Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
Want to see AHEXY full AI Analyst Report?
Top Page
Adecco Group AG
(OTC:AHEXY)
Select Model
Select Model
Rating:60Neutral
Price Target:
$12.00
â–¼(-18.20% Downside)
Action:DowngradedDate:02/28/26
The score is driven primarily by steady underlying financial performance supported by solid cash generation, and a constructive earnings-call backdrop focused on market-share gains, productivity, and deleveraging. These positives are tempered by a weaker technical trend (below key moving averages with negative MACD) and only moderate growth/margin pressure, while reasonable valuation and a strong dividend provide support.
Positive Factors
Market-share momentum
Sustained multi-year market-share gains indicate structural competitive strength: improving client wins, deeper account penetration and better placement execution. Over 2–6 months this supports pricing leverage, fills growth opportunities and validates operational improvements across regions.
Negative Factors
Elevated leverage vs. targets
Although net debt has been reduced, leverage remains materially above management's target. Persistent leverage at ~2.4x limits balance-sheet flexibility, raises refinancing and covenant risk in a downturn, and constrains capacity for bolt-on M&A or faster reinvestment without further deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Market-share momentum
Sustained multi-year market-share gains indicate structural competitive strength: improving client wins, deeper account penetration and better placement execution. Over 2–6 months this supports pricing leverage, fills growth opportunities and validates operational improvements across regions.
Read all positive factors
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.82B
Dividend Yield4.22%
Average Volume (3M)413.00
Price to Earnings (P/E)23.7
Beta (1Y)0.36
Revenue Growth4.27%
EPS Growth1.73%
CountryUS
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.63
Shares Outstanding336,853,120
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 Cap1.67
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.45
Enterprise Value/Ebitda8.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.52
Revenue Forecast (FY)$27.20B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial improvements—market share gains, improved Q4 revenue and margins, strong productivity, robust cash generation and measurable deleveraging—supported by targeted turnarounds (e.g., Akkodis Germany) and strong performance in North America, LHH and outsourcing services. Challenges include modest full‑year revenue growth, localized weakness (Akkodis Germany, permanent placement, some country-specific softness), one-off restructuring charges and early-stage AI scaling risks. Overall, the positive operational momentum, cash flow strength and clear deleveraging pathway outweigh the headwinds.Positive Updates
Market Share Gains
The group gained significant market share—245 basis points vs. key competitors on a full-year basis and 395 basis points in Q4—indicating consistent outperformance across the past three years and strong competitive momentum.
Negative Updates
Modest Full-Year Revenue Growth
Full-year revenues increased only 1.3% year-on-year, indicating relatively slow top-line expansion despite market-share gains and quarter-to-quarter improvements.
Read all updates
Q4-2025 Updates
Positive
Negative
Market Share Gains
The group gained significant market share—245 basis points vs. key competitors on a full-year basis and 395 basis points in Q4—indicating consistent outperformance across the past three years and strong competitive momentum.
Read all positive updates
Company Guidance
Guidance: management expects Q1 gross margin and SG&A (ex one‑offs) to be broadly stable sequentially (despite a ~20 bps FX headwind versus prior year and normal Q1 seasonality that typically raises SG&A by ~EUR 10–15m), reminded that H1 is a working‑capital outflow versus H2 inflows, and flagged FESCO timing differences versus last year; one‑offs are expected to fall to about EUR 40m in 2026 (vs ~EUR 60m in 2025). The board proposes a CHF 1.00/share dividend (46% payout) with a cash-or-scrip option, refinancing of the hybrid is underway, and the group reiterated its target to reduce net debt/EBITDA to ≤1.5x by end‑2027 (building on year‑end 2.4x, down 0.2x y/y and 0.6x q/q) while maintaining strong cash generation (LTM cash conversion 102%, FY operating cash flow EUR 613m, FCF EUR 483m; Q4 OpCF EUR 476m, capex EUR 50m, net debt EUR 2.29bn, DSO 51.8 days).Adecco Group AG Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.08B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.42B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 716.00M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 283.36M | 303.00M | 325.00M | 342.00M | 586.00M |
Balance Sheet | |||||
| Total Assets | 11.75B | 12.10B | 12.43B | 13.26B | 11.87B |
| Cash, Cash Equivalents and Short-Term Investments | 387.83M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.49B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.36B | 8.51B | 8.83B | 9.36B | 8.06B |
| Stockholders Equity | 3.38B | 3.58B | 3.60B | 3.88B | 3.79B |
Cash Flow | |||||
| Free Cash Flow | 463.94M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 588.81M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -149.84M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -443.77M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Neutral
14.67
Price Trends
12.86
Negative
13.58
Negative
14.37
Negative
Market Momentum
-0.12
Negative
59.76
Neutral
100.01
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 11.85, above the 50-day MA of 12.86, and above the 200-day MA of 14.37, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 100.01 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 | $3.45B | 13.73 | 13.94% | 2.89% | 5.44% | 8.92% | |
65 Neutral | $752.02M | 14.00 | 23.66% | 0.88% | 8.37% | 4.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $3.82B | 23.74 | 8.80% | 4.22% | 4.27% | 1.73% | |
53 Neutral | $1.38B | 137.58 | -0.81% | 4.96% | 4.77% | -115.03% | |
53 Neutral | $2.70B | 45.87 | 9.98% | 8.65% | -6.08% | -35.51% | |
50 Neutral | $1.13B | 7.72 | -7.69% | 6.37% | 3.04% | -140.22% |
* Industrials Sector Average
AHEXY
Adecco Group AG
11.44
-1.03
-8.24%
BBSI
Barrett Business Services
30.62
-10.93
-26.30%
NSP
Insperity
29.55
-31.16
-51.32%
KFY
Korn Ferry
66.46
4.62
7.47%
MAN
ManpowerGroup
29.74
-9.33
-23.87%
RHI
Robert Half
26.37
-14.43
-35.37%
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.