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 32 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 is valued correctly, but it does not seem to be growing. ADI1 also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ADI1 was profitable.
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
ADI1 has a Return On Assets (2.50%) which is in line with its industry peers.
ADI1 has a Return On Equity of 8.47%. This is comparable to the rest of the industry: ADI1 outperforms 46.88% of its industry peers.
With a Return On Invested Capital value of 5.25%, ADI1 perfoms like the industry average, outperforming 43.75% of the companies in the same 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 11.25%.
| 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 Profit Margin of 1.31%. This is in the lower half of the industry: ADI1 underperforms 62.50% 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 62.50% of the companies in the same industry.
ADI1's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 19.43%, ADI1 is doing worse than 65.63% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ADI1 is still creating some value.
The number of shares outstanding for ADI1 remains at a similar level compared to 1 year ago.
The number of shares outstanding for ADI1 has been increased compared to 5 years ago.
Compared to 1 year ago, ADI1 has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.77 indicates that ADI1 is not a great score, but indicates only limited risk for bankruptcy at the moment.
ADI1 has a Altman-Z score (2.77) which is in line with its industry peers.
ADI1 has a debt to FCF ratio of 5.25. This is a neutral value as ADI1 would need 5.25 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.25, ADI1 perfoms like the industry average, outperforming 46.88% of the companies in the same industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 2.77 |
ROIC/WACC1.53
WACC3.44%
2.3 Liquidity
ADI1 has a Current Ratio of 1.06. 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 (1.06) which is comparable to the rest of the industry.
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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The earnings per share for ADI1 have decreased strongly by -24.07% in the last year.
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 -3.42% in the last 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)-24.07%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-62.44%
Revenue 1Y (TTM)-3.42%
Revenue growth 3Y3.37%
Revenue growth 5Y-0.25%
Sales Q2Q%-9.1%
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.
The Revenue is expected to grow by 1.50% on average over the next years.
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 5Y1.5%
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 11.46.
Based on the Price/Earnings ratio, ADI1 is valued cheaper than 87.50% of the companies in the same industry.
ADI1's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
The Price/Forward Earnings ratio is 8.18, which indicates a very decent valuation of ADI1.
ADI1's Price/Forward 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/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 8.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADI1 is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
87.50% of the companies in the same industry are more expensive than ADI1, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 7.99 |
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 4.21%, ADI1 is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.00, ADI1 pays a better dividend. On top of this ADI1 pays more dividend than 84.38% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
5.2 History
The dividend of ADI1 has a limited annual growth rate of 3.12%.
Dividend Growth(5Y)3.12%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
142.57% of the earnings are spent on dividend by ADI1. This is not a sustainable payout ratio.
The dividend of ADI1 is growing, but earnings are growing more, so the dividend growth is sustainable.
DP142.57%
EPS Next 2Y9.42%
EPS Next 3Y10.7%
FRA:ADI1 (5/22/2025, 7:00:00 PM)
24.86
-0.86 (-3.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners63.1%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner ChangeN/A
Market Cap4.19B
Analysts67.83
Price Target31.09 (25.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend2.58
Dividend Growth(5Y)3.12%
DP142.57%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.46 | ||
| Fwd PE | 8.18 | ||
| P/S | 0.18 | ||
| P/FCF | 7.44 | ||
| P/OCF | 5.92 | ||
| P/B | 1.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.99 |
EPS(TTM)2.17
EY8.73%
EPS(NY)3.04
Fwd EY12.23%
FCF(TTM)3.34
FCFY13.45%
OCF(TTM)4.2
OCFY16.88%
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 | 2.77 |
F-Score5
WACC3.44%
ROIC/WACC1.53
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)-24.07%
EPS 3Y-14.33%
EPS 5Y-12.6%
EPS Q2Q%-62.44%
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%-9.1%
Revenue Next Year-0.95%
Revenue Next 2Y1.3%
Revenue Next 3Y2.31%
Revenue Next 5Y1.5%
EBIT growth 1Y-21.32%
EBIT growth 3Y-12.22%
EBIT growth 5Y-10.32%
EBIT Next Year44.61%
EBIT Next 3Y21.47%
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%