adidas AGXSWX:ADS +2.02%86 Return-on-Tangible-Equity is 45.03% as of Mar. 2026, which is 36% above its 10-year median of 33.22. GuruFocus rates XSWX:ADS with a GF Score™ of 86/100 and a GF Value™ of CHF190.72 (Modestly Undervalued). Among 1,017 Manufacturing - Apparel & Accessories companies, adidas AG ranks better than 93.51% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. adidas AG's annualized net income for the quarter that ended in Mar. 2026 was CHF1,755 Mil. adidas AG's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF3,897 Mil. Therefore, adidas AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 45.03%.
The historical rank and industry rank for adidas AG's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ADS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.42 Med: 33.22 Max: 49.62
Current: 34.6
During the past 13 years, adidas AG's highest Return-on-Tangible-Equity was 49.62%. The lowest was -2.42%. And the median was 33.22%.
XSWX:ADS's Return-on-Tangible-Equity is ranked better than 93.51% of 1017
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.47
vs XSWX:ADS: 34.60
adidas AG (XSWX:ADS) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
adidas AG Return-on-Tangible-Equity Related Terms
adidas AG Return-on-Tangible-Equity Historical Data
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The historical data trend for adidas AG's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:ADS vs NKE, DECK, ONON: Return-on-Tangible-Equity Comparison
For the Footwear & Accessories subindustry, adidas AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
adidas AG Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, adidas AG's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where adidas AG's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 45.03% mean?
adidas AG (XSWX:ADS) has a Return-on-Tangible-Equity of 45.03% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on adidas AG and its competitors. This is 36% above median its historical median of 33.22. According to the industry distribution chart, adidas AG ranks #66 out of 1017 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 6.5%.
Is adidas AG's Return-on-Tangible-Equity too high?
adidas AG's current Return-on-Tangible-Equity of 45.03% is 36% above median its 10-year median of 33.22. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.47. adidas AG's value of 45.03% is 907.4% above this industry median. Based on the distribution chart, adidas AG ranks #66 out of 1017 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, adidas AG has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does adidas AG's Return-on-Tangible-Equity compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, adidas AG ranks #66 out of 1017 companies for Return-on-Tangible-Equity. This places adidas AG in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.47. adidas AG's value of 45.03% is 907.4% above this benchmark. While the company's 10-year median is 33.22 vs. the industry median of 4.47, adidas AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.47, based on 1,017 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. adidas AG's current Return-on-Tangible-Equity of 45.03% is 907.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on adidas AG and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. adidas AG's current Return-on-Tangible-Equity is 45.03%, which is 36% above median its own 10-year median of 33.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is adidas AG stock overvalued right now?
Based on GuruFocus' analysis, adidas AG (XSWX:ADS) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF190.72, compared to a current price of CHF162.00 — trading 15.1% below its estimated fair value. The current Return-on-Tangible-Equity is 45.03%, which is 36% above median its 10-year median of 33.22 and 907.4% above the Manufacturing - Apparel & Accessories industry median of 4.47. adidas AG's overall GF Score™ is 86/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For adidas AG (XSWX:ADS), the current Return-on-Tangible-Equity is 45.03% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is adidas AG (XSWX:ADS) Overvalued in 2026?
Based on GuruFocus' analysis, adidas AG stock appears to be undervalued.
The current stock price of CHF162.00 is trading 15.1% below its estimated GF Value™ of CHF190.72.
GuruFocus considers adidas AG to be Modestly Undervalued.
Key valuation signals for XSWX:ADS:
Return-on-Tangible-Equity: 45.03% (36% above median its 10-year median of 33.22)
GF Value™: CHF190.72 vs. price of CHF162.00 (15.1% below fair value)
Industry Position: 907.4% above the Manufacturing - Apparel & Accessories median (#66 of 1017)
No single metric tells the full story. See the XSWX:ADS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Adidas sells its products in more than 160 countries through about 2,000 owned retail stores, 15,000 Adidas-branded franchise stores (including about 8,000 in China), 150,000 wholesale doors, and an owned e-commerce site that is available in 67 countries. The company was founded in 1949 in Germany.
86GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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