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Randstad NV (RANJY)
OTHER OTC:RANJY
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Randstad NV
(OTC:RANJY)
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Rating:62Neutral
Price Target:
$17.00
â–¼(-10.05% Downside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by resilient financial performance—especially strong cash flow and manageable leverage—plus supportive valuation from a high dividend yield and reasonable P/E. These positives are tempered by weak technicals (downtrend across moving averages and negative MACD) and an earnings outlook that suggests stabilization but with ongoing top-line and margin pressure in key regions and higher-margin segments.
Positive Factors
Strong cash generation
Randstad's operating and free cash flow strengthened materially in 2025 (FCF ~EUR 600m, conversion historically ~0.86–0.92). Durable cash generation funds dividends, structural savings, deleveraging and reinvestment, lowering financing risk and supporting multi‑quarter operational recovery.
Manageable leverage and deleveraging
Leverage reduced to ~1.3x with net debt down year-on-year and sizable equity base. This improved financial flexibility supports continued dividend policy, targeted investments and buffers against cyclical staffing demand, making balance sheet risks more contained over coming quarters.
Digital marketplace scale & productivity gains
Scale in digital marketplaces and rising self-scheduled shifts indicate network effects and operating leverage. Combined with >EUR100m structural savings and productivity gains, the digital push can sustainably improve margins and lower per-placement costs as adoption and market penetration grow.
Negative Factors
Persistent revenue declines
Multi-year top-line weakness reduces operating leverage and constrains margin recovery. Even with 2025 stabilization signs, revenues and profitability remain below 2021–2022 peaks, making sustainable earnings recovery dependent on durable demand improvements across key regions and segments.
Weakness in higher-margin Professional/Perm
Prolonged weakness in professional and permanent hiring compresses blended margins, since perm placements and professional services are higher margin. A sustained shortfall here structurally limits profitability even if temp volumes recover, slowing long-term margin expansion.
Regional headwinds and mix-driven margin pressure
Mix shifts toward lower-margin services, Northern Europe declines and regulatory uncertainty (e.g., Netherlands) create persistent margin pressure. These structural regional and mix factors can delay margin recovery and necessitate lasting pricing or portfolio changes to restore prior profitability.
Randstad NV (RANJY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.49B
Dividend Yield6.68%
Average Volume (3M)237.00
Price to Earnings (P/E)17.5
Beta (1Y)0.55
Revenue Growth-1.71%
EPS Growth-85.71%
CountryUS
Employees40,000
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.46
Shares Outstanding351,954,830
10 Day Avg. Volume281
30 Day Avg. Volume237
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)2.82
Price to Sales (P/S)0.49
P/FCF Ratio14.10
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.52
Enterprise Value/Ebitda7.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.6
Revenue Forecast (FY)$27.49B
Randstad NV Business Overview & Revenue Model
Company DescriptionRandstad NV (RANJY) is a global leader in the human resource consulting sector, specializing in staffing and workforce solutions. Founded in the Netherlands, the company operates in various sectors including temporary and permanent staffing, recruitment process outsourcing (RPO), and managed services provider (MSP) solutions. Randstad caters to a diverse clientele across different industries, providing services that enhance workforce efficiency and address the evolving needs of businesses and job seekers alike.
How the Company Makes MoneyRandstad generates revenue primarily through its staffing services, which include temporary placements and permanent recruitment. The company charges clients a fee based on a percentage of the employee's salary or a flat rate for services rendered. Additionally, Randstad earns revenue from its RPO and MSP offerings, where it manages recruitment processes and workforce management for clients, often under long-term contracts. Significant partnerships with various businesses across industries help to increase its client base and service offerings. Furthermore, Randstad benefits from economies of scale and a strong brand presence, which contribute to its competitive advantage and overall earnings.
