Adidas AG (ADS) – Expensive valuation compared to peers

Adidas AG (ADS) (Q1FY23)

Introduction

adidas AG, together with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products in Europe, the Middle east, Africa, North America, Greater China, the Asia-Pacific, and Latin America. It offers footwear; apparel; and accessories and gear, such as bags and balls under the adidas brand. It sells its products through own retail stores; mono-branded franchise stores and shop-in-shops; and wholesale and its e-commerce channels.

Highlights

The inventories of ADS increased by 25% Y/Y to €5.68bn, which includes €500mn worth of Yeezy products in Q1FY23, compared to €4.54bn in Q1FY22. On a currency-neutral basis, inventories grew 27%, compared to the prior year. In Q1FY23, the company experienced a significant decrease in sales to the wholesale channel.

Stock performance

Adidas stock gave returns of -0.7% and 1% in the period of three months and one year. The stock has a 52-week high of €181.88 and a 52-week low of €93.40. The stock gave returns of – 33.5% and CAGR of -12.7% over a period of three years. The stock had a 200-Day Moving Average of €142.10 and a 50-Day Moving Average of €165.51.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 33

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