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.

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

5.3%

ADN1

-9.1%

DE IT

3.9%

DE Market


1 Year Return

-16.9%

ADN1

-18.3%

DE IT

3.4%

DE Market

Return vs Industry: ADN1 exceeded the German IT industry which returned -18.3% over the past year.

Return vs Market: ADN1 underperformed the German Market which returned 3.4% over the past year.


Shareholder returns

ADN1IndustryMarket
7 Day5.3%-9.1%3.9%
30 Day4.0%-14.5%2.1%
90 Day5.7%-13.2%3.7%
1 Year-16.1%-16.9%-17.9%-18.3%6.7%3.4%
3 Year26.6%23.7%123.1%117.4%18.9%8.6%
5 Year329.6%309.4%271.2%255.5%41.8%22.5%

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 compared to its fair value and its price relative to the market?

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ADN1 (€50.8) is trading below our estimate of fair value (€80.11)

Significantly Undervalued: ADN1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ADN1 is good value based on its PE Ratio (26x) compared to the IT industry average (26.3x).

PE vs Market: ADN1 is poor value based on its PE Ratio (26x) compared to the German market (19.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: ADN1 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ADN1 is good value based on its PB Ratio (3.9x) compared to the DE IT industry average (3.9x).


Next Steps

Future Growth

How is adesso forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADN1's forecast earnings growth (19.4% per year) is above the savings rate (0.2%).

Earnings vs Market: ADN1's earnings (19.4% per year) are forecast to grow faster than the German market (12.6% per year).

High Growth Earnings: ADN1's earnings are forecast to grow, but not significantly.

Revenue vs Market: ADN1's revenue (7.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: ADN1's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ADN1's Return on Equity is forecast to be low in 3 years time (18.7%).


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

Earnings Trend: ADN1's earnings have grown significantly by 29% per year over the past 5 years.

Accelerating Growth: ADN1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ADN1 had negative earnings growth (-16.7%) over the past year, making it difficult to compare to the IT industry average (22.7%).


Return on Equity

High ROE: ADN1's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: ADN1's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: ADN1's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is adesso's financial position?


Financial Position Analysis

Short Term Liabilities: ADN1's short term assets (€155.9M) exceeds its short term liabilities (€115.0M)

Long Term Liabilities: ADN1's short term assets (155.9M) exceeds its long term liabilities (122.5M)


Debt to Equity History and Analysis

Debt Level: ADN1's debt to equity ratio (78.9%) is considered high

Reducing Debt: ADN1's debt to equity ratio has increased from 12.3% to 78.9% over the past 5 years.

Debt Coverage: ADN1's debt is not well covered by operating cash flow (2.6%).

Interest Coverage: ADN1's interest payments on its debt are well covered by EBIT (16x coverage).


Balance Sheet

Inventory Level: ADN1 has a high level of physical assets or inventory.

Debt Coverage by Assets: ADN1's debt is covered by short term assets (assets are 2.490650x debt).


Next Steps

Dividend

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

0.90%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.5%markettop25%3.8%industryaverage0.6%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ADN1's dividend (0.9%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: ADN1's dividend (0.9%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: ADN1's dividends per share have been stable in the past 10 years.

Growing Dividend: ADN1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (23.3%), ADN1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ADN1's dividends in 3 years are forecast to be thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Michael Kenfenheuer (61yo)

8.8yrs

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

Compensation vs. Market: Michael's total compensation ($USD821.93K) is about average for companies of similar size in the German market ($USD809.25K).

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


Management Age and Tenure

6.6yrs

Average Tenure

55yo

Average Age

Experienced Management: ADN1's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: ADN1's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rüdiger Striemer (51yo)

    Chief Marketing Officer

    • Tenure: 0yrs
    • Compensation: €452.00k
  • Rainer Rudolf (57yo)

    Co-Founder & Member of the Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: €5.00k
  • Michael Kenfenheuer (61yo)

    Chairman of the Executive Board & CEO

    • Tenure: 8.8yrs
    • Compensation: €739.00k
  • Volker Gruhn (56yo)

    Co-Founder & Chairperson of the Supervisory Board

    • Tenure: 13.3yrs
    • Compensation: €8.00k
  • Andreas Prenneis (54yo)

    MD & Member of Executive Board

    • Tenure: 4.5yrs
    • Compensation: €429.00k
  • Martin Möllmann

    Manager of Investor Relations

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

    Member of Executive Board

    • Tenure: 1yrs
    • 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: 0.08yrs

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: 6.3yrs
    • Compensation: €10.00k
  • Rainer Rudolf (57yo)

    Co-Founder & Member of the Supervisory Board

    • Tenure: 6.3yrs
    • Compensation: €5.00k
  • Volker Gruhn (56yo)

    Co-Founder & Chairperson of the Supervisory Board

    • Tenure: 13.3yrs
    • 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: 6.3yrs
    • 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: €310.040m
  • 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
ADN1DBATS-CHIXE (BATS 'Chi-X Europe')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 Analysis2019/10/17 20:39
End of Day Share Price2019/10/17 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.