Adolfo Dominguez (ADZ) AI Stock Analysis

Adolfo Dominguez

(BME:ADZ)

Select Model

Rating:58Neutral

Price Target:EUR 7.50▲(6.38% Upside)

Action:reiterated

Date:08/06/26

The score is driven primarily by improving fundamentals and strong cash generation, offset by high/volatile leverage and thin profitability. Technicals are mildly constructive but not strongly trending, while valuation is a headwind given the high P/E and no dividend yield data.

Positive Factors

Revenue and profitability turnaroundThe shift from deep losses to recurring profitability, alongside rising revenue through 2026, indicates a materially improved operating base. If maintained, this turnaround can strengthen internal funding capacity and support more resilient performance over the next several quarters.

Negative Factors

Elevated and volatile leverageHigh debt relative to equity leaves the company more exposed to weaker trading conditions and reduces financial flexibility. The pronounced year-to-year leverage swing also points to an unstable capital structure, increasing sensitivity to refinancing and liquidity needs.

Adolfo Dominguez (ADZ) vs. iShares MSCI Spain ETF (EWP)

Market Cap: EUR 64.99M
Dividend Yield: ―
Average Volume (3M): 2,199
Price to Earnings (P/E): 39.2
Beta (1Y): 0.22
Revenue Growth: ―
EPS Growth: ―
Country: Spain
Employees: 1,031
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

Adolfo Dominguez Business Overview & Revenue Model

Company Description

Adolfo Domínguez, S.A. specializes in the entire process of developing, producing, sourcing, distributing, and retailing a variety of products. Their extensive catalog includes ready-to-wear clothing, footwear, handbags, various accessories, home fur...

How the Company Makes Money

Adolfo Domínguez makes money primarily by selling branded fashion products (apparel and accessories) to end customers through multiple distribution channels. A significant revenue stream comes from retail sales in physical stores, including both dire...

Adolfo Dominguez Financial Statement Overview

Summary

Operations have improved with rising revenue (2022–2026), a return to profitability, and strong operating/free cash flow. However, the balance sheet is a major constraint due to elevated and volatile leverage, profitability remains thin at the net level, and the sharp 2026 gross-margin swing reduces confidence in margin durability.

Income Statement

62Positive

Balance Sheet

40Negative

Cash Flow

74Positive

Financial statement breakdown
Breakdown	TTM	Feb 2026	Feb 2025	Feb 2024	Feb 2023	Feb 2022
Income Statement
Total Revenue	139.02M	139.02M	136.50M	126.67M	114.18M	92.07M
Gross Profit	2.01M	26.63M	76.65M	71.89M	64.89M	51.61M
EBITDA	20.83M	18.92M	16.93M	16.69M	13.70M	369.49K
Net Income	1.64M	1.64M	908.00K	730.18K	158.66K	-9.27M
Balance Sheet
Total Assets	107.72M	107.72M	107.66M	112.57M	96.82M	85.63M
Cash, Cash Equivalents and Short-Term Investments	8.39M	8.39M	3.04M	4.56M	9.28M	15.35M
Total Debt	52.08M	52.08M	10.36M	55.64M	50.81M	45.95M
Total Liabilities	88.19M	88.19M	90.64M	93.90M	79.61M	70.10M
Stockholders Equity	19.53M	19.53M	17.01M	18.68M	17.21M	15.52M
Cash Flow
Free Cash Flow	20.33M	20.33M	13.89M	10.51M	1.75M	3.68M
Operating Cash Flow	21.16M	21.16M	16.50M	14.39M	8.11M	5.91M
Investing Cash Flow	-168.51K	-168.51K	642.00K	-4.29M	-5.80M	-2.49M
Financing Cash Flow	-16.37M	-16.37M	-18.12M	-14.89M	-8.92M	-4.87M

Adolfo Dominguez Technical Analysis

Technical Analysis SentimentPositive

Last Price7.05

Price Trends

50DMA6.54Positive

100DMA6.28Positive

200DMA5.86Positive

Market Momentum

MACD0.14Negative

RSI65.02Neutral

STOCH93.33Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ADZ, the sentiment is Positive. The current price of 7.05 is above the 20-day moving average (MA) of 6.86, above the 50-day MA of 6.54, and above the 200-day MA of 5.86, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ADZ.

Adolfo Dominguez Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

ES:ADZ against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ES:ADZ	58Neutral	EUR 64.99M	39.17	9.84%	―	―	―
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ES:NXT	40Underperform	EUR 453.65M	53.03	94.84%	12.23%	54.87%	19.05%

* General Sector Average

Performance Comparison

ES:ADZ and its peers over the selected period
Show on chart	Ticker	Company Name	Price	Change	% Change
	ES:ADZ	Adolfo Dominguez	7.05	2.00	39.60%
	ES:NXT	Nueva Expresion Textil, S.A.	0.98	0.22	28.40%

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.

Date of analysis: Aug 06, 2026

Adolfo Dominguez AI Stock Analysis