Education
About Us
Working with TipRanks
Follow Us
Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
Top Page
Adecco Group AG
(OTC:AHEXY)
Rating:74Outperform
Price Target:
$18.50
â–²(14.69% Upside)
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.41B
Dividend Yield3.68%
Average Volume (3M)949.00
Price to Earnings (P/E)17.2
Beta (1Y)0.66
Revenue Growth-2.35%
EPS Growth-3.74%
CountryUS
Employees33,597
SectorIndustrials
Sector Strength78
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.27
Shares Outstanding336,853,120
10 Day Avg. Volume821
30 Day Avg. Volume949
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit1.99
Enterprise Value/Ebitda12.10
Forecast
1Y Price Target
$18.50Price Target Upside14.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 generates revenue primarily through its staffing services, which involve charging client companies a fee for placing temporary or permanent workers. The company typically earns a margin on the wages paid to the workers, which is a significant source of income. Additionally, Adecco offers value-added services such as recruitment process outsourcing (RPO), managed services provider (MSP) solutions, and training and development programs, which further contribute to its revenue streams. Key partnerships with businesses across various sectors enhance Adecco's ability to meet demand and secure long-term contracts, thereby stabilizing its income. The company also benefits from economic trends, as increased demand for flexible and skilled labor in various industries drives growth in its business.
Adecco Group AG Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 4.54%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call indicated positive momentum with market share gains, revenue growth in key regions, and successful client acquisitions. However, challenges in Akkodis Germany, declines in certain revenue segments, and restructuring costs present notable challenges. The company's strong cash conversion and strategic initiatives provide a robust outlook, but significant efforts are needed to address existing challenges.Q2-2025 Updates
Positive Updates
Market Share Gains
The Adecco Group and Adecco gained 205 and 130 basis points in market share, respectively, outperforming key competitors.
Revenue Growth in Key Regions
Adecco Americas and Adecco APAC reported year-on-year revenue growth of 14% and 9%, respectively.
Client Wins and Strategic Contracts
Adecco secured significant contracts with a global OEM for EV battery production, a global consulting firm for recruitment, and a multiyear contract with a French defense company.
Strong Cash Conversion
The company maintained a strong cash conversion rate of 98% with disciplined working capital management.
Progress in Adecco U.S.
Adecco U.S. showed significant improvement with a 10% revenue increase, driven by large account wins in consumer goods and food and beverage.
Ezra's Record Performance
Ezra, part of LHH, delivered record revenues with a 39% increase, driven by strong demand for its AI-driven coaching services.
Negative Updates
Challenges in Akkodis Germany
Akkodis Germany faced significant headwinds in the automotive sector, leading to a 20% revenue drop compared to pre-crisis levels.
Decline in Permanent Placement
Permanent Placement revenues were 9% lower, impacting gross margin and reflecting ongoing market pressures.
Restructuring Costs in Germany
A EUR 40 million savings plan was launched in Germany, affecting approximately 450 consultants and employees.
EBITA Margin Pressure
The EBITA margin was 60 basis points lower year-on-year, impacted by lower gross margins and timing of FESCO income.
Continued Pressure in Tech Staffing
The ongoing downturn in tech staffing impacted Akkodis in North America, with revenues 4% lower.
Company Guidance
During the Adecco Group's Q2 2025 results call, several key metrics and strategic insights were highlighted. The Group achieved significant market share gains, with an increase of 205 basis points overall and 130 basis points for Adecco compared to competitors. Revenue showed a year-on-year growth of 2% on a trading day adjusted basis, led by Adecco Americas with a 14% increase and Adecco APAC with a 9% increase. Gross profit reached EUR 1.1 billion, reflecting an 18.9% gross margin, while EBITDA excluding one-offs stood at EUR 141 million with a margin of 2.5%. Adjusted EPS was EUR 0.46, and operating cash flow was EUR 81 million, supported by disciplined working capital management and maintaining a best-in-class DSO. Cash conversion remained robust at 98%. Additionally, strategic execution led to significant client wins across various sectors, demonstrating the Group's competitive edge and effective leveraging of digital expertise. The outlook for Q3 indicates continued positive momentum, with expectations of sequential gross margin improvement and lower SG&A expenses, signaling an anticipated enhancement in profitability through the second half of the year.Adecco Group AG Financial Statement Overview
Summary
Adecco Group shows stable financials with strong cash flow management and a solid balance sheet. However, inconsistencies in revenue growth and profitability margins suggest areas for improvement. Moderate leverage and efficient cash management are positives.Income Statement
Adecco Group has demonstrated stable revenue with a slight decrease in the TTM period compared to the previous year. The gross profit margin remains healthy at approximately 19.4%, with a TTM net profit margin of around 1.26%. Although the EBIT and EBITDA margins show a slight decline, they remain positive. Revenue growth has been inconsistent, with recent declines, indicating some market challenges.72
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of approximately 1.01, suggesting balanced leverage. The equity ratio stands at 29.51%, reflecting a stable capital structure. However, a gradual decline in equity and total assets indicates potential future risks. Return on equity is modest, showing limited profitability growth.68
Positive
Cash Flow
Adecco Group's cash flow statements show robust operating cash flow, with a high operating cash flow to net income ratio of 2.17, indicating efficient cash management. The free cash flow to net income ratio is also strong, reflecting the company's ability to generate cash. However, recent free cash flow growth shows some volatility.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 |
| EBITDA | 760.00M | 841.00M | 770.00M | 971.00M | 307.00M |
| Net Income | 303.00M | 325.00M | 342.00M | 586.00M | -97.00M |
Balance Sheet | |||||
| Total Assets | 12.10B | 12.43B | 13.26B | 11.87B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 482.00M | 556.00M | 782.00M | 3.05B | 1.49B |
| Total Debt | 3.48B | 3.67B | 3.70B | 3.48B | 2.29B |
| 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
Positive
16.13
Price Trends
15.39
Positive
14.52
Positive
13.76
Positive
Market Momentum
0.20
Positive
53.59
Neutral
71.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHEXY, the sentiment is Positive. The current price of 16.13 is above the 20-day moving average (MA) of 16.08, above the 50-day MA of 15.39, and above the 200-day MA of 13.76, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 71.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AHEXY.
Adecco Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.80B | 15.93 | 13.49% | 2.35% | -1.23% | 44.06% | |
74 Outperform | $5.41B | 17.25 | 8.57% | 3.68% | -2.35% | -3.74% | |
68 Neutral | $3.21B | 22.53 | 139.13% | 1.59% | 1.39% | -50.47% | |
61 Neutral | $3.69B | 20.71 | 12.75% | 6.17% | -6.95% | -41.84% | |
58 Neutral | $1.91B | 18.36 | -0.78% | 5.48% | -3.79% | -138.56% | |
58 Neutral | HK$13.63B | 5.51 | -2.78% | 5.72% | 2.29% | -57.50% | |
54 Neutral | $1.97B | 49.91 | 31.50% | 4.59% | 2.40% | -75.66% |
* Industrials Sector Average
Performance Comparison
AHEXY
Adecco Group AG
16.13
0.22
1.38%
NSP
Insperity
52.28
-37.97
-42.07%
KFY
Korn Ferry
72.46
4.95
7.33%
MAN
ManpowerGroup
41.27
-26.71
-39.29%
RHI
Robert Half
36.33
-22.67
-38.42%
TNET
TriNet Group
65.35
-29.31
-30.96%
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.