Adairs Ltd. (AU:ADH)
ASX:ADH
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Adairs Ltd.
(Sydney:ADH)
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Rating:61Neutral
Price Target:
AU$1.50
▼(-14.77% Downside)
Action:Reiterated
Date:03/21/26
The score is driven mainly by moderate but weakening financial performance (margin compression, higher leverage, and strained cash flow). Technicals are also a material negative due to a strong downtrend and weak momentum. These are partially offset by attractive valuation metrics (low P/E and high dividend yield).
Positive Factors
Stable gross margin
A sustained ~47% gross margin indicates consistent product pricing, sourcing and category control across homewares. This margin durability supports long-term profitability even when volumes fluctuate, enabling the business to absorb input cost swings and preserve gross dollar contribution.
Negative Factors
Elevated leverage
Higher leverage (D/E ~1.39) reduces financial flexibility and raises interest and refinancing risk if earnings weaken. Over a 2–6 month horizon, elevated debt amplifies downside from cyclical retail pressures and limits capacity for opportunistic investment or inventory build ahead of peak seasons.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable gross margin
A sustained ~47% gross margin indicates consistent product pricing, sourcing and category control across homewares. This margin durability supports long-term profitability even when volumes fluctuate, enabling the business to absorb input cost swings and preserve gross dollar contribution.
Read all positive factors
Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$251.85M
Dividend Yield5.85%
Average Volume (3M)453.58K
Price to Earnings (P/E)12.9
Beta (1Y)1.76
Revenue Growth5.66%
EPS Growth-42.42%
CountryAU
Employees469
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.11
Shares Outstanding178,614,620
10 Day Avg. Volume277,682
30 Day Avg. Volume453,580
Financial Highlights & Ratios
PEG Ratio-0.84
Price to Book (P/B)1.63
Price to Sales (P/S)0.59
P/FCF Ratio5.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.74Price Target Upside-1.14% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.17
Revenue Forecast (FY)AU$644.86M
Adairs Ltd. Business Overview & Revenue Model
Company Description
Adairs Limited, an enterprise established in Scoresby, Australia, in 1918, functions as a specialized purveyor of home furnishing and decorative items throughout Australia and New Zealand. The company manages its operations through three distinct ...
How the Company Makes Money
Adairs makes money mainly by selling home furnishing and homewares products to consumers under its retail brands. Its core revenue stream is product sales through two primary channels: (1) physical retail stores (primarily the Adairs store network...
Adairs Ltd. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 636.54M | 618.09M | 594.36M | 621.34M | 564.48M | 499.76M |
| Gross Profit | 111.66M | 289.30M | 282.20M | 120.12M | 148.05M | 157.85M |
| EBITDA | 114.53M | 102.36M | 126.56M | 132.05M | 118.91M | 150.48M |
| Net Income | 19.14M | 25.68M | 31.09M | 37.84M | 44.89M | 63.74M |
Balance Sheet | ||||||
| Total Assets | 641.69M | 655.95M | 610.50M | 595.95M | 627.46M | 414.83M |
| Cash, Cash Equivalents and Short-Term Investments | 12.44M | 8.43M | 12.87M | 25.90M | 26.07M | 25.97M |
| Total Debt | 463.73M | 312.44M | 275.90M | 279.86M | 307.19M | 107.19M |
| Total Liabilities | 409.79M | 430.77M | 387.33M | 393.72M | 429.57M | 250.17M |
| Stockholders Equity | 231.90M | 225.17M | 223.16M | 202.22M | 197.88M | 164.66M |
Cash Flow | ||||||
| Free Cash Flow | 68.93M | 65.25M | 66.27M | 96.07M | 52.16M | 105.52M |
| Operating Cash Flow | 80.56M | 78.69M | 93.68M | 108.40M | 61.17M | 116.87M |
| Investing Cash Flow | -11.63M | -13.45M | -27.41M | -12.32M | -108.16M | -11.35M |
| Financing Cash Flow | -68.58M | -69.66M | -79.24M | -96.48M | 47.49M | -103.47M |
Adairs Ltd. Technical Analysis
Neutral
1.76
Price Trends
1.28
Positive
1.45
Negative
1.74
Negative
Market Momentum
0.02
Negative
64.96
Neutral
80.94
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Neutral. The current price of 1.76 is above the 20-day moving average (MA) of 1.30, above the 50-day MA of 1.28, and above the 200-day MA of 1.74, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ADH.
Adairs Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | AU$46.08M | 9.53 | 13.53% | 9.03% | 4.03% | -14.92% | |
63 Neutral | AU$6.02B | 10.67 | 11.55% | 3.73% | 9.50% | 29.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$251.85M | 12.95 | 8.37% | 5.85% | 5.66% | -42.42% | |
61 Neutral | AU$1.41B | 19.99 | 25.20% | 2.63% | 4.23% | -0.64% | |
60 Neutral | AU$394.47M | 13.71 | 15.11% | 2.86% | 1.86% | -5.28% | |
55 Neutral | AU$660.82M | 84.98 | 5.66% | ― | 18.85% | 20.89% |
* Consumer Cyclical Sector Average
AU:ADH
Adairs Ltd.
1.41
-0.55
-27.91%
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Adairs Ltd. Corporate Events
Adairs appoints new director John Batistich with disclosed shareholding
May 27, 2026
Adairs Limited has appointed John Louis Batistich as a director effective 25 May 2026, according to an initial director’s interest notice lodged with the ASX. Batistich holds 23,809 fully paid ordinary shares in Adairs, with no additional in...
Adairs Adds Retail and Digital Specialist John Batistich to Board
May 24, 2026
Adairs Limited has appointed experienced retail and consumer executive John Batistich as an independent non-executive director, effective 25 May 2026. With more than 25 years’ experience across major retail and consumer brands and deep exper...
Adairs Appoints New Joint Company Secretary to Lead ASX Communications
Apr 23, 2026
Adairs Limited has strengthened its corporate governance structure with the appointment of Ms Eryl Baron of MUFG Corporate Governance as joint company secretary, effective 23 April 2026. Under ASX Listing Rule 12.6, Baron will be responsible for c...
Adairs Director Increases Indirect Shareholding via Dividend Reinvestment
Apr 9, 2026
Adairs Limited has reported a change in the indirect shareholding of non-executive director Kiera Grant following participation in the company’s FY26 interim dividend reinvestment plan. Grant, via nominee holder The Northern Trust Company on...
Adairs Seeks ASX Quotation for New Shares Issued Under Distribution Plan
Apr 9, 2026
Adairs Ltd., the Australian homewares and bedding retailer listed on the ASX under the code ADH, continues to operate within the consumer discretionary sector supplying household and lifestyle products. The company serves primarily domestic custom...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.