Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €6.58B
• Dividend Yield: 4.45%
• Average Volume (3M): 378.88K
• Price to Earnings (P/E): 61.0
• Beta (1Y): 0.76
• Revenue Growth: -4.05%
• EPS Growth: -80.51%
• Country: NL
• Employees: 40,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Staffing & Employment Services
• EPS (TTM): 0.59
• Shares Outstanding: 180,869,310
• 10 Day Avg. Volume: 337,877
• 30 Day Avg. Volume: 378,882
• PEG Ratio: -9.38
• Price to Book (P/B): 1.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.27
• 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: €40.99
• Price Target Upside: 12.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: €39.00 ▲(7.14%Upside)

Randstad Holding NV's overall stock score reflects a combination of a mixed financial performance and high valuation concerns. While the company shows strong cash flow management and stable gross margins, the high P/E ratio suggests overvaluation. Technical analysis offers neutral to slightly positive signals, contributing to a moderate overall score.

Positive Factors

Management Outlook

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

Negative Factors

Cash Generation

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

Gross Margin

Gross margin came in below guidance and continued to deteriorate in 4Q24, mainly driven by temp.

Randstad Holding NV Business Overview & Revenue Model

Company Description

Randstad Holding NV is a global leader in the staffing and human resource services industry. The company operates across various sectors, including temporary and permanent recruitment, employee outsourcing, and workforce management solutions. Randstad provides a wide range of services designed to help businesses manage their human capital needs efficiently. With operations in multiple countries, Randstad connects employers with job seekers, offering tailored solutions to meet the evolving demands of the labor market.

How the Company Makes Money

Randstad Holding NV generates revenue primarily through its staffing services, which include temporary and permanent placements. The company charges client organizations for providing temporary workers, with fees typically based on a markup of the worker's wage. For permanent placements, Randstad earns a fee that is usually a percentage of the candidate's annual salary. Additionally, the company offers outsourcing services, where it manages specific HR functions or entire departments for businesses, generating income from service contracts. Randstad also capitalizes on its workforce management solutions, which provide strategic HR consulting and technology-driven services to optimize workforce productivity. Significant partnerships with large corporations and a diverse client base across industries further bolster Randstad's revenue streams.

Randstad Holding NV Financial Statement Overview

Summary

Overall, Randstad Holding NV presents a mixed financial performance. The company maintains stable gross profit margins and strong cash flow metrics, but faces challenges with declining revenue, low net profit margins, and decreasing return on equity. The balance sheet shows moderate leverage, but the declining equity ratio and profitability pose potential risks.

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
23.84B	24.12B	25.43B	27.57B	24.64B	20.72B
	Gross Profit
4.58B	4.70B	5.28B	5.75B	4.90B	3.95B
	EBIT
454.00M	405.00M	831.00M	1.14B	1.03B	384.00M
	EBITDA
771.00M	633.00M	1.17B	1.47B	1.38B	798.00M
	Net Income Common Stockholders
114.00M	123.00M	624.00M	929.00M	768.00M	304.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
286.00M	357.00M	261.00M	274.00M	859.00M	474.00M
	Total Assets
10.91B	11.19B	10.69B	11.11B	11.04B	9.59B
	Total Debt
2.12B	2.22B	1.18B	1.14B	1.27B	729.00M
	Net Debt
1.84B	1.86B	923.00M	870.00M	415.00M	255.00M
	Total Liabilities
7.04B	7.06B	5.99B	6.19B	6.14B	4.92B
	Stockholders Equity
3.87B	4.13B	4.70B	4.91B	4.90B	4.67B
Cash Flow		Free Cash Flow
651.00M	565.00M	1.10B	951.00M	786.00M	1.36B
	Operating Cash Flow
733.00M	649.00M	1.19B	1.07B	914.00M	1.46B
	Investing Cash Flow
-532.00M	-518.00M	-147.00M	-290.00M	-207.00M	-112.00M
	Financing Cash Flow
-245.00M	-21.00M	-1.03B	-1.37B	-322.00M	-1.09B

Randstad Holding NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 36.40
• 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 36.4 is below the 20-day moving average (MA) of 37.32, below the 50-day MA of 36.41, and below the 200-day MA of 39.05, indicating a bearish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 40.89 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
BRNL	71 Outperform	€447.06M	14.99	9.68%	6.21%	2.57%	-5.80%
ARCAD	69 Neutral	€4.01B	16.47	21.16%	2.25%	-0.17%	51.55%
Sector *	65 Neutral	$4.44B	12.22	5.28%	248.14%	4.08%	-12.12%
RAND	62 Neutral	€6.58B	60.95	2.86%	4.45%	-4.05%	-80.51%