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Randstad Holding NV (NL:RAND)
:RAND

Randstad Holding NV (RAND) AI Stock Analysis

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Randstad Holding NV

(LSE:RAND)

Rating:62Neutral
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 (RAND) vs. iShares MSCI Netherlands ETF (EWN)

Randstad Holding NV Business Overview & Revenue Model

Company DescriptionRandstad 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 MoneyRandstad 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
65
Positive
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
68
Positive
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
72
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.84B24.12B25.43B27.57B24.64B20.72B
Gross Profit
4.58B4.70B5.28B5.75B4.90B3.95B
EBIT
454.00M405.00M831.00M1.14B1.03B384.00M
EBITDA
771.00M633.00M1.17B1.47B1.38B798.00M
Net Income Common Stockholders
114.00M123.00M624.00M929.00M768.00M304.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
286.00M357.00M261.00M274.00M859.00M474.00M
Total Assets
10.91B11.19B10.69B11.11B11.04B9.59B
Total Debt
2.12B2.22B1.18B1.14B1.27B729.00M
Net Debt
1.84B1.86B923.00M870.00M415.00M255.00M
Total Liabilities
7.04B7.06B5.99B6.19B6.14B4.92B
Stockholders Equity
3.87B4.13B4.70B4.91B4.90B4.67B
Cash FlowFree Cash Flow
651.00M565.00M1.10B951.00M786.00M1.36B
Operating Cash Flow
733.00M649.00M1.19B1.07B914.00M1.46B
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 Price36.40
Price Trends
50DMA
36.41
Negative
100DMA
37.69
Negative
200DMA
39.05
Negative
Market Momentum
MACD
0.09
Positive
RSI
45.96
Neutral
STOCH
40.89
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
€447.06M14.999.68%6.21%2.57%-5.80%
69
Neutral
€4.01B16.4721.16%2.25%-0.17%51.55%
65
Neutral
$4.44B12.225.28%248.14%4.08%-12.12%
62
Neutral
€6.58B60.952.86%4.45%-4.05%-80.51%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NL:RAND
Randstad Holding NV
36.86
-7.92
-17.69%
NL:BRNL
Brunel International N.V.
9.10
-1.27
-12.27%
NL:ARCAD
Arcadis NV
45.02
-15.67
-25.82%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.