Adecco Group AG (CH:ADEN)
:ADEN
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Adecco Group AG
(ADEN)
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Rating:60Neutral
Price Target:
CHF19.50
▲(1.25% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by a steady but low-margin financial profile and moderate leverage, balanced by supportive valuation (mid P/E and strong dividend). The earnings call adds confidence via market share gains, cash generation, and deleveraging targets, while technical indicators remain a headwind due to a weak price trend and negative momentum.
Positive Factors
Market share gains
Sustained market share gains signal durable competitive strength: larger account footprints and stronger client relationships improve pricing leverage and win rates. In staffing, persistent share gains tend to compound via referrals and scale benefits, supporting revenue resilience and long-term cost absorption.
Negative Factors
Thin and compressed margins
Persistently thin operating and net margins make earnings highly sensitive to wage inflation, mix shifts and modest pricing pressure. With low single-digit EBITA, small adverse changes can materially reduce profitability, constraining reinvestment and buffering ability during prolonged soft demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Market share gains
Sustained market share gains signal durable competitive strength: larger account footprints and stronger client relationships improve pricing leverage and win rates. In staffing, persistent share gains tend to compound via referrals and scale benefits, supporting revenue resilience and long-term cost absorption.
Read all positive factors
Adecco Group AG (ADEN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF3.13B
Dividend Yield4.46%
Average Volume (3M)842.19K
Price to Earnings (P/E)11.9
Beta (1Y)0.94
Revenue Growth-4.68%
EPS Growth-5.79%
CountryCH
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.70
Shares Outstanding168,426,560
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
CHF27.18Price Target Upside41.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)2.7
Revenue Forecast (FY)CHF23.53B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive outlook: the group reported strong Q4 performance, meaningful market share gains, industry-leading margins, material productivity and cost savings, strong cash generation and improving leverage. Key strategic initiatives (Akkodis Germany turnaround, Talent Supply Chain expansion, digital/AI deployments and LHH growth) are delivering tangible benefits. Nonetheless, there are manageable challenges—Akkodis top-line pressure and one-off restructuring costs, weakness in permanent placement, and some regional softness—which management is addressing and expects to reduce in 2026.Positive Updates
Market Share Gains and Revenue Momentum
Consistent market share gains vs competitors (full year +245 basis points; Q4 lead +395 bps). Full year group revenues up 1.3% year-on-year; Q4 revenues EUR 6.0 billion, up 3.9% (best quarterly performance of the year).
Negative Updates
Akkodis Revenue Pressure and Restructuring Costs
Akkodis revenues down 1% year-on-year; Germany was a notable weakness (Germany -7% in the period cited). Restructuring in Akkodis Germany incurred one-time charges of EUR 46 million in 2025, headcount reduced by ~600, and the turnaround required exits of non-core assets. Continued focus required to rebuild top line despite run-rate savings of EUR 58 million.
Read all updates
Q4-2025 Updates
Positive
Negative
Market Share Gains and Revenue Momentum
Consistent market share gains vs competitors (full year +245 basis points; Q4 lead +395 bps). Full year group revenues up 1.3% year-on-year; Q4 revenues EUR 6.0 billion, up 3.9% (best quarterly performance of the year).
Read all positive updates
Company Guidance
Management's near‑term guidance signaled continued positive volume momentum and, for Q1, expects gross margin and SG&A (excluding one‑offs) to be broadly stable sequentially (noting a ~20 basis‑point FX headwind versus prior year and that Q1‑25 benefited from FESCO timing); seasonally H1 is typically a working‑capital outflow versus H2 inflows and free cash‑flow behavior for 2026 is expected to be similar to 2025 (FY operating cash flow EUR 613m, free cash flow EUR 483m, Q4 operating cash flow EUR 476m, capex EUR 50m, cash conversion 102%, DSO 51.8 days); balance‑sheet targets remain explicit — year‑end net debt EUR 2.29bn after EUR 280m gross debt reduction and CHF225m bond repayment, net debt/EBITDA 2.4x (down 0.2x YoY, 0.6x sequentially) with a commitment to reach ≤1.5x by end‑2027 — and management expects one‑offs to decline to about EUR 40m in 2026 (from EUR 60m in 2025) with incremental Akkodis Germany savings crystallizing in the P&L, particularly in H1 2026.Adecco Group AG Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.23B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.39B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 816.30M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 294.91M | 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 | 387.70M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.49B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.35B | 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 | 486.16M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 617.00M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -157.02M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -465.02M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Negative
19.26
Price Trends
21.24
Negative
22.19
Negative
23.19
Negative
Market Momentum
-0.88
Positive
32.97
Neutral
25.62
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 below the 20-day moving average (MA) of 19.93, below the 50-day MA of 21.24, and below the 200-day MA of 23.19, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 25.62 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
18.67
-7.38
-28.33%
CH:KNIN
Kuehne + Nagel International AG
171.40
-26.02
-13.18%
CH:SGSN
SGS SA
85.04
0.02
0.02%
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.