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Randstad Nv Unsponsored ADR (RANJY)
:RANJY
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Randstad NV
(OTC:RANJY)
52Neutral
Randstad NV (RANJY) vs. S&P 500 (SPY)
Market Cap
$7.46B
Dividend Yield7.5%
Average Volume (3M)19.15K
Price to Earnings (P/E)58.4
Beta (1Y)0.60
Revenue Growth-5.08%
EPS Growth-80.59%
CountryUS
Employees41,650
SectorIndustrials
Sector Strength66
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding361,738,620
10 Day Avg. Volume16,711
30 Day Avg. Volume19,147
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.34
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 ConsensusN/A
Number of Analyst Covering0
Randstad NV Business Overview & Revenue Model
Company DescriptionRandstad NV (RANJY) is a global leader in the HR services industry, headquartered in the Netherlands. The company specializes in staffing and workforce solutions, providing a wide range of human resources services including temporary staffing, permanent placement, and outsourcing. Operating across various sectors such as administrative, industrial, and specialized professional services, Randstad leverages its extensive network and expertise to match employers with suitable candidates and support workforce management globally.
How the Company Makes MoneyRandstad NV generates revenue primarily through fees charged for its staffing and workforce solutions. The company's key revenue streams include temporary staffing services, where it supplies workers to businesses on a short-term basis, and permanent placement services, which involve matching candidates with employers for long-term employment. Additional income is derived from HR solutions such as outsourcing, where Randstad manages entire HR processes or functions for its clients. The company's earnings are also bolstered by its strategic partnerships and collaborations with businesses in various industries, which enhance its ability to meet the diverse needs of its clients effectively.
Randstad NV Financial Statement Overview
Summary
Randstad NV faces several financial challenges with declining revenues and profitability. The balance sheet shows increasing leverage and declining equity returns. Cash flow generation remains positive but has shown a downward trend, highlighting the need for strategic improvements to restore growth and financial stability.Income Statement
Randstad NV has shown a decline in revenue over the past few years. The net profit margin for 2024 was 0.51%, indicating very thin profitability. Gross profit margin decreased to 19.49% in 2024, down from 20.76% in 2023. EBITDA margin also fell to 2.51% in 2024 from 4.6% in 2023, reflecting operational challenges. The revenue growth rate was negative, with a decline of 5.13% from 2023 to 2024, showing a downward trend in revenue generation.45
Neutral
Balance Sheet
The company's balance sheet shows a stable equity ratio of 36.92% in 2024, which indicates a moderate level of financial leverage. The debt-to-equity ratio rose to 0.54 in 2024 from 0.25 in 2020, reflecting an increase in debt levels. Return on Equity (ROE) decreased to 2.98% from 13.28% in 2023, indicating reduced profitability relative to shareholder equity. The increase in total debt over the years could pose a risk if not managed carefully.60
Neutral
Cash Flow
Randstad NV's operating cash flow to net income ratio was 5.28 in 2024, suggesting strong cash generation relative to net income. However, free cash flow declined significantly from 2023, with a free cash flow to net income ratio of 4.59. The free cash flow growth rate was negative due to reduced operational efficiency and capital expenditure increases, indicating a need for improved cash management.55
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 26.54B | 24.12B | 25.43B | 27.57B | 24.64B | 20.72B | Gross Profit |
| 5.47B | 4.70B | 5.28B | 5.75B | 4.90B | 3.95B | EBIT |
| 1.11B | 405.00M | 831.00M | 1.14B | 1.03B | 384.00M | EBITDA |
| 1.30B | 606.00M | 1.17B | 1.47B | 1.39B | 914.00M | Net Income Common Stockholders |
| 844.00M | 123.00M | 624.00M | 929.00M | 768.00M | 304.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 357.00M | 357.00M | 261.00M | 274.00M | 859.00M | 474.00M | Total Assets |
| 11.19B | 11.19B | 10.69B | 11.11B | 11.04B | 9.59B | Total Debt |
| 2.22B | 2.22B | 1.18B | 1.14B | 1.27B | 729.00M | Net Debt |
| 1.86B | 1.86B | 923.00M | 870.00M | 415.00M | 255.00M | Total Liabilities |
| 7.06B | 7.06B | 5.99B | 6.19B | 6.14B | 4.92B | Stockholders Equity |
| 4.13B | 4.13B | 4.70B | 4.91B | 4.90B | 4.67B |
| Cash Flow | Free Cash Flow | ||||
| 897.00M | 565.00M | 1.10B | 951.00M | 786.00M | 1.36B | Operating Cash Flow |
| 997.00M | 649.00M | 1.19B | 1.07B | 914.00M | 1.46B | Investing Cash Flow |
| -251.00M | -518.00M | -147.00M | -290.00M | -207.00M | -112.00M | Financing Cash Flow |
| -649.00M | -21.00M | -1.03B | -1.37B | -322.00M | -1.09B |
Randstad NV Technical Analysis
Negative
21.38
Price Trends
21.53
Negative
21.57
Negative
22.49
Negative
Market Momentum
0.22
Positive
45.54
Neutral
24.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RANJY, the sentiment is Negative. The current price of 21.38 is below the 20-day moving average (MA) of 22.38, below the 50-day MA of 21.53, and below the 200-day MA of 22.49, indicating a bearish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 24.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RANJY.