Randstad NV Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and strategic progress (strong cash generation, meaningful structural cost savings, digital marketplace scale and productivity gains, and >50% of the business now in growth) against persistent top-line and margin pressures in higher‑margin segments and several European markets (Professional/Perm declines, Northern Europe weakness, one-offs and impairments). Management emphasized resilience, improved exit trends and a pathway to recovery, but near‑term uncertainties — notably mix effects, RPO softness and regulatory impacts in the Netherlands — temper the outlook.Q4-2025 Updates
Positive Updates
Solid Q4 and Full-Year Profitability
Q4 revenue of EUR 5.8 billion and underlying EBITDA of EUR 191 million (3.3% margin). Full-year 2025 adjusted EBITDA of EUR 720 million with a 3.1% margin, demonstrating resilience in a challenging market environment.
Strong Cash Generation and Deleveraging
Underlying free cash flow of approximately EUR 600 million for FY 2025 (up ~EUR 260 million year-over-year). Net debt decreased by EUR 274 million year-over-year and leverage at 1.3x; DSO stable at 56.7 days.
Meaningful Cost Discipline and Structural Savings
EUR 181 million lower costs in 2025 vs 2024, a recovery ratio of 71% for the year, and net structural savings north of EUR 100 million achieved in 2025; underlying OpEx of EUR 880 million with one-offs paying back faster than the 12-month reference.
Digital Marketplace Scale and Productivity Gains
Digital marketplaces annualized at ~EUR 4 billion. Q4 saw ~1.4 million self‑scheduled shifts (up 30% quarter-on-quarter). Productivity improved with ~3% gains in Q4 and ~1% for the full year; North America Operational grew 6%, driven by the marketplace model.
Improved Mix: More of the Business in Growth
Over 50% of the business is now in growth versus ~25% at the end of 2024, with continued momentum in Operational specializations and digital adoption supporting future leverage.
Geographic and Segment Growth Pockets
Notable growth in specific markets and segments: Poland +7%, Switzerland +6%, Japan +6%, India double-digit growth, Italy Operational +6%, Iberia +5% (Spain +6%), and France in-house +13%.
Strong Capital Allocation and Shareholder Return
Proposed regular dividend of EUR 1.62 per share (EUR 284 million), representing 64% of adjusted net earnings in line with capital allocation policy while maintaining deleveraging progress.
Organizational Strengthening and Engagement
Appointment of a Chief Digital Growth Officer to accelerate digital-first strategy; employee engagement remained above benchmark at 7.7 and company-wide AI readiness training deployed.
Negative Updates
Full-Year Revenue Decline
Full-year 2025 revenue declined 2% year‑on‑year to EUR 23.1 billion, highlighting continued top-line pressure in parts of the business despite operational resilience.
Weakness in Professional and Permanent Hiring
Professional and perm markets remained challenging: Professional down 10% in the U.S. this quarter and -14% in France; perm contribution down ~20 basis points, with permanent hiring still weak (e.g., Canada permanent down ~14%).
Northern Europe Challenges
Significant declines in key Northern European markets: Netherlands organic revenue -7%, Germany -10%, and Nordics -14%. Netherlands also saw an increase in sickness provisions and a EUR 5 million one‑off pension dotation, plus regulatory uncertainty.
Gross Margin Pressure and Mix Effects
Overall gross margin headwind in 2025 of around 60 basis points (approximately 40 bps from service/geographic/client mix and 20 bps from perm), Temp margin down ~20 bps year-over-year; adverse FX impacted operational profitability by ~EUR 8 million.
One-offs, Integration Costs and Impairments
Integration costs and one-offs totaled EUR 34 million in Q4 and EUR 125 million for the full year (focused on structural cost reductions). Impairment of EUR 9 million related to the digital business in Belgium.
Softness in Enterprise / RPO
Enterprise (RPO) demand softened in Q4 with Enterprise down ~4% and RPO declines of ~3–4%, reflecting caution among some larger clients and lower year‑end hiring confidence.
Regional Weakness and Near-term Uncertainty
Australia & New Zealand declined ~7% versus steep comparables; UK described as 'tough'. Uncertainty remains around the impact of new Dutch legislation (pensions/CLA) on volumes and bill rates despite initial indications that bill rate increases may offset volume pressure.
Limited Near-term Visibility on Marketplace Scale-up
Digital marketplace traction is evident (EUR 4 billion annualized) but expansion into ~5–7 additional markets and measurable revenue scaling beyond current geographies will take time; some markets still have limited visible quarter‑on‑quarter revenue impact.
