Education
About Us
Working with TipRanks
Follow Us
Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
Top Page
Adecco Group AG
(OTC:AHEXY)
Select Model
Select Model
Rating:67Neutral
Price Target:
$15.00
▲(1.49% Upside)
Adecco Group AG's overall stock score of 67 reflects a combination of mixed financial performance, weak technical indicators, reasonable valuation, and positive earnings call sentiment. The most significant factor is the positive outlook from the earnings call, which offsets some of the financial and technical challenges. The valuation provides a balanced view, while the technical analysis suggests caution. Addressing operational challenges and improving cash flow will be key to enhancing the stock's attractiveness.
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.61B
Dividend Yield4.05%
Average Volume (3M)413.00
Price to Earnings (P/E)14.7
Beta (1Y)0.55
Revenue Growth-2.35%
EPS Growth-3.74%
CountryUS
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.39
Shares Outstanding336,853,120
10 Day Avg. Volume290
30 Day Avg. Volume413
Financial Highlights & Ratios
PEG Ratio-1.61
Price to Book (P/B)1.13
Price to Sales (P/S)0.17
P/FCF Ratio7.15
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda12.34
Forecast
1Y Price Target
$27.68Price Target Upside87.28% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Positive
The call highlighted positive revenue trends and market share gains, particularly in the U.S. and training segments, alongside strong cash flow management. However, there were notable challenges in gross margin declines and specific sectors like logistics and permanent placements. Overall, the positive aspects, including strategic progress in key markets, outweigh the challenges.Q3-2025 Updates
Positive Updates
Significant Market Share Gains
The group and Adecco gained market share by 375 and 300 basis points, respectively, indicating strong competitive positioning.
Revenue Growth Across Key Regions
Group revenues reached EUR 5.8 billion, a 3.4% increase year-on-year on an organic trading days adjusted basis, with Adecco U.S. revenues increasing by 20% year-on-year.
Strong Cash Flow and Cash Conversion
Operating cash flow was EUR 200 million, up EUR 79 million from the prior year, with a strong cash conversion ratio of 110%.
Akkodis Germany Turnaround Progress
Turnaround plan in Akkodis Germany is progressing well with targeted savings now at EUR 50 million, contributing to an expected return to healthy profitability by year-end.
Positive Outlook in Training and Upskilling
EZRA and General Assembly showed strong growth with revenues up 59% and 48%, respectively, indicating high demand in the training and upskilling market.
Negative Updates
Gross Margin Decline
Gross margin reached 19.2%, which represents a modest year-on-year decrease of 10 basis points on an organic basis.
Challenges in Perm Placement
Permanent placement revenues were 7% lower, reflecting challenges in achieving higher client recruitment confidence.
Logistics Sector Challenges
Logistics presented some challenges in key markets, negatively impacting revenue growth in certain regions.
Akkodis Revenue Decline
Akkodis' revenues were 3% lower year-on-year on an organic constant currency basis, indicating challenges in certain segments like Germany.
Company Guidance
During the Adecco Group's Q3 2025 earnings call, the company reported a strong performance, highlighted by a 3.4% year-on-year increase in revenues to EUR 5.8 billion, on an organic trading days adjusted basis. The group gained significant market share, leading key competitors by 375 basis points overall and 300 basis points in Adecco. The U.S. market was particularly strong, with revenues increasing by 20% year-on-year. Gross profit reached EUR 1.1 billion, yielding a gross margin of 19.2%, which matched the company's guidance despite a year-on-year decrease of 10 basis points, but a sequential improvement of 30 basis points. EBITA, excluding one-offs, was EUR 195 million with a 3.4% margin, and adjusted EPS stood at EUR 0.67. Cash conversion was robust at 110%, with operating cash flow of EUR 200 million, up EUR 79 million from the previous year. The company remains focused on achieving a 3% EBITA margin floor for the full year, with expectations for Q4 revenue growth to align with Q3's performance on an organic basis.Adecco Group AG Financial Statement Overview
Summary
