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adidas

DB:ADS
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADS
DB
€46B
Market Cap
  1. Home
  2. DE
  3. Consumer Durables
Company description

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. The last earnings update was 37 days ago. More info.


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ADS Share Price and Events
7 Day Returns
3%
DB:ADS
2.5%
DE Luxury
2.4%
DE Market
1 Year Returns
9.4%
DB:ADS
8.8%
DE Luxury
-6.2%
DE Market
ADS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
adidas (ADS) 3% 10.3% 13.7% 9.4% 115.9% 202.1%
DE Luxury 2.5% 8.8% 12.9% 8.8% 100.3% 127.5%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • ADS outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
ADS
Industry
5yr Volatility vs Market

ADS Value

 Is adidas undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of adidas to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for adidas.

DB:ADS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ADS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.731 (1 + (1- 30%) (3.83%))
0.833
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.83
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.833 * 5.96%)
5.19%

Discounted Cash Flow Calculation for DB:ADS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for adidas is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:ADS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 5.19%)
2019 1,497.44 Analyst x18 1,423.56
2020 1,691.85 Analyst x18 1,529.01
2021 1,907.97 Analyst x12 1,639.24
2022 1,368.00 Analyst x2 1,117.33
2023 1,997.50 Analyst x2 1,550.98
2024 2,029.16 Est @ 1.58% 1,497.82
2025 2,053.06 Est @ 1.18% 1,440.69
2026 2,071.39 Est @ 0.89% 1,381.83
2027 2,085.75 Est @ 0.69% 1,322.75
2028 2,097.30 Est @ 0.55% 1,264.45
Present value of next 10 years cash flows €14,167.66
DB:ADS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €2,097.30 × (1 + 0.23%) ÷ (5.19% – 0.23%)
€42,360.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €42,360.57 ÷ (1 + 5.19%)10
€25,538.91
DB:ADS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €14,167.66 + €25,538.91
€39,706.57
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €39,706.57 / 198.57
€199.96
DB:ADS Discount to Share Price
Calculation Result
Value per share (EUR) From above. €199.96
Current discount Discount to share price of €232.10
= -1 x (€232.10 - €199.96) / €199.96
-16.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of adidas is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for adidas's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are adidas's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ADS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €8.46
DB:ADS Share Price ** DB (2019-04-18) in EUR €232.1
Germany Luxury Industry PE Ratio Median Figure of 7 Publicly-Listed Luxury Companies 24.31x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of adidas.

DB:ADS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:ADS Share Price ÷ EPS (both in EUR)

= 232.1 ÷ 8.46

27.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • adidas is overvalued based on earnings compared to the DE Luxury industry average.
  • adidas is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does adidas's expected growth come at a high price?
Raw Data
DB:ADS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
10.1%per year
Europe Luxury Industry PEG Ratio Median Figure of 40 Publicly-Listed Luxury Companies 1.75x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:ADS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.43x ÷ 10.1%

2.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • adidas is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on adidas's assets?
Raw Data
DB:ADS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €32.02
DB:ADS Share Price * DB (2019-04-18) in EUR €232.1
Germany Luxury Industry PB Ratio Median Figure of 11 Publicly-Listed Luxury Companies 1.6x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:ADS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:ADS Share Price ÷ Book Value per Share (both in EUR)

= 232.1 ÷ 32.02

7.25x

* Primary Listing of adidas.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • adidas is overvalued based on assets compared to the DE Luxury industry average.
X
Value checks
We assess adidas's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. adidas has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ADS Future Performance

 How is adidas expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is adidas expected to grow at an attractive rate?
  • adidas's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • adidas's earnings growth is positive but not above the Germany market average.
  • adidas's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ADS Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ADS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 10.1%
DB:ADS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 6.5%
Germany Luxury Industry Earnings Growth Rate Market Cap Weighted Average 11.1%
Germany Luxury Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ADS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ADS Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 30,411 3,593 4
2022-12-31 28,957 2,392 6
2021-12-31 26,855 2,887 2,320 21
2020-12-31 24,856 2,571 2,153 1
2019-12-31 23,454 2,333 1,903 30
DB:ADS Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 21,915 2,646 1,707
2018-09-30 21,738 1,608
2018-06-30 21,542 2,322 1,502
2018-03-31 21,319 2,158 1,431
2017-12-31 21,218 1,648 1,351
2017-09-30 20,662 1,714 1,360
2017-06-30 20,207 1,590 1,218
2017-03-31 20,176 1,072 1,109
2016-12-31 18,483 1,348 1,079
2016-09-30 18,150 1,152 1,041
2016-06-30 17,686 1,046 969
2016-03-31 17,394 1,084 813

