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Adairs Ltd. (AU:ADH)
ASX:ADH

Adairs Ltd. (ADH) AI Stock Analysis

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AU

Adairs Ltd.

(Sydney:ADH)

70Outperform
Adairs Ltd.'s financial performance is solid, with effective cash management and operational efficiency, though revenue growth challenges and rising leverage are concerns. Technical analysis presents mixed signals, suggesting caution due to potential overbought conditions. However, the stock's attractive valuation and high dividend yield offer a compelling opportunity for value and income investors.

Adairs Ltd. (ADH) vs. S&P 500 (SPY)

Adairs Ltd. Business Overview & Revenue Model

Company DescriptionAdairs 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 MoneyAdairs 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 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
594.36M621.34M564.48M499.76M388.93M
Gross Profit
113.77M120.12M148.05M157.85M103.94M
EBIT
65.80M73.17M80.94M115.78M67.11M
EBITDA
126.56M132.05M130.22M150.48M102.59M
Net Income Common Stockholders
31.09M37.84M44.89M63.74M35.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.87M25.90M26.07M25.97M23.92M
Total Assets
610.50M595.95M627.46M414.83M389.13M
Total Debt
275.90M279.86M307.19M107.19M139.53M
Net Debt
263.02M253.97M281.11M81.22M115.61M
Total Liabilities
387.33M393.72M429.57M250.17M248.56M
Stockholders Equity
223.16M202.22M197.88M164.66M140.57M
Cash FlowFree Cash Flow
66.27M96.07M52.16M105.52M89.78M
Operating Cash Flow
93.68M108.40M61.17M116.87M97.31M
Investing Cash Flow
-27.41M-12.32M-108.16M-11.35M-50.04M
Financing Cash Flow
-79.24M-96.48M47.49M-103.47M-40.02M

Adairs Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.58
Price Trends
50DMA
2.21
Positive
100DMA
2.41
Positive
200DMA
2.28
Positive
Market Momentum
MACD
0.09
Negative
RSI
60.74
Neutral
STOCH
69.97
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 2.58 is above the 20-day moving average (MA) of 2.24, above the 50-day MA of 2.21, and above the 200-day MA of 2.28, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 69.97 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUPMV
76
Outperform
AU$3.37B17.0014.01%6.30%-27.48%-27.96%
AUJBH
72
Outperform
AU$11.33B24.6729.07%3.41%6.21%0.20%
AUHVN
71
Outperform
$6.63B15.359.58%4.66%1.77%15.57%
AUADH
70
Outperform
€440.09M13.2514.57%5.96%0.49%-3.64%
AUTPW
69
Neutral
$2.05B307.685.83%26.11%-21.35%
61
Neutral
$6.66B11.773.06%3.96%2.60%-21.54%
AUBBN
61
Neutral
AU$255.67M84.422.78%1.03%-2.62%-70.47%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ADH
Adairs Ltd.
2.58
0.80
45.03%
AU:HVN
Harvey Norman Holdings Ltd
5.41
1.36
33.68%
AU:TPW
Temple & Webster Group Ltd
18.92
8.12
75.19%
AU:JBH
JB Hi-Fi Limited
104.24
50.26
93.11%
AU:BBN
Baby Bunting Group Ltd.
1.82
0.38
26.39%
AU:PMV
Premier Investments Limited
21.60
0.51
2.42%

Adairs Ltd. Corporate Events

Adairs Limited Announces Change of Share Registry Address
Apr 14, 2025

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
Apr 14, 2025

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
Apr 14, 2025

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
Apr 7, 2025

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
Apr 7, 2025

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
Apr 7, 2025

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.

Adairs Ltd. Declares Dividend for Shareholders
Feb 23, 2025

Adairs Ltd. announced a dividend distribution of AUD 0.065 per ordinary fully paid share, covering a six-month period ending December 29, 2024. The ex-dividend date is set for March 10, 2025, with the record date on March 11, 2025, and payment scheduled for April 3, 2025. This announcement underscores Adairs’ commitment to returning value to its shareholders while maintaining a stable financial performance.

Adairs Limited Achieves Strong Growth in First Half of FY25
Feb 23, 2025

Adairs Limited reported strong financial results for the first half of FY25, driven by a 6.6% increase in comparable sales. The company saw significant growth from both its Adairs and Mocka brands, with strategic leadership changes and operational improvements contributing to increased efficiency and customer satisfaction. The implementation of a new warehouse management system and a strategic expansion of stores in Australia are expected to bolster future growth. The company is well-positioned for continued success with a focus on enhancing brand awareness and expanding product distribution, as evidenced by Mocka’s trials with a major retailer and the planned opening of its first standalone store.

Adairs Ltd. Reports 1H FY25 Results and Strategic Focus
Feb 23, 2025

Adairs Ltd. reported its 1H FY25 financial results, noting a change in the period length compared to the previous year’s reporting. The company highlights its operational and financial performance across its business units, including Adairs, Focus on Furniture, and Mocka, indicating a strategic focus on maintaining a strong balance sheet and cash flow. The update also outlines key priorities for the upcoming periods, emphasizing the company’s commitment to sustaining growth and adapting to market conditions.

Adairs Ltd. Reports Increased Revenue and Profit for HY25
Feb 23, 2025

Adairs Ltd. reported its half-year financial results for the period ending December 2024, showing a 2.7% increase in revenue and a 9.7% rise in net profit compared to the previous year. The company announced a 6.5 cent interim dividend, with plans for a dividend reinvestment program offering a 1.5% discount, highlighting a positive financial performance and strategic shareholder engagement.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.