Adecco Group AG (CH:ADEN)
:ADEN
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Adecco Group AG
(ADEN)
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Rating:60Neutral
Price Target:
CHF15.50
▼(-19.52% Downside)
Action:Reiterated
Date:05/16/26
The score is held back mainly by weak technicals (downtrend and bearish momentum) and only middling underlying financial quality due to thin margins and volatile recent cash-flow growth. Offsetting positives include a supportive valuation (moderate P/E and high dividend yield) and a constructive earnings call highlighting accelerating growth, profitability improvement, and strong cash conversion despite near-term margin pressure.
Positive Factors
Broad-based revenue growth & market-share gains
Sustained organic revenue growth across geographies signals durable demand and diversification of end markets. Consistent top-line expansion supports scale advantages in staffing/outsourcing, strengthens client relationships, and increases leverage for investing in growth initiatives over the next several quarters.
Negative Factors
Structurally thin profitability
Low single-digit net and operating margins leave limited buffer against wage inflation, mix shifts or client price pressure. Structural margin compression versus prior years implies weaker pricing/spread dynamics; this constrains long-term free cash flow generation and limits resilience in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue growth & market-share gains
Sustained organic revenue growth across geographies signals durable demand and diversification of end markets. Consistent top-line expansion supports scale advantages in staffing/outsourcing, strengthens client relationships, and increases leverage for investing in growth initiatives over the next several quarters.
Read all positive factors
Adecco Group AG (ADEN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF2.68B
Dividend Yield4.46%
Average Volume (3M)842.19K
Price to Earnings (P/E)12.6
Beta (1Y)0.88
Revenue Growth-1.58%
EPS Growth2.02%
CountryCH
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)1.82
Shares Outstanding173,694,890
10 Day Avg. Volume653,147
30 Day Avg. Volume842,188
Financial Highlights & Ratios
PEG Ratio-5.12
Price to Book (P/B)1.23
Price to Sales (P/S)0.18
P/FCF Ratio8.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF23.68Price Target Upside22.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.49
Revenue Forecast (FY)CHF23.42B
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 Group primarily makes money by delivering workforce solutions to client companies and charging fees that are typically linked to worker pay, service scope, and hiring outcomes. (1) Temporary staffing: For associates placed on temporary assi...
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
Overall the call presents a positive picture: broad-based revenue growth (5.3% organic), substantial EBITA improvement (24% organic), meaningful market-share gains and rapid AI-driven productivity gains that are beginning to favorably drop through to profits. Balance-sheet metrics and cash-conversion remain strong and deleveraging progress is clear. The principal negatives are margin mix pressure (notably from flexible and lower permanent placement volumes), localized weakness in Akkodis Germany and short-term margin guidance showing modest sequential headwinds. On balance, highlights significantly outweigh the lowlights.Positive Updates
Group Organic Revenue Growth
Group revenues rose 5.3% year-on-year on an organic trading-days adjusted basis in Q1 2026, signaling a strong start to the year and accelerating top-line momentum into Q2.
Negative Updates
Gross Margin Pressure and Mix Effects
Group gross margin declined c.40 basis points year-on-year on an organic basis (18.8% reported) driven by a 30 bps impact from flexible placement mix, 20 bps FX headwind, and 20 bps impact from lower permanent placement volumes.
Read all updates
Q1-2026 Updates
Positive
Negative
Group Organic Revenue Growth
Group revenues rose 5.3% year-on-year on an organic trading-days adjusted basis in Q1 2026, signaling a strong start to the year and accelerating top-line momentum into Q2.
Read all positive updates
Company Guidance
Management's near‑term guidance is that positive volume momentum continues into Q2 but gross margin is expected to be marginally lower sequentially (around 20 basis points, with FX a smaller headwind of ~10 bps) while SG&A (ex‑one‑offs) will be marginally higher sequentially as the group selectively invests to capture growth; G&A is controlled at 3.2% of revenues (well below the 3.5% target). Key operating and cash metrics underpinning the outlook include productivity +4% YoY, an EBITA margin ex‑one‑offs of 2.6% (+20 bps YoY, +40 bps constant currency), last‑12‑month cash conversion of 94%, Q1 operating cash outflow of €178m (improved €34m YoY), DSO 53.3 days, capex €22m and a free cash outflow of €200m. The balance sheet guidance stresses continued deleveraging (net debt/EBITDA 0.2x today, with a commitment to ≤1.5x by end‑2027), strong liquidity (undrawn €750m RCF), a €450m hybrid issued in April at 4.875%, 76% of gross debt fixed and no financial covenants; digital/AI targets supporting the plan include automated order processing +65% YTD across 9 countries, >30,000 agent conversations monthly, 110,000 candidate skills updated, ~20% recruiter time savings from agents and a goal to cover 50% of Adecco revenues with Agentic AI by end‑2026.Adecco Group AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.13B | 23.23B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.36B | 4.39B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 758.81M | 816.30M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 303.50M | 294.91M | 303.00M | 325.00M | 342.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 12.07B | 11.75B | 12.10B | 12.43B | 13.26B | 11.87B |
| Cash, Cash Equivalents and Short-Term Investments | 305.17M | 387.70M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.34B | 3.49B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.54B | 8.35B | 8.51B | 8.83B | 9.36B | 8.06B |
| Stockholders Equity | 3.52B | 3.38B | 3.58B | 3.60B | 3.88B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 451.83M | 486.16M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 582.83M | 617.00M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -140.87M | -157.02M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -406.08M | -465.02M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Negative
19.26
Price Trends
17.88
Negative
19.53
Negative
21.01
Negative
Market Momentum
-0.69
Positive
31.28
Neutral
22.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ADEN, the sentiment is Negative. The current price of 19.26 is above the 20-day moving average (MA) of 17.42, above the 50-day MA of 17.88, and below the 200-day MA of 21.01, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 31.28 is Neutral, neither overbought nor oversold. The STOCH value of 22.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:ADEN.
Adecco Group AG Peers Comparison
UnderperformOutperform
Sector (63)
CH:ADEN
Adecco Group AG
15.50
-6.55
-29.71%
CH:KNIN
Kuehne + Nagel International AG
173.25
-12.39
-6.67%
CH:SGSN
SGS SA
87.98
5.56
6.74%
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.