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Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
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Adecco Group AG
(OTC:AHEXY)
68Neutral
Adecco Group AG (AHEXY) vs. S&P 500 (SPY)
Market Cap
$4.46B
Dividend Yield6.26%
Average Volume (3M)2.25K
Price to Earnings (P/E)13.7
Beta (1Y)0.68
Revenue Growth-3.37%
EPS Growth-6.77%
CountryUS
Employees35,000
SectorIndustrials
Sector Strength66
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.98
Shares Outstanding336,853,120
10 Day Avg. Volume6,738
30 Day Avg. Volume2,246
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Adecco Group AG Business Overview & Revenue Model
Company DescriptionAdecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa. It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, technology consulting and talent, tech academy, digital staffing services, and talent advisory and solutions under the Adecco, Adia, General Assembly, Badenoch + Clark, LHH, pontoon, Spring, and Modis. The company also operates Hired, a talent recruitment platform. As of December 31, 2021, it operated approximately 4,300 branches in 59 countries and territories. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.
How the Company Makes MoneyAdecco Group AG primarily generates revenue through its staffing and human resource services. The company earns money by providing temporary and permanent staffing solutions, charging client companies a fee for matching them with skilled workers. Adecco's revenue streams also include outsourcing services, where they manage entire HR processes for businesses, and career transition services, which assist employees during job changes. Key partnerships with businesses across diverse sectors and a global network of branches enhance Adecco's ability to source talent and fulfill client needs, contributing significantly to its earnings.
Adecco Group AG Financial Statement Overview
Summary
Adecco Group AG demonstrates financial resilience with steady revenues and effective cash management. However, profitability measures have shown signs of pressure, with declining margins and increased leverage.Income Statement
Adecco Group AG has shown a consistent revenue base over the years with a recent slight decline. The gross profit margin remains stable around 19%, indicating good cost management. However, net profit margins have been under pressure, dropping from 2.5% in 2021 to 1.3% in 2024. The EBIT and EBITDA margins have also decreased, reflecting challenges in maintaining operational efficiency.70
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio, increasing from 0.70 in 2019 to 0.97 in 2024, suggesting a rising leverage. The equity ratio has decreased slightly, indicating an increased reliance on debt financing. Return on equity has also declined from 18.4% in 2021 to 8.5% in 2024, reflecting reduced profitability on shareholder's equity.65
Positive
Cash Flow
Cash flows remain robust with operating cash flow consistently exceeding net income, showing effective cash management. The free cash flow has shown variability but is generally positive, supporting ongoing operations and investments. However, the free cash flow to net income ratio has decreased, indicating less cash generation relative to earnings.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.14B | 23.96B | 23.64B | 20.95B | 19.56B | Gross Profit |
| 4.50B | 4.97B | 4.97B | 4.28B | 3.79B | EBIT |
| 541.00M | 632.00M | 547.00M | 780.00M | 118.00M | EBITDA |
| 760.00M | 841.00M | 770.00M | 971.00M | 307.00M | Net Income Common Stockholders |
| 303.00M | 325.00M | 342.00M | 586.00M | -97.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 482.00M | 556.00M | 782.00M | 3.05B | 1.49B | Total Assets |
| 12.10B | 12.43B | 13.26B | 11.87B | 9.79B | Total Debt |
| 3.48B | 3.67B | 3.70B | 3.48B | 2.29B | Net Debt |
| 3.00B | 3.12B | 2.92B | 429.00M | 805.00M | Total Liabilities |
| 8.51B | 8.83B | 9.36B | 8.06B | 6.57B | Stockholders Equity |
| 3.58B | 3.60B | 3.88B | 3.79B | 3.21B |
| Cash Flow | Free Cash Flow | |||
| 563.00M | 347.00M | 328.00M | 590.00M | 563.00M | Operating Cash Flow |
| 707.00M | 563.00M | 543.00M | 722.00M | 720.00M | Investing Cash Flow |
| -157.00M | -209.00M | -1.45B | -206.00M | -162.00M | Financing Cash Flow |
| -634.00M | -620.00M | -1.38B | 980.00M | -290.00M |
Adecco Group AG Technical Analysis
Negative
13.37
Price Trends
14.03
Negative
13.24
Positive
14.71
Negative
Market Momentum
-0.38
Positive
44.30
Neutral
80.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHEXY, the sentiment is Negative. The current price of 13.37 is below the 20-day moving average (MA) of 14.04, below the 50-day MA of 14.03, and below the 200-day MA of 14.71, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHEXY.
