Randstad Holding NV (RAND) AI Stock Analysis

• Market Cap: €4.08B
• Dividend Yield: 9.24%
• Average Volume (3M): 400.92K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.70
• Revenue Growth: -3.62%
• EPS Growth: -87.74%
• Country: NL
• Employees: 40,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.77
• Shares Outstanding: 175,977,420
• 10 Day Avg. Volume: 379,821
• 30 Day Avg. Volume: 400,924
• PEG Ratio: 0.12
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 7.10
• 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: €31.81
• Price Target Upside: 37.18% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 8
• EPS Forecast (FY): 2.68
• Revenue Forecast (FY): €23.23B

• Rating: 58 Neutral
• Price Target: €24.00 ▲(3.49% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily constrained by weakening fundamentals versus prior peaks (multi-year revenue declines and structurally lower margins) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by strong 2025 cash generation and supportive valuation characteristics, especially the very high dividend yield.

Positive Factors

Strong cash generation

Randstad's operating and free cash flow strength in 2025, with FCF running near 87%–92% of net income, indicates high cash conversion and earnings quality. This durable cash generation supports reinvestment, dividend capacity and resilience through hiring cycles, benefiting long-term capital allocation.

Diversified staffing business model

Randstad's multi-service model—temporary staffing, permanent placement and managed talent solutions—provides diversified demand exposure and recurring service fees. This breadth spreads cyclicality across sectors and geographies, underpinning steadier revenue sources and client relationships over time.

Serviceable balance sheet & positive ROE

Despite higher leverage, sizable equity and a positive ROE (~7.5% in 2025) indicate the company retains capital strength and the ability to generate shareholder returns. This structural cushion supports strategic investment and dividend policy over the medium term.

Negative Factors

Multi-year revenue decline

Sustained revenue declines across multiple years signal weakening end-market demand or competitive pressure. Persistent top-line contraction reduces operating leverage, limits scale benefits, and makes margin and cash-flow improvements harder to sustain without structural market share gains or new growth engines.

Structurally lower margins

Margins remain materially below prior cycle peaks despite a 2025 rebound, suggesting structural pressure from pricing, mix, or cost bases. Persistently lower margins constrain free cash flow potential and reduce the margin of safety for dividends and investment during future downturns without durable margin restoration.

Rising leverage since 2023

A meaningful increase in leverage over a short period elevates refinancing, interest-rate and covenant risks, reducing financial flexibility. Higher debt levels can constrain strategic moves, increase sensitivity to cash-flow swings, and amplify downside risk if revenue or margins deteriorate again.

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 primarily makes money by connecting employers with workers and charging clients for staffing and related HR services. Its largest revenue stream is typically temporary staffing: Randstad recruits and employs or otherwise supplies contingent workers who perform assignments at client sites; the client is billed an hourly or periodic rate that includes the worker’s pay plus a markup to cover Randstad’s operating costs and profit. Another key stream is permanent placement (direct hire), where Randstad charges the client a one-time fee—often structured as a percentage of the candidate’s first-year compensation—upon successful hiring. Randstad also generates revenue from specialized talent solutions and managed services (e.g., outsourced recruitment process support, workforce management programs, and other HR services), which are generally billed via service fees, management fees, or contracted program-based pricing depending on the engagement. Across these models, earnings are influenced by hiring demand, wage levels, billable hours/assignment volumes, client mix, and the company’s ability to manage spread (the difference between bill rates charged to clients and labor-related costs), as well as retention and productivity of recruiters and consultants.

Randstad Holding NV Financial Statement Overview

Summary

Cash flow is a clear strength (solid operating cash flow and free cash flow in 2025 with improved FCF vs. 2024, and good alignment of FCF to net income). However, profitability and demand trends are pressured: revenue has declined for multiple years and margins remain well below the 2021–2022 peak despite a 2025 earnings rebound. Balance sheet is serviceable but leverage has increased meaningfully since 2023.

Income Statement

Profitability has clearly weakened versus the 2021–2022 peak: net margin fell from ~3.1%–3.4% (2021–2022) to ~0.5% in 2024 before recovering to ~1.3% in 2025, and operating margin also remains well below 2021–2022 levels. Revenue has been declining for several years (negative growth in 2023–2025, with a sharp drop shown for 2025), suggesting a tougher demand backdrop. A positive is the 2025 earnings rebound versus 2024 (net income up materially), but overall margins and growth trajectory are still pressured.

Balance Sheet

Leverage is moderate, with debt-to-equity rising to ~0.56 in 2025 from ~0.25 in 2023, indicating a meaningful increase in debt load over the last two years. Equity remains sizable (~€4.0B) and the business still generates positive returns on equity (~7.5% in 2025), improving from 2024’s low base, but well below the stronger 2021–2022 period. Overall balance sheet looks serviceable, though the upward leverage trend is the key watch item.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow are solid in 2025 (about €0.87B and €0.80B, respectively), with strong free cash flow growth in 2025 after a weak 2024. Free cash flow remains closely aligned with earnings (free cash flow running at ~87%–92% of net income over 2023–2025), supporting earnings quality. The main weakness is that operating cash flow is not large relative to revenue (low cash flow as a share of sales), which is typical for the industry but still limits cushion in a downturn.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.08B	24.12B	25.43B	27.57B	24.64B
Gross Profit	4.31B	4.70B	5.28B	5.75B	4.90B
EBITDA	845.00M	633.00M	1.17B	1.47B	1.38B
Net Income	299.00M	123.00M	624.00M	929.00M	768.00M
Balance Sheet
Total Assets	11.27B	11.19B	10.69B	11.11B	11.04B
Cash, Cash Equivalents and Short-Term Investments	399.00M	357.00M	261.00M	274.00M	859.00M
Total Debt	2.24B	2.22B	1.18B	1.14B	1.27B
Total Liabilities	7.26B	7.06B	5.99B	6.19B	6.14B
Stockholders Equity	4.00B	4.13B	4.70B	4.91B	4.90B
Cash Flow
Free Cash Flow	799.00M	565.00M	1.10B	951.00M	786.00M
Operating Cash Flow	872.00M	649.00M	1.19B	1.07B	914.00M
Investing Cash Flow	-69.00M	-518.00M	-147.00M	-290.00M	-207.00M
Financing Cash Flow	-773.00M	-21.00M	-1.03B	-1.37B	-322.00M

Randstad Holding NV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 23.19 is below the 20-day moving average (MA) of 26.18, below the 50-day MA of 27.95, and below the 200-day MA of 34.66, indicating a bearish trend. The MACD of -1.11 indicates Positive momentum. The RSI at 22.31 is Positive, neither overbought nor oversold. The STOCH value of 4.69 is Positive, 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%
RAND	58 Neutral	€4.08B	18.97	1.49%	9.24%	-3.62%	-87.74%
BRNL	51 Neutral	€319.54M	128.24	5.36%	7.15%	-7.16%	-50.45%