products under the adidas and Reebok brands.

adidas Fundamentals Summary

How do adidas's earnings and revenue compare to its market cap?
ADS fundamental statistics
Market Cap€54.00b
Earnings (TTM)€1.49b
Revenue (TTM)€22.46b

36.2x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADS income statement (TTM)
Revenue€22.46b
Cost of Revenue€11.14b
Gross Profit€11.32b
Expenses€9.83b
Earnings€1.49b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)7.73
Gross Margin50.40%
Net Profit Margin6.64%
Debt/Equity Ratio42.9%

How did ADS perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

39%

Payout Ratio

Valuation

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

36.2x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADS (€279.95) is trading above our estimate of fair value (€252.24)

Significantly Below Fair Value: 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 (36.2x) compared to the German Luxury industry average (25.2x).

PE vs Market: ADS is poor value based on its PE Ratio (36.2x) compared to the German market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: ADS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: ADS is overvalued based on its PB Ratio (7.6x) compared to the DE Luxury industry average (2x).


Future Growth

How is adidas forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADS's forecast earnings growth (16.7% per year) is above the savings rate (-0.01%).

Earnings vs Market: ADS's earnings (16.7% per year) are forecast to grow faster than the German market (12.5% per year).

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

Revenue vs Market: ADS's revenue (8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: ADS's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ADS's Return on Equity is forecast to be high in 3 years time (29.5%)


Past Performance

How has adidas performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADS has high quality earnings.

Growing Profit Margin: ADS's current net profit margins (6.6%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: ADS's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: ADS's earnings growth over the past year (134.6%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: ADS earnings growth over the past year (134.6%) exceeded the Luxury industry 107.1%.


Return on Equity

High ROE: ADS's Return on Equity (20.9%) is considered high.


Financial Health

How is adidas's financial position?


Financial Position Analysis

Short Term Liabilities: ADS's short term assets (€14.1B) exceed its short term liabilities (€9.2B).

Long Term Liabilities: ADS's short term assets (€14.1B) exceed its long term liabilities (€5.4B).


Debt to Equity History and Analysis

Debt Level: ADS's debt to equity ratio (42.9%) is considered high.

Reducing Debt: ADS's debt to equity ratio has increased from 37.5% to 42.9% over the past 5 years.

Debt Coverage: ADS's debt is well covered by operating cash flow (110.4%).

Interest Coverage: ADS's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet


Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADS's dividend (1.07%) is higher than the bottom 25% of dividend payers in the German market (1%).

High Dividend: ADS's dividend (1.07%) is low compared to the top 25% of dividend payers in the German market (3.25%).


Stability and Growth of Payments

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 (39.2%), 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 (39.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Kasper Rorsted (59 yo)

5yrs

Tenure

€6,857,085

Compensation

Mr. Kasper Bo Rorsted serves as Members of the Supervisory Board at Siemens Aktiengesellschaft since February 3, 2021. He is Director at Nestlé S.A. (formerly known as Nestle S.A.) since April 12, 2018. He...


CEO Compensation Analysis

Compensation vs Market: Kasper's total compensation ($USD7.95M) is above average for companies of similar size in the German market ($USD4.49M).

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


Leadership Team

Experienced Management: ADS's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: ADS's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

adidas AG's 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: €54.004b
  • Shares outstanding: 192.91m
  • Website: https://www.adidas-group.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:10
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.