Want to see AU:ADH full AI Analyst Report?
Top Page
Adairs Ltd.
(Sydney:ADH)
Select Model
Select Model
Rating:55Neutral
Price Target:
AU$1.50
▼(-14.77% Downside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by mixed financial performance: strong and improving free cash flow is a positive, but the 2026 net loss and elevated leverage meaningfully increase risk. Technicals are slightly supportive with the stock above key short-to-mid-term moving averages, though the longer-term trend remains weaker. Valuation is helped by a high dividend yield, but a negative P/E reflects current unprofitable earnings.
Positive Factors
Strong Cash Generation
Positive operating and free cash flow across all reported years, with free cash flow improving in 2026, supports internal funding and resilience. This gives Adairs capacity to meet obligations and invest in stores, inventory and digital channels, although conversion should remain monitored.
Negative Factors
Return to Net Loss
The 2026 net loss weakened retained capital and demonstrates that revenue growth is not yet translating reliably into shareholder earnings. Restoring pricing, volume and cost discipline is necessary before profitability can be considered durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Positive operating and free cash flow across all reported years, with free cash flow improving in 2026, supports internal funding and resilience. This gives Adairs capacity to meet obligations and invest in stores, inventory and digital channels, although conversion should remain monitored.
Read all positive factors
Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$267.03M
Dividend Yield6.4%
Average Volume (3M)453.58K
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth3.83%
EPS Growth-251.57%
CountryAU
Employees469
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.22
Shares Outstanding178,614,620
10 Day Avg. Volume277,682
30 Day Avg. Volume453,580
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.51
Price to Sales (P/S)0.40
P/FCF Ratio3.14
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-1.04% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.19
Revenue Forecast (FY)AU$647.49M
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 primarily by selling home furnishing and homewares products to consumers through a multi-channel retail model (online and company-operated stores), with revenue recognised from product sales. Its key revenue streams are: (1) Ada...
Adairs Ltd. Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
44
Neutral
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 641.75M | 618.09M | 594.36M | 621.34M | 564.48M |
| Gross Profit | 116.67M | 289.30M | 282.20M | 120.12M | 148.05M |
| EBITDA | 117.42M | 102.36M | 126.56M | 132.05M | 118.91M |
| Net Income | -39.38M | 25.68M | 31.09M | 37.84M | 44.89M |
Balance Sheet | |||||
| Total Assets | 575.17M | 655.95M | 610.50M | 595.95M | 627.46M |
| Cash, Cash Equivalents and Short-Term Investments | 11.39M | 8.43M | 12.87M | 25.90M | 26.07M |
| Total Debt | 289.92M | 312.44M | 275.90M | 279.86M | 307.19M |
| Total Liabilities | 403.80M | 430.77M | 387.33M | 393.72M | 429.57M |
| Stockholders Equity | 171.37M | 225.17M | 223.16M | 202.22M | 197.88M |
Cash Flow | |||||
| Free Cash Flow | 82.55M | 65.25M | 66.27M | 96.07M | 52.16M |
| Operating Cash Flow | 98.18M | 78.69M | 93.68M | 108.40M | 61.17M |
| Investing Cash Flow | -15.64M | -13.45M | -27.41M | -12.32M | -108.16M |
| Financing Cash Flow | -79.46M | -69.66M | -79.24M | -96.48M | 47.49M |
Adairs Ltd. Technical Analysis
Positive
1.76
Price Trends
1.45
Positive
1.36
Positive
1.53
Negative
Market Momentum
0.01
Negative
55.15
Neutral
68.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Positive. The current price of 1.76 is above the 20-day moving average (MA) of 1.46, above the 50-day MA of 1.45, and above the 200-day MA of 1.53, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 68.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$5.73B | 10.27 | 11.55% | 6.00% | 9.50% | 29.80% | |
66 Neutral | AU$1.30B | 16.80 | 27.14% | 4.87% | 4.33% | 31.22% | |
62 Neutral | AU$47.95M | 9.28 | 14.55% | 8.20% | 8.43% | 23.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | AU$396.76M | 15.87 | 15.11% | 2.86% | 3.42% | -8.75% | |
55 Neutral | AU$267.03M | -6.62 | -19.53% | 5.85% | 3.83% | -251.57% | |
51 Neutral | AU$561.76M | 133.05 | 3.54% | ― | 10.63% | -62.61% |
* Consumer Cyclical Sector Average
AU:ADH
Adairs Ltd.
1.44
-1.18
-45.10%
AU:HVN
Harvey Norman Holdings Ltd
4.50
-1.38
-23.52%
AU:TPW
Temple & Webster Group Ltd
4.62
-19.31
-80.69%
AU:NCK
Nick Scali Limited
14.88
-8.17
-35.44%
AU:DSK
Dusk Group Ltd.
0.80
-0.11
-12.35%
AU:BLX
Beacon Lighting Group Ltd
1.95
-1.44
-42.48%
Adairs Ltd. Corporate Events
Adairs Publishes 2026 Corporate Governance Statement and ASX Appendix 4G
Aug 23, 2026
Adairs Limited has released its 2026 Corporate Governance Statement along with an Appendix 4G in line with Australian Securities Exchange listing rules. The documents map how Adairs complies with the ASX Corporate Governance Principles and Recomme...
Adairs releases FY26 full-year results and schedules investor briefing
Aug 23, 2026
Adairs Limited has released its FY26 full-year results presentation to the ASX, providing the market with detailed information on its performance for the year. The presentation accompanies the company’s Appendix 4E and 2026 Annual Report, wh...
Adairs lifts sales and margins but books FY26 loss amid portfolio reset
Aug 23, 2026
Adairs Limited reported FY26 group sales of $641.7 million, up 3.8 per cent, with Adairs and Mocka driving growth and Focus on Furniture weighing on performance. Gross margin edged higher to 59.0 per cent on tighter pricing and reduced discounting...
Adairs Declares Interim Dividend and Opens DRP Election
Aug 23, 2026
Adairs Limited has declared a fully franked interim dividend of AUD 0.06 per ordinary share, relating to the six-month period ended 30 June 2026. The stock will trade ex-dividend on 7 September, with a record date of 8 September and payment schedu...
Adairs lifts sales but takes major Focus on Furniture impairment
Jul 7, 2026
Adairs has reported that group sales for FY26 are expected to rise about 3.7 per cent to roughly $640 million, driven by solid growth at its Adairs and Mocka divisions, while underlying EBIT is forecast to edge down 1.3 per cent as weakness at Foc...
Adairs sets August date for FY26 results and investor briefing
Jul 6, 2026
Adairs Limited has scheduled the release of its full-year FY26 results, covering the 52 weeks ended 28 June 2026, for Monday, 24 August 2026. The announcement underscores the company’s commitment to investor engagement, with a conference cal...
Adairs Performance Rights Lapse Trims Potential Share Dilution
Jul 6, 2026
Adairs Limited has announced the lapse of 1,325,245 performance rights, which ceased on 30 June 2026 after the conditions attached to those rights were not met or became incapable of being satisfied. The termination of these conditional securities...
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...
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.