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adesso

XTRA:ADN1
Snowflake Description

Good value with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ADN1
XTRA
€309M
Market Cap
  1. Home
  2. DE
  3. Software
Company description

adesso AG operates as an IT service provider focusing on consulting and software development in Germany, Austria, Switzerland, and internationally. The last earnings update was 51 days ago. More info.


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ADN1 Share Price and Events
7 Day Returns
2.6%
XTRA:ADN1
6.7%
DE IT
-0.6%
DE Market
1 Year Returns
-13.7%
XTRA:ADN1
15.5%
DE IT
-10.8%
DE Market
ADN1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
adesso (ADN1) 2.6% -6% -6.9% -13.7% 75.2% 255.5%
DE IT 6.7% 19.5% 28.7% 15.5% 171% 269.8%
DE Market -0.6% -3.3% 2.3% -10.8% 8% 8%
1 Year Return vs Industry and Market
  • ADN1 underperformed the IT industry which returned 15.5% over the past year.
  • ADN1 underperformed the Market in Germany which returned -10.8% over the past year.
Price Volatility
ADN1
Industry
5yr Volatility vs Market
Related Companies

Value

 Is adesso 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 adesso 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 adesso.

XTRA:ADN1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.8%
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 XTRA:ADN1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.05 (1 + (1- 30%) (14.88%))
1.106
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.106 * 5.96%)
6.82%

Discounted Cash Flow Calculation for XTRA:ADN1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for adesso 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.

XTRA:ADN1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.82%)
2019 24.15 Analyst x2 22.61
2020 23.95 Analyst x2 20.99
2021 27.05 Analyst x2 22.19
2022 29.90 Analyst x1 22.96
2023 32.50 Analyst x1 23.37
2024 34.42 Est @ 5.91% 23.16
2025 35.87 Est @ 4.2% 22.60
2026 36.95 Est @ 3.01% 21.79
2027 37.75 Est @ 2.18% 20.84
2028 38.35 Est @ 1.59% 19.82
Present value of next 10 years cash flows €220.33
XTRA:ADN1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €38.35 × (1 + 0.23%) ÷ (6.82% – 0.23%)
€582.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €582.87 ÷ (1 + 6.82%)10
€301.27
XTRA:ADN1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €220.33 + €301.27
€521.60
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €521.60 / 6.18
€84.45
XTRA:ADN1 Discount to Share Price
Calculation Result
Value per share (EUR) From above. €85.83
Current discount Discount to share price of €49.90
= -1 x (€49.90 - €85.83) / €85.83
41.9%

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

Current Discount
Amount off the current price adesso is available for.
Intrinsic value
42%
Share price is €49.9 vs Future cash flow value of €85.83
Current Discount Checks
For adesso to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • adesso's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • adesso's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 adesso's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are adesso's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XTRA:ADN1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €2.17
DB:ADN1 Share Price ** DB (2019-05-23) in EUR €49.1
Germany IT Industry PE Ratio Median Figure of 20 Publicly-Listed IT Companies 26.35x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 20.28x

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

** Primary Listing of adesso.

XTRA:ADN1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:ADN1 Share Price ÷ EPS (both in EUR)

= 49.1 ÷ 2.17

22.66x

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

  • adesso is good value based on earnings compared to the DE IT industry average.
  • adesso is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does adesso's expected growth come at a high price?
Raw Data
XTRA:ADN1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
15.4%per year
Germany IT Industry PEG Ratio Median Figure of 13 Publicly-Listed IT Companies 1.5x
Germany Market PEG Ratio Median Figure of 271 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

XTRA:ADN1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 22.66x ÷ 15.4%

1.47x

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

  • adesso is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on adesso's assets?
Raw Data
XTRA:ADN1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €12.51
DB:ADN1 Share Price * DB (2019-05-23) in EUR €49.1
Germany IT Industry PB Ratio Median Figure of 25 Publicly-Listed IT Companies 4x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
XTRA:ADN1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:ADN1 Share Price ÷ Book Value per Share (both in EUR)

= 49.1 ÷ 12.51

3.93x

* Primary Listing of adesso.

