Adolfo Dominguez (ADZ) AI Stock Analysis

• Market Cap: €46.09M
• Dividend Yield: N/A
• Average Volume (3M): 2.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 7.76%
• EPS Growth: 24.40%
• Country: ES
• Employees: 1,031
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.38
• Shares Outstanding: 9,276,108
• 10 Day Avg. Volume: 2,511
• 30 Day Avg. Volume: 2,062
• PEG Ratio: 2.32
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 3.37
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.28
• Revenue Forecast (FY): €157.60M

• Rating: 53 Neutral
• Price Target: €5.50 ▲(3.77% Upside)
• Action: N/A Date: 11/25/25
• Date: Action: N/A 11/25/25

The overall stock score reflects a mixed outlook. The company's financial performance is on a positive trajectory with revenue growth and improved cash flow, but profitability margins need enhancement. Technical analysis indicates bearish momentum, and the stock appears overvalued based on its P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Free cash flow strength

Sustained free cash flow growth increases financial resilience and funds capital allocation without relying on external financing. Over 2-6 months this bolsters the firm’s ability to invest in e‑commerce, renovate stores, reduce debt, or absorb seasonal revenue swings while supporting strategic initiatives.

Improved financial leverage

A meaningfully lower debt-to-equity ratio materially improves solvency and flexibility. Reduced leverage lowers interest burden, gives management room for selective reinvestment or M&A, and decreases refinancing risk—beneficial across economic cycles and over a medium-term planning horizon.

Revenue growth with improving operating margins

Consistent revenue growth coupled with rising EBIT/EBITDA margins suggests the company is scaling sales while improving cost control. If sustained, this indicates stronger unit economics, better product-market fit and greater operating leverage, supporting durable profit expansion beyond near-term seasonality.

Negative Factors

Low net profitability and modest ROE

Low net margins and modest ROE limit the company’s ability to convert sales into shareholder returns and internal funding. This constrains long-term reinvestment capacity, makes results sensitive to cost inflation, and reduces buffer versus competitors with stronger profitability profiles.

Margin exposure to seasonality and promotions

Heavy reliance on seasonal collections and promotional discounting creates structural margin cyclicality. Inventory and store productivity execution must be precise; missteps cause markdowns and margin erosion. These persistent retail dynamics raise execution risk over multiple selling seasons.

Margins still need enhancement despite gains

Although margins have trended up, they remain below peer or desired levels, limiting scalability benefits. With fixed costs in retail and omnichannel investments, further margin improvement is required to sustainably convert revenue growth into durable net income and stronger cash returns.

Adolfo Dominguez Business Overview & Revenue Model

Company Description

Adolfo Domínguez, S.A. engages in the design, manufacture, acquisition, sale, marketing, retail, import, and export of ready-made garments, footwear, handbags and accessories, household linen, furniture, and decorative objects. It offers its products through physical stores and online sales channels under the Adolfo Domínguez brand. As of February 28, 2022, the company operates through a network of 348 points of sales. It operates in Europe, Mexico, Japan, and internationally. The company was formerly known as Nuevas Franquicias, S.A. and changed its name to Adolfo Domínguez, S.A. in November 1996. Adolfo Domínguez, S.A. was founded in 1950 and is based in Ourense, Spain.

How the Company Makes Money

Adolfo Dominguez generates revenue primarily through the direct sale of its fashion products in both brick-and-mortar stores and online platforms. The company has a robust retail presence, with numerous stores across Spain and international markets, which contributes significantly to its sales figures. Additionally, ADZ has embraced e-commerce, allowing it to reach a broader audience and capitalize on online shopping trends. Key revenue streams include seasonal collections, collaborations with other brands or designers, and special capsule collections that attract fashion-forward consumers. The company's focus on sustainability also enhances its appeal, potentially leading to partnerships with eco-conscious retailers and collaborations that align with its brand ethos, further driving revenue growth.

Adolfo Dominguez Financial Statement Overview

Summary

Adolfo Dominguez shows a promising trajectory with revenue growth and improved cash flow metrics. While profitability margins are improving, they remain an area for potential enhancement. The balance sheet reflects a more stable financial position with reduced leverage, but maintaining this stability is crucial.

Income Statement

Adolfo Dominguez has shown a positive revenue growth trend over the past few years, with a notable increase in the latest year. The gross profit margin remains stable, indicating efficient cost management. However, the net profit margin is relatively low, suggesting challenges in translating revenue growth into bottom-line profitability. The EBIT and EBITDA margins have improved, but there is room for further enhancement to boost overall profitability.

Balance Sheet

The company's debt-to-equity ratio has decreased significantly, indicating improved financial leverage. However, the return on equity is modest, reflecting limited profitability relative to shareholder equity. The equity ratio suggests a balanced capital structure, but there is potential risk if debt levels increase again.

Cash Flow

Adolfo Dominguez has demonstrated strong free cash flow growth, which is a positive indicator of financial health. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to net income. The free cash flow to net income ratio is also strong, indicating effective cash management.

Breakdown	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	136.50M	126.67M	114.18M	92.07M	65.99M
Gross Profit	76.65M	71.89M	64.89M	51.61M	30.73M
EBITDA	16.93M	16.69M	13.70M	369.49K	-8.30M
Net Income	908.00K	730.18K	158.66K	-9.27M	-19.34M
Balance Sheet
Total Assets	107.66M	112.57M	96.82M	85.63M	91.21M
Cash, Cash Equivalents and Short-Term Investments	3.04M	4.56M	9.28M	15.35M	16.45M
Total Debt	10.36M	55.64M	50.81M	45.95M	44.01M
Total Liabilities	90.64M	93.90M	79.61M	70.10M	66.20M
Stockholders Equity	17.01M	18.68M	17.21M	15.52M	24.01M
Cash Flow
Free Cash Flow	13.89M	10.51M	1.75M	3.68M	-3.07M
Operating Cash Flow	16.50M	14.39M	8.11M	5.91M	-1.03M
Investing Cash Flow	642.00K	-4.29M	-5.80M	-2.49M	-1.31M
Financing Cash Flow	-18.12M	-14.89M	-8.92M	-4.87M	8.94M

Adolfo Dominguez Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ADZ, the sentiment is Negative. The current price of 5.3 is below the 20-day moving average (MA) of 5.60, below the 50-day MA of 5.57, and above the 200-day MA of 5.09, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 32.99 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:ADZ.

Adolfo Dominguez Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
NXT	55 Neutral	€345.31M	41.07	251.04%	―	-12.24%	―
ADZ	53 Neutral	€46.09M	-7.93	―	―	7.76%	24.40%