adidas AG (DE:ADS)
XETRA:ADS
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adidas AG
(XETRA:ADS)
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Rating:56Neutral
Price Target:
€146.00
▲(6.57% Upside)
Action:ReiteratedDate:03/05/26
The score is driven primarily by mixed financials: a strong earnings and margin rebound and a more stable balance sheet are offset by a sharp deterioration in operating/free cash flow. Technicals add pressure with the stock trading below all key moving averages and bearish momentum readings, while valuation is only moderately supportive due to a mid-range P/E and modest dividend yield.
Positive Factors
Strong revenue momentum
A ~45% TTM revenue increase signals durable top-line recovery and market share gains across channels. Sustained sales growth supports operating leverage, funds reinvestment in product and DTC growth, and improves the firm's ability to execute medium‑term strategic initiatives.
Negative Factors
Weak cash conversion
Sharp decline in operating and free cash flow versus prior year shows earnings are not converting to cash as before. That limits financial flexibility for capex, inventory investment and buybacks, and raises medium‑term funding and quality‑of‑earnings concerns if cash conversion does not normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue momentum
A ~45% TTM revenue increase signals durable top-line recovery and market share gains across channels. Sustained sales growth supports operating leverage, funds reinvestment in product and DTC growth, and improves the firm's ability to execute medium‑term strategic initiatives.
Read all positive factors
adidas AG (ADS) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€24.46B
Dividend Yield1.22%
Average Volume (3M)481.99K
Price to Earnings (P/E)22.5
Beta (1Y)1.11
Revenue Growth9.64%
EPS Growth187.42%
CountryDE
Employees46,045
SectorGeneral
Sector StrengthN/A
IndustryApparel - Footwear & Accessories
Share Statistics
EPS (TTM)0.42
Shares Outstanding180,000,000
10 Day Avg. Volume411,656
30 Day Avg. Volume481,994
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)5.23
Price to Sales (P/S)1.22
P/FCF Ratio110.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€214.33Price Target Upside56.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)9.5
Revenue Forecast (FY)€26.28B
adidas AG Business Overview & Revenue Model
Company Description
adidas AG, together with its subsidiaries, designs, develops, distributes, and markets athletic and sports lifestyle products worldwide. It offers footwear; apparel; and accessories and gear, such as bags and balls under the adidas brand. It sells...
How the Company Makes Money
adidas AG generates revenue primarily through the sale of its products across various channels, including wholesale, direct-to-consumer (DTC), and e-commerce. The wholesale segment involves selling products to retailers, while the DTC segment incl...
adidas AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 24.81B | 23.68B | 21.43B | 22.51B | 21.23B |
| Gross Profit | 11.69B | 12.03B | 10.18B | 10.64B | 10.77B |
| EBITDA | 3.09B | 2.51B | 785.00M | 1.75B | 3.11B |
| Net Income | 1.34B | 764.00M | -75.00M | 254.00M | 1.49B |
Balance Sheet | |||||
| Total Assets | 20.26B | 20.66B | 18.02B | 20.30B | 22.14B |
| Cash, Cash Equivalents and Short-Term Investments | 1.64B | 2.48B | 1.48B | 966.00M | 3.94B |
| Total Debt | 5.55B | 5.59B | 5.56B | 6.46B | 5.33B |
| Total Liabilities | 14.14B | 14.79B | 13.10B | 14.95B | 14.30B |
| Stockholders Equity | 5.78B | 5.48B | 4.58B | 4.99B | 7.52B |
Cash Flow | |||||
| Free Cash Flow | 274.00M | 2.37B | 2.05B | -1.17B | 2.52B |
| Operating Cash Flow | 751.00M | 2.91B | 2.55B | -479.00M | 3.19B |
| Investing Cash Flow | -404.00M | -356.00M | -451.00M | 495.00M | -424.00M |
| Financing Cash Flow | -1.10B | -1.56B | -1.43B | -2.96B | -2.99B |
adidas AG Technical Analysis
Neutral
137.00
Price Trends
145.44
Negative
152.97
Negative
167.50
Negative
Market Momentum
-3.11
Negative
46.60
Neutral
39.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADS, the sentiment is Neutral. The current price of 137 is above the 20-day moving average (MA) of 135.92, below the 50-day MA of 145.44, and below the 200-day MA of 167.50, indicating a neutral trend. The MACD of -3.11 indicates Negative momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 39.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:ADS.
adidas AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €16.55B | 21.99 | 7.77% | 1.08% | 1.83% | 21.36% | |
65 Neutral | €339.41M | -21.28 | 5.17% | 1.84% | 2.24% | ― | |
56 Neutral | €24.46B | 22.53 | 23.93% | 1.22% | 9.64% | 187.42% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | €48.89B | 7.84 | 7.79% | 4.72% | -8.40% | -11.54% | |
45 Neutral | €3.57B | -5.10 | -30.05% | 2.83% | -2.90% | -211.60% |
* General Sector Average
DE:ADS
adidas AG
137.00
-57.06
-29.40%
DE:PUM
PUMA SE NPV
24.32
5.80
31.30%
DE:BEI
Beiersdorf
75.70
-38.19
-33.53%
DE:BIJ
Bijou Brigitte Modische Accessoires
47.40
12.30
35.05%
DE:BMW3
Bayerische Motoren Werke
82.30
23.09
39.00%
DE:BVB
Borussia Dortmund GmbH & Co. KGaA
3.08
0.15
5.27%
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.