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

  • adesso is good value based on assets compared to the DE IT industry average.
X
Value checks
We assess adesso'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 IT 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 IT industry average (and greater than 0)? (1 check)
  5. adesso has a total score of 4/6, 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.

Future Performance

 How is adesso expected to perform in the next 1 to 3 years based on estimates from 2 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
15.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is adesso expected to grow at an attractive rate?
  • adesso's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • adesso's earnings growth is expected to exceed the Germany market average.
  • adesso's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
XTRA:ADN1 Future Growth Rates Data Sources
Data Point Source Value (per year)
XTRA:ADN1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 15.4%
XTRA:ADN1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 7.7%
Germany IT Industry Earnings Growth Rate Market Cap Weighted Average 24%
Germany IT Industry Revenue Growth Rate Market Cap Weighted Average 15.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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
XTRA:ADN1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XTRA:ADN1 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 554 48 30 2
2022-12-31 526 44 26 2
2021-12-31 496 38 22 2
2020-12-31 455 35 20 2
2019-12-31 416 35 16 2
XTRA:ADN1 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 376 17 13
2018-09-30 363 21 14
2018-06-30 350 26 14
2018-03-31 336 23 12
2017-12-31 322 20 11
2017-09-30 307 17 11
2017-06-30 292 13 11
2017-03-31 276 14 12
2016-12-31 261 15 12
2016-09-30 245 14 10
2016-06-30 229 14 7
2016-03-31 213 15 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • adesso's earnings are expected to grow by 15.4% yearly, however this is not considered high growth (20% yearly).
  • adesso's revenue is expected to grow by 7.7% 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
XTRA:ADN1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from adesso Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:ADN1 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.87 4.87 4.87 1.00
2022-12-31 4.25 4.25 4.25 1.00
2021-12-31 3.57 3.63 3.51 2.00
2020-12-31 3.17 3.35 2.99 2.00
2019-12-31 2.64 2.78 2.50 2.00
XTRA:ADN1 Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 2.17
2018-09-30 2.20
2018-06-30 2.23
2018-03-31 2.01
2017-12-31 1.79
2017-09-30 1.79
2017-06-30 1.79
2017-03-31 1.95
2016-12-31 2.11
2016-09-30 1.69
2016-06-30 1.26
2016-03-31 1.04

*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.
  • adesso is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess adesso'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.
adesso 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.

Past Performance

  How has adesso 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 adesso's growth in the last year to its industry (IT).
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.
  • adesso has delivered over 20% year on year earnings growth in the past 5 years.
  • adesso's 1-year earnings growth is less than its 5-year average (21.4% vs 34.2%)
  • adesso's earnings growth has exceeded the DE IT industry average in the past year (21.4% vs 16.2%).
Earnings and Revenue History
adesso'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 adesso Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:ADN1 Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 376.00 13.38 15.06
2018-09-30 362.83 13.57 14.42
2018-06-30 349.67 13.76 13.78
2018-03-31 335.65 12.39 13.78
2017-12-31 321.64 11.03 13.78
2017-09-30 306.62 10.91 12.72
2017-06-30 291.60 10.79 11.67
2017-03-31 276.29 11.57 11.67
2016-12-31 260.97 12.35 11.67
2016-09-30 244.81 9.85 10.16
2016-06-30 228.64 7.35 8.65
2016-03-31 212.63 6.05 8.65
2015-12-31 196.61 4.75 8.65
2015-09-30 182.97 4.34 6.54
2015-06-30 169.33 3.94 4.42
2015-03-31 163.26 3.67 4.42
2014-12-31 157.19 3.41 4.42
2014-09-30 151.17 2.87 3.99
2014-06-30 145.16 2.34 3.56
2014-03-31 140.22 2.56 3.56
2013-12-31 135.28 2.78 3.56
2013-09-30 132.26 3.52 2.62
2013-06-30 129.24 4.26 1.67
2013-03-31 125.03 2.48 1.67
2012-12-31 120.81 0.69 1.67
2012-09-30 115.38 0.22 1.55
2012-06-30 109.96 -0.26 1.43

