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Adairs Ltd.
(Sydney:ADH)
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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
Revenue recovery and rebound
The return to revenue growth after the 2024 decline indicates that Adairs retained demand and restored sales momentum across its retail operations. If maintained, stronger top-line performance can improve operating leverage, support reinvestment, and provide a foundation for earnings recovery over the next several quarters.
Negative Factors
2026 net loss
The shift from sustained profitability to a net loss materially weakens earnings quality and reduces the company’s ability to fund growth from retained profits. Even with positive EBIT and EBITDA margins, continued bottom-line losses could constrain capital allocation and make recovery more dependent on improving retail margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue recovery and rebound
The return to revenue growth after the 2024 decline indicates that Adairs retained demand and restored sales momentum across its retail operations. If maintained, stronger top-line performance can improve operating leverage, support reinvestment, and provide a foundation for earnings recovery over the next several quarters.
Read all positive factors
Adairs Ltd. (ADH) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$226.26M
Dividend Yield9.13%
Average Volume (3M)445.42K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue Growth3.83%
EPS Growth-251.57%
CountryAU
Employees469
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.22
Shares Outstanding180,284,960
10 Day Avg. Volume537,956
30 Day Avg. Volume445,420
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$645.16M
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 | 106.46M | 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
Negative
1.76
Price Trends
1.33
Negative
1.33
Negative
1.40
Negative
Market Momentum
-0.02
Positive
43.61
Neutral
40.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ADH, the sentiment is Negative. The current price of 1.76 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.33, and above the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 40.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | AU$1.22B | 16.01 | 27.14% | 5.47% | 4.33% | 31.22% | |
65 Neutral | AU$415.11M | 15.37 | 14.04% | 4.14% | 3.42% | -8.75% | |
62 Neutral | AU$43.90M | 8.23 | 14.55% | 7.94% | 8.43% | 23.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | AU$5.17B | 9.65 | 10.78% | 6.53% | 4.65% | 2.02% | |
55 Neutral | AU$226.26M | -5.77 | -19.53% | 9.13% | 3.83% | -251.57% | |
51 Neutral | AU$517.47M | 124.37 | 3.54% | ― | 10.63% | -62.61% |
* Consumer Cyclical Sector Average
AU:ADH
Adairs Ltd.
1.23
-1.16
-48.54%
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-45.79%
Adairs Ltd. Corporate Events
Adairs Director Trent Peterson Increases Shareholding via On-Market Purchase
Oct 6, 2026
Adairs Limited has disclosed a change in the shareholding of director Trent Peterson following an on-market purchase of company stock. Peterson acquired 300,000 fully paid ordinary shares at $1.25 per share, increasing his direct holding to 1,295,...
Adairs Director Trent Peterson Increases Shareholding via On-Market Purchase
Oct 6, 2026
Adairs Limited has disclosed a change in the shareholding of director Trent Peterson following an on-market purchase of company stock. Peterson acquired 300,000 fully paid ordinary shares at $1.25 per share, increasing his direct holding to 1,295,...
Adairs Director Rachel Kelly Increases Stake via Dividend Reinvestment
Oct 5, 2026
Adairs Limited has reported a change in the shareholding of director Rachel Kelly, who increased her direct holding from 33,735 to 35,354 ordinary shares. The additional 1,619 shares were acquired at $1.25 per share under the company’s FY26 ...
Adairs Director Increases Shareholding via Dividend Reinvestment Plan
Oct 1, 2026
Adairs Limited has disclosed a change in director Kiera Grant’s indirect interest in the company’s securities following participation in its FY26 final dividend reinvestment plan. Grant, as the ultimate beneficiary via KLG Co Pty Ltd w...
Adairs Boosts ASX Free Float With Dividend-Plan Share Issue
Oct 1, 2026
Adairs Limited has applied for quotation on the ASX of 1,670,332 ordinary fully paid shares, issued on October 1, 2026. The new securities have been created under a dividend or distribution plan, modestly increasing the company’s tradable sh...
Adairs CEO to Step Down as Retailer Bolsters Leadership Amid Mixed Trading
Sep 28, 2026
Adairs Limited has announced that Group CEO and Managing Director Elle Roseby has tendered her resignation, with an orderly succession process underway and her tenure expected to continue through to around March 2027. The board is commencing a sea...
Adairs updates dividend notice to include DRP pricing for June 2026 period
Sep 16, 2026
Adairs Limited has updated its dividend notification for ordinary fully paid shares, relating to the six‑month period ended 30 June 2026. The update, lodged on 17 September 2026, adds the Dividend Reinvestment Plan (DRP) price details to the...
Adairs sets November AGM date and director nomination deadline
Sep 1, 2026
Adairs Limited has scheduled its 2026 Annual General Meeting for 11 November 2026 at the Hyatt Centric Melbourne, with proceedings to begin at 11.15am to allow attendees to observe the Remembrance Day minute’s silence at 11.00am. The company...
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...
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.