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • adidas's earnings are expected to grow by 10.1% yearly, however this is not considered high growth (20% yearly).
  • adidas's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ADS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from adidas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ADS Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 14.54 14.54 14.54 1.00
2021-12-31 12.02 13.11 10.88 12.00
2020-12-31 10.81 11.42 10.11 22.00
2019-12-31 9.58 9.87 9.13 22.00
DB:ADS Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 8.46
2018-09-30 7.94
2018-06-30 7.39
2018-03-31 7.05
2017-12-31 6.68
2017-09-30 6.74
2017-06-30 6.06
2017-03-31 5.53
2016-12-31 5.39
2016-09-30 5.20
2016-06-30 4.84
2016-03-31 4.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • adidas is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess adidas's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
adidas has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ADS Past Performance

  How has adidas performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare adidas's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • adidas has delivered over 20% year on year earnings growth in the past 5 years.
  • adidas's 1-year earnings growth exceeds its 5-year average (26.4% vs 23%)
  • adidas's earnings growth has exceeded the DE Luxury industry average in the past year (26.4% vs 21.4%).
Earnings and Revenue History
adidas's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from adidas Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ADS Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 21,915.00 1,707.00 9,068.00
2018-09-30 21,738.00 1,608.00 8,104.00 187.00
2018-06-30 21,542.00 1,502.00 8,104.00 187.00
2018-03-31 21,319.00 1,431.00 8,104.00 187.00
2017-12-31 21,218.00 1,351.00 8,636.00
2017-09-30 20,662.00 1,360.00 7,214.00 149.00
2017-06-30 20,207.00 1,218.00 7,214.00 149.00
2017-03-31 20,176.00 1,109.00 7,559.00 164.00
2016-12-31 18,483.00 1,079.00 7,214.00 149.00
2016-09-30 18,150.00 1,041.00 6,689.00 139.00
2016-06-30 17,686.00 969.00 6,689.00 139.00
2016-03-31 17,394.00 813.00 6,689.00 139.00
2015-12-31 16,915.00 680.00 6,689.00 139.00
2015-09-30 16,358.00 645.00 5,303.00 126.00
2015-06-30 15,644.00 589.00 5,442.00 126.00
2015-03-31 15,137.00 586.00 5,580.00 126.00
2014-12-31 14,534.00 558.00 5,703.00 126.00
2014-09-30 14,114.00 601.00 5,192.00 124.00
2014-06-30 13,949.00 639.00 5,424.00 124.00
2014-03-31 13,932.00 669.00 5,649.00 124.00
2013-12-31 14,203.00 770.00 5,889.00 124.00
2013-09-30 14,382.00 524.00 1,698.00
2013-06-30 14,676.00 551.00 1,779.00
2013-03-31 14,810.00 545.00 1,960.00
2012-12-31 14,883.00 526.00 1,947.00
2012-09-30 14,755.00 759.00 2,110.00
2012-06-30 14,326.00 719.00 1,983.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • adidas has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • adidas used its assets more efficiently than the DE Luxury industry average last year based on Return on Assets.
  • adidas has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess adidas's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
adidas has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ADS Health

 How is adidas's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up adidas's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • adidas is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • adidas's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of adidas's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from adidas Company Filings, last reported 3 months ago.

