adidas AG, together with its subsidiaries, designs, develops, distributes, and markets athletic and sports lifestyle products worldwide. More Details
High growth potential with adequate balance sheet.
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.
7 Day Return
1 Year Return
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.
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
1 week ago | Simply Wall StDoes It Make Sense To Buy adidas AG (ETR:ADS) For Its Yield?
3 weeks ago | Simply Wall StDoes adidas (ETR:ADS) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StShould You Be Impressed By adidas' (ETR:ADS) Returns on Capital?
Is adidas undervalued compared to its fair value and its price relative to the market?
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).
How is adidas forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?
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%)
How has adidas performed over the past 5 years?
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.
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).
What is adidas's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kasper Rorsted (58 yo)
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.
Experienced Management: ADS's management team is considered experienced (3.9 years average tenure).
Experienced Board: ADS's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
adidas AG's company bio, employee growth, exchange listings and data sources
- 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
- adidas AG
- Adi-Dassler-Strasse 1
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/19 19:08|
|End of Day Share Price||2021/04/19 00:00|
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.