Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €7.42B
• Dividend Yield: 7.04%
• Average Volume (3M): 384.44K
• Price to Earnings (P/E): 97.0
• Beta (1Y): 0.81
• Revenue Growth: -3.75%
• EPS Growth: -84.64%
• Country: NL
• Employees: 40,000
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 0.48
• Shares Outstanding: 180,869,310
• 10 Day Avg. Volume: 299,629
• 30 Day Avg. Volume: 384,438
• PEG Ratio: -0.72
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 12.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €42.89
• Price Target Upside: 4.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: €42.00 ▲(2.41% Upside)

Randstad Holding NV's overall stock score is primarily influenced by its stable financial performance and strong cash flow generation. However, the high P/E ratio suggests overvaluation, which is a significant risk. Technical indicators provide mixed signals, with some potential for bullish momentum but also signs of weak momentum. The attractive dividend yield is a positive factor for income-focused investors.

Positive Factors

Earnings Projections

Randstad's 2025 consensus EPS looks increasingly feasible, supported by stabilizing trends in the temporary-job markets and continued cost discipline.

Management Outlook

Management is optimistic about the US and they consider the new administration plan as positive for economy and the staffing industry.

Valuation

Randstad offers attractive risk / reward with the share price trading below franchise valuations and towards the low end of long run EV/GP valuations.

Negative Factors

Cash Flow

The weaker cash generation in 4Q24 was noted, affecting investor feedback on lower earning quality.

Gross Margin

Randstad is still facing some gross margin headwinds, but SG&A provides the offset.

Market Environment

The environment is more challenging in North Western Europe with PMIs stable but still below 50.

Randstad Holding NV Business Overview & Revenue Model

Company Description

Randstad N.V. provides solutions in the field of work and human resources (HR) services. It offers temporary staffing and permanent placement services for the light industrial, office and administrative, manufacturing and logistics, and other specialty areas, as well as payroll services. The company also offers on-site solutions for managing a client's workforce with specific skill sets and a fluctuating level of demand for the fast-moving consumer goods, automotive, life sciences, contact centers, manufacturing, and logistics, as well as the administrative and professional segments. In addition, it recruits experienced staff for managerial and professional roles in a range of sectors and disciplines, including IT, engineering, finance, healthcare, HR, education, legal affairs, sales and marketing and communications. Further, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.

How the Company Makes Money

Randstad generates revenue primarily through its staffing and recruitment services, which involve charging clients a fee for placing temporary or permanent employees. The company earns money by marking up the hourly wage of temporary staff, which includes the worker's salary and additional costs such as payroll taxes and benefits. Additionally, Randstad offers specialized services, such as managed services provider (MSP) solutions and recruitment process outsourcing (RPO), which contribute to its revenue streams. Significant partnerships with various organizations and a strong global presence enhance its earnings potential, allowing Randstad to scale its operations effectively and respond to labor market demands.

Randstad Holding NV Financial Statement Overview

Summary

Randstad Holding NV has stable gross profit margins and strong cash flow generation, but faces challenges with declining revenue, low net profit margins, and decreasing return on equity. The balance sheet shows moderate leverage with risks in financial stability.

Income Statement

Randstad Holding NV has shown fluctuations in revenue over recent years, with a decline in revenue growth from 2022 to the TTM (Trailing-Twelve-Months) period. The gross profit margin remains stable around 19%, which is healthy for the staffing industry. However, the net profit margin is relatively low at 0.48% TTM, indicating challenges in converting revenue into net income. EBIT and EBITDA margins are also moderate, suggesting operational efficiency but with room for improvement.

Balance Sheet

The company's balance sheet showcases a reasonable debt-to-equity ratio of approximately 0.55 TTM, indicating moderate leverage. The return on equity (ROE) has decreased significantly over the past years, from 19.06% in 2022 to 2.95% TTM, reflecting declining profitability. The equity ratio of about 35.47% TTM suggests a solid equity base, although there has been a decrease from prior periods, highlighting potential risks in financial stability.

Cash Flow

Randstad Holding NV has demonstrated strong free cash flow generation, with a growth rate of 15.22% TTM, highlighting effective cash management. The operating cash flow to net income ratio is robust at 6.43 TTM, suggesting efficient conversion of net income to cash. The free cash flow to net income ratio of 5.71 TTM further supports the company's solid cash flow position, despite recent volatility in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.55B	24.12B	25.43B	27.57B	24.64B	20.72B
Gross Profit	4.49B	4.70B	5.28B	5.75B	4.90B	3.95B
EBITDA	714.00M	633.00M	1.17B	1.47B	1.38B	798.00M
Net Income	83.00M	123.00M	624.00M	929.00M	768.00M	304.00M
Balance Sheet
Total Assets	10.79B	11.19B	10.69B	11.11B	11.04B	9.59B
Cash, Cash Equivalents and Short-Term Investments	278.00M	357.00M	261.00M	274.00M	859.00M	474.00M
Total Debt	2.29B	2.22B	1.18B	1.14B	1.27B	729.00M
Total Liabilities	6.97B	7.06B	5.99B	6.19B	6.14B	4.92B
Stockholders Equity	3.81B	4.13B	4.70B	4.91B	4.90B	4.67B
Cash Flow
Free Cash Flow	719.00M	565.00M	1.10B	951.00M	786.00M	1.36B
Operating Cash Flow	797.00M	649.00M	1.19B	1.07B	914.00M	1.46B
Investing Cash Flow	-460.00M	-518.00M	-147.00M	-290.00M	-207.00M	-112.00M
Financing Cash Flow	-299.00M	-21.00M	-1.03B	-1.37B	-322.00M	-1.09B

Randstad Holding NV Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:RAND, the sentiment is Neutral. The current price of 41.01 is below the 20-day moving average (MA) of 41.61, above the 50-day MA of 40.25, and above the 200-day MA of 38.79, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 59.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NL:RAND.

Randstad Holding NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€7.28B	13.20	35.20%	3.67%	2.26%	-121.00%
BRNL	59 Neutral	€420.34M	27.67	5.36%	6.50%	-7.16%	―
RAND	58 Neutral	€7.42B	96.98	2.09%	7.04%	-3.75%	-84.64%