Adidas AG (ADDYY)
OTHER OTC:ADDYY
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Adidas
(OTC:ADDYY)
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Rating:55Neutral
Price Target:
$86.00
▲(6.20% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by mixed financial performance: strong profit recovery is offset by a pronounced 2025 cash-flow step-down and uneven revenue momentum. Technicals are a notable drag given the clear downtrend and weak momentum indicators. Valuation is reasonable, and the latest earnings call provided supportive guidance and shareholder-return commitments, but with material near-term FX and tariff headwinds.
Positive Factors
Brand & Product Momentum
Sustained 13% adidas‑brand growth and ~€2.8bn operational revenue addition in FY25 indicate durable brand strength and product-market fit. Broad product successes, collaborations and running/football momentum support continued consumer demand and market-share gains across cycles and geographies.
Negative Factors
Sharp Cash‑Flow Deterioration
A large step‑down in operating and free cash flow materially reduces near‑term financial flexibility, raising reliance on working‑capital improvements or external financing. Persistent cash volatility undermines the durability of buybacks/dividends and constrains reinvestment over several quarters.
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Positive Factors
Negative Factors
Brand & Product Momentum
Sustained 13% adidas‑brand growth and ~€2.8bn operational revenue addition in FY25 indicate durable brand strength and product-market fit. Broad product successes, collaborations and running/football momentum support continued consumer demand and market-share gains across cycles and geographies.
Read all positive factors
Adidas (ADDYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.63B
Dividend Yield1.16%
Average Volume (3M)11.42K
Price to Earnings (P/E)23.3
Beta (1Y)0.83
Revenue Growth11.87%
EPS Growth191.75%
CountryUS
Employees46,045
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.24
Shares Outstanding360,000,000
10 Day Avg. Volume0
30 Day Avg. Volume11,421
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 Cap1.01
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit2.18
Enterprise Value/Ebitda8.61
Forecast
1Y Price Target
$123.96Price Target Upside53.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.49
Revenue Forecast (FY)$30.52B
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 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...
Adidas Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial recovery: broad-based revenue growth, sizable margin and profit expansion, product and brand momentum, improved leverage and active capital returns. However, material near-term headwinds (loss of YEEZY comparables, FX/translation effects, tariffs, promotional pressures, inventory/working capital and regional conflicts) temper the outlook. Management presented explicit FY26 guidance and a multi-year plan with clear mitigation paths, positioning the company as healthy and confident about future growth.Positive Updates
Strong adidas Brand Sales Growth
Adidas brand sales grew 13% currency-neutral in FY25 (17%/12%/12%/11% by quarter) and the total company grew 10% currency-neutral (reported +5%). Operational top-line growth for the adidas brand was approximately EUR 2.8 billion in FY25.
Negative Updates
Loss of YEEZY Comparable Sales
FY25 results were impacted by the absence of YEEZY: management estimates lost YEEZY sales of ~EUR 700 million and a material impact on comparability for top line and operating profit.
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Q4-2025 Updates
Positive
Negative
Strong adidas Brand Sales Growth
Adidas brand sales grew 13% currency-neutral in FY25 (17%/12%/12%/11% by quarter) and the total company grew 10% currency-neutral (reported +5%). Operational top-line growth for the adidas brand was approximately EUR 2.8 billion in FY25.
Read all positive updates
Company Guidance
Adidas guided 2026 to high single‑digit adidas‑brand growth in local currencies and an EBIT target of €2.3bn — based on an underlying operational improvement of ~€650m that is offset by ~€200m of non‑mitigated tariffs and ~€200m of FX headwinds (net ~€400m) — and said product/freight effects should be broadly neutral with slight pricing upside; looking further out the company expects to add roughly €2bn of revenue p.a. in 2027 and 2028 (targeting ~10% EBIT in 2027 and >10% in 2028, with mid‑teens operating‑profit CAGR). On capital allocation, the dividend was raised 40% to €2.80/share (≈€500m) and a share buyback of up to €1bn for 2026 was authorized (first tranche €500m, ~€400m repurchased so far), with ~€1.5bn total shareholder return planned for 2026; the guidance does not assume any upside from potential U.S. tariff recoveries.Adidas Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.83B | 23.68B | 21.43B | 22.51B | 21.23B |
| Gross Profit | 11.23B | 12.03B | 10.18B | 10.64B | 10.77B |
| EBITDA | 2.97B | 2.51B | 785.00M | 1.75B | 3.11B |
| Net Income | 1.29B | 764.00M | -75.00M | 254.00M | 1.49B |
Balance Sheet | |||||
| Total Assets | 20.25B | 20.66B | 18.02B | 20.30B | 22.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.64B | 2.48B | 1.48B | 966.00M | 3.94B |
| Total Debt | 5.55B | 5.59B | 5.56B | 6.46B | 5.33B |
| Total Liabilities | 14.13B | 14.79B | 13.10B | 14.95B | 14.30B |
| Stockholders Equity | 5.77B | 5.48B | 4.58B | 4.99B | 7.52B |
Cash Flow | |||||
| Free Cash Flow | 217.08M | 2.37B | 2.13B | -1.24B | 2.52B |
| Operating Cash Flow | 565.75M | 2.91B | 2.55B | -543.00M | 3.19B |
| Investing Cash Flow | -443.77M | -356.00M | -450.00M | 495.00M | -424.00M |
| Financing Cash Flow | -848.15M | -1.56B | -1.43B | -2.96B | -2.99B |
Adidas Technical Analysis
Negative
80.98
Price Trends
86.91
Negative
90.68
Negative
99.65
Negative
Market Momentum
-3.41
Positive
33.42
Neutral
8.25
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 80.98 is below the 20-day moving average (MA) of 81.23, below the 50-day MA of 86.91, and below the 200-day MA of 99.65, indicating a bearish trend. The MACD of -3.41 indicates Positive momentum. The RSI at 33.42 is Neutral, neither overbought nor oversold. The STOCH value of 8.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $13.30B | 7.91 | 41.36% | ― | 12.38% | 18.43% | |
72 Outperform | $6.48B | 32.23 | 13.87% | ― | 18.86% | 88.29% | |
62 Neutral | $4.02B | -57.09 | -5.37% | ― | <0.01% | -77.31% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $27.63B | 23.34 | 23.93% | 1.16% | 11.87% | 191.75% | |
54 Neutral | $77.08B | 30.51 | 18.43% | 2.81% | -5.06% | -47.51% |
* Consumer Cyclical Sector Average
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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.