ADECCO GROUP AG-REG (ADI1.DE) Stock Fundamental Analysis
FRA:ADI1 - Deutsche Boerse Ag - CH0012138605 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to ADI1. ADI1 was compared to 34 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. ADI1 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ADI1 had positive earnings in the past year.
In the past year ADI1 had a positive cash flow from operations.
ADI1 had positive earnings in 4 of the past 5 years.
ADI1 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ADI1 (2.50%) is comparable to the rest of the industry.
ADI1 has a Return On Equity of 8.47%. This is comparable to the rest of the industry: ADI1 outperforms 44.12% of its industry peers.
The Return On Invested Capital of ADI1 (5.25%) is comparable to the rest of the industry.
ADI1 had an Average Return On Invested Capital over the past 3 years of 5.81%. This is significantly below the industry average of 10.84%.
| 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 has a worse Profit Margin (1.31%) than 64.71% of its industry peers.
ADI1's Profit Margin has declined in the last couple of years.
ADI1 has a Operating Margin (2.52%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ADI1 has declined.
ADI1's Gross Margin of 19.43% is on the low side compared to the rest of the industry. ADI1 is outperformed by 67.65% 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 | 2.52% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADI1 is still creating some value.
ADI1 has about the same amout of shares outstanding than it did 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 2.78. 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's Altman-Z score of 2.78 is in line compared to the rest of the industry. ADI1 outperforms 50.00% of 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.
ADI1 has a Debt to Equity ratio (0.76) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.44
WACC3.64%
2.3 Liquidity
A Current Ratio of 1.06 indicates that ADI1 should not have too much problems paying its short term obligations.
ADI1 has a Current ratio (1.06) which is in line with its industry peers.
A Quick Ratio of 1.06 indicates that ADI1 should not have too much problems paying its short term obligations.
ADI1 has a Quick ratio (1.06) which is in line with 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%.
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 -3.42% in the past year.
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
Based on estimates for the next years, ADI1 will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.70% on average per year.
ADI1 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.68% yearly.
EPS Next Y-1.25%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
EPS Next 5YN/A
Revenue Next Year-0.95%
Revenue Next 2Y1.3%
Revenue Next 3Y2.31%
Revenue Next 5Y1.68%
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
The Price/Earnings ratio is 10.44, which indicates a very decent valuation of ADI1.
ADI1's Price/Earnings ratio is rather cheap when compared to the industry. ADI1 is cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. ADI1 is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of ADI1.
Based on the Price/Forward Earnings ratio, ADI1 is valued cheaper than 91.18% of the companies in the same industry.
ADI1 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
70.59% of the companies in the same industry are more expensive than ADI1, based on the Enterprise Value to EBITDA ratio.
ADI1's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ADI1 is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| EV/EBITDA | 8.1 |
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
With a Yearly Dividend Yield of 4.19%, ADI1 is a good candidate for dividend investing.
ADI1's Dividend Yield is rather good when compared to the industry average which is at 2.95. ADI1 pays more dividend than 85.29% of the companies in the same industry.
ADI1's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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 more than its dividend. This makes the dividend growth sustainable.
DP142.57%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
FRA:ADI1 (6/16/2025, 7:00:00 PM)
25.38
+0.54 (+2.17%)
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 Cap4.27B
Analysts67.83
Price Target31.09 (22.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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)N/A
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 | 10.44 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.18 | ||
| P/FCF | 7.59 | ||
| P/OCF | 6.05 | ||
| P/B | 1.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)2.43
EY9.57%
EPS(NY)3.04
Fwd EY11.98%
FCF(TTM)3.34
FCFY13.17%
OCF(TTM)4.2
OCFY16.54%
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 | 2.78 |
F-Score5
WACC3.64%
ROIC/WACC1.44
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 5YN/A
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 5Y1.68%
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 5YN/A
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%