adidas AG (ADS) AI Stock Analysis

• Market Cap: €33.46B
• Dividend Yield: 1.07%
• Average Volume (3M): 481.99K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.11
• Revenue Growth: 10.95%
• EPS Growth: 400.40%
• Country: DE
• Employees: 46,045
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): N/A
• Shares Outstanding: 180,000,000
• 10 Day Avg. Volume: 411,656
• 30 Day Avg. Volume: 481,994
• 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: €236.59
• Price Target Upside: 26.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 66 Neutral
• Price Target: €202.00 ▲(7.82% Upside)

Adidas AG's overall stock score reflects a solid financial performance with strong recovery trends and stable technical indicators. The valuation suggests the stock is relatively expensive, which slightly dampens the overall score. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Revenue Growth

Adidas AG's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability Recovery

Improved profitability metrics reflect efficient cost management and operational effectiveness, enhancing the company's financial health.

Operational Efficiency

Sufficient cash generation from operations suggests strong operational efficiency, enabling reinvestment and financial stability.

Negative Factors

Debt Levels

High debt levels can increase financial risk and interest obligations, potentially affecting long-term financial flexibility and stability.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to fund new projects and manage debt, impacting future growth prospects.

Revenue Dip in 2023

Past revenue volatility could indicate challenges in market conditions or execution, posing risks to consistent growth and investor confidence.

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 its products through approximately 2,200 own-retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.

How the Company Makes Money

adidas AG generates revenue through the design, manufacturing, and marketing of sportswear and lifestyle products. The company's primary revenue streams include sales of footwear, apparel, and accessories through both wholesale and direct-to-consumer channels, such as branded retail stores and the online marketplace. Significant partnerships with athletes, sports teams, and events enhance brand visibility and drive sales. Additionally, adidas benefits from licensing agreements that allow third-party manufacturers to produce and distribute products under its brand, further contributing to its earnings. The company also invests in marketing and sponsorships to strengthen its brand presence and reach a broader customer base.

adidas AG Financial Statement Overview

Summary

Adidas AG demonstrates a solid financial performance with strong recovery trends in profitability and revenue growth. The balance sheet is stable, though there is a need to monitor debt levels. Cash flow metrics indicate operational efficiency, but the decline in free cash flow growth warrants attention. Overall, the company is on a positive trajectory, but careful management of leverage and cash flow is essential for sustained growth.

Income Statement

Adidas AG has shown a strong recovery in its income statement metrics. The TTM data indicates a significant improvement in net profit margin and EBIT margin compared to previous years. Revenue growth is positive, with a notable increase from the previous period. However, the company experienced a dip in revenue in 2023, which has since recovered. Overall, profitability metrics like gross profit margin remain robust, indicating efficient cost management.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio slightly above 1, indicating a balanced approach to leveraging. Return on equity has improved significantly in the TTM period, showcasing better utilization of equity. However, the equity ratio suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a mixed performance. The TTM period shows a decline in free cash flow growth, which is a concern. However, the operating cash flow to net income ratio remains positive, indicating that the company is generating sufficient cash from operations. The free cash flow to net income ratio is also healthy, suggesting that the company is able to convert a good portion of its earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.51B	23.68B	21.43B	22.51B	21.23B	19.84B
Gross Profit	12.55B	12.03B	10.18B	10.64B	10.77B	9.85B
EBITDA	2.99B	2.51B	785.00M	1.75B	3.11B	1.98B
Net Income	1.20B	764.00M	-75.00M	254.00M	1.49B	432.00M
Balance Sheet
Total Assets	19.50B	20.66B	18.02B	20.30B	22.14B	21.05B
Cash, Cash Equivalents and Short-Term Investments	1.43B	2.48B	1.48B	966.00M	3.94B	4.24B
Total Debt	5.47B	5.59B	5.56B	6.46B	5.33B	5.89B
Total Liabilities	13.94B	14.79B	13.10B	14.95B	14.30B	14.36B
Stockholders Equity	5.20B	5.48B	4.58B	4.99B	7.52B	6.45B
Cash Flow
Free Cash Flow	692.00M	2.37B	2.13B	-1.24B	2.52B	1.04B
Operating Cash Flow	1.23B	2.91B	2.55B	-543.00M	3.19B	1.49B
Investing Cash Flow	-342.00M	-356.00M	-450.00M	495.00M	-424.00M	-115.00M
Financing Cash Flow	-1.71B	-1.56B	-1.43B	-2.96B	-2.99B	479.00M

adidas AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 187.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ADS, the sentiment is Negative. The current price of 187.35 is below the 20-day moving average (MA) of 188.94, above the 50-day MA of 180.58, and below the 200-day MA of 206.14, indicating a neutral trend. The MACD of 2.27 indicates Positive momentum. The RSI at 50.76 is Neutral, neither overbought nor oversold. The STOCH value of 23.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ADS.

adidas AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOSS	―	€2.86B	12.99	16.69%	3.39%	1.08%	-1.30%
ADS	―	€33.46B	27.86	23.35%	1.07%	10.95%	400.40%
ZAL	―	€6.86B	25.35	10.35%	―	7.12%	78.28%
PUM	―	$3.23B	―	-4.30%	2.79%	1.21%	-136.95%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DHER	―	€6.82B	-11.91	-32.53%	―	23.23%	76.05%
YOU	―	€1.06B	―	―	―	3.44%	5.93%