DB:ADS Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 6,364.00 1,766.00 2,876.00
2018-09-30 6,490.00 1,679.00 2,744.00
2018-06-30 6,028.00 1,232.00 1,549.00
2018-03-31 6,799.00 1,210.00 1,955.00
2017-12-31 6,017.00 1,123.00 1,811.00
2017-09-30 6,455.00 1,700.00 1,616.00
2017-06-30 6,125.00 1,979.00 1,460.00
2017-03-31 6,702.00 2,394.00 1,895.00
2016-12-31 6,455.00 1,625.00 1,703.00
2016-09-30 6,109.00 2,048.00 1,579.00
2016-06-30 5,775.00 2,177.00 1,386.00
2016-03-31 5,663.00 2,152.00 1,514.00
2015-12-31 5,648.00 1,838.00 1,463.00
2015-09-30 5,708.00 1,978.00 1,202.00
2015-06-30 5,537.00 1,930.00 1,101.00
2015-03-31 6,265.00 1,930.00 2,073.00
2014-12-31 5,617.00 1,882.00 1,752.00
2014-09-30 6,112.00 1,181.00 974.00
2014-06-30 5,504.00 1,650.00 1,344.00
2014-03-31 5,603.00 1,456.00 1,362.00
2013-12-31 5,481.00 1,347.00 1,689.00
2013-09-30 5,610.00 1,355.00 1,334.00
2013-06-30 5,463.00 1,334.00 1,465.00
2013-03-31 5,730.00 1,299.00 1,338.00
2012-12-31 5,291.00 1,505.00 1,984.00
2012-09-30 5,896.00 1,663.00 1,554.00
2012-06-30 5,691.00 1,709.00 1,646.00
  • adidas's level of debt (27.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (24.6% vs 27.7% today).
  • Debt is well covered by operating cash flow (149.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 130.6x coverage).
X
Financial health checks
We assess adidas's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. adidas has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ADS Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.44%
Current annual income from adidas dividends. Estimated to be 1.89% next year.
If you bought €2,000 of adidas shares you are expected to receive €29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • adidas's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.43%).
  • adidas's dividend is below the markets top 25% of dividend payers in Germany (3.7%).
Upcoming dividend payment

Purchase adidas before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ADS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
Germany Luxury Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 1.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ADS Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 6.12 1.00
2022-12-31 6.27 2.00
2021-12-31 5.03 19.00
2020-12-31 4.33 26.00
2019-12-31 3.78 26.00
DB:ADS Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-03-13 3.350 1.533
2018-03-14 2.600 1.305
2017-03-10 2.000 1.107
2016-03-03 1.600 1.207
2015-03-05 1.500 1.949
2014-02-14 1.500 2.260
2013-03-07 1.350 1.615
2012-08-02 1.000 1.511
2012-03-07 1.000 1.695
2011-03-02 0.800 1.588
2010-03-03 0.350 0.800
2009-04-20 0.500 1.557

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of adidas's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess adidas's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can adidas afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. adidas has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ADS Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kasper Rorsted
COMPENSATION €6,786,592
AGE 56
TENURE AS CEO 2.5 years
CEO Bio

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 served as the Chief Executive Officer of Henkel Management AG at Henkel AG & Co. KGaA Vz since 2008 until April 30, 2016. He served as Executive Vice President of Human Resources, Purchasing, Information Technologies & Infrastructure Services of Henkel Management AG at Henkel AG & Co. KGaA Vz since April 2005. He served as the Chief Executive Officer of Henkel AG & Co. KGaA at Henkel of America, Inc. Mr. Rorsted served as an Executive Vice President of Human Resources, Purchasing and Information Technologies & Infrastructure Services of Henkel KGaA since April 2005. He has been with Henkel since April 2005. From 1995 to 2001, he held various management positions at Compaq, including Head of Compaq Enterprise Business Group in Europe, Middle East and Africa (EMEA) Region. He served as Vice President and General Manager of Compaq, EMEA Region from 2001 to 2002. He served as Senior Vice President and General Manager of Hewlett Packard from 2002 to 2004, responsible for Europe, Middle East and Africa (EMEA) Region. Prior to 1995, he held different management positions in marketing and distribution with Oracle Europe and Digital Equipment Corporation. Mr. Rorsted has been the Chairman of Management Board of Henkel KGaA a subsidiary of Henkel Group., since April 14, 2008. He served as the Chairman of the Management Board - Henkel Management AG at Henkel AG & Co. KGaA Vz since April 14, 2005 until April 30, 2016. He served as Vice Chairman of Management Board of Henkel KGaA and Henkel AG & Co. KGaA since January 1, 2007. He serves as a Member of the Supervisory Board of Bertelsmann Management SE. He is Member of Management Board of Henkel KGaA a subsidiary of Henkel Group since April 1, 2005. He is a Member of Management Board of Henkel Management AG at Henkel AG & Co. KGaA since April 1, 2005 until April 30, 2016. Mr. Rorsted serves as a Director of Danfoss District Energy A/S. He has been a Non-Executive Director of Cable & Wireless Communication since May 27, 2003. He was a Member of Supervisory Board at Bertelsmann SE & Co. KGaA since May 30, 2011 until 2019. He served as an Independent Director of Danfoss A/S since 2009 until February 28, 2017. He served as an Independent Director of Anheuser-Busch InBev SA/NV since April 29, 2015 until October 8, 2016. He served as a Non-Executive Independent Director of Anheuser-Busch InBev SA/NV since April 29, 2015. He served as a Non-Independent Director at Ecolab Inc. from August 2005 to July 2008. He served as a Non-Executive Director at Cable & Wireless Communications Plc from May 27, 2003 to January 1, 2011. He served as a Member of Supervisory Bodies at Cable & Wireless Plc., UK, Ecolab Inc., USA, Henkel of America Inc., USA, Henkel Central Eastern Europe GmbH, Austria, Henkel Belgium NV, Belgium, Henkel France SA, France, Henkel Norden AB, Sweden. He serves as a Member of Joint Advisory Council at Allianz SE. Mr. Rorsted studied BA from International Business School at Copenhagen in Denmark and completed Executive Summer Program from Harvard Business School.