*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.
  • adesso has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • adesso used its assets more efficiently than the DE IT industry average last year based on Return on Assets.
  • adesso has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess adesso'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 IT 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.
adesso has a total score of 4/6, 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.

Health

 How is adesso'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 adesso's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • adesso is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • adesso's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of adesso'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.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.2x 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 adesso Company Filings, last reported 4 months ago.

XTRA:ADN1 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 77.29 45.94 46.16
2018-09-30 77.29 45.94 46.16
2018-06-30 68.77 47.26 40.13
2018-03-31 68.77 47.26 40.13
2017-12-31 67.02 44.77 46.76
2017-09-30 67.02 44.77 46.76
2017-06-30 58.46 45.81 28.74
2017-03-31 58.46 45.81 28.74
2016-12-31 58.32 47.06 43.37
2016-09-30 58.32 47.06 43.37
2016-06-30 39.12 42.95 15.26
2016-03-31 39.12 42.95 15.26
2015-12-31 42.48 21.47 28.16
2015-09-30 42.48 21.47 28.16
2015-06-30 39.26 23.24 16.16
2015-03-31 39.26 23.24 16.16
2014-12-31 38.75 5.72 23.72
2014-09-30 38.75 5.72 23.72
2014-06-30 35.78 4.39 12.44
2014-03-31 35.78 4.39 12.44
2013-12-31 36.04 5.36 21.64
2013-09-30 36.04 5.36 21.64
2013-06-30 34.24 6.52 13.47
2013-03-31 34.24 6.52 13.47
2012-12-31 34.48 7.70 21.37
2012-09-30 34.48 7.70 21.37
2012-06-30 31.14 3.48 15.68
  • adesso's level of debt (59.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.8% vs 59.4% today).
  • Debt is well covered by operating cash flow (36.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 35.6x coverage).
X
Financial health checks
We assess adesso'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. adesso has a total score of 4/6, 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.

Dividends

 What is adesso'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
0.92%
Current annual income from adesso dividends. Estimated to be 1.09% next year.
If you bought €2,000 of adesso shares you are expected to receive €18 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?
  • adesso's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.42%).
  • adesso's dividend is below the markets top 25% of dividend payers in Germany (3.88%).
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
XTRA:ADN1 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 2 Analyst Estimates (S&P Global) See Below
Germany IT Industry Average Dividend Yield Market Cap Weighted Average of 12 Stocks 0.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.2%
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 3.9%

Industry and Market average data is calculated daily.

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

XTRA:ADN1 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.56 2.00
2020-12-31 0.55 2.00
2019-12-31 0.50 2.00
XTRA:ADN1 Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-04-02 0.450 0.880
2018-03-12 0.400 0.708
2017-04-21 0.360 0.674
2017-01-16 0.360 0.667
2015-03-30 0.250 1.177
2014-03-28 0.210 1.645
2014-01-15 0.210 1.985
2013-03-21 0.180 2.157
2012-03-22 0.180 2.726
2012-01-16 0.180 2.591
2011-03-29 0.150 2.275
2010-03-01 0.150 2.592

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

  • Whilst dividend payments have been stable, adesso has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but adesso only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of adesso's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (6.5x coverage).
X
Income/ dividend checks
We assess adesso'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 adesso afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. adesso has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of adesso'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
Michael Kenfenheuer
COMPENSATION €1,038,000
AGE 60
TENURE AS CEO 8.3 years
CEO Bio

Mr. Michael Kenfenheuer has been the Chairman of the Executive Board at adesso AG. since July 1, 2015. Mr. Kenfenheuer serves as the Chief Financial Officer at adesso AG and has been its Chief Executive Officer since January 2011 and Member of the Executive Board since 2000. Mr. Kenfenheuer is responsible for the coordination of sales activities and directs the Consulting and Sales divisions of adesso AG. He has been Director of adesso AG, since 2000.

