ADECCO GROUP AG-REG (ADI1.DE) Stock Fundamental Analysis
Europe - FRA:ADI1 - CH0012138605 - Common Stock
25.06 EUR
-0.82 (-3.17%)
We assign a fundamental rating of 4 out of 10 to ADI1. ADI1 was compared to 32 industry peers in the Professional Services industry. ADI1 may be in some trouble as it scores bad on both profitability and health. ADI1 has a valuation in line with the averages, but it does not seem to be growing.
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.
ADI1 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ADI1 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ADI1 (2.44%) is worse than 62.50% of its industry peers.
ADI1 has a Return On Equity of 9.04%. This is comparable to the rest of the industry: ADI1 outperforms 46.88% of its industry peers.
ADI1 has a Return On Invested Capital of 5.12%. This is in the lower half of the industry: ADI1 underperforms 62.50% of its industry peers.
ADI1 had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 11.46%.
| 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.
In the last couple of years the Profit Margin of ADI1 has declined.
ADI1 has a Operating Margin of 2.32%. This is in the lower half of the industry: ADI1 underperforms 65.63% 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 71.88% of its industry peers.
ADI1's Gross Margin has been stable in the last couple of years.
| 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.
ADI1 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ADI1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.78 indicates that ADI1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADI1's Altman-Z score of 2.78 is in line compared to the rest of the industry. ADI1 outperforms 53.13% of its industry peers.
The Debt to FCF ratio of ADI1 is 7.60, which is on the high side as it means it would take ADI1, 7.60 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.60, ADI1 is doing worse than 65.63% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that ADI1 is somewhat dependend on debt financing.
ADI1's Debt to Equity ratio of 0.84 is in line compared to the rest of the industry. ADI1 outperforms 46.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 7.6 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.51
WACC3.39%
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.
The Current ratio of ADI1 (1.03) is comparable to the rest of the industry.
A Quick Ratio of 1.03 indicates that ADI1 should not have too much problems paying its short term obligations.
ADI1 has a Quick ratio (1.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for ADI1 have decreased strongly by -20.49% in the last year.
Measured over the past years, ADI1 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.60% on average per year.
The Revenue has decreased by -2.98% in the past year.
Measured over the past years, ADI1 shows a decrease in Revenue. The Revenue has been decreasing by -0.25% on average per year.
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
The Earnings Per Share is expected to grow by 1.94% on average over the next years.
The Revenue is expected to grow by 0.81% on average over the next years.
EPS Next Y-9.08%
EPS Next 2Y5.44%
EPS Next 3Y8.93%
EPS Next 5Y1.94%
Revenue Next Year-0.54%
Revenue Next 2Y1.13%
Revenue Next 3Y2.09%
Revenue Next 5Y0.81%
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
With a Price/Earnings ratio of 11.14, the valuation of ADI1 can be described as very reasonable.
90.63% of the companies in the same industry are more expensive than ADI1, based on the Price/Earnings ratio.
ADI1 is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.87, which indicates a very decent valuation of ADI1.
Based on the Price/Forward Earnings ratio, ADI1 is valued cheaper than 84.38% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, ADI1 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADI1 indicates a somewhat cheap valuation: ADI1 is cheaper than 68.75% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ADI1 is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.17 | ||
| EV/EBITDA | 9.5 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.44%
EPS Next 3Y8.93%
5. Dividend
5.1 Amount
ADI1 has a Yearly Dividend Yield of 4.17%, which is a nice return.
ADI1's Dividend Yield is rather good when compared to the industry average which is at 3.26. ADI1 pays more dividend than 84.38% of the companies in the same industry.
ADI1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
ADI1 pays out 60.90% of its income as dividend. 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 2Y5.44%
EPS Next 3Y8.93%
FRA:ADI1 (10/20/2025, 7:00:00 PM)
25.06
-0.82 (-3.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners61.5%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner ChangeN/A
Market Cap4.22B
Analysts71.67
Price Target30.93 (23.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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)0%
PT rev (3m)3.82%
EPS NQ rev (1m)-2.69%
EPS NQ rev (3m)-18.79%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-7.93%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-1.73%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.18 | ||
| P/FCF | 10.17 | ||
| P/OCF | 7.69 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.5 |
EPS(TTM)2.25
EY8.98%
EPS(NY)2.82
Fwd EY11.27%
FCF(TTM)2.46
FCFY9.83%
OCF(TTM)3.26
OCFY13.01%
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 | 2.78 |
F-Score4
WACC3.39%
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-9.08%
EPS Next 2Y5.44%
EPS Next 3Y8.93%
EPS Next 5Y1.94%
Revenue 1Y (TTM)-2.98%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-1.18%
Revenue Next Year-0.54%
Revenue Next 2Y1.13%
Revenue Next 3Y2.09%
Revenue Next 5Y0.81%
EBIT growth 1Y-26.45%
EBIT growth 3Y-12.22%
EBIT growth 5Y-10.32%
EBIT Next Year31.92%
EBIT Next 3Y18.3%
EBIT Next 5Y10.12%
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%