Adidas AG (ADDYY)
OTHER OTC:ADDYY
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Adidas
(OTC:ADDYY)
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Rating:67Neutral
Price Target:
$94.00
▲(16.08% Upside)
Action:Reiterated
Date:05/04/26
The score is driven primarily by improving financial performance (profitability rebound, but only mid-range cash-flow quality and moderate leverage) and a supportive earnings update (strong Q1 demand and reiterated targets, offset by FX/tariff and inventory/working-capital pressures). Valuation is favorable on a ~12.6 P/E, while technicals are mixed with short-term strength but the stock still below longer-term moving averages and near overbought readings.
Positive Factors
Profitability recovery
Adidas has moved from negative earnings to materially improved margins, demonstrating durable operational leverage and structural gross‑margin gains. Sustained mid-single-digit net margins and higher EBIT broaden free cash flow potential and support reinvestment and capital returns over the medium term.
Negative Factors
Elevated leverage versus conservative peers
While improved, a ~1x debt/equity ratio is not conservative for a consumer cyclical business and limits flexibility compared with low‑leverage peers. Historical swings to materially higher leverage indicate balance‑sheet sensitivity to earnings volatility and constrain strategic optionality in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
Adidas has moved from negative earnings to materially improved margins, demonstrating durable operational leverage and structural gross‑margin gains. Sustained mid-single-digit net margins and higher EBIT broaden free cash flow potential and support reinvestment and capital returns over the medium term.
Read all positive factors
Adidas (ADDYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.29B
Dividend Yield1.16%
Average Volume (3M)76.44K
Price to Earnings (P/E)12.6
Beta (1Y)0.98
Revenue Growth11.84%
EPS Growth46.75%
CountryUS
Employees46,045
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)3.92
Shares Outstanding360,000,000
10 Day Avg. Volume48,911
30 Day Avg. Volume76,441
Financial Highlights & Ratios
PEG Ratio0.34
Price to Book (P/B)5.20
Price to Sales (P/S)1.26
P/FCF Ratio138.40
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.24
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda10.39
Forecast
1Y Price Target
$121.25Price Target Upside49.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.49
Revenue Forecast (FY)$31.05B
Adidas Business Overview & Revenue Model
Company Description
adidas AG, together with its subsidiaries, designs, develops, distributes, and markets athletic and sports lifestyle products worldwide. It offers footwear; apparel; and accessories and gear, such as bags and balls under the adidas brand. It sells...
How the Company Makes Money
Adidas primarily makes money by selling sporting goods—especially footwear and apparel—through a mix of wholesale and direct-to-consumer (DTC) channels. Under the wholesale model, Adidas sells products in bulk to third-party retailers (e.g., sport...
Adidas Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and commercial story: robust demand drove 14% currency‑neutral top‑line growth, strong DTC/e‑commerce momentum, substantial apparel and performance category gains, and a meaningful increase in operating profit to EUR 705 million. Management also highlighted product innovation, regional market wins and continued shareholder returns. Key negatives include a 100 bps gross margin drag from FX and tariffs, deliberate inventory and working‑capital build that reduced cash, ongoing footwear/lifestyle discount pressure, and geopolitical and cost‑inflation risks (Middle East, oil/transport). Management believes these headwinds are manageable, reiterated guidance, and outlined clear medium‑term targets (EUR ~2bn p.a. growth and ~10%+ EBIT by 2027). Overall, positives (strong growth, margin resilience, DTC strength, innovation and shareholder returns) outweigh the identifiable, addressable risks.Positive Updates
Strong Top-Line Growth
Q1 net sales grew 14% currency-neutral (reported +7%), delivering nearly EUR 6.6 billion in revenue and demonstrating broad demand across markets and channels.
Negative Updates
Gross Margin Headwinds
Reported gross margin at 51.1% was down ~100 basis points year-over-year; management attributes this to FX translation effects and new U.S. tariffs (FX and tariffs cited as material negative drivers ~€50m scale each).
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Q1 net sales grew 14% currency-neutral (reported +7%), delivering nearly EUR 6.6 billion in revenue and demonstrating broad demand across markets and channels.
