Adidas AG Current Valuation vs. Net Income
| ADS Stock | EUR 158.75 0.35 0.22% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.38 | 0.46 |
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| Operating Profit Margin | 0.0822 | 0.0649 |
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| Pretax Profit Margin | 0.0736 | 0.0544 |
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For Adidas AG profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Adidas AG to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well adidas AG utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Adidas AG's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of adidas AG over time as well as its relative position and ranking within its peers.
Adidas |
adidas AG Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Adidas AG's current stock value. Our valuation model uses many indicators to compare Adidas AG value to that of its competitors to determine the firm's financial worth. adidas AG is the top company in current valuation category among its peers. It is rated second in net income category among its peers making up about 0.02 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for adidas AG is roughly 48.83 . At this time, Adidas AG's Net Income is most likely to decrease significantly in the upcoming years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Adidas AG's earnings, one of the primary drivers of an investment's value.Adidas Current Valuation vs. Competition
adidas AG is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is presently estimated at about (217.42 Billion). Adidas AG adds roughly 37.3 Billion in current valuation claiming only tiny portion of stocks in Consumer Discretionary industry.
Adidas Net Income vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Adidas AG |
| = | 37.3 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Adidas AG |
| = | 764 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Adidas Net Income Comparison
Adidas AG is currently under evaluation in net income category among its peers.
Adidas AG Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Adidas AG, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Adidas AG will eventually generate negative long term returns. The profitability progress is the general direction of Adidas AG's change in net profit over the period of time. It can combine multiple indicators of Adidas AG, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Operating Income | 1.2 B | 1.1 B | |
| Net Income From Continuing Ops | 741.6 M | 730.9 M | |
| Income Before Tax | 1 B | 1 B | |
| Total Other Income Expense Net | -100 M | -105.1 M | |
| Net Income Applicable To Common Shares | 703.8 M | 1.2 B | |
| Net Income | 687.6 M | 770.1 M | |
| Income Tax Expense | 120.6 M | 114.6 M | |
| Net Interest Income | -109.8 M | -115.3 M | |
| Interest Income | 65.5 M | 33.7 M | |
| Change To Netincome | -338.4 M | -321.5 M | |
| Net Income Per Share | 3.85 | 2.71 | |
| Income Quality | 2.99 | 3.13 | |
| Net Income Per E B T | 0.78 | 0.65 |
Adidas Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Adidas AG. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Adidas AG position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Adidas AG's important profitability drivers and their relationship over time.
Adidas AG Earnings per Share Projection vs Actual
Use Adidas AG in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Adidas AG position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Adidas AG will appreciate offsetting losses from the drop in the long position's value.Adidas AG Pair Trading
adidas AG Pair Trading Analysis
The ability to find closely correlated positions to Adidas AG could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Adidas AG when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Adidas AG - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling adidas AG to buy it.
The correlation of Adidas AG is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Adidas AG moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if adidas AG moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Adidas AG can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Adidas AG position
In addition to having Adidas AG in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Adidas Stock
To fully project Adidas AG's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of adidas AG at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Adidas AG's income statement, its balance sheet, and the statement of cash flows.