Adairs Ltd. (AU:ADH)
ASX:ADH
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Adairs Ltd. (ADH) AI Stock Analysis

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AU:ADH

Adairs Ltd.

(Sydney:ADH)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
AU$2.50
▲(38.89% Upside)
Adairs Ltd. receives a moderate overall score due to financial challenges, including declining profitability and increased leverage, which are significant risks. The technical analysis indicates bearish momentum, further weighing on the score. However, the stock's valuation is reasonable, with a fair P/E ratio and an attractive dividend yield, providing some support to the overall assessment.

Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)

Adairs Ltd. Business Overview & Revenue Model

Company DescriptionAdairs Ltd. (ASX: ADH) is a leading Australian retailer specializing in home furnishings and décor. The company operates in the homewares and textiles sector, offering a wide range of products including bedding, cushions, furniture, and home accessories. Adairs caters to both retail and online customers through its network of stores and e-commerce platform, focusing on stylish, quality products designed to inspire customers to create beautiful living spaces.
How the Company Makes MoneyAdairs generates revenue primarily through the sale of its homewares and textiles products, which are available in physical stores and online. The company employs a multi-channel retail strategy that includes direct sales through its branded stores and its website. Key revenue streams include product sales from bedding, furniture, and home accessories. Additionally, Adairs benefits from seasonal promotions and sales events that drive traffic and increase sales volume. The company may also engage in partnerships with suppliers and designers to create exclusive collections, enhancing its product offerings and attracting more customers, thus contributing to its overall earnings.

Adairs Ltd. Financial Statement Overview

Summary
Adairs Ltd. faces challenges with declining profitability and increased leverage, which could pose risks if not addressed. While revenue growth is positive, margins have compressed, impacting overall profitability. The balance sheet shows increased debt levels, which could pressure financial flexibility. Cash flow generation is under strain, but the company maintains a reasonable conversion of net income to cash. Overall, Adairs Ltd. needs to focus on improving operational efficiency and managing leverage to enhance financial stability.
Income Statement
65
Positive
Adairs Ltd. shows moderate revenue growth with a 2.6% increase in the latest year, but this is a slowdown compared to previous years. Gross profit margin remains stable at around 47%, indicating consistent cost management. However, net profit margin has decreased to 4.2%, reflecting pressure on profitability. EBIT and EBITDA margins have also declined, suggesting challenges in operational efficiency.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has increased to 1.39, indicating higher leverage and potential risk if earnings do not improve. Return on equity has decreased to 11.4%, showing reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, suggesting a balanced asset structure.
Cash Flow
55
Neutral
Free cash flow growth is negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.53, showing moderate cash conversion efficiency. The free cash flow to net income ratio is relatively strong at 0.83, suggesting good cash generation relative to net income despite recent declines.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue618.09M618.09M594.36M621.34M564.48M499.76M
Gross Profit198.53M289.30M282.20M120.12M148.05M157.85M
EBITDA94.35M102.36M126.56M132.05M118.91M150.48M
Net Income25.68M25.68M31.09M37.84M44.89M63.74M
Balance Sheet
Total Assets655.95M655.95M610.50M595.95M627.46M414.83M
Cash, Cash Equivalents and Short-Term Investments8.43M8.43M12.87M25.90M26.07M25.97M
Total Debt312.44M312.44M275.90M279.86M307.19M107.19M
Total Liabilities430.77M430.77M387.33M393.72M429.57M250.17M
Stockholders Equity225.17M225.17M223.16M202.22M197.88M164.66M
Cash Flow
Free Cash Flow65.25M65.25M66.27M96.07M52.16M105.52M
Operating Cash Flow78.69M78.69M93.68M108.40M61.17M116.87M
Investing Cash Flow-13.45M-13.45M-27.41M-12.32M-108.16M-11.35M
Financing Cash Flow-69.66M-69.66M-79.24M-96.48M47.49M-103.47M

Adairs Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.80
Price Trends
50DMA
2.32
Negative
100DMA
2.26
Negative
200DMA
2.31
Negative
Market Momentum
MACD
-0.13
Positive
RSI
30.55
Neutral
STOCH
7.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Negative. The current price of 1.8 is below the 20-day moving average (MA) of 1.99, below the 50-day MA of 2.32, and below the 200-day MA of 2.31, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 30.55 is Neutral, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ADH.

