Operating Margin

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Price: 153.15 EUR -4.16%

Market Cap: 27.3B EUR

7.9%

Improving

by 4.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

7.9%

Operating Income

€1.9B

Revenue

€24.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

7.9%

Operating Income

€1.9B

Revenue

€24.7B

Peer Comparison

Country	Company	Market Cap	Operating Margin
DE	Adidas AG XETRA:ADS	27.2B EUR	Loading...
ES	Industria de Diseno Textil SA MAD:ITX	172.3B EUR	Loading...
FR	LVMH Moet Hennessy Louis Vuitton SE PAR:MC	290.3B EUR	Loading...
FR	Hermes International SCA PAR:RMS	222.5B EUR	Loading...
KR	SBW KRX:102280	235.5T KRW	Loading...
FR	EssilorLuxottica SA PAR:EL	124B EUR	Loading...
CH	Compagnie Financiere Richemont SA SIX:CFR	91.6B CHF	Loading...
FR	Christian Dior SE PAR:CDI	98.6B EUR	Loading...
IN	Titan Company Ltd NSE:TITAN	3.7T INR	Loading...
FR	Kering SA PAR:KER	34.4B EUR	Loading...
CN	ANTA Sports Products Ltd HKEX:2020	229.6B HKD	Loading...

Market Distribution

Min	-61 459.6%
30th Percentile	0.7%
Median	4.5%
70th Percentile	9.8%
Max	94 540%

Other Profitability Ratios

Adidas AG
Glance View

Economic Moat

None

Market Cap

27.3B EUR

Industry

Textiles, Apparel & Luxury Goods

Adidas AG, a pillar of the global sportswear industry, traces its roots to the German town of Herzogenaurach in 1949, where it pioneered the fusion of sports and style. Its founder, Adolf Dassler, embarked on a mission to equip athletes with innovative footwear, a philosophy that still reverberates through the company's operations. Today, Adidas crafts its success on a reputation for high-performance athletic gear that stretches beyond the pitch and into the realms of running, training, and lifestyle. The company continuously harnesses cutting-edge technology and design, whether through its Boost midsole technology or the sleek silhouettes of its sneaker collaborations, which merge athletic function with street-ready aesthetics. These innovations position Adidas not only as a trusted outfit for athletes but as a venerated style icon, appealing to a broad demographic eager for both performance and prestige. Adidas's business architecture hinges on a strategic blend of direct-to-consumer sales, wholesale partnerships, and digital endeavors. This multifaceted approach ensures a robust global presence, with brick-and-mortar stores complemented by a streamlined e-commerce platform. In recent years, the company has intensified its focus on sustainability, launching eco-friendly products to meet the rising demand for greener options from conscientious consumers. Adidas nurtures strong alliances with influential sports teams, athletes, and celebrities, weaving these endorsements into the fabric of its marketing strategy. Revenue generation, thus, blooms from an intricate tapestry of product sales, brand loyalty cultivated through strategic advertising, and an expanding subscription service for exclusive releases. With these threads, Adidas deftly navigates the competitive landscape, ensuring its stripes remain synonymous with innovation and excellence in the sportswear arena.

View ADS Analysis

ADS Intrinsic Value

Undervaluation 47%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Adidas AG
XHAM:ADS

Peer Comparison

Market Distribution

Other Profitability Ratios

Adidas AG
Glance View

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Adidas AG XHAM:ADS