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Randstad NV (RANJY)
OTHER OTC:RANJY
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Randstad NV
(OTC:RANJY)
Rating:51Neutral
Price Target:
$23.00
â–²(6.43% Upside)
Positive Factors
APAC Growth
The strong growth in APAC, especially in India and Japan, suggests a robust market presence in these regions, which can drive long-term revenue growth and offset challenges in other markets.
Digital Marketplace Expansion
The expansion of digital marketplaces indicates successful digital transformation efforts, enhancing operational efficiency and customer engagement, which are crucial for long-term competitiveness.
North American Growth
Growth in North America, particularly in digital business, highlights strategic success in a key market, supporting future revenue stability and diversification.
Negative Factors
Revenue Decline
A declining revenue trend indicates potential challenges in market demand or competitive positioning, which could impact long-term financial health if not addressed.
Rising Debt Levels
Increasing debt levels may strain financial flexibility and cash flow, posing risks to long-term stability if not managed effectively.
Weakness in Europe
Persistent challenges in Europe, particularly in permanent recruiting, could hinder overall growth and profitability, necessitating strategic adjustments to mitigate regional risks.
Randstad NV (RANJY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.80B
Dividend Yield5.69%
Average Volume (3M)270.00
Price to Earnings (P/E)89.8
Beta (1Y)0.69
Revenue Growth-3.15%
EPS Growth-83.85%
CountryUS
Employees40,000
SectorIndustrials
Sector Strength73
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.28
Shares Outstanding361,738,620
10 Day Avg. Volume0
30 Day Avg. Volume270
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda14.66
Forecast
1Y Price Target
$23.00Price Target Upside6.43% Upside
Rating ConsensusHold
Number of Analyst Covering0
Randstad NV Business Overview & Revenue Model
Company DescriptionRandstad 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 MoneyRandstad NV generates revenue primarily through its staffing and workforce solutions services. The company earns money by charging clients for temporary and permanent staffing, recruitment process outsourcing (RPO), and other HR-related services. Key revenue streams include fees from placing temporary workers, which typically involve billing clients at an hourly rate that includes both the wages paid to the workers and a markup for Randstad's services. Permanent placement fees are charged as a percentage of the candidate's first-year salary. Additionally, Randstad offers managed services and other HR solutions, which contribute to its revenue. The company's earnings are significantly influenced by economic conditions, employment trends, and labor demand across various sectors. Strategic partnerships and acquisitions also play a role in expanding Randstad's market presence and enhancing its service offerings.
Randstad NV Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with notable growth in APAC and digital business expansion, particularly in North America and digital marketplaces. However, there were significant challenges in Europe, especially in the professional and permanent hiring sectors. Positive results in specific regions and digital advancements were overshadowed by broader market uncertainties and regional difficulties.Q2-2025 Updates
Positive Updates
Revenues and EBITDA Performance
Randstad achieved revenues of EUR 5.8 billion and EBITDA of EUR 171 million with a margin of 3.0%.
Growth in Asia Pacific
Growth returning in APAC, with strong performance in India and Japan, demonstrating solid growth of 6%.
North American Operational Growth
Sequential improvement in North America with a year-over-year growth in the operational and digital business, with the EBITA margin for North America at 4.1%, up 70 basis points year-over-year.
Digital Marketplace Expansion
More than 700,000 shifts were directly selected by the talent on Randstad's digital marketplaces in Q2, a double-digit increase over Q1.
Positive Trends in Italy and Spain
Continued profitable growth in Italy and Spain, with Italy's operational growth up 2% and Spain's growth at 6%.
Negative Updates
Weakness in Northwest Europe
Continued weakness in Northwest Europe, affecting permanent recruiting and professional businesses the most.
Professional Solutions Decline
Professional Solutions and permanent hiring remain subdued in North America, declining by 16% and 24%, respectively.
Challenges in Northern Europe
Northern Europe continues to face mixed trends with temp proving more resilient but hiring confidence still low on the perm side.
Decline in Permanent Hiring
Permanent hiring is down 20% year-over-year in France, reflecting challenges in the broader market.
Softening UK Market
The UK labor market continues to soften, with a 15% decline in performance.
