Adecco Group AG (AHEXY) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: 4.24%
• Average Volume (3M): 413.00
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.55
• Revenue Growth: -2.35%
• EPS Growth: -3.74%
• Country: US
• Employees: 33,597
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.27
• Shares Outstanding: 336,853,120
• 10 Day Avg. Volume: 290
• 30 Day Avg. Volume: 413
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 2.01
• Enterprise Value/Ebitda: 12.34
• 1Y Price Target: $27.95
• Price Target Upside: 97.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: $16.00 ▲(13.23% Upside)

Adecco Group AG's overall stock score reflects a mixed financial performance with operational challenges and liquidity concerns. The earnings call provided a positive outlook with revenue growth and market share gains, but challenges in certain segments remain. The stock's valuation is reasonable, offering a good dividend yield. Technical analysis suggests a neutral market sentiment.

Adecco Group AG Business Overview & Revenue Model

Company Description

Adecco Group AG is a global leader in workforce solutions, operating in the human resources and staffing industry. The company provides a wide range of services including temporary staffing, permanent placement, outsourcing, and talent development. Adecco serves various sectors, including information technology, engineering, finance, and healthcare, catering to the staffing needs of companies and helping job seekers find employment opportunities worldwide. With its extensive network and innovative digital platforms, Adecco aims to connect talent with businesses efficiently.

How the Company Makes Money

Adecco 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 Financial Statement Overview

Summary

Adecco Group AG's financial performance is mixed, with declining revenue growth and profit margins indicating operational challenges. The balance sheet shows moderate stability but increased leverage, while cash flow analysis reveals declining free cash flow, raising liquidity concerns.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 14.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 14.13 is below the 20-day moving average (MA) of 14.66, below the 50-day MA of 14.74, and below the 200-day MA of 14.17, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHEXY.

Adecco Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	―	$3.68B	14.94	13.55%	2.57%	0.79%	34.85%
AHEXY	―	$4.73B	15.08	8.57%	4.24%	-2.35%	-3.74%
BBSI	―	$1.06B	20.35	25.36%	0.77%	9.48%	11.62%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	―	$2.95B	18.85	11.27%	7.92%	-7.27%	-43.88%
NSP	―	$1.72B	43.70	31.50%	5.27%	2.40%	-75.66%
MAN	―	$1.50B	-68.60	-1.00%	6.97%	-2.44%	-156.01%

Adecco Group AG Corporate Events

Adecco Group Reports Mixed H1 2025 Results

Adecco Group, a leading global staffing and workforce solutions provider, operates across various sectors including temporary staffing, permanent placement, and career transition services. In the first half of 2025, Adecco Group reported a slight decline in revenues by 2% on a reported basis, with significant market share gains in the Adecco Global Business Unit (GBU) despite challenging market conditions. The company’s gross margin decreased by 40 basis points compared to the previous year, primarily due to a shift in business mix and pricing strategies. Key financial metrics showed a decrease in EBITA by 19% and a net income decline of 10% year-on-year, reflecting the company’s strategic focus on cost management and market share expansion. Adecco’s free cash flow turned negative, with an outflow of EUR 113 million, influenced by dividend distributions and increased net debt. Looking ahead, Adecco Group’s management remains optimistic about improving profitability in the second half of 2025, focusing on agile capacity management and securing general and administrative savings.

Adecco Group’s Earnings Call: Growth Amid Challenges

The recent earnings call from Adecco Group presented a mixed yet optimistic outlook for the company. While the company celebrated significant market share gains and revenue growth in key regions, challenges such as declines in certain revenue segments and restructuring costs in Germany were also highlighted. Despite these hurdles, Adecco’s strong cash conversion and strategic initiatives suggest a promising future, though substantial efforts are required to overcome current challenges.