Adecco Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.60B | 21.48 | 235.37% | 1.31% | 1.67% | -47.56% | |
69 Neutral | $3.33B | 13.85 | 13.92% | 2.62% | -3.27% | 62.57% | |
68 Neutral | $4.46B | 13.73 | 8.56% | 6.26% | -3.37% | -6.77% | |
68 Neutral | $2.94B | 32.96 | 95.48% | 3.04% | 1.47% | -45.91% | |
62 Neutral | $4.13B | 11.17 | 5.46% | 215.76% | 4.12% | -8.54% | |
61 Neutral | $4.60B | 18.48 | 16.96% | 4.80% | -9.33% | -37.06% | |
57 Neutral | $2.39B | 17.01 | 5.19% | 7.69% | -5.52% | 133.51% |
* Industrials Sector Average
Performance Comparison
AHEXY
Adecco Group AG
13.37
-3.73
-21.81%
NSP
Insperity
76.82
-28.95
-27.37%
KFY
Korn Ferry
59.48
-2.26
-3.66%
MAN
ManpowerGroup
42.86
-30.21
-41.34%
RHI
Robert Half
45.13
-24.05
-34.76%
TNET
TriNet Group
74.31
-53.89
-42.04%
Adecco Group AG Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: 4.95% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in market share gains and cash generation, contrasted by revenue declines and margin pressures across key segments and regions.Highlights
Strong Market Share Gains
Achieved a 200 basis point share gain in 2024 versus key competitors, following a 790 basis point gain in the previous year.
Record Cash Generation
Cash flow from operating activities was €491 million in Q4, with a full-year cash conversion ratio of 109%, significantly improving from 63% in the prior year.
G&A Savings Exceeded Expectations
Delivered €174 million in G&A savings net of inflation, surpassing the original €150 million target.
Positive Turnaround in Adecco U.S.
SME revenues in Adecco U.S. grew 1% in H2, with improved branch profitability and a 400 basis point outperformance versus the American Staffing Association Market Index.
Lowlights
Overall Revenue Decline
Full-year revenues decreased by 3% year-on-year on an organic trading days adjusted basis to €23.1 billion.
Gross Profit and Margin Decrease
Gross profit was 7% lower year-on-year, with a gross margin contraction of 80 basis points to 19.4%.
Challenges in Akkodis
Revenues in Akkodis were 4% lower due to a tech sector downturn, with a significant 15% revenue decline in Germany affected by the automotive industry.
France and Northern Europe Market Pressures
Revenues in France were 10% lower due to tough market conditions and lower demand from key clients, while Northern Europe revenues were 11% lower.
Company Guidance
During the Adecco Group's Q4 and Full Year 2024 Results Conference Call, the company provided guidance indicating a focus on maintaining profitability and market share amidst challenging economic conditions. In 2024, Adecco achieved a 200 basis point market share gain, with revenues declining by 3% to €23.1 billion and gross profit dropping 7% to nearly €4.5 billion. The EBITA margin, excluding one-offs, was 3.1%, down by 50 basis points. The group emphasized strong cash generation, with a cash conversion ratio of 109% and free cash flow of €563 million. Adecco plans to leverage technology advancements, including AI, to drive efficiency and profitability. For Q1 2025, Adecco expects gross margin to improve sequentially, with SG&A remaining flat. The updated dividend policy aims to accelerate deleveraging, targeting a net debt-to-EBITDA ratio at or below 1.5x by the end of 2027.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.