adidas AG

ADS.DE

Apparel - Footwear & Accessories · Consumer Cyclical

Also trades as: ADDYY

Price

€154.45

+3.45 (+2.28%)

Market Cap

€27.04B

Exchange

Frankfurt Stock Exchange (XETRA)

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Strong

Stability

Strong

Valuation

Strong

Dividends

Weak

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Share count falling — buybacks

−8.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 194.2M (2021) → 178.6M (2025)

Winston Score History

The full picture

Adidas is a German sportswear company that makes athletic shoes, clothing, and accessories. Its products are sold under the Adidas and Reebok brands to everyday consumers, professional athletes, and sports teams around the world. It is the second-largest sportswear company globally, behind only Nike, and is known for iconic products like the Superstar sneaker and Ultraboost running shoe.

Adidas makes money by selling its products through its own stores, its website, and third-party retailers like Foot Locker and department stores. It operates in over 160 countries, with Europe and Asia being its largest markets, and generates roughly €23 billion in annual revenue. Its brand recognition and long-term partnerships with sports leagues and celebrities give it a durable competitive position, but its key risk is heavy reliance on wholesale retailers and intense competition from Nike and fast-growing brands like On and Hoka, which are gaining market share in the performance footwear segment.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+13.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-2.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

€154M/ year

0.6% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

7.6%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

€1.9B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

adidas AG is a rare growth stock that's already generating positive cash flow while growing at 13%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

52.5%

Healthy — 52.5% gross margin

Profit after running costs

Operating Margin

8.5%

Modest — 8.5% operating margin

Return on the money invested

ROCE

24.0%

Exceptional — 24.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+6.3%

Slow sales growth (+6.3% YoY)

Profit growth

EPS YoY

+15.2%

Earnings growing fast (+15.2% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

168%

Turns 168% of profit into real cash

Spare cash per sale

FCF Margin

7.0%

Modest free cash flow (7.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.51

Conservative — low debt load (0.51)

Covers its interest

Interest Cover

6.90x

Adequate interest coverage (6.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

19.9x

Fair value — P/E 19.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year

P/E vs Forward

+8.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (19.9 → 11.9)

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Dividends

Dividend

Dividend Yield

1.71%

Small dividend — 1.71% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-49.4%

Dividend cut (-49.4% YoY) — warning sign

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