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adidas AG ADS Stock Quote

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XETR: ADS

Morningstar‘s Stock Analysis ADS

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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Much Has Gone Wrong for Adidas Recently, but Its Standing in Sportswear and Brand Value Hold

David Swartz Equity Analyst

Business Strategy and Outlook

| David Swartz |

We think Adidas is a leader in athletic and “athleisure” apparel with a narrow-moat rating based on an intangible brand asset. While sales declined in 2020 due to COVID-19 and the recovery has been rocky, we think it can still make progress under its five-year Own the Game plan. For example, its e-commerce, now available in nearly 60 countries, generated EUR 3.9 billion in sales in 2021 (19% of its total), and we project it will reach EUR 7.1 billion in sales (28% of its total) in 2025. Further, we think the firm’s new sportswear offerings and plans to improve its position in key categories like running and outdoor will be successful. However, because of heavy competition, the termination of the Yeezy partnership, and pandemic-related disruption, our estimates are below or at the low end of Adidas’ five-year targets of compound average sales growth of 8%-10%, average net income growth of 16%-18%, and 2025 gross and operating margins of 53%-55% and 12%-14%, respectively.

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Key Statistics ADS

Company Profile ADS

Business Description

Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Its fashion brands include Ivy Park and Y-3. Adidas sells its products in more than 160 countries through more than 2,100 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and more than 50 e-commerce sites. The company was founded in 1949 in Germany.

Contact
Adi-Dassler-Strasse 1
Herzogenaurach, BY, 91074, DEU
Industry Footwear & Accessories
Employees 60,661

Related Articles ADS

FAQs for adidas AG Stock

Yes. ADS has a forward dividend yield of 2.77%. See ADS’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

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ADS’s market cap is 21.46 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

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ADS’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

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ADS’s price/sales is 1.04.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

ADS’s price/forward earnings is 25.06.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

ADS’s price/book is 3.60.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See ADS’s valuation ratios compared to the Market Index.

ADS’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare ADS’s historical performance against its industry peers and the overall market.