ADECCO GROUP AG-REG (ADI1.DE) Stock Fundamental Analysis
FRA:ADI1 - CH0012138605 - Common Stock
25.02 EUR
-1.08 (-4.14%)
We assign a fundamental rating of 4 out of 10 to ADI1. ADI1 was compared to 32 industry peers in the Professional Services industry. While ADI1 seems to be doing ok healthwise, there are quite some concerns on its profitability. ADI1 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ADI1 had positive earnings in the past year.
ADI1 had a positive operating cash flow in the past year.
Of the past 5 years ADI1 4 years were profitable.
Each year in the past 5 years ADI1 had a positive operating cash flow.
1.2 Ratios
ADI1 has a Return On Assets (2.44%) which is in line with its industry peers.
With a Return On Equity value of 9.04%, ADI1 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Return On Invested Capital of ADI1 (5.12%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ADI1 is significantly below the industry average of 11.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 9.04% | ||
| ROIC | 5.12% |
ROA(3y)2.57%
ROA(5y)2.33%
ROE(3y)8.78%
ROE(5y)7.75%
ROIC(3y)5.81%
ROIC(5y)6.59%
1.3 Margins
With a Profit Margin value of 1.26%, ADI1 perfoms like the industry average, outperforming 40.63% of the companies in the same industry.
ADI1's Profit Margin has declined in the last couple of years.
ADI1's Operating Margin of 2.32% is on the low side compared to the rest of the industry. ADI1 is outperformed by 62.50% of its industry peers.
In the last couple of years the Operating Margin of ADI1 has declined.
ADI1's Gross Margin of 19.23% is on the low side compared to the rest of the industry. ADI1 is outperformed by 68.75% of its industry peers.
In the last couple of years the Gross Margin of ADI1 has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.32% | ||
| PM (TTM) | 1.26% | ||
| GM | 19.23% |
OM growth 3Y-15.08%
OM growth 5Y-10.1%
PM growth 3Y-22.35%
PM growth 5Y-15.85%
GM growth 3Y-1.67%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
ADI1 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for ADI1 remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ADI1 has more shares outstanding
ADI1 has a better debt/assets ratio than last year.
2.2 Solvency
ADI1 has an Altman-Z score of 2.77. This is not the best score and indicates that ADI1 is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.77, ADI1 is in line with its industry, outperforming 53.13% of the companies in the same industry.
ADI1 has a debt to FCF ratio of 7.60. This is a slightly negative value and a sign of low solvency as ADI1 would need 7.60 years to pay back of all of its debts.
ADI1 has a Debt to FCF ratio (7.60) which is in line with its industry peers.
A Debt/Equity ratio of 0.84 indicates that ADI1 is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, ADI1 is in line with its industry, outperforming 46.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 7.6 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.51
WACC3.4%
2.3 Liquidity
ADI1 has a Current Ratio of 1.03. This is a normal value and indicates that ADI1 is financially healthy and should not expect problems in meeting its short term obligations.
ADI1 has a Current ratio (1.03) which is comparable to the rest of the industry.
ADI1 has a Quick Ratio of 1.03. This is a normal value and indicates that ADI1 is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ADI1 (1.03) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
ADI1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.49%.
ADI1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.60% yearly.
Looking at the last year, ADI1 shows a decrease in Revenue. The Revenue has decreased by -2.98% in the last year.
The Revenue has been decreasing by -0.25% on average over the past years.
EPS 1Y (TTM)-20.49%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-28.12%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-1.18%
3.2 Future
ADI1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.03% yearly.
Based on estimates for the next years, ADI1 will show a small growth in Revenue. The Revenue will grow by 0.90% on average per year.
EPS Next Y-8.98%
EPS Next 2Y5.29%
EPS Next 3Y9.01%
EPS Next 5Y2.03%
Revenue Next Year-0.71%
Revenue Next 2Y1.12%
Revenue Next 3Y2.09%
Revenue Next 5Y0.9%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ADI1 is valuated reasonably with a Price/Earnings ratio of 11.12.
ADI1's Price/Earnings ratio is rather cheap when compared to the industry. ADI1 is cheaper than 90.63% of the companies in the same industry.
ADI1 is valuated cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.89, the valuation of ADI1 can be described as very reasonable.
ADI1's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADI1 is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.66. ADI1 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
ADI1's Enterprise Value to EBITDA is on the same level as the industry average.
