adidas AG (ADDDF)
NEUTRALFundamental
63
Price
$152.60
Market Cap
$27.14B
Part 1 · What the company is worth
Overview
adidas designs and markets sporting goods — footwear, apparel and accessories — sold under its own brand worldwide. It owns almost no factories: production is outsourced to independent manufacturing partners, mostly in Asia, while adidas keeps design, marketing and distribution in house. Products reach customers through wholesale retail partners and through adidas's own stores and e-commerce sites.
How it makes money
Revenue comes from selling physical goods, split between wholesale shipments to retail partners and direct sales through adidas-owned stores and online channels. Margins depend on the mix between the two channels and on how much price premium the brand can hold against rivals, which in turn rests on marketing spend, athlete and team sponsorships, and a steady stream of new product releases.
Revenue by segment
The largest category by far, spanning performance sport and lifestyle sneakers.
Sportswear and casual clothing sold under the same brand, the fastest-growing of the three categories in 2025.
Bags, balls and other equipment; the smallest category.
Competitive moat
Brand · NarrowDecades of sponsorship deals with athletes, clubs and national federations built a globally recognised brand that commands shelf space and a price premium over generic sportswear. The advantage is real but contested day to day: Nike, Puma and newer specialists like On and Hoka compete hard for the same retail space and the same consumer attention.
What drives demand
CyclicalFootwear and apparel are discretionary purchases that households cut back on when budgets tighten, and wholesale partners trim orders further in anticipation of weaker demand. Fashion cycles and how fresh the product range looks against competitors also move demand independently of the broader economy.
Key risks
- Currency exposure — The company sources products in different currencies than it sells them in, so exchange-rate swings can materially affect reported results despite hedging of projected sourcing needs.
- Consumer demand and product misses — Failing to anticipate shifting consumer preferences or to keep the product range innovative risks losing revenue and market share to competitors.
- Competitive and retail pressure — Consolidation among competitors and retailers, plus the growth of private-label sportswear, add pricing pressure and squeeze margins.
- Sourcing and business-partner dependence — Almost all production is outsourced to independent manufacturing partners; dependency on key suppliers, a partner's financial default or misconduct can disrupt sourcing and harm the brand's reputation.
The case for
Buyers argue that record 2025 revenue and management's guidance for continued sales and profit growth show the brand turnaround is working, that apparel's double-digit growth signals the product range is regaining relevance, and that a globally recognised brand still commands pricing power most competitors cannot match.
The case against
Sellers fear that almost all production outsourced in Asia leaves the company exposed to currency swings, tariffs and supplier disruption at once, that intensifying competition from both legacy rivals and newer specialist brands could erode the recent momentum, and that a brand-driven business can lose relevance as quickly as it regains it.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on August 23, 2026 with claude-opus-5 — shared with all users
The world's largest sporting goods company, competing head-to-head with adidas in performance footwear, apparel and athlete and team sponsorships in every market.
The other Herzogenaurach brand, born from the same family, competing directly with adidas in football boots, running and sport-inspired lifestyle sneakers, above all in Europe.
A privately held US brand that has become one of the three biggest sneaker sellers worldwide, taking the same lifestyle and running customers adidas serves with Originals and Adizero.
The leading sportswear group in China by market share, competing with adidas for the Chinese consumer in running, basketball and training gear.
A fast-growing Swiss brand taking share in premium running footwear and, increasingly, in everyday sportswear — the same shelves and the same runners adidas targets.
A Japanese specialist in performance running and court shoes, competing with adidas for serious runners and for retail space in running specialty stores.
Balance Sheet & Liquidity
Revenue
$26.04B
Trailing 12 months (through 6/30/2026)
Net Income
$1.38B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$952M
Total Equity
$5.96B
Total Liabilities
$5.98B
Current Ratio
1.39
Interest Coverage
-
Debt/EBITDA
2.24
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$199.93
Current Price
$152.60
Margin of Safety
+23.7%
Fair Value Range
$129.95 - $269.90
Estimation Methods
Valuation Metrics
P/E Ratio
19.88
ROE
24.3%
P/B Ratio
4.56
P/FCF
28.50
Gross Margin
51.6%
ROIC
14.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
14.7%
WACC
8.6%
ROIC − WACC
+6.1 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (13)
- ROIC 14.7%
- Gross Margin 51.6%
- P/FCF 28.50
- Debt/Equity ratio
- Positive Free Cash Flow
- Current Ratio
- Debt/EBITDA
- ROE 23.6%
- Revenue Growth 5Y 6.1%
- Analyst Consensus 78% Buy
- PEG Ratio 0.74
- Earnings Quality (OCF/NI) 1.72
- Net Margin Trend 5.4% vs 3.2%
Failed (6)
- Price CAGR 0.59%
- P/B Ratio 4.56
- CapEx intensity
- DCF valuation (Overvalued)
- Earnings Surprise avg -1.0%
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Bjorn Gulden | Chairman of Global Brands, CEO & Chairman of Executive Board | 60 |
| Mr. Harm Ohlmeyer | CFO & Member of Executive Board | 57 |
| Ms. Michelle Robertson | Global Head of HR, People & Culture and Member of Executive Board | 50 |
| Mr. Mathieu Sidokpohou | Member of Executive Board & Chief Commercial Officer | 50 |
| Mr. Gunter Weigl | Senior VP of Brand Partnerships & Employee Representative Member of Supervisory Board | 60 |
| Ms. Linda Evenhuis | Emp Rep Member of Supervisory Board, Sen Lead Prog & Facilitation - EMEA, GCA, APAC of Global HR | 52 |
| Mr. Thomas Sapper | Employee Representative Member of Supervisory Board & Senior Director of Tech Project Management | 59 |
| Mr. Sebastian Steffen | Senior Vice President of Investor Relations & Corporate Communications | - |
| Dr. Jan Heinemann | General Counsel | - |
| Ms. Aimee Arana | Senior VP and GM of Global Product - Training, Running, Core Apparel & Accessories | 48 |
Audit Risk
9
Board Risk
3
Compensation Risk
4
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for ADDDF, sourced from Markets Gazette.