adidas AG

ADDYY

Apparel - Footwear & Accessories · Consumer Cyclical

Price

$103.38

-1.12 (-1.07%)

Market Cap

$36.94B

Exchange

Other OTC

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

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: 388.4M (2021) → 357.1M (2025)

Adidas is a German sportswear company that makes athletic shoes, clothing, and accessories. Its products are sold to everyday consumers, professional athletes, and sports teams around the world. Adidas is the second-largest sportswear brand globally, behind Nike, and owns well-known labels including Reebok's former rival and its own iconic three-stripe design.

The company earns money primarily by selling products through its own stores, its website, and third-party retailers like department stores and sports shops. Adidas operates in over 160 countries, with strong sales in Europe, North America, and a growing presence in Asia. Its brand recognition and long-standing partnerships with sports leagues, celebrities, and events like the FIFA World Cup give it a durable competitive position. The key growth driver is expanding direct-to-consumer sales, which carry higher margins, though the company faces ongoing risk from intense competition and its heavy reliance on third-party manufacturing in Asia.

Winston Score History

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

+8.9% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+15.0% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$148M/ year

0.6% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

52.7%ownership

Insiders own a meaningful stake in the company

Cash Runway

~14 months

$2.0B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Growth context

adidas AG is growing revenue at 9% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

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

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Quality

Gross Margin

51.1%

Healthy — 51.1% gross margin

Operating Margin

10.4%

Modest — 10.4% operating margin

ROCE

7.8%

Weak — 7.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+3.8%

Slow sales growth (3.8% YoY)

EPS YoY

+37.1%

Earnings growing fast (37.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

87%

Modest — 87% of profit becomes cash

FCF Margin

3.1%

Thin free cash flow (3.1%)

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

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Stability

Debt / Equity

0.50

Conservative — low debt load (0.50)

Interest Cover

6.27x

Adequate interest coverage (6.3x)

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

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Valuation

P/E Ratio (TTM)

26.4x

Growth-priced — P/E 26.4

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+11.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (26.4 → 15.0)

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Dividends

Dividend Yield

1.51%

Small dividend — 1.51% yield

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

Dividend Growth

-49.7%

Dividend cut (-49.7% YoY) — warning sign

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