Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €5.63B
• Dividend Yield: 9.24%
• Average Volume (3M): 400.92K
• Price to Earnings (P/E): 107.9
• Beta (1Y): 0.64
• Revenue Growth: -3.62%
• EPS Growth: -87.74%
• Country: NL
• Employees: 40,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.68
• Shares Outstanding: 175,977,420
• 10 Day Avg. Volume: 379,821
• 30 Day Avg. Volume: 400,924
• 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: €34.17
• Price Target Upside: 6.87% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €31.00 ▼(-3.03% Downside)

Randstad Holding NV's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, but the strong dividend yield offers some support. The lack of positive momentum and declining financial metrics are significant concerns.

Positive Factors

Strong Client Partnerships

Randstad's robust partnerships across diverse sectors enhance its market position and revenue stability, ensuring long-term client retention and growth.

Stable Equity Ratio

A stable equity ratio indicates a balanced approach to financing, providing a solid foundation for sustainable operations and potential future investments.

Efficient Cash Management

Efficient cash management ensures that Randstad can meet its obligations and invest in growth opportunities, supporting long-term financial health.

Negative Factors

Declining Revenue Growth

Falling revenue growth indicates challenges in market expansion and competitive positioning, potentially impacting future profitability and market share.

Decreased Profitability Margins

Lower profitability margins suggest operational inefficiencies and pricing pressures, which could hinder Randstad's ability to reinvest in business growth.

Increased Leverage

Rising leverage can constrain financial flexibility and increase risk, potentially affecting Randstad's ability to navigate economic downturns.

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. The company charges fees to clients for providing temporary and permanent staffing solutions, which typically include a markup on the wages paid to temporary workers. Additionally, Randstad earns revenue through specialized HR services and consultancy, which may involve talent management, employee training, and workforce optimization. Significant partnerships with businesses across various sectors bolster its client base and drive earnings. The company's performance is also influenced by economic conditions, labor market trends, and its ability to adapt to changes in workforce demands.

Randstad Holding NV Financial Statement Overview

Summary

Randstad Holding NV demonstrates operational efficiency and strong cash flow generation despite facing revenue growth challenges. The company's leverage is moderate, but profitability metrics indicate room for improvement. The financial statements reflect a stable financial position with potential risks associated with declining revenue and profitability.

Income Statement

Randstad Holding NV's income statement shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has slightly decreased over the years, indicating pressure on profitability. The net profit margin is low, reflecting challenges in converting revenue into profit. However, the company maintains a stable EBIT and EBITDA margin, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which has increased slightly in the TTM period, indicating a rise in leverage. The return on equity has decreased, reflecting lower profitability. The equity ratio remains stable, suggesting a balanced capital structure with a reasonable level of equity financing.

Cash Flow

Randstad's cash flow statement shows a positive free cash flow growth rate in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is stable, suggesting efficient cash conversion. The free cash flow to net income ratio is high, reflecting strong cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.34B	24.12B	25.43B	27.57B	24.64B	20.72B
Gross Profit	4.36B	4.70B	5.28B	5.75B	4.90B	3.95B
EBITDA	683.00M	633.00M	1.17B	1.47B	1.38B	798.00M
Net Income	60.00M	123.00M	624.00M	929.00M	768.00M	304.00M
Balance Sheet
Total Assets	10.71B	11.19B	10.69B	11.11B	11.04B	9.59B
Cash, Cash Equivalents and Short-Term Investments	295.00M	357.00M	261.00M	274.00M	859.00M	474.00M
Total Debt	2.04B	2.22B	1.18B	1.14B	1.27B	729.00M
Total Liabilities	6.81B	7.06B	5.99B	6.19B	6.14B	4.92B
Stockholders Equity	3.90B	4.13B	4.70B	4.91B	4.90B	4.67B
Cash Flow
Free Cash Flow	663.00M	565.00M	1.10B	951.00M	786.00M	1.36B
Operating Cash Flow	739.00M	649.00M	1.19B	1.07B	914.00M	1.46B
Investing Cash Flow	-401.00M	-518.00M	-147.00M	-290.00M	-207.00M	-112.00M
Financing Cash Flow	-477.00M	-21.00M	-1.03B	-1.37B	-322.00M	-1.09B

Randstad Holding NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 31.97 is above the 20-day moving average (MA) of 31.91, below the 50-day MA of 32.74, and below the 200-day MA of 36.64, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 35.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BRNL	59 Neutral	€390.61M	25.71	5.36%	7.15%	-7.16%	-50.45%
RAND	46 Neutral	€5.63B	107.90	1.49%	9.24%	-3.62%	-87.74%