Adecco Group AG's financial performance shows mixed results. The income statement indicates declining revenue and profit margins, suggesting operational challenges. The balance sheet reflects moderate stability but increased leverage, requiring careful debt management. Cash flow analysis reveals declining free cash flow, raising liquidity concerns. While the company remains profitable, addressing revenue growth and improving cash flow are crucial for future financial health.Income Statement
Adecco Group AG's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -0.3% TTM, indicating potential challenges in market demand or competition. Gross profit margin is stable at around 19.2% TTM, but net profit margin has decreased slightly to 1.26% TTM, reflecting pressure on profitability. EBIT and EBITDA margins have also seen slight declines, suggesting operational challenges. Overall, while the company maintains profitability, the declining revenue and margins indicate areas for improvement.65
Positive
Balance Sheet
The balance sheet of Adecco Group AG reflects moderate financial stability. The debt-to-equity ratio has increased to 1.14 TTM, indicating a higher reliance on debt financing, which could pose risks if interest rates rise. Return on equity remains stable at 8.49% TTM, showing consistent returns to shareholders. The equity ratio is not provided, but the overall leverage suggests a need for careful debt management. The company appears to be managing its equity and debt levels, but the increasing debt ratio warrants attention.70
Positive
Cash Flow
Cash flow analysis reveals some concerns for Adecco Group AG. The free cash flow growth rate is negative at -15.48% TTM, indicating a decline in cash available for reinvestment or debt reduction. The operating cash flow to net income ratio is 0.11 TTM, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is 0.76 TTM, which is reasonable but shows a decline from previous periods. Overall, the cash flow situation highlights potential liquidity challenges that need to be addressed.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.93B | 23.14B | 23.96B | 23.64B | 20.95B | 19.56B |
| Gross Profit | 4.41B | 4.50B | 4.97B | 4.97B | 4.28B | 3.79B |
| EBITDA | 718.00M | 760.00M | 841.00M | 770.00M | 971.00M | 307.00M |
| Net Income | 290.00M | 303.00M | 325.00M | 342.00M | 586.00M | -97.00M |
Balance Sheet | ||||||
| Total Assets | 11.85B | 12.10B | 12.43B | 13.26B | 11.87B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 270.00M | 482.00M | 556.00M | 782.00M | 3.05B | 1.49B |
| Total Debt | 3.65B | 3.48B | 3.67B | 3.70B | 3.48B | 2.29B |
| Total Liabilities | 8.64B | 8.51B | 8.83B | 9.36B | 8.06B | 6.57B |
| Stockholders Equity | 3.20B | 3.58B | 3.60B | 3.88B | 3.79B | 3.21B |
Cash Flow | ||||||
| Free Cash Flow | 415.00M | 563.00M | 347.00M | 328.00M | 590.00M | 563.00M |
| Operating Cash Flow | 549.00M | 707.00M | 563.00M | 543.00M | 722.00M | 720.00M |
| Investing Cash Flow | -144.00M | -157.00M | -209.00M | -1.45B | -206.00M | -162.00M |
| Financing Cash Flow | -416.00M | -634.00M | -620.00M | -1.38B | 980.00M | -290.00M |
Adecco Group AG Technical Analysis
Neutral
14.78
Price Trends
14.50
Positive
15.17
Negative
14.47
Positive
Market Momentum
0.22
Positive
48.08
Neutral
3.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHEXY, the sentiment is Neutral. The current price of 14.78 is below the 20-day moving average (MA) of 14.79, above the 50-day MA of 14.50, and above the 200-day MA of 14.47, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 48.08 is Neutral, neither overbought nor oversold. The STOCH value of 3.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AHEXY.
Adecco Group AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.32B | 13.47 | 13.55% | 2.89% | 0.79% | 34.85% | |
67 Neutral | $4.61B | 14.67 | 8.57% | 4.05% | -2.35% | -3.74% | |
65 Neutral | $1.03B | 19.80 | 24.08% | 0.94% | 9.64% | 9.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $2.63B | 16.89 | 11.27% | 8.66% | -7.27% | -43.88% | |
49 Neutral | $1.19B | 71.65 | 16.04% | 7.57% | 3.19% | -86.21% | |
46 Neutral | $1.26B | ― | -1.00% | 8.18% | -2.44% | -156.01% |
* Industrials Sector Average
AHEXY
Adecco Group AG
14.78
2.23
17.77%
BBSI
Barrett Business Services
34.22
-8.30
-19.52%
NSP
Insperity
32.45
-41.06
-55.86%
KFY
Korn Ferry
62.57
-12.90
-17.09%
MAN
ManpowerGroup
26.63
-33.31
-55.57%
RHI
Robert Half
25.75
-45.57
-63.90%
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.