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Adairs Ltd.
(Sydney:ADH)
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Rating:61Neutral
Price Target:
AU$1.50
▼(-14.77% Downside)
Action:Reiterated
Date: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
A consistent ~47% gross margin indicates durable control of product sourcing and pricing. Over 2-6 months this margin stability can absorb input cost swings and supports profitability if sales recover, helping preserve gross profits while management tackles operating efficiency.
Negative Factors
High Leverage
Elevated debt-to-equity (1.39) increases fixed obligations and interest sensitivity, reducing financial flexibility. Over several months this leverage constrains capacity to invest in growth or absorb demand shocks, and heightens refinancing and liquidity risk if earnings and cash flow remain pressured.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Gross Margin
A consistent ~47% gross margin indicates durable control of product sourcing and pricing. Over 2-6 months this margin stability can absorb input cost swings and supports profitability if sales recover, helping preserve gross profits while management tackles operating efficiency.
Read all positive factors
Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$255.42M
Dividend Yield6.42%
Average Volume (3M)453.58K
Price to Earnings (P/E)13.2
Beta (1Y)1.81
Revenue Growth5.66%
EPS Growth-42.42%
CountryAU
Employees469
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.11
Shares Outstanding178,614,620
10 Day Avg. Volume277,682
30 Day Avg. Volume453,580
Financial Highlights & Ratios
PEG Ratio-0.84
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$1.73Price Target Upside-1.70% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$666.19M
Adairs Ltd. Business Overview & Revenue Model
Company Description
Adairs Limited, an enterprise established in Scoresby, Australia, in 1918, functions as a specialized purveyor of home furnishing and decorative items throughout Australia and New Zealand. The company manages its operations through three distinct ...
How the Company Makes Money
Adairs makes money mainly by selling home furnishing and homewares products to consumers under its retail brands. Its core revenue stream is product sales through two primary channels: (1) physical retail stores (primarily the Adairs store network...
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
Neutral
1.76
Price Trends
1.39
Positive
1.35
Positive
1.57
Negative
Market Momentum
<0.01
Positive
48.05
Neutral
18.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Neutral. The current price of 1.76 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.39, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 18.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
63 Neutral | AU$6.13B | 10.93 | 11.55% | 6.00% | 9.50% | 29.80% | |
62 Neutral | AU$42.34M | 8.79 | 13.53% | 8.20% | 4.03% | -14.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$255.42M | 13.23 | 8.37% | 5.85% | 5.66% | -42.42% | |
61 Neutral | AU$1.36B | 19.85 | 25.20% | 4.87% | 4.23% | -0.64% | |
60 Neutral | AU$366.95M | 12.91 | 15.11% | 2.86% | 1.86% | -5.28% | |
55 Neutral | AU$646.83M | 81.98 | 5.66% | ― | 18.85% | 20.89% |
* Consumer Cyclical Sector Average
AU:ADH
Adairs Ltd.
1.41
-0.65
-31.50%
AU:HVN
Harvey Norman Holdings Ltd
4.97
-0.72
-12.72%
AU:TPW
Temple & Webster Group Ltd
6.14
-19.36
-75.92%
AU:NCK
Nick Scali Limited
16.75
-1.97
-10.50%
AU:DSK
Dusk Group Ltd.
0.69
-0.17
-20.35%
AU:BLX
Beacon Lighting Group Ltd
1.62
-1.96
-54.80%
Adairs Ltd. Corporate Events
Adairs lifts sales but takes major Focus on Furniture impairment
Jul 7, 2026
Adairs has reported that group sales for FY26 are expected to rise about 3.7 per cent to roughly $640 million, driven by solid growth at its Adairs and Mocka divisions, while underlying EBIT is forecast to edge down 1.3 per cent as weakness at Foc...
Adairs sets August date for FY26 results and investor briefing
Jul 6, 2026
Adairs Limited has scheduled the release of its full-year FY26 results, covering the 52 weeks ended 28 June 2026, for Monday, 24 August 2026. The announcement underscores the company’s commitment to investor engagement, with a conference cal...
Adairs Performance Rights Lapse Trims Potential Share Dilution
Jul 6, 2026
Adairs Limited has announced the lapse of 1,325,245 performance rights, which ceased on 30 June 2026 after the conditions attached to those rights were not met or became incapable of being satisfied. The termination of these conditional securities...
Adairs appoints new director John Batistich with disclosed shareholding
May 27, 2026
Adairs Limited has appointed John Louis Batistich as a director effective 25 May 2026, according to an initial director’s interest notice lodged with the ASX. Batistich holds 23,809 fully paid ordinary shares in Adairs, with no additional in...
Adairs Adds Retail and Digital Specialist John Batistich to Board
May 24, 2026
Adairs Limited has appointed experienced retail and consumer executive John Batistich as an independent non-executive director, effective 25 May 2026. With more than 25 years’ experience across major retail and consumer brands and deep exper...
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.