RANDSTAD NV (RAND.AS)
NL0000379121 - Common Stock
We assign a fundamental rating of 6 out of 10 to RAND. RAND was compared to 32 industry peers in the Professional Services industry. RAND is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RAND has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
RAND had positive earnings in the past year.
In the past year RAND had a positive cash flow from operations.
Each year in the past 5 years RAND has been profitable.
In the past 5 years RAND always reported a positive cash flow from operatings.
1.2 Ratios
RAND's Return On Assets of 7.42% is fine compared to the rest of the industry. RAND outperforms 75.86% of its industry peers.
RAND's Return On Equity of 17.67% is fine compared to the rest of the industry. RAND outperforms 62.07% of its industry peers.
RAND has a better Return On Invested Capital (13.56%) than 72.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RAND is in line with the industry average of 11.39%.
The last Return On Invested Capital (13.56%) for RAND is above the 3 year average (11.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.42% | ||
| ROE | 17.67% | ||
| ROIC | 13.56% |
ROA(3y)6.09%
ROA(5y)6.14%
ROE(3y)13.53%
ROE(5y)13.9%
ROIC(3y)11.76%
ROIC(5y)12.22%
1.3 Margins
The Profit Margin of RAND (2.98%) is comparable to the rest of the industry.
RAND's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.79%, RAND is doing worse than 65.52% of the companies in the same industry.
RAND's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 20.85%, RAND is doing worse than 72.41% of the companies in the same industry.
In the last couple of years the Gross Margin of RAND has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.79% | ||
| PM | 2.98% | ||
| GM | 20.85% |
OM growth 3Y4.17%
OM growth 5Y2.56%
PM growth 3Y10.02%
PM growth 5Y4.67%
GM growth 3Y1.63%
GM growth 5Y0.63%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RAND is still creating some value.
The number of shares outstanding for RAND has been reduced compared to 1 year ago.
RAND has about the same amout of shares outstanding than it did 5 years ago.
RAND has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.10 indicates that RAND is not in any danger for bankruptcy at the moment.
The Altman-Z score of RAND (4.10) is better than 89.66% of its industry peers.
RAND has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
The Debt to FCF ratio of RAND (1.41) is better than 79.31% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that RAND is not too dependend on debt financing.
The Debt to Equity ratio of RAND (0.25) is better than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 4.1 |
ROIC/WACC4.92
WACC7.08%
2.3 Liquidity
RAND has a Current Ratio of 1.24. This is a normal value and indicates that RAND is financially healthy and should not expect problems in meeting its short term obligations.
RAND has a Current ratio (1.24) which is comparable to the rest of the industry.
RAND has a Quick Ratio of 1.24. This is a normal value and indicates that RAND is financially healthy and should not expect problems in meeting its short term obligations.
RAND has a Quick ratio of 1.24. This is comparable to the rest of the industry: RAND outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
RAND shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.64%.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
The Revenue has been growing slightly by 1.91% in the past year.
The Revenue has been growing slightly by 3.45% on average over the past years.
EPS 1Y6.64%
EPS 3Y10.81%
EPS 5Y6.61%
EPS growth Q2Q-19.2%
Revenue growth 1Y1.91%
Revenue growth 3Y5.2%
Revenue growth 5Y3.45%
Revenue growth Q2Q-6.11%
3.2 Future
RAND is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.63% yearly.
Based on estimates for the next years, RAND will show a small growth in Revenue. The Revenue will grow by 0.08% on average per year.
EPS Next Y-25.17%
EPS Next 2Y-11.88%
EPS Next 3Y-4.63%
EPS Next 5YN/A
Revenue Next Year-5.53%
Revenue Next 2Y-2.03%
Revenue Next 3Y0.08%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.66, which indicates a very decent valuation of RAND.
Based on the Price/Earnings ratio, RAND is valued cheaper than 82.76% of the companies in the same industry.
RAND's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.92.
The Price/Forward Earnings ratio is 11.64, which indicates a very decent valuation of RAND.
72.41% of the companies in the same industry are more expensive than RAND, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RAND to the average of the S&P500 Index (19.01), we can say RAND is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RAND is valued a bit cheaper than the industry average as 65.52% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, RAND is valued a bit cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.71 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The decent profitability rating of RAND may justify a higher PE ratio.
