Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
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Adecco Group AG
(OTC:AHEXY)
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Rating:56Neutral
Price Target:
$10.00
â–¼(-31.83% Downside)
Action:Reiterated
Date:05/19/26
Overall score reflects stable but low-margin financial performance as the biggest anchor, compounded by a clearly bearish technical trend (price below key moving averages with negative MACD). The earnings call adds some support via improving operations, AI-driven productivity, and strong balance-sheet metrics, while valuation is helped by the high dividend yield but tempered by a relatively elevated P/E.
Positive Factors
Market share and revenue momentum
Sustained organic growth and clear share gains indicate durable competitive position in staffing. Outperforming peers by 365bps suggests stronger client relationships and scale advantages that support pricing and fill rates across cycles, helping revenue resilience over months.
Negative Factors
Thin and pressured margins
Persistently low net and operating margins leave limited buffer for adverse mix or cost shocks. With EBIT/EBITDA margins near the low single digits, even modest volume or pricing shifts materially compress earnings, limiting sustainable margin upside.
Read all positive and negative factors
Positive Factors
Negative Factors
Market share and revenue momentum
Sustained organic growth and clear share gains indicate durable competitive position in staffing. Outperforming peers by 365bps suggests stronger client relationships and scale advantages that support pricing and fill rates across cycles, helping revenue resilience over months.
Read all positive factors
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.68B
Dividend Yield4.22%
Average Volume (3M)413.00
Price to Earnings (P/E)10.1
Beta (1Y)0.37
Revenue Growth8.76%
EPS Growth12.50%
CountryUS
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding347,389,770
10 Day Avg. Volume290
30 Day Avg. Volume413
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)2.44
Price to Sales (P/S)0.36
P/FCF Ratio17.83
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda8.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.46
Revenue Forecast (FY)$27.43B
Adecco Group AG Business Overview & Revenue Model
Company Description
Adecco 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, outsourci...
How the Company Makes Money
Adecco primarily makes money by providing workforce solutions to client companies and charging fees tied to placing and managing workers. A major revenue stream is temporary staffing (including payrolling), where Adecco recruits and assigns associ...
Adecco Group AG Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial picture: solid organic revenue growth, meaningful market share gains, strong EBITA and productivity improvements, rapid AI rollout with measurable time savings, and a strengthened balance sheet with very low net debt/EBITDA. Challenges remain—most notably gross margin headwinds (mix, FX and placement mix), continued weakness in permanent placement, and localized pressure in Akkodis Germany and certain APAC/Australia markets—along with a Q1 free cash outflow driven by seasonality and working capital. On balance the favorable growth, profitability improvements and strategic AI investments outweigh the headwinds in the near term.Positive Updates
Group Revenue Growth and Market Share Gains
Organic revenues rose 5.3% year‑on‑year (trading days adjusted). The group outperformed key competitors by 365 basis points and reported market‑leading gross margin of 18.8%.
Negative Updates
Gross Margin Pressure and Headwinds
On an organic basis the group's gross margin moved 40 basis points lower year‑on‑year. Specific headwinds included FX (‑20 bps), flexible placement (‑30 bps) and permanent placement (‑20 bps). Management expects Q2 gross margin to be marginally lower sequentially (~20 bps), citing seasonality and trading‑day effects.
Read all updates
Q1-2026 Updates
Positive
Negative
Group Revenue Growth and Market Share Gains
Organic revenues rose 5.3% year‑on‑year (trading days adjusted). The group outperformed key competitors by 365 basis points and reported market‑leading gross margin of 18.8%.
Read all positive updates
Company Guidance
The group said positive volume momentum has continued into Q2 but expects Q2 gross margin to be marginally lower sequentially (around -20bps) with FX a smaller ~10bps headwind and SG&A (ex‑one‑offs) to be marginally higher sequentially; management noted comps get ~2 percentage points tougher and Q2 seasonality/trading‑day effects are factors. Key financial metrics and liquidity guidance: last‑12‑month cash conversion 94%; Q1 operating cash outflow €178m (down €34m YoY), capex €22m and free cash outflow €200m; DSO 53.3 days; net debt/EBITDA 0.2x with a commitment to reach ≤1.5x by end‑2027; issued a €450m hybrid at 4.875% (pushing 2026 interest to ~€80m vs €68m in 2025); undrawn €750m RCF, 76% of gross debt fixed and no financial covenants. Shareholder action: 53% scrip take‑up, 5.3m new shares issued at CHF16.94 and CHF79m cash distribution in Q2.Adecco Group AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.20B | 23.08B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.38B | 4.42B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 760.37M | 716.00M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 304.31M | 283.36M | 303.00M | 325.00M | 342.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 12.03B | 11.75B | 12.10B | 12.43B | 13.26B | 11.87B |
| Cash, Cash Equivalents and Short-Term Investments | 304.32M | 387.83M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.34B | 3.49B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.52B | 8.36B | 8.51B | 8.83B | 9.36B | 8.06B |
| Stockholders Equity | 3.51B | 3.38B | 3.58B | 3.60B | 3.88B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 430.38M | 463.94M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 560.52M | 588.81M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -140.37M | -149.84M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -388.41M | -443.77M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Neutral
14.67
Price Trends
11.16
Negative
12.37
Negative
13.30
Negative
Market Momentum
-0.35
Negative
47.87
Neutral
99.60
Negative
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 14.67 is above the 20-day moving average (MA) of 10.65, above the 50-day MA of 11.16, and above the 200-day MA of 13.30, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 47.87 is Neutral, neither overbought nor oversold. The STOCH value of 99.60 is Negative, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.63B | 13.44 | 13.94% | 2.89% | 5.44% | 8.92% | |
65 Neutral | $799.17M | 20.03 | 17.82% | 0.88% | 7.12% | -21.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $3.68B | 10.07 | 9.07% | 4.22% | 8.76% | 12.50% | |
55 Neutral | $3.01B | 22.66 | 10.14% | 8.65% | -6.08% | -35.51% | |
51 Neutral | $1.32B | -51.98 | -32.05% | 6.37% | 3.04% | -140.22% | |
49 Neutral | $1.47B | -90.07 | -0.81% | 4.96% | 4.77% | -115.03% |
* Industrials Sector Average
AHEXY
Adecco Group AG
10.60
-2.86
-21.22%
BBSI
Barrett Business Services
32.54
-8.53
-20.77%
NSP
Insperity
34.47
-25.49
-42.51%
KFY
Korn Ferry
69.98
4.12
6.25%
MAN
ManpowerGroup
31.63
-7.59
-19.36%
RHI
Robert Half
29.44
-11.73
-28.49%
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.