Company Guidance
Guidance: Randstad expects Q1 2026 gross margin to be broadly stable sequentially, operating expenses to be modestly lower q/q (at least $10–15m), the number of working days unchanged, and January volumes roughly flat (about −0.4% decline per working day), with 50% of the business already in growth and the remainder expected to bottom out/annualize; 2026 tax rate is guided at 29–31%; the company proposes a EUR 1.62/share dividend (EUR 284m, ~64% of adjusted net earnings). For context, FY2025 results cited were revenues EUR 23.1bn (‑2% y/y), EBITDA EUR 720m (3.1% margin), Q4 revenues EUR 5.8bn and underlying EBITDA EUR 191m (3.3% margin), free cash flow ~EUR 600m (Q4 underlying FCF ~EUR 213m), net debt down EUR 274m y/y with leverage ~1.3x, DSO 56.7 days, a 71% recovery ratio, >EUR 100m net structural savings in 2025, one‑offs of EUR 34m in Q4 (EUR 125m FY), productivity gains of +3% in Q4 / +1% FY, and gross‑margin headwinds in 2025 of roughly 60bps (temp ~‑20bps, perm ~‑20bps, mix ~‑40bps).Randstad NV Financial Statement Overview
Summary
Cash generation is a clear strength (solid operating/FCF with a strong rebound in 2025), and leverage remains manageable. However, revenues and profitability are still well below 2021–2022 levels, with margin pressure and a less conservative balance-sheet trend versus 2022–2023.Income Statement
Revenue has been under pressure, with declines reported across 2023–2025 after strong growth in 2021–2022. Profitability also weakened materially versus the 2021–2022 peak (EBIT and net income are well below prior levels), indicating a tougher operating environment and/or pricing/mix pressure. Offsetting this, the company remains profitable and delivered a notable earnings rebound in 2025 versus 2024 (net income rising meaningfully), suggesting some stabilization after a weak 2024.52
Neutral
Balance Sheet
Leverage looks manageable overall: debt-to-equity was moderate in 2024 (~0.54) but has been lower in earlier years (~0.23–0.26), and total equity remains sizable (~4.0–4.9B) versus debt (~0.7–2.2B). However, the balance sheet has trended less conservative recently as total debt rose versus 2023 while equity declined, reducing flexibility compared with the stronger 2022–2023 position.63
Positive
Cash Flow
Cash generation is a key strength: operating cash flow and free cash flow are solid in absolute terms, with free cash flow jumping strongly in 2025 (up ~21% year over year) after a weaker 2024. Cash conversion appears healthy, with free cash flow consistently close to net income in the years provided (roughly ~0.86–0.92 historically). The main weakness is volatility—free cash flow growth swung negative in 2021 and 2024, pointing to cyclical working-capital or demand sensitivity.78
Positive
| 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 | 606.00M | 1.17B | 1.47B | 1.38B |
| Net Income | 299.00M | 123.00M | 624.00M | 929.00M | 768.00M |
Balance Sheet | |||||
| Total Assets | 10.69B | 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 | 1.91B | 2.22B | 1.18B | 1.14B | 1.27B |
| Total Liabilities | 6.68B | 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 NV Technical Analysis
Negative
18.90
Price Trends
17.54
Negative
18.74
Negative
20.68
Negative
Market Momentum
-0.47
Positive
37.05
Neutral
51.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RANJY, the sentiment is Negative. The current price of 18.9 is above the 20-day moving average (MA) of 16.81, above the 50-day MA of 17.54, and below the 200-day MA of 20.68, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 51.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RANJY.
Randstad NV Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.25B | 12.71 | 13.89% | 2.89% | 3.65% | 5.71% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $5.49B | 17.53 | 2.12% | 6.68% | -1.71% | -85.71% | |
59 Neutral | $2.40B | 18.42 | 10.02% | 8.65% | -7.27% | -43.88% | |
51 Neutral | $1.25B | -93.66 | -0.64% | 4.96% | -2.44% | -156.01% | |
43 Neutral | $797.20M | -110.57 | -9.79% | 6.37% | 3.19% | -86.21% |
* Industrials Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.