Randstad NV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.74B | 19.53 | 6.67% | 5.32% | -5.61% | 77.92% | |
62 Neutral | $8.07B | 13.60 | 3.76% | 3.13% | 3.60% | -14.67% | |
60 Neutral | $5.57B | 22.34 | 16.96% | 4.00% | -9.33% | -37.06% | |
60 Neutral | $58.27M | 9.31 | 5.88% | ― | -3.02% | 201.62% | |
56 Neutral | $460.12M | 11.43 | -0.05% | 2.28% | -10.42% | -101.51% | |
52 Neutral | $7.46B | 58.41 | 2.89% | 7.50% | -5.08% | -80.59% | |
44 Neutral | $157.75M | ― | -32.53% | ― | -17.78% | -820.48% |
* Industrials Sector Average
Performance Comparison
RANJY
Randstad NV
20.82
-3.58
-14.67%
KELYA
Kelly Services
13.24
-10.56
-44.37%
MAN
ManpowerGroup
58.65
-12.26
-17.29%
RHI
Robert Half
54.00
-20.50
-27.52%
TBI
Trueblue
5.31
-6.72
-55.86%
DLHC
DLH Holdings
3.95
-9.24
-70.05%
Randstad NV Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 2.99% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strategic advancements in digital marketplaces and some regional growth, particularly in Southern Europe. However, these positives were overshadowed by significant revenue declines, challenging conditions in key markets, and adverse impacts on gross margin due to high sickness levels.Highlights
Digital Marketplace Expansion in the US
Randstad completed the rollout of its digital marketplace in all 40 states in the US, resulting in an annual run rate of over EUR1 billion. This has led to faster client ramp-ups, higher fill rates, talent retention, and productivity improvements.
Strong Performance in Southern Europe
Spain, Italy, and Belgium showed growth for the quarter, continuing the positive momentum from the start of the year. Notably, Spain reported a double-digit growth of 10% in its Operational Talent Solutions.
Strategic Merger of Monster and CareerBuilder
Randstad announced the merger of Monster with CareerBuilder to create the third-largest job board in the US, expected to deliver significant scale benefits.
Lowlights
Revenue Decline
Randstad reported a revenue decline of 7.5% year-on-year to EUR6.1 billion. This was attributed to challenging trading conditions and subdued hiring activities across many markets.
High Sickness Levels Impacting Gross Margin
The gross margin decreased by 40 basis points to 19.8%, affected by high sickness levels and incidental impacts in Germany, which had a negative impact on the temp margin.
Weak Performance in North Europe and Germany
Northern Europe and Germany continued to face a challenging business environment, with growth coming in at minus 10%. Germany, in particular, reported a revenue decline of 16% with no sequential improvement.
Company Guidance
During the Randstad Second Quarter Results 2024 Call, CEO Sander Van't Noordende outlined several key metrics and strategic initiatives. The company reported revenues of EUR6.1 billion, reflecting a 7.5% year-on-year decline, with a gross margin of 19.8%, down by 40 basis points from the previous year. The underlying EBITA was EUR181 million, representing 3% of revenue and a last four quarter recovery ratio of 44%. While some markets like Spain, Italy, and Belgium showed growth, others such as North America, France, Netherlands, and Germany did not see significant improvements. Randstad increased commercial activities, resulting in double-digit growth in client visits and maintained a stable field capacity. Looking ahead to the third quarter, the company plans to focus on reducing indirect costs while investing in talent engagement and technology, with stable initial July volumes compared to Q2.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.