Company Guidance
In the Q2 2025 results conference call, Randstad reported revenues of EUR 5.8 billion and an EBITDA of EUR 171 million, with a margin of 3.0%. The company highlighted its strong performance in Italy and Spain, and a return to growth in APAC, particularly in India and Japan. North America showed sequential improvement, with a 1% growth in the operational business and a 2% increase in digital business. However, hiring confidence remained low in Northwest Europe, impacting permanent recruiting and professional businesses. The company observed increased demand for AI skills, especially in the U.S., where AI-related projects are expanding in sectors like financial services, health care, consumer goods, and technology. Randstad emphasized its strategy of specialization at scale and digital transformation, noting that over 700,000 shifts were selected through its digital marketplaces in Q2, a double-digit increase over Q1. Despite a 2.3% decline in organic revenue year-over-year, Randstad maintained its relative profitability through strategic progress, cost savings, and increased productivity. The outlook for Q3 anticipates continued economic uncertainty, with a focus on managing costs and maintaining client and talent engagement.Randstad NV Financial Statement Overview
Summary
Randstad NV faces financial challenges with declining revenues and profitability. The income statement shows a negative revenue growth rate and reduced margins. The balance sheet indicates increased leverage and declining ROE, while cash flow generation, although positive, is on a downward trend.Income Statement
Randstad NV has shown a decline in revenue over the past few years. The net profit margin for 2024 was 0.51%, indicating very thin profitability. Gross profit margin decreased to 19.49% in 2024, down from 20.76% in 2023. EBITDA margin also fell to 2.51% in 2024 from 4.6% in 2023, reflecting operational challenges. The revenue growth rate was negative, with a decline of 5.13% from 2023 to 2024, showing a downward trend in revenue generation.45
Neutral
Balance Sheet
The company's balance sheet shows a stable equity ratio of 36.92% in 2024, which indicates a moderate level of financial leverage. The debt-to-equity ratio rose to 0.54 in 2024 from 0.25 in 2020, reflecting an increase in debt levels. Return on Equity (ROE) decreased to 2.98% from 13.28% in 2023, indicating reduced profitability relative to shareholder equity. The increase in total debt over the years could pose a risk if not managed carefully.60
Neutral
Cash Flow
Randstad NV's operating cash flow to net income ratio was 5.28 in 2024, suggesting strong cash generation relative to net income. However, free cash flow declined significantly from 2023, with a free cash flow to net income ratio of 4.59. The free cash flow growth rate was negative due to reduced operational efficiency and capital expenditure increases, indicating a need for improved cash management.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.55B | 24.12B | 25.43B | 27.57B | 24.64B | 20.72B |
| Gross Profit | 4.49B | 4.70B | 5.28B | 5.75B | 4.90B | 3.95B |
| EBITDA | 714.00M | 606.00M | 1.17B | 1.47B | 1.38B | 798.00M |
| Net Income | 83.00M | 123.00M | 624.00M | 929.00M | 768.00M | 304.00M |
Balance Sheet | ||||||
| Total Assets | 10.79B | 11.19B | 10.69B | 11.11B | 11.04B | 9.59B |
| Cash, Cash Equivalents and Short-Term Investments | 278.00M | 357.00M | 261.00M | 274.00M | 859.00M | 474.00M |
| Total Debt | 0.00 | 2.22B | 1.18B | 1.14B | 1.27B | 729.00M |
| Total Liabilities | 6.97B | 7.06B | 5.99B | 6.19B | 6.14B | 4.92B |
| Stockholders Equity | 3.81B | 4.13B | 4.70B | 4.91B | 4.90B | 4.67B |
Cash Flow | ||||||
| Free Cash Flow | 719.00M | 565.00M | 1.10B | 951.00M | 786.00M | 1.36B |
| Operating Cash Flow | 797.00M | 649.00M | 1.19B | 1.07B | 914.00M | 1.46B |
| Investing Cash Flow | -460.00M | -518.00M | -147.00M | -290.00M | -207.00M | -112.00M |
| Financing Cash Flow | -299.00M | -21.00M | -1.03B | -1.37B | -322.00M | -1.09B |
Randstad NV Technical Analysis
Negative
21.61
Price Trends
23.89
Negative
22.41
Negative
21.50
Positive
Market Momentum
-0.38
Positive
36.38
Neutral
3.72
Positive
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 21.61 is below the 20-day moving average (MA) of 23.45, below the 50-day MA of 23.89, and above the 200-day MA of 21.50, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 3.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RANJY.
Randstad NV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.02B | 30.98 | 7.18% | 1.19% | 8.89% | -13.57% | |
72 Outperform | $3.81B | 15.45 | 13.55% | 2.34% | 0.79% | 34.85% | |
64 Neutral | $3.56B | 20.00 | 12.75% | 6.57% | -6.95% | -41.84% | |
63 Neutral | $10.70B | 15.26 | 7.37% | 2.02% | 2.87% | -14.59% | |
54 Neutral | $1.75B | 18.36 | -0.78% | 5.96% | -3.79% | -138.56% | |
51 Neutral | $7.80B | 89.77 | 2.12% | 5.69% | -3.15% | -83.85% | |
49 Neutral | $2.00B | 50.79 | 31.50% | 4.43% | 2.40% | -75.66% |
* Industrials Sector Average
Performance Comparison
RANJY
Randstad NV
21.64
-0.21
-0.96%
HSII
Heidrick & Struggles
50.73
14.73
40.92%
NSP
Insperity
51.15
-32.57
-38.90%
KFY
Korn Ferry
75.07
7.45
11.02%
MAN
ManpowerGroup
39.58
-27.31
-40.83%
RHI
Robert Half
36.39
-22.85
-38.57%
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.