Adairs Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
AU$55.73M12.6612.71%8.48%8.39%3.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
AU$2.15B37.2721.99%2.78%5.79%-31.70%
58
Neutral
€352.01M13.5911.70%5.79%3.99%-18.35%
57
Neutral
AU$2.47B207.988.81%20.66%543.24%
56
Neutral
AU$371.00M38.768.94%4.72%465.60%
55
Neutral
AU$642.16M21.6916.86%2.86%1.89%-3.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ADH
Adairs Ltd.
1.80
-0.69
-27.77%
AU:TPW
Temple & Webster Group Ltd
19.35
7.52
63.57%
AU:NCK
Nick Scali Limited
22.56
9.16
68.36%
AU:DSK
Dusk Group Ltd.
0.82
-0.22
-21.15%
AU:BBN
Baby Bunting Group Ltd.
2.71
1.01
59.41%
AU:BLX
Beacon Lighting Group Ltd
2.80
-0.08
-2.78%

Adairs Ltd. Corporate Events

Adairs Limited Announces CFO Transition
Nov 9, 2025

Adairs Limited announced the departure of its Group Chief Financial Officer, Ashley Gardner, who will leave to pursue a new opportunity. Gardner has been instrumental in strengthening the company’s financial and operational foundations and driving its M&A activities. The company will begin searching for a successor to ensure a smooth transition, highlighting the importance of maintaining its strategic growth momentum.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.60 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Ltd. Announces Cessation of Performance Rights
Oct 29, 2025

Adairs Ltd. announced the cessation of 1,477,121 performance rights due to the lapse of conditional rights, as the conditions were not met by June 30, 2025. This cessation could impact the company’s financial structure and stakeholder interests, as it reflects on the company’s performance metrics and strategic execution.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Director Increases Stake with Significant Share Acquisition
Oct 27, 2025

Adairs Limited announced a change in the interest of its director, Rachel Kelly, who acquired 32,500 fully paid ordinary shares on the market, valued at $71,065.28. This acquisition reflects a significant personal investment by the director, potentially signaling confidence in the company’s future performance and stability, which may positively influence stakeholder perceptions.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited’s Strategic Renewal and Growth Focus
Oct 21, 2025

Adairs Limited’s recent AGM highlighted significant changes in its board and leadership team as part of a strategic renewal program aimed at long-term growth. The company emphasizes ‘co-ordinated co-operation’ among its businesses, focusing on governance, strategy development, and technology investment, including a new ERP system. Despite solid growth in FY25, Adairs acknowledges that its businesses are not yet operating at full potential, but remains confident in the effectiveness of ongoing strategies.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Announces 2025 AGM Presentation
Oct 21, 2025

Adairs Limited has announced the presentation for its 2025 Annual General Meeting, which is scheduled to take place on October 22, 2025. The presentation is to be read in conjunction with the Chair and Group CEO addresses and a trading update, which are being provided separately. This announcement highlights the company’s ongoing communication with stakeholders and its commitment to transparency in its operations.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Releases 1H FY26 Trading Update and Guidance
Oct 21, 2025

Adairs Limited has released its trading update and guidance for the first half of FY26, indicating that sales growth has moderated due to reduced promotional activity. While Mocka continues to perform strongly, Focus on Furniture has experienced slower sales, impacting gross profit margins. The upcoming 10 weeks are crucial, as they account for approximately 55% of the half’s sales, with major sales events expected to influence the final results. The company remains cautiously optimistic about the trading outlook, with all business units well-stocked and prepared for the peak trading period.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.50 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Announces Director’s Share Acquisition
Oct 8, 2025

Adairs Limited announced a change in the director’s interest notice, specifically regarding Kiera Grant, a shareholder of KLG Co Pty Ltd. The change involves the acquisition of 2,765 fully paid ordinary shares through the FY25 dividend reinvestment plan, increasing her total holdings to 185,222 shares. This move reflects ongoing shareholder engagement and potential confidence in the company’s financial strategies.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.90 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Ltd. Updates Dividend Distribution Details
Sep 22, 2025

Adairs Ltd. has updated its previous announcement regarding the dividend distribution for its ordinary fully paid securities. The update includes the Dividend Reinvestment Plan (DRP) price, which was not specified in the earlier notification. This announcement pertains to the dividend distribution for the six-month period ending on June 29, 2025, with the record date set for September 11, 2025, and the payment date following shortly after. This update is crucial for stakeholders as it provides clarity on the financial returns and reinvestment opportunities available to them.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.90 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Announces 2025 Annual General Meeting Details
Sep 22, 2025

Adairs Limited has announced its 2025 Annual General Meeting, which will take place on October 22, 2025, in Melbourne, Victoria. The meeting will be accessible via a live webcast, although online attendees will not be able to vote or participate directly. Shareholders are encouraged to vote or appoint a proxy in advance and can submit questions prior to the meeting.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.90 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Ltd. Releases 2025 Corporate Governance Statement
Aug 27, 2025

Adairs Ltd. has released its corporate governance statement for the financial year ending June 29, 2025, which is now available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, highlighting their commitment to transparency and accountability in management and oversight. This announcement underscores Adairs’ dedication to maintaining robust governance practices, which is crucial for stakeholder confidence and the company’s market reputation.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.95 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Announces 2025 Annual General Meeting Details
Aug 21, 2025

Adairs Limited has announced that its 2025 Annual General Meeting will be held on October 22, 2025, at the Hyatt Centric Melbourne. The deadline for director nominations is set for August 29, 2025. Further details about the meeting will be provided in the Notice of Meeting to be released in September. This announcement is part of Adairs’ ongoing corporate governance practices, ensuring transparency and shareholder engagement.

The most recent analyst rating on (AU:ADH) stock is a Buy with a A$2.95 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

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.Date of analysis: Nov 13, 2025