(ADS) adidas - Overview
Sector: Consumer Cyclical | Industry: Footwear & Accessories | Exchange: XETRA (Germany) | Market Cap: 24.439m EUR | Total Return: -28.7% in 12m
Industry Rotation: +13.3
Avg Turnover: 90.8M EUR
Peers RS (IBD): 15.0
EPS Trend: 25.0%
Qual. Beats: 0
Rev. Trend: 52.6%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
adidas AG (XETRA: ADS) designs, develops, produces, and markets athletic and sports-lifestyle footwear, apparel, and accessories across Europe, Greater China, Japan, South Korea, Latin America, North America, and other regions. Its portfolio includes the core adidas brand, adidas Golf, and Five Ten outdoor footwear, sold via company-owned stores, franchise locations, shop-in-shops, joint-venture partners, wholesale, and e-commerce channels.
Key recent metrics show adidas generating €23.5 billion in FY 2025 revenue, a 7 % YoY increase driven largely by a 15 % rise in digital sales and a 9 % uplift in North-American direct-to-consumer (DTC) channels. Gross margin expanded to 48.2 % as the firm trimmed inventory to a 3.8-month supply and benefited from favorable Euro-to-Dollar exchange movements. The company’s sustainability agenda-targeting 30 % recycled content in products by 2027-continues to resonate with consumers, supporting a sector-wide shift toward eco-friendly athleisure.
For deeper valuation insights, you might explore ValueRay’s analysis.
- Global consumer spending on athletic wear impacts revenue
- Supply chain disruptions increase production costs
- Brand perception and marketing effectiveness drive sales
- Competition from Nike and Puma affects market share
- Greater China market performance significantly influences growth
| Net Income: 1.34b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -10.43 > 1.0 |
| NWC/Revenue: 11.62% < 20% (prev 9.76%; Δ 1.86% < -1%) |
| CFO/TA 0.04 > 3% & CFO 751.0m > Net Income 1.34b |
| Net Debt (3.94b) to EBITDA (3.25b): 1.21 < 3 |
| Current Ratio: 1.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (178.7m) vs 12m ago 0.06% < -2% |
| Gross Margin: 51.61% > 18% (prev 0.51%; Δ 5.11k% > 0.5%) |
| Asset Turnover: 121.3% > 50% (prev 114.7%; Δ 6.61% > 0%) |
| Interest Coverage Ratio: 6.72 > 6 (EBITDA TTM 3.25b / Interest Expense TTM 311.0m) |
| A: 0.14 (Total Current Assets 11.98b - Total Current Liabilities 9.09b) / Total Assets 20.26b |
| B: 0.28 (Retained Earnings 5.76b / Total Assets 20.26b) |
| C: 0.10 (EBIT TTM 2.09b / Avg Total Assets 20.46b) |
| D: 0.31 (Book Value of Equity 4.40b / Total Liabilities 14.14b) |
| Altman-Z'' Score: 2.87 = A |
| DSRI: 1.21 (Receivables 3.45b/2.71b, Revenue 24.81b/23.68b) |
| GMI: 0.98 (GM 51.61% / 50.77%) |
| AQI: 0.98 (AQ_t 0.18 / AQ_t-1 0.19) |
| SGI: 1.05 (Revenue 24.81b / 23.68b) |
| TATA: 0.03 (NI 1.34b - CFO 751.0m) / TA 20.26b) |
| Beneish M-Score: -2.81 (Cap -4..+1) = A |
Over the past week, the price has changed by +1.78%, over one month by -0.74%, over three months by -13.77% and over the past year by -28.71%.
| Analysts Target Price | - | - |
P/E Trailing = 18.4966
P/E Forward = 15.1745
P/S = 0.985
P/B = 4.2311
P/EG = 0.7613
Revenue TTM = 24.81b EUR
EBIT TTM = 2.09b EUR
EBITDA TTM = 3.25b EUR
Long Term Debt = 2.00b EUR (from longTermDebt, last quarter)
Short Term Debt = 1.25b EUR (from shortTermDebt, last quarter)
Debt = 5.55b EUR (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.94b EUR (from netDebt column, last quarter)
Enterprise Value = 28.38b EUR (24.44b + Debt 5.55b - CCE 1.62b)
Interest Coverage Ratio = 6.72 (Ebit TTM 2.09b / Interest Expense TTM 311.0m)
EV/FCF = 103.6x (Enterprise Value 28.38b / FCF TTM 274.0m)
FCF Yield = 0.97% (FCF TTM 274.0m / Enterprise Value 28.38b)
FCF Margin = 1.10% (FCF TTM 274.0m / Revenue TTM 24.81b)
Net Margin = 5.40% (Net Income TTM 1.34b / Revenue TTM 24.81b)
Gross Margin = 51.61% ((Revenue TTM 24.81b - Cost of Revenue TTM 12.01b) / Revenue TTM)
Gross Margin QoQ = 50.82% (prev 51.81%)
Tobins Q-Ratio = 1.40 (Enterprise Value 28.38b / Total Assets 20.26b)
Interest Expense / Debt = 1.57% (Interest Expense 87.0m / Debt 5.55b)
Taxrate = 12.50% (12.0m / 96.0m)
NOPAT = 1.83b (EBIT 2.09b * (1 - 12.50%))
Current Ratio = 1.32 (Total Current Assets 11.98b / Total Current Liabilities 9.09b)
Debt / Equity = 0.96 (Debt 5.55b / totalStockholderEquity, last quarter 5.78b)
Debt / EBITDA = 1.21 (Net Debt 3.94b / EBITDA 3.25b)
Debt / FCF = 14.37 (Net Debt 3.94b / FCF TTM 274.0m)
Total Stockholder Equity = 5.60b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.54% (Net Income 1.34b / Total Assets 20.26b)
RoE = 23.93% (Net Income TTM 1.34b / Total Stockholder Equity 5.60b)
RoCE = 27.54% (EBIT 2.09b / Capital Employed (Equity 5.60b + L.T.Debt 2.00b))
RoIC = 22.32% (NOPAT 1.83b / Invested Capital 8.20b)
WACC = 6.74% (E(24.44b)/V(29.99b) * Re(7.96%) + D(5.55b)/V(29.99b) * Rd(1.57%) * (1-Tc(0.12)))
Discount Rate = 7.96% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.03%
[DCF] Terminal Value 76.86% ; FCFF base≈1.14b ; Y1≈747.2m ; Y5≈341.7m
[DCF] Fair Price = 27.62 (EV 8.84b - Net Debt 3.94b = Equity 4.90b / Shares 177.3m; r=6.74% [WACC]; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 25.00 | EPS CAGR: -28.28% | SUE: -1.98 | # QB: 0
Revenue Correlation: 52.63 | Revenue CAGR: 3.70% | SUE: 0.02 | # QB: 0
EPS next Quarter (2026-06-30): EPS=2.42 | Chg7d=+0.049 | Chg30d=-0.399 | Revisions Net=-6 | Analysts=8
EPS current Year (2026-12-31): EPS=9.43 | Chg7d=-0.009 | Chg30d=-0.082 | Revisions Net=-20 | Growth EPS=+26.4% | Growth Revenue=+6.0%
EPS next Year (2027-12-31): EPS=11.66 | Chg7d=+0.000 | Chg30d=-0.294 | Revisions Net=-11 | Growth EPS=+4.9% | Growth Revenue=+8.2%
[Analyst] Revisions Ratio: -1.00 (0 Up / 6 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 2.6% (Discount Rate 8.0% - Earnings Yield 5.4%)
[Growth] Growth Spread = +4.0% (Analyst 6.6% - Implied 2.6%)