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Adidas (ADDYY)
OTHER OTC:ADDYY
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Adidas
(OTC:ADDYY)
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Rating:71Outperform
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 (ADDYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.33B
Dividend Yield1.13%
Average Volume (3M)2.60K
Price to Earnings (P/E)25.9
Beta (1Y)0.75
Revenue Growth11.87%
EPS Growth191.75%
CountryUS
Employees46,045
SectorN/A
Sector StrengthN/A
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)1.50
Shares Outstanding360,000,000
10 Day Avg. Volume0
30 Day Avg. Volume2,596
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)7.67
Price to Sales (P/S)1.77
P/FCF Ratio17.72
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.77
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda14.49
Forecast
1Y Price Target
$135.66Price Target Upside19.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Adidas Business Overview & Revenue Model
Company DescriptionAdidas AG is a global leader in the sporting goods industry, known for its innovative athletic footwear, apparel, and accessories. The company operates primarily in the segments of footwear, apparel, and hardware, serving a diverse range of customers from professional athletes to casual consumers. Adidas is recognized for its commitment to sustainability and performance, offering a wide array of products under its flagship Adidas brand, as well as other brands like Reebok.
How the Company Makes MoneyAdidas generates revenue through multiple key streams, primarily from the sale of athletic footwear and apparel. The company operates a direct-to-consumer model through its retail stores, e-commerce platforms, and online marketplaces, which allows for higher margins compared to traditional wholesale distribution. Additionally, Adidas benefits from licensing agreements and collaborations with various designers and celebrities, enhancing brand visibility and appeal. The company also generates income from partnerships with sports teams and organizations, which often include co-branded merchandise, sponsorship deals, and promotional events. Seasonal product launches, limited edition releases, and collaborations with influential figures contribute to strong sales, especially in the competitive athleisure market.
Adidas Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, driven by record-breaking revenue, strong margin performance, and successful growth in key regions and categories. However, challenges in North America and tariff impacts in the U.S. remain concerns.Q3-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Adidas achieved EUR 6.63 billion in Q3, marking the highest quarter ever for the company with a 12% currency-neutral growth.
Strong Margin Performance
The company reported a gross margin of 51.8%, which is 50 basis points higher than the previous year.
EBIT Achievements
Adidas reported an EBIT of EUR 736 million in Q3 with an EBIT percentage of 11.1%.
Regional Growth Success
Growth in key markets: Greater China up 12%, Japan and South Korea up 11%, and LatAm markets continue to perform strongly.
E-commerce Growth
E-commerce sales grew by 15%, indicating strong digital performance.
Sports Performance
Performance sports categories increased by 17%, with notable success in football, running, training, and basketball.
World Cup Opportunity
Adidas anticipates a EUR 1 billion opportunity from the upcoming World Cup.
Negative Updates
North America Market Challenges
North America grew only 8% due to issues in the accessory business caused by distribution and delivery challenges.
Tariff Impact in the U.S.
The tariffs in the U.S. are expected to have a negative impact of around EUR 120 million on the P&L.
Inventory Concerns
Inventories are up 26% currency neutral, but the company states that this is part of a strategic decision.
Company Guidance
During the adidas AG Q3 2025 Conference Call, the company reported record net sales of EUR 6.63 billion, marking a 12% currency-neutral growth for the adidas brand. The gross margin reached 51.8%, a 50-basis-point increase from the previous year, while EBIT stood at EUR 736 million, representing an 11.1% EBIT margin. Year-to-date sales totaled EUR 18.7 billion, up 14% for the adidas brand, with an operating profit of EUR 1.892 billion. Regional growth was notable in Greater China and Latin America, while North America saw an 8% increase. The digital business grew by 15%, and brick-and-mortar stores expanded by adding 85 new locations over the past year. The guidance for the full fiscal year 2025 indicates an operating profit of around EUR 2 billion, with a continued focus on achieving a 10% EBIT margin and navigating challenges such as tariffs and market uncertainties.Adidas Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
65
Positive
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Adidas Technical Analysis
Negative
113.57
Price Trends
98.35
Negative
100.21
Negative
109.43
Negative
Market Momentum
0.45
Negative
54.42
Neutral
84.78
Negative
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 93.21, above the 50-day MA of 98.35, and above the 200-day MA of 109.43, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 84.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADDYY.
Adidas Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
79 Outperform | $15.19B | 15.19 | 43.31% | ― | 12.38% | 18.43% | |
71 Outperform | $8.69B | 25.83 | 11.36% | ― | 18.66% | 183.98% | |
71 Outperform | $35.33B | 25.94 | 21.80% | 1.13% | 11.87% | 191.75% | |
63 Neutral | $4.76B | 29.26 | 11.82% | ― | <0.01% | -77.31% | |
62 Neutral | $99.22B | 34.40 | 21.12% | 2.40% | -7.07% | -44.29% |
* Sector Average
ADDYY
Adidas
96.97
-24.80
-20.37%
CROX
Crocs
89.75
-15.93
-15.07%
DECK
Deckers Outdoor
102.39
-102.89
-50.12%
NKE
Nike
65.69
-9.64
-12.80%
BIRK
Birkenstock Holding plc
46.40
-11.19
-19.43%
Adidas Corporate Events
Adidas AG Reports Record Q3 Revenues and Upgraded Outlook
Oct 30, 2025
Adidas AG, a leading global sportswear company, is renowned for its innovative athletic footwear, apparel, and accessories, catering to both performance and lifestyle markets.
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.