CEO Compensation
  • Kasper's compensation has been consistent with company performance over the past year.
  • Kasper's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the adidas management team in years:

2.2
Average Tenure
55
Average Age
  • The tenure for the adidas management team is about average.
Management Team

Kasper Rorsted

TITLE
CEO & Member of Executive Board
COMPENSATION
€7M
AGE
56
TENURE
2.5 yrs

Harm Ohlmeyer

TITLE
CFO, Labor Director & Member of Executive Board
COMPENSATION
€2M
AGE
50
TENURE
1.9 yrs

Eric Liedtke

TITLE
Head of Global Brands & Member of Executive Board
COMPENSATION
€3M
AGE
52
TENURE
5.1 yrs

Roland Auschel

TITLE
Head of Global Sales & Member of Executive Board
COMPENSATION
€3M
AGE
55
TENURE
5.5 yrs

Karen Parkin

TITLE
Chief Global Human Resources Officer & Member of Executive Board
COMPENSATION
€2M
AGE
53
TENURE
1.9 yrs

Hans Ruprecht

TITLE
Vice President of Customer Service Central Europe West & Member of Supervisory Board
COMPENSATION
€170K
AGE
64

Udo Muller

TITLE
Director of Future Communication & Employee Representative Member of Supervisory Board
COMPENSATION
€87K
AGE
58

Martin Shankland

TITLE
Chief of Global Operations & Member of Executive Board
TENURE
0.1 yrs

Sebastian Steffen

TITLE
Senior Vice President of Investor Relations

Jan Runau

TITLE
Chief Corporate Communications Officer
Board of Directors Tenure

Average tenure and age of the adidas board of directors in years:

9.9
Average Tenure
62.5
Average Age
  • The tenure for the adidas board of directors is about average.
Board of Directors

Igor Landau

TITLE
Chairman of the Supervisory Board
COMPENSATION
€329K
AGE
74
TENURE
9.9 yrs

Sabine Bauer

TITLE
Deputy ChairWoman of Supervisory Board
COMPENSATION
€209K
AGE
55
TENURE
9.9 yrs

Willi Schwerdtle

TITLE
Deputy Chairperson of Supervisory Board
COMPENSATION
€209K
AGE
65
TENURE
9.9 yrs

Hans Ruprecht

TITLE
Vice President of Customer Service Central Europe West & Member of Supervisory Board
COMPENSATION
€170K
AGE
64
TENURE
17.3 yrs

Udo Muller

TITLE
Director of Future Communication & Employee Representative Member of Supervisory Board
COMPENSATION
€87K
AGE
58
TENURE
2.5 yrs

Herbert Kauffmann

TITLE
Member of Supervisory Board
COMPENSATION
€252K
AGE
67
TENURE
9.9 yrs

Heidi Thaler-Veh

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€85K
AGE
56
TENURE
25 yrs

Roland Nosko

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€129K
AGE
60
TENURE
14.9 yrs

Dieter Hauenstein

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€86K
AGE
61
TENURE
9.9 yrs

Wolfgang Jäger

TITLE
Employee Representative Member of Supervisory Board
COMPENSATION
€172K
AGE
64
TENURE
9.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess adidas's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. adidas has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ADS News

Simply Wall St News

Are You An Income Investor? Don't Miss Out On adidas AG (FRA:ADS)

Dividend paying stocks like adidas AG (FRA:ADS) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … A 1.5% yield is nothing to get excited about, but investors probably think the long payment history suggests adidas has some staying power.

