Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €5.30B
• Dividend Yield: 9.24%
• Average Volume (3M): 400.92K
• Price to Earnings (P/E): 101.6
• Beta (1Y): 0.59
• 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: 11.89% 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: €28.00 ▼(-8.32% 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

Market Position

Randstad's global leadership and diversified staffing footprint across healthcare, IT, finance, and engineering create durable demand and scale advantages. Large client relationships and multi-sector exposure support recurring fee streams and make revenue recovery and cross-selling more likely over months.

Balanced Capital Structure

A manageable leverage profile with a stable equity ratio provides financial flexibility to fund working capital and strategic initiatives. Over a 2-6 month horizon this reduces refinancing risk and preserves capacity to support operations during cyclical staffing demand swings.

Cash Conversion Efficiency

A strong free cash flow-to-net-income ratio indicates the company can convert accounting profits into cash, supporting dividends, debt servicing and selective reinvestment. This cash conversion resilience is a durable fundamental that cushions performance variability.

Negative Factors

Revenue Decline

Sustained revenue contraction erodes scale in staffing services where margins and utilization matter. Over several months, continued top-line declines reduce leverage on fixed costs, limit reinvestment, and make margin recovery and growth initiatives more difficult.

Margin Compression

Declining gross and operating margins point to pricing pressure or rising costs in core staffing services. Margin compression undermines long-term cash generation and competitiveness, reducing funds available for technology, client development, or productivity improvements over the medium term.

Weakened Cash Generation Trends

Negative free cash flow growth and relatively weak operating cash conversion signal strain in converting earnings into liquidity. Persisting over months, this limits capital deployment, elevates reliance on debt, and increases vulnerability to slower demand or unexpected cash needs.

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 faces challenges with declining revenue and profitability margins, coupled with increased leverage. While the company maintains a stable equity ratio, its cash flow generation has weakened, posing potential risks to liquidity. Strategic improvements are needed to enhance operational efficiency and financial stability.

Income Statement

Randstad Holding NV has experienced declining revenue growth, with a significant drop of 8.71% in the TTM period. Gross profit margins have decreased slightly over the years, and net profit margins are low, indicating challenges in maintaining profitability. The EBIT and EBITDA margins have also shown a downward trend, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating rising leverage, but it remains at a manageable level. Return on equity has decreased significantly, suggesting reduced profitability from shareholders' investments. The equity ratio remains stable, showing a balanced asset structure.

Cash Flow

Free cash flow growth has been negative in recent periods, reflecting potential liquidity challenges. The operating cash flow to net income ratio is relatively low, indicating less cash generation from operations compared to net income. However, the free cash flow to net income ratio remains strong, suggesting efficient cash management.

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: Neutral
• Last Price: 30.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 30.54 is above the 20-day moving average (MA) of 29.93, below the 50-day MA of 31.47, and below the 200-day MA of 36.29, indicating a neutral trend. The MACD of -0.71 indicates Negative momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 71.45 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 *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BRNL	59 Neutral	€377.00M	24.82	5.36%	7.15%	-7.16%	-50.45%
RAND	46 Neutral	€5.30B	101.62	1.49%	9.24%	-3.62%	-87.74%