adidas AG
🇩🇪 ADS.XETRA · Frankfurt · DE000A1EWWW0
Consumer
EUR 134.90 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
18.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 134.90 ÷ 7.50 = 18.0
TTM period through: 2025-12-31
Forward P/E (estimated): 15.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 18.1
Yield (Fwd)
2.08%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.05%
Net Debt/EBITDA (TTM)
1.3x
Latest quarter: 8.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 8.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
37.3%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 26.6%
Cash Flow Payout (TTM): 47.5%
FCF Coverage (TTM): 0.77x
ROE
23.0%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
adidas AG is a global sportswear leader with immense brand power, currently navigating a transitional period following the termination of a major partnership. While the company's underlying balance sheet remains healthy, its cyclical consumer fashion business model, low 2.05% yield, and recent history of deep dividend cuts make it unsuitable for conservative income strategies. Better opportunities exist in more stable, essential service businesses with reliable payouts.
Sector Context
adidas AG is a global leader in the design and manufacturing of athletic footwear, apparel, and sporting goods. The consumer fashion and apparel sector is inherently cyclical and driven by discretionary spending and shifting consumer trends, making it generally unsuitable for conservative dividend strategies that require predictable, essential cash flows.
Temporary Opportunity Identified
Financial and operational impact from the termination of the Yeezy partnership, leading to temporary inventory write-offs and strategic restructuring costs.
📊 Strategy Analysis
- • Global athletic apparel leader with a powerful brand moat and improving operational performance following recent strategic reviews.
- • Maintains a healthy balance sheet with conservative leverage, demonstrating a Net Debt/EBITDA of 1.27x and a Debt/Equity ratio of 0.96x.
⚠ What to Watch
- • Operates in the cyclical consumer fashion/apparel sector, which relies on fickle discretionary spending and fundamentally violates the strategy's essential services requirement.
- • Current dividend yield of 2.05% falls well below the 3% minimum threshold, and recent free cash flow generation fails to adequately cover the payout (0.77x coverage).
- • Unreliable dividend history, evidenced by a massive 79% cut in 2023, coupled with an elevated P/E ratio of 17.98 that offers limited value appeal.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.