Adairs Ltd. (AU:ADH)
ASX:ADH
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Adairs Ltd.
(Sydney:ADH)
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Rating:61Neutral
Price Target:
AU$1.50
▼(-14.77% Downside)
Action:ReiteratedDate:03/21/26
The score is driven mainly by moderate but weakening financial performance (margin compression, higher leverage, and strained cash flow). Technicals are also a material negative due to a strong downtrend and weak momentum. These are partially offset by attractive valuation metrics (low P/E and high dividend yield).
Positive Factors
Stable Gross Margin & Revenue Growth
Consistent top-line expansion with a stable ~47% gross margin indicates durable product sourcing and pricing discipline. Over 2-6 months this supports predictable gross profits, helps absorb SG&A, and provides a foundation for restoring operating margins if volumes or efficiencies improve.
Negative Factors
Elevated Leverage
A debt-to-equity of 1.39 signals materially higher leverage which reduces financial flexibility. Over a 2-6 month horizon higher interest or sales volatility could strain liquidity, constrain reinvestment, and increase refinancing risk if earnings fail to recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Gross Margin & Revenue Growth
Consistent top-line expansion with a stable ~47% gross margin indicates durable product sourcing and pricing discipline. Over 2-6 months this supports predictable gross profits, helps absorb SG&A, and provides a foundation for restoring operating margins if volumes or efficiencies improve.
Read all positive factors
Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$232.20M
Dividend Yield5.85%
Average Volume (3M)453.58K
Price to Earnings (P/E)6.1
Beta (1Y)1.72
Revenue Growth3.99%
EPS Growth-18.35%
CountryAU
Employees469
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.07
Shares Outstanding178,614,620
10 Day Avg. Volume277,682
30 Day Avg. Volume453,580
Financial Highlights & Ratios
PEG Ratio-0.86
Price to Book (P/B)1.63
Price to Sales (P/S)0.59
P/FCF Ratio5.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.21Price Target Upside25.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)0.2
Revenue Forecast (FY)AU$653.49M
Adairs Ltd. Business Overview & Revenue Model
Company Description
Adairs Limited operates as a specialty retailer of home decoration and furnishing products in Australia and New Zealand. It operates through three segments: Adairs, Mocka and Focus. The company offers bedroom products, such as bedlinen, bedding, a...
How the Company Makes Money
Adairs makes money primarily by selling home furnishings and homewares directly to consumers (B2C) through (1) physical retail stores and (2) online channels. Revenue is generated from product sales across key categories such as bedding (e.g., qui...
Adairs Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 636.54M | 618.09M | 594.36M | 621.34M | 564.48M | 499.76M |
| Gross Profit | 111.66M | 289.30M | 282.20M | 120.12M | 148.05M | 157.85M |
| EBITDA | 114.53M | 102.36M | 126.56M | 132.05M | 118.91M | 150.48M |
| Net Income | 19.14M | 25.68M | 31.09M | 37.84M | 44.89M | 63.74M |
Balance Sheet | ||||||
| Total Assets | 641.69M | 655.95M | 610.50M | 595.95M | 627.46M | 414.83M |
| Cash, Cash Equivalents and Short-Term Investments | 12.44M | 8.43M | 12.87M | 25.90M | 26.07M | 25.97M |
| Total Debt | 463.73M | 312.44M | 275.90M | 279.86M | 307.19M | 107.19M |
| Total Liabilities | 409.79M | 430.77M | 387.33M | 393.72M | 429.57M | 250.17M |
| Stockholders Equity | 231.90M | 225.17M | 223.16M | 202.22M | 197.88M | 164.66M |
Cash Flow | ||||||
| Free Cash Flow | 68.93M | 65.25M | 66.27M | 96.07M | 52.16M | 105.52M |
| Operating Cash Flow | 80.56M | 78.69M | 93.68M | 108.40M | 61.17M | 116.87M |
| Investing Cash Flow | -11.63M | -13.45M | -27.41M | -12.32M | -108.16M | -11.35M |
| Financing Cash Flow | -68.58M | -69.66M | -79.24M | -96.48M | 47.49M | -103.47M |
Adairs Ltd. Technical Analysis
Negative
1.76
Price Trends
1.60
Negative
1.68
Negative
1.94
Negative
Market Momentum
-0.09
Negative
36.65
Neutral
28.54
Neutral
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 1.76 is above the 20-day moving average (MA) of 1.38, above the 50-day MA of 1.60, and below the 200-day MA of 1.94, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 36.65 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ADH.
Adairs Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$49.19M | 1.19 | 13.53% | 9.03% | 8.39% | 3.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$232.20M | 6.10 | 8.37% | 5.85% | 3.99% | -18.35% | |
61 Neutral | AU$1.38B | 12.30 | 25.20% | 2.63% | 5.79% | -31.70% | |
60 Neutral | AU$399.06M | 9.38 | 16.86% | 2.86% | 1.89% | -3.30% | |
55 Neutral | AU$885.22M | 71.03 | 5.66% | ― | 20.66% | 543.24% | |
53 Neutral | AU$199.04M | 46.89 | 6.48% | ― | 4.72% | 465.60% |
* Consumer Cyclical Sector Average
AU:ADH
Adairs Ltd.