RAND's earnings are expected to decrease with -4.63% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y-11.88%
EPS Next 3Y-4.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.48%, RAND is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.85, RAND pays a better dividend. On top of this RAND pays more dividend than 93.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.58, RAND pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
5.2 History
On average, the dividend of RAND grows each year by 20.74%, which is quite nice.
Dividend Growth(5Y)20.74%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
RAND pays out 129.37% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of RAND has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP129.37%
EPS Next 2Y-11.88%
EPS Next 3Y-4.63%
RANDSTAD NV
AMS:RAND (9/22/2023, 7:00:00 PM)
51.18
-0.8 (-1.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.31B
Analysts46.09
Price Target53.72 (4.96%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
Dividend Growth(5Y)20.74%
DP129.37%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.29%
Min EPS beat(2)-1.96%
Max EPS beat(2)-0.62%
EPS beat(4)2
Avg EPS beat(4)11.99%
Min EPS beat(4)-1.96%
Max EPS beat(4)47.82%
Revenue beat(2)2
Avg Revenue beat(2)97546.6%
Min Revenue beat(2)97416.5%
Max Revenue beat(2)97676.8%
Revenue beat(4)4
Avg Revenue beat(4)98179.9%
Min Revenue beat(4)97416.5%
Max Revenue beat(4)99589.1%
PT rev (1m)1.77%
PT rev (3m)3.26%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-6.64%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-4.87%
Revenue NQ rev (1m)-99.9%
Revenue NQ rev (3m)-99.9%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.66 | ||
| Fwd PE | 11.64 | ||
| P/S | 0.34 | ||
| P/FCF | 8.71 | ||
| P/OCF | 7.86 | ||
| P/B | 2.04 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)5.3
EY10.36%
EPS(NY)4.4
Fwd EY8.59%
FCF(TTM)5.88
FCFY11.49%
OCF(TTM)6.51
OCFY12.72%
SpS148.72
BVpS25.11
TBVpS6.71
PEG (NY)N/A
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.42% | ||
| ROE | 17.67% | ||
| ROCE | 17.17% | ||
| ROIC | 13.56% | ||
| ROICexc | 14.28% | ||
| ROICexgc | 34.85% | ||
| OM | 3.79% | ||
| PM | 2.98% | ||
| GM | 20.85% | ||
| FCFM | 3.95% |
ROA(3y)6.09%
ROA(5y)6.14%
ROE(3y)13.53%
ROE(5y)13.9%
ROIC(3y)11.76%
ROIC(5y)12.22%
ROICexc(3y)12.93%
ROICexc(5y)13.32%
ROICexgc(3y)31.89%
ROICexgc(5y)N/A
ROCE(3y)14.97%
ROCE(5y)15.81%
ROICexcg growth 3Y3.99%
ROICexcg growth 5Y-6.96%
ROICexc growth 3Y7.01%
ROICexc growth 5Y2.15%
OM growth 3Y4.17%
OM growth 5Y2.56%
PM growth 3Y10.02%
PM growth 5Y4.67%
GM growth 3Y1.63%
GM growth 5Y0.63%
F-Score7
Asset Turnover2.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.41 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 33.43% | ||
| Cap/Sales | 0.43% | ||
| Profit Quality | 132.47% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 4.1 |
F-Score7
WACC7.08%
ROIC/WACC4.92
Cap/Depr(3y)32.65%
Cap/Depr(5y)29.82%
Cap/Sales(3y)0.49%
Cap/Sales(5y)0.49%
Profit Quality(3y)221.6%
Profit Quality(5y)196.35%
Growth
EPS 1Y6.64%
EPS 3Y10.81%
EPS 5Y6.61%
EPS growth Q2Q-19.2%
EPS Next Y-25.17%
EPS Next 2Y-11.88%
EPS Next 3Y-4.63%
EPS Next 5YN/A
Revenue growth 1Y1.91%
Revenue growth 3Y5.2%
Revenue growth 5Y3.45%
Revenue growth Q2Q-6.11%
Revenue Next Year-5.53%
Revenue Next 2Y-2.03%
Revenue Next 3Y0.08%
Revenue Next 5YN/A
EBIT growth 1Y-8.07%
EBIT growth 3Y9.59%
EBIT growth 5Y6.1%
EBIT Next Year6.37%
EBIT Next 3Y5.15%
EBIT Next 5YN/A
FCF growth 1Y18.51%
FCF growth 3Y-6.06%
FCF growth 5Y10.36%
OCF growth 1Y14.62%
OCF growth 3Y-5.44%
OCF growth 5Y9.29%