Adidas (ADDYY) AI Stock Analysis

• Market Cap: $33.92B
• Dividend Yield: 1.19%
• Average Volume (3M): 2.60K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.72
• Revenue Growth: 11.60%
• EPS Growth: 399.24%
• Country: US
• Employees: 46,045
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 1.50
• Shares Outstanding: 360,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,596
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 14.49
• 1Y Price Target: $135.66
• Price Target Upside: 19.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: $119.00 ▲(4.78% Upside)

Adidas's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting record-breaking revenue and margin improvements. However, technical indicators suggest a short-term bearish trend, and the valuation indicates the stock may be overvalued. Cash flow challenges and regional market issues, particularly in North America, are areas to watch.

Adidas Business Overview & Revenue Model

Company Description

Adidas AG is a global leader in the sporting goods industry, renowned for its innovative athletic footwear, apparel, and accessories. Founded in Germany in 1949, the company operates in multiple sectors, including sports performance, lifestyle, and fashion, catering to a diverse range of consumers from professional athletes to casual wearers. Adidas offers a wide array of products that include running shoes, soccer cleats, training gear, and lifestyle fashion items, primarily under the Adidas and Reebok brands, as well as collaborations with designers and celebrities.

How the Company Makes Money

Adidas generates revenue through several key streams, primarily from the sale of its footwear, apparel, and accessories. The company operates a mix of wholesale and direct-to-consumer channels, with a significant portion of its earnings coming from selling products through its own retail stores and e-commerce platforms. Additionally, partnerships with professional sports teams, athletes, and influencers enhance brand visibility and drive sales. The company also benefits from licensing agreements, allowing it to earn revenue through the manufacturing and sale of branded products by third-party companies. Seasonal product launches and limited-edition collaborations create hype and exclusivity, contributing to increased sales. Furthermore, Adidas invests in sustainability initiatives, which appeal to environmentally conscious consumers, potentially boosting its market share and profitability.

Adidas Financial Statement Overview

Summary

Adidas demonstrates strong revenue growth and profitability improvements, particularly in the TTM period. The balance sheet reflects a stable financial position with manageable leverage. However, cash flow challenges, particularly in free cash flow, highlight areas for improvement. Overall, the company is on a positive trajectory but should focus on enhancing cash flow generation.

Income Statement

Adidas has shown a strong revenue growth rate of 53.3% in the TTM period, indicating robust sales performance. The gross profit margin remains healthy at 51.2%, reflecting efficient production and pricing strategies. Net profit margin improved to 4.9%, showcasing enhanced profitability. However, the EBIT and EBITDA margins, while improved, suggest room for operational efficiency gains.

Balance Sheet

The debt-to-equity ratio is slightly above 1, indicating a balanced but slightly leveraged position. Return on equity has improved to 22.3%, demonstrating strong profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid asset base. However, the leverage level should be monitored to avoid potential risks.

Cash Flow

Free cash flow has decreased significantly by 55.5% in the TTM period, which is a concern. The operating cash flow to net income ratio is relatively low, indicating potential cash flow constraints. The free cash flow to net income ratio is moderate, suggesting some ability to generate cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.51B	23.68B	21.43B	22.51B	21.23B	19.84B
Gross Profit	12.55B	12.03B	10.18B	10.64B	10.77B	9.85B
EBITDA	2.99B	2.51B	785.00M	1.75B	3.11B	1.98B
Net Income	1.20B	764.00M	-75.00M	254.00M	1.49B	432.00M
Balance Sheet
Total Assets	19.50B	20.66B	18.02B	20.30B	22.14B	21.05B
Cash, Cash Equivalents and Short-Term Investments	1.43B	2.48B	1.48B	966.00M	3.94B	4.24B
Total Debt	5.47B	5.59B	5.56B	6.46B	5.33B	5.89B
Total Liabilities	13.94B	14.79B	13.10B	14.95B	14.30B	14.36B
Stockholders Equity	5.20B	5.48B	4.58B	4.99B	7.52B	6.45B
Cash Flow
Free Cash Flow	692.00M	2.37B	2.13B	-1.24B	2.52B	1.04B
Operating Cash Flow	1.23B	2.91B	2.55B	-543.00M	3.19B	1.49B
Investing Cash Flow	-342.00M	-356.00M	-450.00M	495.00M	-424.00M	-115.00M
Financing Cash Flow	-1.71B	-1.56B	-1.43B	-2.96B	-2.99B	479.00M

Adidas Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 113.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADDYY, the sentiment is Negative. The current price of 113.57 is above the 20-day moving average (MA) of 108.10, above the 50-day MA of 105.57, and below the 200-day MA of 115.42, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 27.07 is Positive, neither overbought nor oversold. The STOCH value of 0.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADDYY.

Adidas Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DECK	―	$12.09B	12.09	43.31%	―	12.55%	18.43%
BIRK	―	$7.40B	22.40	11.36%	―	18.66%	183.98%
ADDYY	―	$33.92B	24.72	22.73%	1.19%	11.60%	399.24%
NKE	―	$95.48B	33.10	21.12%	2.48%	-7.07%	-44.29%
CROX	―	$4.24B	26.64	11.82%	―	2.04%	-71.52%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Adidas Corporate Events

Adidas AG Reports Record Q3 Revenues and Upgraded Outlook

Adidas AG, a leading global sportswear company, is renowned for its innovative athletic footwear, apparel, and accessories, catering to both performance and lifestyle markets.