NOT FOR DISTRIBUTION
Header cover image

Market Cap

€54.1b

Last Updated

2021/04/19 19:08 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.


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

Stable Share Price: ADS is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ADS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.6%

ADS

-0.4%

DE Luxury

1.4%

DE Market


1 Year Return

25.1%

ADS

32.3%

DE Luxury

43.3%

DE Market

Return vs Industry: ADS underperformed the German Luxury industry which returned 32.3% over the past year.

Return vs Market: ADS underperformed the German Market which returned 43.3% over the past year.


Shareholder returns

ADSIndustryMarket
7 Day-1.6%-0.4%1.4%
30 Day-1.4%0.07%5.3%
90 Day-3.1%-3.2%11.0%
1 Year25.1%25.1%32.3%32.3%47.6%43.3%
3 Year34.6%30.9%36.0%31.9%28.3%17.8%
5 Year170.9%157.0%165.3%147.1%55.3%33.8%

Long-Term 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?

129.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADS (€277.2) is trading above our estimate of fair value (€234.76)

Significantly Below Fair Value: ADS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADS is good value based on its PE Ratio (129.1x) compared to the DE Luxury industry average (141.7x).

PE vs Market: ADS is poor value based on its PE Ratio (129.1x) compared to the German market (28.2x).


Price to Earnings Growth Ratio

PEG Ratio: ADS is poor value based on its PEG Ratio (4.7x)


Price to Book Ratio

PB vs Industry: ADS is overvalued based on its PB Ratio (8.4x) compared to the DE Luxury industry average (2.8x).


Future Growth

How is adidas forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

27.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADS's forecast earnings growth (27.3% per year) is above the savings rate (0.07%).

Earnings vs Market: ADS's earnings (27.3% per year) are forecast to grow faster than the German market (21.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADS's revenue (8.2% per year) is forecast to grow faster than the German market (5.5% per year).

High Growth Revenue: ADS's revenue (8.2% 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 (25.1%)


Past Performance

How has adidas performed over the past 5 years?

2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADS has high quality earnings.

Growing Profit Margin: ADS's current net profit margins (2.1%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: ADS's earnings have grown by 2.5% per year over the past 5 years.

Accelerating Growth: ADS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADS had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Luxury industry average (-34.2%).


Return on Equity

High ROE: ADS's Return on Equity (6.4%) is considered low.


Financial Health

How is adidas's financial position?


Financial Position Analysis

Short Term Liabilities: ADS's short term assets (€12.2B) exceed its short term liabilities (€8.8B).

Long Term Liabilities: ADS's short term assets (€12.2B) exceed its long term liabilities (€5.5B).


Debt to Equity History and Analysis

Debt Level: ADS's debt to equity ratio (47.3%) is considered high.

Reducing Debt: ADS's debt to equity ratio has increased from 32.5% to 47.3% over the past 5 years.

Debt Coverage: ADS's debt is well covered by operating cash flow (46.9%).

Interest Coverage: ADS's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Dividend

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

1.08%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 20 2021Ex Dividend DateMay 13 2021Dividend Pay DateMay 18 20215 days from Ex DividendBuy in the next 23 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ADS's dividend (1.08%) is higher than the bottom 25% of dividend payers in the German market (1.05%).

High Dividend: ADS's dividend (1.08%) is low compared to the top 25% of dividend payers in the German market (3.1%).


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 high payout ratio (139.7%), ADS's dividend payments are not 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 (41.7% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Kasper Rorsted (58 yo)

4.5yrs

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 ($USD8.25M) is above average for companies of similar size in the German market ($USD5.24M).

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 (3.9 years average tenure).


Board Members

Experienced Board: ADS's board of directors are not considered experienced ( 1.9 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 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: €54.063b
  • Shares outstanding: 195.03m
  • Website: https://www.adidas-group.com

Number of Employees


Location

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

Listings


Biography

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 Adi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 19:08
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
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.