ADECCO GROUP AG-REG (ADI1.DE) Stock Fundamental Analysis
FRA:ADI1 - Deutsche Boerse Ag - CH0012138605 - Common Stock - Currency: EUR
ADI1 gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 29 industry peers in the Professional Services industry. ADI1 scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
In the past year ADI1 was profitable.
ADI1 had a positive operating cash flow in the past year.
ADI1 had positive earnings in 4 of the past 5 years.
In the past 5 years ADI1 always reported a positive cash flow from operatings.
1.2 Ratios
ADI1 has a Return On Assets (2.50%) which is in line with its industry peers.
ADI1 has a Return On Equity (8.47%) which is in line with its industry peers.
ADI1 has a Return On Invested Capital (5.25%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for ADI1 is below the industry average of 10.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 8.47% | ||
| ROIC | 5.25% |
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
ADI1's Profit Margin of 1.31% is on the low side compared to the rest of the industry. ADI1 is outperformed by 65.52% of its industry peers.
ADI1's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 2.52%, ADI1 is doing worse than 62.07% of the companies in the same industry.
In the last couple of years the Operating Margin of ADI1 has declined.
The Gross Margin of ADI1 (19.43%) is worse than 68.97% of its industry peers.
ADI1's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.52% | ||
| PM (TTM) | 1.31% | ||
| GM | 19.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ADI1 is creating some value.
Compared to 1 year ago, ADI1 has about the same amount of shares outstanding.
The number of shares outstanding for ADI1 has been increased compared to 5 years ago.
The debt/assets ratio for ADI1 has been reduced compared to a year ago.
2.2 Solvency
ADI1 has an Altman-Z score of 2.80. 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.
ADI1 has a Altman-Z score (2.80) which is in line with its industry peers.
The Debt to FCF ratio of ADI1 is 5.25, which is a neutral value as it means it would take ADI1, 5.25 years of fcf income to pay off all of its debts.
ADI1 has a Debt to FCF ratio (5.25) which is in line with its industry peers.
A Debt/Equity ratio of 0.76 indicates that ADI1 is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, ADI1 perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 2.8 |
ROIC/WACC1.51
WACC3.49%
2.3 Liquidity
A Current Ratio of 1.06 indicates that ADI1 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, ADI1 perfoms like the industry average, outperforming 44.83% of the companies in the same industry.
A Quick Ratio of 1.06 indicates that ADI1 should not have too much problems paying its short term obligations.
ADI1's Quick ratio of 1.06 is in line compared to the rest of the industry. ADI1 outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
ADI1 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.03%.
ADI1 shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.60% yearly.
ADI1 shows a decrease in Revenue. In the last year, the revenue decreased by -3.42%.
The Revenue has been decreasing by -0.25% on average over the past years.
EPS 1Y (TTM)-15.03%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-18.64%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-2.52%
3.2 Future
The Earnings Per Share is expected to grow by 2.15% on average over the next years.
The Revenue is expected to grow by 0.82% on average over the next years.
EPS Next Y-1.25%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
EPS Next 5Y2.15%
Revenue Next Year-0.95%
Revenue Next 2Y1.3%
Revenue Next 3Y2.31%
Revenue Next 5Y0.82%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.10 indicates a reasonable valuation of ADI1.
Compared to the rest of the industry, the Price/Earnings ratio of ADI1 indicates a rather cheap valuation: ADI1 is cheaper than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, ADI1 is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.87, the valuation of ADI1 can be described as very reasonable.
86.21% of the companies in the same industry are more expensive than ADI1, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.71, ADI1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI1 is valued a bit cheaper than 65.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ADI1 is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.07 | ||
| EV/EBITDA | 8.51 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.42%
EPS Next 3Y10.7%
5. Dividend
5.1 Amount
ADI1 has a Yearly Dividend Yield of 3.91%.
Compared to an average industry Dividend Yield of 2.98, ADI1 pays a better dividend. On top of this ADI1 pays more dividend than 86.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ADI1 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
142.57% 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.
DP142.57%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
FRA:ADI1 (7/22/2025, 7:00:00 PM)
26.98
-0.44 (-1.6%)
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 Cap4.54B
Analysts67.83
Price Target29.79 (10.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend2.58
Dividend Growth(5Y)3.12%
DP142.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.02%
Min EPS beat(2)-5.84%
Max EPS beat(2)21.88%
EPS beat(4)2
Avg EPS beat(4)3.41%
Min EPS beat(4)-5.84%
Max EPS beat(4)21.88%
EPS beat(8)2
Avg EPS beat(8)-5.04%
EPS beat(12)2
Avg EPS beat(12)-10.47%
EPS beat(16)5
Avg EPS beat(16)-7.93%
Revenue beat(2)0
Avg Revenue beat(2)-2.96%
Min Revenue beat(2)-3.96%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.8%
Min Revenue beat(4)-3.96%
Max Revenue beat(4)-1.8%
Revenue beat(8)0
Avg Revenue beat(8)-2.19%
Revenue beat(12)1
Avg Revenue beat(12)-1.94%
Revenue beat(16)2
Avg Revenue beat(16)-1.85%
PT rev (1m)-4.18%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.1 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.2 | ||
| P/FCF | 8.07 | ||
| P/OCF | 6.43 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.51 |
EPS(TTM)2.43
EY9.01%
EPS(NY)3.04
Fwd EY11.27%
FCF(TTM)3.34
FCFY12.39%
OCF(TTM)4.2
OCFY15.56%
SpS137.37
BVpS21.23
TBVpS-8.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 8.47% | ||
| ROCE | 7.96% | ||
| ROIC | 5.25% | ||
| ROICexc | 5.62% | ||
| ROICexgc | 21.03% | ||
| OM | 2.52% | ||
| PM (TTM) | 1.31% | ||
| GM | 19.43% | ||
| FCFM | 2.43% |
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-Score5
Asset Turnover1.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.25 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 59.02% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 10.8 | ||
| Cash Conversion | 85.49% | ||
| Profit Quality | 185.81% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.8 |
F-Score5
WACC3.49%
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)-15.03%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-18.64%
EPS Next Y-1.25%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
EPS Next 5Y2.15%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-2.52%
Revenue Next Year-0.95%
Revenue Next 2Y1.3%
Revenue Next 3Y2.31%
Revenue Next 5Y0.82%
EBIT growth 1Y-21.32%
EBIT growth 3Y-12.22%
EBIT growth 5Y-10.32%
EBIT Next Year38.09%
EBIT Next 3Y20.72%
EBIT Next 5Y10.36%
FCF growth 1Y62.25%
FCF growth 3Y-1.55%
FCF growth 5Y-4.91%
OCF growth 1Y25.58%
OCF growth 3Y-0.7%
OCF growth 5Y-4.28%