CEO Compensation
  • Michael's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Michael's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

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

11.2
Average Tenure
54
Average Age
  • The average tenure for the adesso management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Volker Gruhn

TITLE
Co-Founder & Chairperson of the Supervisory Board
COMPENSATION
€8K
AGE
55
TENURE
22.3 yrs

Michael Kenfenheuer

TITLE
Chairman of the Executive Board
COMPENSATION
€1M
AGE
60
TENURE
8.3 yrs

Rainer Rudolf

TITLE
Co-Founder & Member of the Supervisory Board
COMPENSATION
€5K
AGE
56
TENURE
22.3 yrs

Christoph Junge

TITLE
Member of the Executive Board
COMPENSATION
€790K
AGE
48
TENURE
14 yrs

Andreas Prenneis

TITLE
MD & Member of Executive Board
COMPENSATION
€374K
AGE
53
TENURE
4.1 yrs

Dirk Pothen

TITLE
Member of Executive Board
AGE
51
TENURE
0.6 yrs

Martin Möllmann

TITLE
Manager of Investor Relations

Thomas Franz

TITLE
Head of Technology Advisory Board

Jürgen Angele

TITLE
Head of the Artificial Intelligence Competence Centre
Board of Directors Tenure

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

5.8
Average Tenure
65
Average Age
  • The tenure for the adesso board of directors is about average.
Board of Directors

Volker Gruhn

TITLE
Co-Founder & Chairperson of the Supervisory Board
COMPENSATION
€8K
AGE
55
TENURE
12.8 yrs

Rainer Rudolf

TITLE
Co-Founder & Member of the Supervisory Board
COMPENSATION
€5K
AGE
56
TENURE
5.8 yrs

Friedrich Wöbking

TITLE
Member of the Supervisory Board
COMPENSATION
€8K
AGE
68
TENURE
8.9 yrs

Gottfried Koch

TITLE
Member of the Supervisory Board
COMPENSATION
€10K
AGE
67
TENURE
5.8 yrs

Heinz-Werner Richter

TITLE
Member of the Supervisory Board
COMPENSATION
€8K
AGE
67
TENURE
5.8 yrs

Hermann Kögler

TITLE
Member of the Supervisory Board
COMPENSATION
€8K
AGE
63
TENURE
3.9 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 adesso'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. adesso 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.

News

Simply Wall St News

Company Info

Description

adesso AG operates as an IT service provider focusing on consulting and software development in Germany, Austria, Switzerland, and internationally. It operates through IT-Services and IT-Solutions segments. The company offers IT consulting, software development, and IT management services. It serves automotive, banks/financial services, utilities, healthcare, retail, lottery, mechanical engineering, Exhibition Corporation, public authorities, public transportation, media/ publishing, and insurance industries. The company was founded in 1997 and is headquartered in Dortmund, Germany.

Details
Name: adesso AG
ADN1
Exchange: XTRA
Founded: 1997
€308,804,650
6,176,093
Website: http://www.adesso.de
Address: adesso AG
Adessoplatz 1,
Dortmund,
North Rhine-Westphalia, 44269,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB ADN1 Common Stock Deutsche Boerse AG DE EUR 19. Sep 2007
XTRA ADN1 Common Stock XETRA Trading Platform DE EUR 19. Sep 2007
LSE 0N5I Common Stock London Stock Exchange GB EUR 19. Sep 2007
Number of employees
Current staff
Staff numbers
3,280
adesso employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 21:16
End of day share price update: 2019/05/23 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/04/02
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.