Read all positive updates
Company Guidance
Adidas reiterated its full‑year guidance and longer‑term targets: management expects to add roughly EUR 2.0bn of sales p.a., deliver high‑single‑digit growth in 2027–28 and reach a 10%+ EBIT margin by 2027. In Q1 the company delivered ~EUR 6.6bn revenue (14% currency‑neutral, 7% reported), gross margin 51.1% (down ~100bps; FX and new U.S. tariffs each ~EUR 50m), operating profit EUR 705m (10.7%, ≈+EUR 100m YoY), net income EUR 484m (+11%) and basic EPS broadly stable; marketing was 11.5% of sales, operating overheads +3%. Channel and product metrics: DTC +22% (own retail +19%, e‑commerce +25%), channel mix ~62% wholesale / 38% DTC (stores 22% / e‑comm 16%), product split 56% footwear / 37% apparel / 7% accessories, footwear +4%, apparel +31%, accessories +13%, performance +29% (running ≈30%). Working capital/inventory: inventories +13% (17% cc), receivables +11% (16% cc), working‑capital up 21% (26% cc); Q1 tax ~25%. Cash return and financing: completed EUR 500m buyback (3.3m shares), another EUR 500m buyback planned and a proposed EUR 500m dividend (total ~EUR 1.5bn return in 2026). Management flagged an FY FX headwind of ~3–4%, expects gross margin to improve in H2 as hedges roll and will step up Q2 marketing for the World Cup; a potential tariff recovery of ~EUR 300m is not included in guidance.Adidas Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.30B | 23.83B | 23.68B | 21.43B | 22.51B | 21.23B |
| Gross Profit | 13.00B | 11.23B | 12.03B | 10.18B | 10.64B | 10.77B |
| EBITDA | 3.01B | 2.97B | 2.51B | 785.00M | 1.75B | 3.11B |
| Net Income | 1.40B | 1.29B | 764.00M | -75.00M | 254.00M | 1.49B |
Balance Sheet | ||||||
| Total Assets | 20.48B | 20.25B | 20.66B | 18.02B | 20.30B | 22.14B |
| Cash, Cash Equivalents and Short-Term Investments | 873.91M | 1.64B | 2.48B | 1.48B | 966.00M | 3.94B |
| Total Debt | 5.96B | 5.55B | 5.59B | 5.56B | 6.46B | 5.33B |
| Total Liabilities | 14.12B | 14.13B | 14.79B | 13.10B | 14.95B | 14.30B |
| Stockholders Equity | 5.99B | 5.77B | 5.48B | 4.58B | 4.99B | 7.52B |
Cash Flow | ||||||
| Free Cash Flow | 782.32M | 217.08M | 2.37B | 2.13B | -1.24B | 2.52B |
| Operating Cash Flow | 1.23B | 565.75M | 2.91B | 2.55B | -543.00M | 3.19B |
| Investing Cash Flow | -494.03M | -443.77M | -356.00M | -450.00M | 495.00M | -424.00M |
| Financing Cash Flow | -1.26B | -848.15M | -1.56B | -1.43B | -2.96B | -2.99B |
Adidas Technical Analysis
Positive
80.98
Price Trends
80.61
Positive
85.67
Positive
92.18
Negative
Market Momentum
1.13
Negative
55.85
Neutral
35.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADDYY, the sentiment is Positive. The current price of 80.98 is below the 20-day moving average (MA) of 83.58, above the 50-day MA of 80.61, and below the 200-day MA of 92.18, indicating a neutral trend. The MACD of 1.13 indicates Negative momentum. The RSI at 55.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADDYY.
Adidas Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $13.28B | 7.91 | 41.36% | ― | 8.99% | 14.67% | |
69 Neutral | $5.74B | 17.12 | 12.95% | ― | 20.35% | 54.59% | |
67 Neutral | $30.29B | 12.65 | 24.59% | 1.16% | 11.84% | 46.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $4.72B | 7.59 | -7.54% | ― | -1.85% | -108.05% | |
50 Neutral | $62.02B | 44.21 | 16.41% | 2.81% | -2.83% | -49.54% |
* Consumer Cyclical Sector Average
ADDYY
Adidas
85.09
-37.60
-30.65%
CROX
Crocs
99.11
-13.80
-12.22%
DECK
Deckers Outdoor
94.27
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-26.83%
NKE
Nike
42.42
-18.61
-30.49%
BIRK
Birkenstock Holding plc
32.12
-24.32
-43.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.