DB:ADN1

Stock Analysis Report

Executive Summary

adesso AG operates as an IT service provider focusing on consulting and software development in Germany, Austria, Switzerland, and internationally.

Snowflake

Fundamentals

Average dividend payer and fair value.

Risks

  • adesso is covered by less than 3 analysts.

Share Price & News

How has adesso's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.4%

ADN1

-3.6%

DE IT

-0.8%

DE Market


1 Year Return

-21.2%

ADN1

-13.9%

DE IT

-5.3%

DE Market

ADN1 underperformed the IT industry which returned -11% over the past year.

ADN1 underperformed the Market in Germany which returned -5% over the past year.


Share holder returns

ADN1IndustryMarket
7 Day2.4%-3.6%-0.8%
30 Day6.2%1.2%5.1%
90 Day-5.3%-2.2%1.1%
1 Year-20.5%-21.2%-13.5%-13.9%-2.3%-5.3%
3 Year59.7%56.1%147.2%141.1%18.0%7.9%
5 Year322.2%302.4%314.0%296.5%33.2%15.0%

Price Volatility Vs. Market

How volatile is adesso's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, but not at a substantial discount (< 40%).


Price Based on Earnings

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

adesso is poor value based on expected growth next year.


Price Based on Value of Assets

adesso is good value based on assets compared to the DE IT industry average.


Next Steps

Future Growth

How is adesso expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

adesso's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).

adesso's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).

adesso's revenue growth is expected to exceed the Germany market average.

adesso's earnings growth is expected to exceed the Germany market average.

adesso's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

adesso is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has adesso performed over the past 5 years?

29.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

adesso has delivered over 20% year on year earnings growth in the past 5 years.

adesso's 1-year earnings growth is negative, it can't be compared to the 5-year average.

adesso's 1-year earnings growth is negative, it can't be compared to the DE IT industry average.


Return on Equity

adesso has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

adesso used its assets less efficiently than the DE IT industry average last year based on Return on Assets.


Return on Capital Employed

adesso's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is adesso's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

adesso's level of debt (78.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (12.3% vs 78.9% today).

Debt is not well covered by operating cash flow (2.6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 16x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.5x debt.


Next Steps

Dividend

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

1.05%

Expected Dividend Yield


Dividend Yield and Payments Analysis

adesso's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.39%).

adesso's dividend is below the markets top 25% of dividend payers in Germany (3.89%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (6.9x coverage).


Next Steps

Management

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

11.5yrs

Average management tenure


CEO

Michael Kenfenheuer (61yo)

8.7yrs

Tenure

€739,000

Compensation

Mr. Michael Kenfenheuer has been the Chairman of the Executive Board at adesso AG. since July 1, 2015. Mr. Kenfenheuer served as the Chief Financial Officer at adesso AG and has been its Chief Executive Of ...


CEO Compensation Analysis

Michael's remuneration is about average for companies of similar size in Germany.

Michael's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.5yrs

Average Tenure

55yo

Average Age

The average tenure for the adesso management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.2yrs

Average Tenure

66yo

Average Age

The tenure for the adesso board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Rainer Rudolf (57yo)

    Co-Founder & Member of the Supervisory Board

    • Tenure: 6.2yrs
    • Compensation: €5.00k
  • Michael Kenfenheuer (61yo)

    Chairman of the Executive Board & CEO

    • Tenure: 8.7yrs
    • Compensation: €739.00k
  • Volker Gruhn (56yo)

    Co-Founder & Chairperson of the Supervisory Board

    • Tenure: 13.2yrs
    • Compensation: €8.00k
  • Christoph Junge (49yo)

    Member of the Executive Board

    • Tenure: 14.3yrs
    • Compensation: €655.00k
  • Andreas Prenneis (54yo)

    MD & Member of Executive Board

    • Tenure: 4.4yrs
    • Compensation: €429.00k
  • Martin Möllmann

    Manager of Investor Relations

    • Tenure: 0yrs
  • Dirk Pothen (52yo)

    Member of Executive Board

    • Tenure: 0.9yrs
    • Compensation: €254.00k
  • Thomas Franz

    Head of Technology Advisory Board

    • Tenure: 0yrs
  • Jürgen Angele

    Head of the Artificial Intelligence Competence Centre

    • Tenure: 0yrs
  • Jörg Schroeder

    CFO & Member of Executive board

    • Tenure: 0yrs

Board Members

  • Friedrich Wöbking (69yo)

    Member of the Supervisory Board

    • Tenure: 9.3yrs
    • Compensation: €9.00k
  • Heinz-Werner Richter (68yo)

    Member of the Supervisory Board

    • Tenure: 6.2yrs
    • Compensation: €10.00k
  • Rainer Rudolf (57yo)

    Co-Founder & Member of the Supervisory Board

    • Tenure: 6.2yrs
    • Compensation: €5.00k
  • Volker Gruhn (56yo)

    Co-Founder & Chairperson of the Supervisory Board

    • Tenure: 13.2yrs
    • Compensation: €8.00k
  • Hermann Kögler (64yo)

    Member of the Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €10.00k
  • Gottfried Koch (68yo)

    Member of the Supervisory Board

    • Tenure: 6.2yrs
    • Compensation: €9.00k

Company Information

adesso AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: adesso AG
  • Ticker: ADN1
  • Exchange: DB
  • Founded: 1997
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: €310.657m
  • Shares outstanding: 6.18m
  • Website: https://www.adesso.de

Number of Employees


Location

  • adesso AG
  • Adessoplatz 1
  • Dortmund
  • North Rhine-Westphalia
  • 44269
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADN1DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2007
ADN1XTRA (XETRA Trading Platform)YesCommon StockDEEURSep 2007
0N5ILSE (London Stock Exchange)YesCommon StockGBEURSep 2007

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 20:39
End of Day Share Price2019/09/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.