1.30
-0.80
-38.07%
AU:TPW
Temple & Webster Group Ltd
7.36
-9.02
-55.07%
AU:NCK
Nick Scali Limited
16.19
0.12
0.74%
AU:DSK
Dusk Group Ltd.
0.79
-0.15
-16.31%
AU:BBN
Baby Bunting Group Ltd.
1.47
-0.01
-0.68%
AU:BLX
Beacon Lighting Group Ltd
1.74
-1.36
-43.85%
Adairs Ltd. Corporate Events
Adairs Director Increases Indirect Shareholding via Dividend Reinvestment
Apr 9, 2026
Adairs Limited has reported a change in the indirect shareholding of non-executive director Kiera Grant following participation in the company’s FY26 interim dividend reinvestment plan. Grant, via nominee holder The Northern Trust Company on...
Adairs Seeks ASX Quotation for New Shares Issued Under Distribution Plan
Apr 9, 2026
Adairs Ltd., the Australian homewares and bedding retailer listed on the ASX under the code ADH, continues to operate within the consumer discretionary sector supplying household and lifestyle products. The company serves primarily domestic custom...
Adairs Updates Dividend Notification to Include DRP Pricing
Mar 20, 2026
Adairs Limited has updated its previously announced dividend notification relating to the six‑month period ended 28 December 2025 for its ordinary fully paid shares. The record date for the dividend remains 11 March 2026, with an ex‑di...
Adairs Reports Lapse of 794,432 Performance Rights
Mar 13, 2026
Adairs Ltd has notified the market of the lapse of 794,432 performance rights, which were conditional rights to securities that have ceased after the relevant conditions were not met or became incapable of being satisfied as of 13 March 2026. The ...
Adairs appoints CFO Matt Edmonds as new Company Secretary
Mar 13, 2026
Adairs Limited has announced that Group Chief Financial Officer Matt Edmonds has been appointed Company Secretary with immediate effect, replacing former joint company secretaries Jamie Adamson and Ashley Gardner. Under ASX Listing Rule 12.6, Edmo...
Adairs posts record 1H sales as Mocka shines and resets take hold
Feb 22, 2026
Adairs Limited reported first-half FY26 sales of $329 million, up 5.9%, as it reset operations across its banners and exited excess inventory. Group gross margin slipped and underlying earnings weakened, with statutory NPAT down 33.8%, but sales m...
Adairs Grows Revenue but Half-Year Profit Drops, Dividend Maintained
Feb 22, 2026
Adairs Limited reported a 5.9% rise in half-year sales to $328.97 million for the 26 weeks to 28 December 2025, but profitability weakened as statutory net profit after tax fell 33.8% to $12.84 million. Underlying EBIT declined 9.1% to $29.96 mill...
Adairs Says Late Director Interest Notice Was an Isolated Administrative Oversight
Feb 6, 2026
Adairs Limited has disclosed that an Appendix 3Y notice relating to a change in director Elle Roseby’s interests was lodged late with the ASX due to an administrative oversight. The company emphasized that its directors remain aware of their...
Adairs Appoints Experienced Retail Executive Matt Edmonds as Group CFO
Feb 2, 2026
Adairs Limited has appointed Matt Edmonds as Group Chief Financial Officer, effective 9 February 2026, adding a seasoned finance and retail executive with more than two decades of international experience across major retailers including Coles Gro...
Adairs Issues FY26 Long-Term Incentive Performance Rights Tied to EPS Targets
Jan 30, 2026
Adairs Limited has granted 891,135 performance rights under its FY26 Long Term Incentive Plan to selected senior employees, including 312,313 rights to Managing Director and Group CEO Elle Roseby, with that portion having already received sharehol...
Adairs Grants Managing Director 312,313 Performance Rights Under FY26 Incentive Plan
Jan 30, 2026
Adairs Limited has granted Managing Director Narelle (Elle) Alison Roseby 312,313 performance rights under its FY26 Equity Incentive Plan, following shareholder approval at the 2025 annual general meeting. The nil-cost award, which increases Roseb...
Adairs to Issue 891,135 Unquoted Performance Rights Under Employee Incentive Scheme
Jan 30, 2026
Adairs Limited has notified the market of the upcoming issue of 891,135 unquoted performance rights under its employee incentive scheme, scheduled for 27 November 2025. The move underscores the company’s continued reliance on equity-based in...
Adairs Trims Potential Share Pool as 42,328 Performance Rights Lapse
Jan 30, 2026
Adairs Limited has notified the market of a change in its issued capital following the lapse of 42,328 performance rights, which ceased because the relevant vesting conditions were not met or became incapable of being satisfied as of 1 August 2025...
Adairs Sets Date for 1H FY26 Results and Investor Call
Jan 19, 2026
Adairs Limited, the Melbourne-based omnichannel home furnishings and furniture retailer operating the Adairs, Focus on Furniture and Mocka brands across Australia and New Zealand, continues to focus on design-led, customer-centric retailing throug...
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.