XTRA:ADS

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 40.65% per year

Pays a reliable dividend of 1.63%

Risk Analysis

No risks detected for ADS from our risk checks.


Snowflake Analysis

High growth potential with excellent balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

ADS

-1.6%

DE Luxury

-1.9%

DE Market


1 Year Return

-12.3%

ADS

-12.9%

DE Luxury

8.1%

DE Market

Return vs Industry: ADS underperformed the German Luxury industry which returned -10.7% over the past year.

Return vs Market: ADS underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

ADSIndustryMarket
7 Day-0.9%-1.6%-1.9%
30 Day-1.9%-3.5%-0.2%
90 Day18.4%17.2%12.8%
1 Year-12.3%-12.3%-12.9%-12.9%10.5%8.1%
3 Year22.0%18.8%19.6%15.5%3.2%-5.0%
5 Year249.8%231.8%155.1%131.6%11.9%-3.2%

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?

35.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADS (€236.7) is trading above our estimate of fair value (€198.32)

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 (35.4x) compared to the DE Luxury industry average (27.9x).

PE vs Market: ADS is poor value based on its PE Ratio (35.4x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: ADS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: ADS is overvalued based on its PB Ratio (6.9x) compared to the DE Luxury industry average (1.5x).


Next Steps

Future Growth

How is adidas forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADS's forecast earnings growth (40.6% per year) is above the savings rate (0.2%).

Earnings vs Market: ADS's earnings (40.6% per year) are forecast to grow faster than the German market (23.2% per year).

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

Revenue vs Market: ADS's revenue (9.8% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: ADS's revenue (9.8% 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 (24.9%)


Next Steps

Past Performance

How has adidas performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADS has high quality earnings.

Growing Profit Margin: ADS's current net profit margins (5.8%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: ADS's earnings have grown significantly by 20.9% 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 (-27%) over the past year, making it difficult to compare to the Luxury industry average (-32.7%).


Return on Equity

High ROE: ADS's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is adidas's financial position?


Financial Position Analysis

Short Term Liabilities: ADS's short term assets (€11.2B) exceed its short term liabilities (€9.1B).

Long Term Liabilities: ADS's short term assets (€11.2B) exceed its long term liabilities (€4.8B).


Debt to Equity History and Analysis

Debt Level: ADS's debt to equity ratio (36.9%) is considered satisfactory.

Reducing Debt: ADS's debt to equity ratio has increased from 30.7% to 36.9% over the past 5 years.

Debt Coverage: ADS's debt is well covered by operating cash flow (61.8%).

Interest Coverage: ADS's interest payments on its debt are well covered by EBIT (15.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ADS's dividend (1.63%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: ADS's dividend (1.63%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: ADS's dividends per share have been stable 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 reasonable payout ratio (57.6%), ADS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADS's dividends in 3 years are forecast to be well covered by earnings (40.9% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Kasper Rorsted (58 yo)

3.83yrs

Tenure

€6,597,509

Compensation

Mr. Kasper Bo Rorsted has been Interim Global Human Resources at adidas AG since July 2020. Mr. Rorsted is Director at Nestlé S.A. (formerly known as Nestle S.A.) since April 12, 2018. He has been Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Kasper's total compensation ($USD7.75M) is above average for companies of similar size in the German market ($USD5.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kasper Rorsted
CEO, Member of Executive Board & Interim Global Human Resources3.83yrs€6.60mno data
Harm Ohlmeyer
CFO, Labor Director & Member of Executive Board3.25yrs€2.38mno data
Roland Auschel
Head of Global Sales & Member of Executive Board6.83yrs€2.97mno data
Martin Shankland
Head of Global Operations & Member of Executive Board1.42yrs€2.21mno data
Guenter Weigl
Senior VP of Global Sports Marketing & Brand Relations and Member of Supervisory Board1.25yrs€112.45kno data
Frank Scheiderer
Director for Head Office of Brand & Sales and Employee Representative Member of Supervisory Board1.25yrs€112.45kno data
Brian Grevy
Head of Global Brands & Member of Executive Board0.58yrno datano data
Sebastian Steffen
Senior Vice President of Investor Relationsno datano datano data
Jan Runau
Chief Corporate Communications Officerno datano datano data
Nicole Vollebregt
Senior Vice President of Global Purpose4.5yrsno datano data
Andreas Gellner
Managing Director of South East Europe Operations9.25yrsno datano data
Fernando Basualdo
Managing Director of Adidas Brazilno datano datano data

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: ADS's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Guenter Weigl
Senior VP of Global Sports Marketing & Brand Relations and Member of Supervisory Board1.25yrs€112.45kno data
Frank Scheiderer
Director for Head Office of Brand & Sales and Employee Representative Member of Supervisory Board1.25yrs€112.45kno data
Igor Landau
Chairman of the Supervisory Board11.25yrs€334.00kno data
Thomas Rabe
Deputy Chairman of Supervisory Board1.25yrs€137.32kno data
Jing Ulrich
Member of Supervisory Board1.25yrs€56.73kno data
Herbert Kauffmann
Independent Member of Supervisory Board11.25yrs€254.00kno data
Nassef Onssy Sawiris
Member of Supervisory Board4.17yrs€89.00kno data
Roland Nosko
Employee Representative Member of Supervisory Board16.25yrs€134.00kno data
Kathrin Menges
Member of Supervisory Board6.25yrs€88.00kno data
Udo Müller
Employee Representative Deputy Chairman of Supervisory Board1.25yrs€168.59kno data
Roswitha Hermann
Employee Representative Member of Supervisory Board1.25yrs€54.73kno data
Michael Storl
Employee Representative Member of Supervisory Board1.25yrs€57.73kno data

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ADS's board of directors are not considered experienced ( 1.3 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: €46.160b
  • Shares outstanding: 195.02m
  • 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
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
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
ADSBIT (Borsa Italiana)YesBearer SharesITEURNov 1995
ADSWBAG (Wiener Boerse AG)YesBearer SharesATEURNov 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
ADS1DB (Deutsche Boerse AG)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 Analysis2020/08/04 21:10
End of Day Share Price2020/08/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.