Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €6.75B
• Dividend Yield: 4.34%
• Average Volume (3M): 368.13K
• Price to Earnings (P/E): 62.5
• Beta (1Y): 0.77
• Revenue Growth: -4.05%
• EPS Growth: -80.51%
• Country: NL
• Employees: 40,000
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 0.59
• Shares Outstanding: 180,869,310
• 10 Day Avg. Volume: 420,894
• 30 Day Avg. Volume: 368,125
• PEG Ratio: 0.51
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.95
• 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: 9.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 61 Neutral
• Price Target: €40.00 ▲(7.24%Upside)

Randstad Holding NV's overall stock score is primarily influenced by its mixed financial performance, with strong cash flow but declining profitability and revenue. The technical analysis shows mild bullish signals, providing some short-term confidence. However, a high P/E ratio suggests potential overvaluation, which could be a concern. The absence of significant earnings call insights or corporate events means these factors do not influence the 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

Randstad Holding NV shows stable gross profit margins and strong cash flow management. However, challenges such as declining revenue, low net profit margins, and decreasing return on equity pose risks. The balance sheet indicates moderate leverage, but declining equity ratios and profitability suggest potential financial stability issues.

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
EBITDA	771.00M	633.00M	1.17B	1.47B	1.38B	798.00M
Net Income	114.00M	123.00M	624.00M	929.00M	768.00M	304.00M
Balance Sheet
Total Assets	10.91B	11.19B	10.69B	11.11B	11.04B	9.59B
Cash, Cash Equivalents and Short-Term Investments	286.00M	357.00M	261.00M	274.00M	859.00M	474.00M
Total Debt	2.12B	2.22B	1.18B	1.14B	1.27B	729.00M
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: Positive
• Last Price: 37.30
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 37.3 is below the 20-day moving average (MA) of 37.34, above the 50-day MA of 36.74, and below the 200-day MA of 38.84, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 65.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Neutral	€450.08M	15.09	9.68%	5.37%	2.57%	-5.80%
Sector *	67 Neutral	€3.77B	21.99	10.70%	3.77%	1.50%	-22.32%
ARCAD	61 Neutral	€3.57B	14.67	21.16%	2.19%	-0.17%	51.55%
RAND	61 Neutral	€6.75B	62.46	2.86%	4.34%	-4.05%	-80.51%