(ADS) adidas - Ratings and Ratios

adidas AG, a global leader in the design, development, and distribution of athletic and sports lifestyle products, operates across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific, and Latin America. The company offers a wide range of products, including footwear, apparel, and accessories such as bags and balls under the adidas brand. Additionally, it provides golf footwear and apparel under the adidas Golf brand and outdoor footwear under the Five Ten brand. Its distribution channels include direct-to-consumer sales through its own retail stores, mono-branded franchise stores, and shop-in-shops, as well as wholesale and e-commerce platforms. The company, originally known as adidas-Salomon AG, changed its name to adidas AG in June 2006. Founded in 1920, adidas AG is headquartered in Herzogenaurach, Germany.

adidas AG has a strong commitment to innovation, with notable advancements in footwear technology such as Boost cushioning and Parley Ocean Plastic, which reflects its sustainability efforts. The company has also expanded its product portfolio to include high-performance apparel and lifestyle collections, appealing to both athletes and fashion-conscious consumers. Its global presence is supported by a robust e-commerce strategy, emphasizing a direct-to-consumer approach to enhance brand engagement and customer experience.

From a technical perspective, the stock has shown recent weakness, with the last price of 198.65 falling below its SMA 20 (207.24) and SMA 50 (227.81). The ATR of 8.55 indicates moderate volatility. Based on these indicators, the stock may face resistance at the SMA 50 level in the near term.

Fundamentally, adidas AG has a market cap of 35,388.41M EUR, with a P/E ratio of 46.64 and a forward P/E of 26.04, suggesting investor confidence in its growth prospects. The P/B ratio of 6.60 reflects a premium valuation of its book value, while the P/S ratio of 1.49 indicates reasonable pricing relative to its revenue. The return on equity (RoE) of 13.95% highlights efficient profitability. These metrics suggest a company with strong brand equity and growth potential, though current valuations may be elevated compared to historical averages.

3-Month Forecast: Based on technical and fundamental data, adidas AGs stock is expected to face headwinds in the near term due to its current position below key moving averages. However, its strong brand equity and solid financials suggest potential for recovery. The stock is likely to trade in a range between 190-220, with potential upside if it can reclaim the SMA 50 level. Investors should monitor earnings reports and macroeconomic conditions for further direction.