Adidas ADS.DE
What does Adidas do?
Adidas is one of the world's largest sporting goods manufacturers, headquartered in Herzogenaurach. The company designs, develops and markets shoes, apparel and accessories for sport and leisure, including bags, balls, sunglasses and fitness equipment. Specialty brands such as Adidas Golf and Five Ten for outdoor footwear are also part of the portfolio. Production is carried out predominantly by external contract manufacturers, mainly in Asia.
Revenue is generated through three distribution channels: wholesale to specialist sports retailers and retail chains, its own stores including franchise and shop-in-shop concepts, and its own online retail. Reporting is by region, such as Europe, North America, Greater China, Latin America and other markets. In competitive terms, Adidas mainly faces Nike and Puma, as well as growing specialist providers. The brand benefits from partnerships with football associations, clubs and athletes, and from the combination of performance sport and lifestyle, which includes sneaker lines and licensing collaborations.
Score profile
Rank vs. Consumer Cyclical (245 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Adidas ranks above average in the group Consumer Cyclical (7.1/10). On growth, the company ranks above average in the group Consumer Cyclical (7.9/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Consumer Cyclical (5.4/10). On financial strength, Adidas ranks in the middle in the group Consumer Cyclical (5.3/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 15.2x | 14.5x | better than 44 % |
| Trailing P/E | 19.2x | 19.2x | better than 50 % |
| PEG ratio | 0.7x | 1.3x | better than 81 % |
| EV/EBITDA | 12.0x | 11.3x | better than 45 % |
| Price/sales | 1.1x | 1.0x | better than 47 % |
| Price/book | 4.9x | 2.5x | better than 30 % |
| Revenue growth | 9.4% | 3.5% | better than 74 % |
| Earnings growth | 58.1% | 0.0% | better than 84 % |
| Gross margin | 52.3% | 35.9% | better than 81 % |
| Operating margin | 13.9% | 9.0% | better than 70 % |
| Net margin | 6.1% | 5.5% | better than 56 % |
| Return on equity | 26.3% | 11.8% | better than 76 % |
| Debt/equity | 89.9% | 86.2% | better than 48 % |
| Current ratio | 1.4x | 1.4x | better than 52 % |
| Free cash flow yield | 5.8% | 4.7% | better than 57 % |
| Dividend yield | 1.6% | 2.2% | – |
| Payout ratio | 30.2% | 34.6% | – |
| Beta | 1.13 | 1.17 | – |
Valuation: what is Adidas worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Adidas a model range of 166.46 EUR to 262.27 EUR per share.
29 analysts, average rating “Buy”, average price target 199.45 EUR (+11.8%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Brand strength and new products determine whether consumers accept prices without heavy discounts.
- The mix of wholesale and own direct sales influences margin, customer proximity and revenue predictability.
- Sporting events, sponsorship contracts and trends in the lifestyle segment provide demand impulses for shoes and apparel.
Risks
- Fashion trends change quickly, and declining brand appeal can rapidly weigh on sales and pricing.
- Fluctuating currencies, tariffs and trade conflicts affect sourcing costs, supply chains and earnings in key markets.
- Dependence on a few production countries and external manufacturers carries risks related to supply chains, labor costs and sustainability requirements.
What to look for with Adidas
The gross margin is particularly informative, as it shows how much pricing power, discounting pressure and sourcing costs actually shape the brand's profitability.