ADI1's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADI1 is cheaper than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 9.4 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.29%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.07%, ADI1 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.27, ADI1 pays a better dividend. On top of this ADI1 pays more dividend than 81.25% of the companies listed in the same industry.
ADI1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
5.2 History
The dividend of ADI1 has a limited annual growth rate of 3.12%.
Dividend Growth(5Y)3.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
60.90% of the earnings are spent on dividend by ADI1. This is not a sustainable payout ratio.
ADI1's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.9%
EPS Next 2Y5.29%
EPS Next 3Y9.01%
FRA:ADI1 (9/5/2025, 7:00:00 PM)
25.02
-1.08 (-4.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners54.19%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner ChangeN/A
Market Cap4.21B
Analysts68.7
Price Target30.93 (23.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend2.58
Dividend Growth(5Y)3.12%
DP60.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.72%
Min EPS beat(2)-7.33%
Max EPS beat(2)14.78%
EPS beat(4)2
Avg EPS beat(4)5.87%
Min EPS beat(4)-7.33%
Max EPS beat(4)21.88%
EPS beat(8)3
Avg EPS beat(8)-1.66%
EPS beat(12)3
Avg EPS beat(12)-5.08%
EPS beat(16)4
Avg EPS beat(16)-7.94%
Revenue beat(2)0
Avg Revenue beat(2)-1.52%
Min Revenue beat(2)-1.72%
Max Revenue beat(2)-1.33%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)-1.33%
Revenue beat(8)0
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)1
Avg Revenue beat(16)-1.91%
PT rev (1m)3.82%
PT rev (3m)-0.52%
EPS NQ rev (1m)-13.57%
EPS NQ rev (3m)-13.57%
EPS NY rev (1m)-7.83%
EPS NY rev (3m)-7.83%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.18 | ||
| P/FCF | 10.15 | ||
| P/OCF | 7.68 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.4 |
EPS(TTM)2.25
EY8.99%
EPS(NY)2.82
Fwd EY11.25%
FCF(TTM)2.46
FCFY9.85%
OCF(TTM)3.26
OCFY13.03%
SpS136.11
BVpS18.98
TBVpS-9.64
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.44% | ||
| ROE | 9.04% | ||
| ROCE | 7.7% | ||
| ROIC | 5.12% | ||
| ROICexc | 5.33% | ||
| ROICexgc | 19.58% | ||
| OM | 2.32% | ||
| PM (TTM) | 1.26% | ||
| GM | 19.23% | ||
| FCFM | 1.81% |
ROA(3y)2.57%
ROA(5y)2.33%
ROE(3y)8.78%
ROE(5y)7.75%
ROIC(3y)5.81%
ROIC(5y)6.59%
ROICexc(3y)6.31%
ROICexc(5y)8.63%
ROICexgc(3y)23.3%
ROICexgc(5y)28.04%
ROCE(3y)8.86%
ROCE(5y)10.01%
ROICexcg growth 3Y-18.84%
ROICexcg growth 5Y-12.55%
ROICexc growth 3Y-25.95%
ROICexc growth 5Y-16.57%
OM growth 3Y-15.08%
OM growth 5Y-10.1%
PM growth 3Y-22.35%
PM growth 5Y-15.85%
GM growth 3Y-1.67%
GM growth 5Y0.21%
F-Score4
Asset Turnover1.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 7.6 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 59.82% | ||
| Cap/Sales | 0.58% | ||
| Interest Coverage | 11.06 | ||
| Cash Conversion | 72.72% | ||
| Profit Quality | 143.6% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.77 |
F-Score4
WACC3.4%
ROIC/WACC1.51
Cap/Depr(3y)74.23%
Cap/Depr(5y)73.76%
Cap/Sales(3y)0.81%
Cap/Sales(5y)0.77%
Profit Quality(3y)129.5%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.49%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-28.12%
EPS Next Y-8.98%
EPS Next 2Y5.29%
EPS Next 3Y9.01%
EPS Next 5Y2.03%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-1.18%
Revenue Next Year-0.71%
Revenue Next 2Y1.12%
Revenue Next 3Y2.09%
Revenue Next 5Y0.9%
EBIT growth 1Y-26.45%
EBIT growth 3Y-12.22%
EBIT growth 5Y-10.32%
EBIT Next Year38.09%
EBIT Next 3Y20.72%
EBIT Next 5Y10.21%
FCF growth 1Y36.07%
FCF growth 3Y-1.55%
FCF growth 5Y-4.91%
OCF growth 1Y3%
OCF growth 3Y-0.7%
OCF growth 5Y-4.28%