Adairs Ltd. (ADH) AI Stock Analysis

• Market Cap: €463.06M
• Dividend Yield: 3.98%
• Average Volume (3M): 737.32K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 2.38
• Revenue Growth: 3.99%
• EPS Growth: -18.35%
• Country: AU
• Employees: N/A
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.07
• Shares Outstanding: 176,742,070
• 10 Day Avg. Volume: 315,675
• 30 Day Avg. Volume: 737,321
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• 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: €2.74
• Price Target Upside: 3.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: AU$2.50 ▼(-5.30% Downside)

Adairs Ltd. shows a stable technical outlook with positive price trends and reasonable valuation metrics, including a strong dividend yield. However, financial performance is a concern due to declining profitability and increased leverage, which could impact future stability. The absence of earnings call data and corporate events limits further insights.

Adairs Ltd. Business Overview & Revenue Model

Company Description

Adairs Ltd. (ADH) is a leading Australian retailer specializing in home furnishings and decor. The company operates across multiple sectors, including home textiles, furniture, and homewares, offering a wide range of products such as bedding, cushions, throws, home decor, and furniture. Adairs caters to a diverse customer base through its retail stores and online platforms, providing stylish and contemporary home solutions.

How the Company Makes Money

Adairs Ltd. generates revenue primarily through the sale of its home furnishings and decor products. The company's key revenue streams include physical retail store sales and online sales via its e-commerce platform. Adairs strategically leverages its extensive network of physical stores across Australia and New Zealand, enhancing customer engagement and brand presence. Additionally, the company has developed a robust online shopping experience, catering to the growing trend of e-commerce. Adairs also benefits from its loyalty program, 'Linen Lovers,' which encourages repeat purchases and customer loyalty. Strategic sourcing and partnerships with designers and manufacturers allow Adairs to offer exclusive products, further contributing to its revenue growth.

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.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	618.09M	618.09M	594.36M	621.34M	564.48M	499.76M
Gross Profit	198.53M	289.30M	282.20M	120.12M	148.05M	157.85M
EBITDA	94.35M	102.36M	126.56M	132.05M	130.22M	150.48M
Net Income	25.68M	25.68M	31.09M	37.84M	44.89M	63.74M
Balance Sheet
Total Assets	655.95M	655.95M	610.50M	595.95M	627.46M	414.83M
Cash, Cash Equivalents and Short-Term Investments	8.43M	8.43M	12.87M	25.90M	26.07M	25.97M
Total Debt	312.44M	312.44M	275.90M	279.86M	307.19M	107.19M
Total Liabilities	430.77M	430.77M	387.33M	393.72M	429.57M	250.17M
Stockholders Equity	225.17M	225.17M	223.16M	202.22M	197.88M	164.66M
Cash Flow
Free Cash Flow	65.25M	65.25M	66.27M	96.07M	52.16M	105.52M
Operating Cash Flow	78.69M	78.69M	93.68M	108.40M	61.17M	116.87M
Investing Cash Flow	-13.45M	-13.45M	-27.41M	-12.32M	-108.16M	-11.35M
Financing Cash Flow	-69.66M	-69.66M	-79.24M	-96.48M	47.49M	-103.47M

Adairs Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.64 is above the 20-day moving average (MA) of 2.51, above the 50-day MA of 2.26, and above the 200-day MA of 2.37, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 91.37 is Negative, 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
BLX	72 Outperform	745.42M	25.02	0.00%	2.45%	1.89%	-3.30%
DSK	70 Outperform	50.75M	11.60	0.00%	8.59%	8.39%	3.21%
ADH	68 Neutral	€463.06M	17.93	11.70%	3.98%	3.99%	-18.35%
BBN	66 Neutral	404.76M	42.43	8.47%	―	4.72%	465.60%
TPW	65 Neutral	2.88B	251.68	0.00%	―	20.66%	543.24%
NCK	64 Neutral	2.00B	35.12	21.63%	2.70%	5.79%	-31.70%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Adairs Ltd. Corporate Events

Adairs Limited to Announce FY25 Financial Results

Adairs Limited announced that it will release its financial results for the fiscal year ending June 29, 2025, on August 27, 2025. The announcement includes details of an investor conference call hosted by the company’s CEO and CFO, which will provide insights into the company’s performance and strategic direction. This event is significant for stakeholders as it offers a comprehensive overview of Adairs’ operations and market positioning.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.

Adairs Limited Projects Record Sales Year Amidst Margin Challenges

Adairs Limited has provided a trading update and guidance for FY25, indicating strong sales momentum with an expected record sales year, achieving approximately 9% growth over FY24. Despite this, the company faces challenges with gross margins due to elevated promotional activity and a weaker Australian dollar. Under new leadership, Adairs is implementing significant changes to reset for long-term growth. While Adairs and Mocka are expected to show significant growth in Underlying EBIT, Focus on Furniture is expected to see a decline. The group anticipates total sales of $614 – $618 million and Underlying EBIT of $53.5 – $57.0 million for FY25.

The most recent analyst rating on (AU:ADH) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Adairs Ltd. stock, see the AU:ADH Stock Forecast page.