Simply Wall St -

Don't Sell adidas AG (FRA:ADS) Before You Read This

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … adidas has a price to earnings ratio of 26.87, based on the last twelve months. … How Do I Calculate adidas's Price To Earnings Ratio

Simply Wall St -

What Are Analysts Saying About adidas AG's (FRA:ADS) Earnings Trajectory?

In December 2018, adidas AG (FRA:ADS) announced its latest earnings update, whicha … suggested … business

Simply Wall St -

What Do Analysts Think About adidas AG's (FRA:ADS) Future?

On 31 December 2018, adidas AG (FRA:ADS) released its earnings update. … the consensus outlook from analysts appear somewhat bearish, … the higher past 5-year average growth rate of 23%.

Simply Wall St -

The adidas (FRA:ADS) Share Price Has Gained 170%, So Why Not Pay It Some Attention?

One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, adidas achieved compound earnings per share (EPS) growth of 26% per year. … So the EPS growth rate is rather close to the annualized share price gain of 22% per year.

Simply Wall St -

Why adidas AG (FRA:ADS) Looks Like A Quality Company

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every €1 worth of shareholders' equity, it generated €0.25 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

adidas AG (FRA:ADS): Is Growth Priced In?

Help shape the future of investing tools and receive a $20 prize! … adidas AG (FRA:ADS) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of €199.25 is based on unrealistic expectations. … Investors in adidas have been patiently waiting for the uptick in earnings.

Simply Wall St -

Why We Think adidas AG (FRA:ADS) Could Be Worth Looking At

Attractive stocks have exceptional fundamentals. … In the case of adidas AG (FRA:ADS), there's … financially-sound

Simply Wall St -

Why You Should Like adidas AG’s (FRA:ADS) ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

adidas AG (FRA:ADS): How Much Money Comes Back To Investors?

Today we will examine adidas’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … adidas’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … The two ways to assess whether adidas’s FCF is sufficient, is to compare the FCF yield to the market index yield, as well as determine whether the top-line operating cash flows will continue to grow

Simply Wall St -

ADS Company Info

Description

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, North America Reebok, Asia-Pacific, Latin America, Emerging Markets, Russia/CIS, Adidas Golf, Runtastic, and Other Centrally Managed Businesses. It offers footwear; apparel; and hardware, such as bags, balls, fitness equipment, golf clubs, and hockey sticks under the adidas, Reebok, and adidas Golf brands. The company is also involved in the operation of Runtastic, a digital health and fitness space; and Y-3 label business activities. It sells its products through approximately 2,300 own-retail stores; 14,000 mono-branded franchise stores; and 150,000 wholesale doors, as well as its e-commerce Website. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

Details
Name: adidas AG
ADS
Exchange: DB
Founded: 1920
€46,088,794,692
198,573,006
Website: http://www.adidas-group.com
Address: adidas AG
Adi-Dassler-Strasse 1,
Herzogenaurach,
Bavaria, 91074,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB ADS Bearer Shares Deutsche Boerse AG DE EUR 17. Nov 1995
OTCPK ADDD.F Bearer Shares Pink Sheets LLC US USD 17. Nov 1995
XTRA ADS Bearer Shares XETRA Trading Platform DE EUR 17. Nov 1995
LSE 0OLD Bearer Shares London Stock Exchange GB EUR 17. Nov 1995
SWX ADS Bearer Shares SIX Swiss Exchange CH CHF 17. Nov 1995
BIT ADS Bearer Shares Borsa Italiana IT EUR 17. Nov 1995
WBAG ADS Bearer Shares Wiener Boerse AG AT EUR 17. Nov 1995
BUSE ADIDAS Bearer Shares Budapest Stock Exchange HU HUF 17. Nov 1995
BMV ADS N Bearer Shares Bolsa Mexicana de Valores MX MXN 17. Nov 1995
BATS-CHIXE ADSD Bearer Shares BATS 'Chi-X Europe' GB EUR 17. Nov 1995
OTCPK ADDY.Y ADR Pink Sheets LLC US USD 10. Jan 2005
BST ADS1 ADR Boerse-Stuttgart DE EUR 10. Jan 2005
Number of employees
Current staff
Staff numbers
49,563
adidas employees.
Industry
Apparel, Accessories and Luxury Goods
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:41
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.