Adairs Ltd. (ADH) AI Stock Analysis

• Market Cap: €484.27M
• Dividend Yield: 5.49%
• Average Volume (3M): 432.65K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 2.32
• Revenue Growth: 0.49%
• EPS Growth: -3.64%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Specialty Retail
• EPS (TTM): 0.19
• Shares Outstanding: 176,742,070
• 10 Day Avg. Volume: 325,790
• 30 Day Avg. Volume: 432,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €2.76
• Price Target Upside: 1.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: AU$3.00 ▲(10.29%Upside)

Adairs Ltd.'s overall score is positively influenced by solid financial performance and favorable technical indicators. The attractive dividend yield also enhances the value proposition. However, challenges in revenue growth and increasing leverage pose risks that need continual management.

Adairs Ltd. Business Overview & Revenue Model

Company Description

Adairs Ltd. (ADH) is a leading Australian retailer specializing in home furnishings and decor products. The company operates through multiple brands, including Adairs, Adairs Kids, and Mocka, offering a wide range of products such as bedding, homewares, furniture, and nursery items. Adairs is known for its stylish and high-quality offerings, catering to a diverse customer base across Australia and New Zealand through its physical stores and online platforms.

How the Company Makes Money

Adairs Ltd. makes money primarily through the sale of its home furnishings and decor products across its retail and online channels. The company's revenue model is centered around a multi-channel retail strategy, which includes a network of physical stores complemented by a robust e-commerce platform. Key revenue streams include direct sales to consumers through Adairs and Adairs Kids stores, as well as online sales via its website and the Mocka brand. Adairs also benefits from its loyalty program, Linen Lovers, which encourages repeat purchases and enhances customer engagement. Significant factors contributing to Adairs' earnings include its ability to offer exclusive designs, seasonal product launches, and strategic pricing, as well as its expansion into international markets like New Zealand.

Adairs Ltd. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
594.36M	621.34M	564.48M	499.76M	388.93M
	Gross Profit
113.77M	120.12M	148.05M	157.85M	103.94M
	EBIT
65.80M	73.17M	80.94M	115.78M	67.11M
	EBITDA
126.56M	132.05M	130.22M	150.48M	102.59M
	Net Income Common Stockholders
31.09M	37.84M	44.89M	63.74M	35.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.87M	25.90M	26.07M	25.97M	23.92M
	Total Assets
610.50M	595.95M	627.46M	414.83M	389.13M
	Total Debt
275.90M	279.86M	307.19M	107.19M	139.53M
	Net Debt
263.02M	253.97M	281.11M	81.22M	115.61M
	Total Liabilities
387.33M	393.72M	429.57M	250.17M	248.56M
	Stockholders Equity
223.16M	202.22M	197.88M	164.66M	140.57M
Cash Flow		Free Cash Flow
66.27M	96.07M	52.16M	105.52M	89.78M
	Operating Cash Flow
93.68M	108.40M	61.17M	116.87M	97.31M
	Investing Cash Flow
-27.41M	-12.32M	-108.16M	-11.35M	-50.04M
	Financing Cash Flow
-79.24M	-96.48M	47.49M	-103.47M	-40.02M

Adairs Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Positive. The current price of 2.72 is above the 20-day moving average (MA) of 2.68, above the 50-day MA of 2.41, and above the 200-day MA of 2.35, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 63.59 is Neutral, neither overbought nor oversold. The STOCH value of 71.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ADH.

Adairs Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JBH	75 Outperform	AU$12.02B	26.13	29.07%	3.21%	6.21%	0.20%
ADH	73 Outperform	€484.27M	14.58	14.57%	5.49%	0.49%	-3.64%
HVN	73 Outperform	AU$6.80B	15.75	9.58%	4.48%	1.77%	15.57%
PMV	71 Outperform	AU$3.28B	16.57	14.01%	6.57%	-27.48%	-27.96%
TPW	63 Neutral	$2.80B	406.43	5.83%	―	26.11%	-21.35%
Sector *	62 Neutral	$6.88B	11.32	2.95%	3.87%	2.70%	-24.57%
BBN	62 Neutral	AU$238.81M	81.40	2.78%	1.03%	-2.62%	-70.47%

Adairs Ltd. Corporate Events

Adairs Limited Announces Change of Share Registry Address

Adairs Limited has announced a change in the address of its share registry office in Sydney, effective April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will move to a new location at Liberty Place, Level 41, 161 Castlereagh St, Sydney, NSW 2000, while maintaining the same telephone numbers and postal address. This change is part of the company’s operational updates and is expected to have minimal impact on stakeholders.

Adairs Ltd. Appoints New Director with No Initial Securities Interest

Adairs Limited has announced the appointment of Rachel Marie Kelly as a director, effective April 14, 2025. The initial director’s interest notice indicates that Kelly currently holds no securities in the company, which suggests a fresh perspective without existing financial ties to Adairs. This appointment may influence the company’s strategic direction and governance, impacting stakeholders and potentially affecting its market positioning.

Adairs Limited Strengthens Board with Key Appointments

Adairs Limited has announced changes to its board, appointing Trent Peterson as the Independent Chair and Rachel Kelly as an independent non-executive director. Trent Peterson, with a history of leadership in retail, will continue to lead the People & Remuneration Committee temporarily. Rachel Kelly, with extensive experience in retail and financial technology, will join the Audit & Risk Committee and the People & Remuneration Committee, enhancing the board’s expertise in retail operations and growth strategies.

Adairs Director Increases Shareholding via Dividend Reinvestment

Adairs Limited announced a change in the director’s interest, with Kiera Grant acquiring an additional 5,403 fully paid ordinary shares through the FY25 dividend reinvestment plan. This acquisition increases her total holding to 182,457 shares, reflecting continued confidence in the company’s performance and strategic direction. The transaction was conducted outside of a closed period, ensuring compliance with trading regulations.

Adairs Ltd. Announces Quotation of New Securities on ASX

Adairs Ltd. has announced the application for quotation of 863,768 ordinary fully paid securities on the Australian Securities Exchange (ASX), with the issue date being April 3, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s market presence and providing stakeholders with insights into its financial strategies and future growth plans.

Adairs Limited Updates Dividend Distribution Announcement

Adairs Limited 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 included in the initial notification. This announcement pertains to the dividend distribution for the six-month period ending on December 29, 2024, with a record date of March 11, 2025, and a payment date of March 10, 2025. This update provides clarity for stakeholders regarding the financial aspects of their investments and ensures transparency in Adairs’ financial operations.