RANDSTAD NV (RAND.AS)

NL0000379121 - Common Stock

45.36  -0.7 (-1.52%)

Fundamental Rating

5

Taking everything into account, RAND scores 5 out of 10 in our fundamental rating. RAND was compared to 33 industry peers in the Professional Services industry. RAND has an excellent financial health rating, but there are some minor concerns on its profitability. RAND has a valuation in line with the averages, but it does not seem to be growing. Finally RAND also has an excellent dividend rating.



4

1. Profitability

1.1 Basic Checks

In the past year RAND was profitable.
RAND had a positive operating cash flow in the past year.
RAND had positive earnings in each of the past 5 years.
In the past 5 years RAND always reported a positive cash flow from operatings.

1.2 Ratios

RAND has a Return On Assets (5.09%) which is in line with its industry peers.
RAND has a Return On Equity (13.45%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 11.28%, RAND is doing good in the industry, outperforming 64.52% of the companies in the same industry.
RAND had an Average Return On Invested Capital over the past 3 years of 14.30%. This is above the industry average of 11.51%.
Industry RankSector Rank
ROA 5.09%
ROE 13.45%
ROIC 11.28%
ROA(3y)6.98%
ROA(5y)5.97%
ROE(3y)15.79%
ROE(5y)13.4%
ROIC(3y)14.3%
ROIC(5y)12.56%

1.3 Margins

RAND's Profit Margin of 2.21% is on the low side compared to the rest of the industry. RAND is outperformed by 70.97% of its industry peers.
In the last couple of years the Profit Margin of RAND has declined.
RAND's Operating Margin of 2.97% is on the low side compared to the rest of the industry. RAND is outperformed by 74.19% of its industry peers.
In the last couple of years the Operating Margin of RAND has declined.
The Gross Margin of RAND (20.55%) is worse than 74.19% of its industry peers.
RAND's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 2.97%
PM (TTM) 2.21%
GM 20.55%
OM growth 3Y15%
OM growth 5Y-3.02%
PM growth 3Y19.25%
PM growth 5Y-3.66%
GM growth 3Y2.89%
GM growth 5Y1.01%

7

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so RAND is creating value.
Compared to 1 year ago, RAND has less shares outstanding
The number of shares outstanding for RAND has been reduced compared to 5 years ago.
Compared to 1 year ago, RAND has a worse debt to assets ratio.

2.2 Solvency

An Altman-Z score of 3.54 indicates that RAND is not in any danger for bankruptcy at the moment.
RAND has a Altman-Z score of 3.54. This is in the better half of the industry: RAND outperforms 64.52% of its industry peers.
The Debt to FCF ratio of RAND is 1.57, which is an excellent value as it means it would take RAND, only 1.57 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.57, RAND belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that RAND is not too dependend on debt financing.
RAND has a better Debt to Equity ratio (0.25) than 70.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF 1.57
Altman-Z 3.54
ROIC/WACC1.64
WACC6.86%

2.3 Liquidity

A Current Ratio of 1.10 indicates that RAND should not have too much problems paying its short term obligations.
RAND's Current ratio of 1.10 is in line compared to the rest of the industry. RAND outperforms 41.94% of its industry peers.
RAND has a Quick Ratio of 1.10. 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 1.10. This is comparable to the rest of the industry: RAND outperforms 45.16% of its industry peers.
Industry RankSector Rank
Current Ratio 1.1
Quick Ratio 1.1

3

3. Growth

3.1 Past

The earnings per share for RAND have decreased strongly by -25.27% in the last year.
RAND shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.18% yearly.
RAND shows a decrease in Revenue. In the last year, the revenue decreased by -9.54%.
RAND shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)-25.27%
EPS 3Y20.75%
EPS 5Y-0.18%
EPS Q2Q%-33.65%
Revenue 1Y (TTM)-9.54%
Revenue growth 3Y7.06%
Revenue growth 5Y1.32%
Sales Q2Q%-8.9%

3.2 Future

Based on estimates for the next years, RAND will show a small growth in Earnings Per Share. The EPS will grow by 2.62% on average per year.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y-19.29%
EPS Next 2Y-1.56%
EPS Next 3Y2.62%
EPS Next 5YN/A
Revenue Next Year-3.43%
Revenue Next 2Y0.59%
Revenue Next 3Y1.99%
Revenue Next 5Y1.84%

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.

6

4. Valuation

4.1 Price/Earnings Ratio

RAND is valuated reasonably with a Price/Earnings ratio of 10.96.
Based on the Price/Earnings ratio, RAND is valued cheaply inside the industry as 80.65% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RAND to the average of the S&P500 Index (28.63), we can say RAND is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.43, the valuation of RAND can be described as reasonable.
RAND's Price/Forward Earnings ratio is rather cheap when compared to the industry. RAND is cheaper than 83.87% of the companies in the same industry.
RAND is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.22, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.96
Fwd PE 10.43

4.2 Price Multiples

61.29% of the companies in the same industry are more expensive than RAND, based on the Enterprise Value to EBITDA ratio.
70.97% of the companies in the same industry are more expensive than RAND, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.11
EV/EBITDA 8.08

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.56%
EPS Next 3Y2.62%

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5. Dividend

5.1 Amount

RAND has a Yearly Dividend Yield of 4.95%, which is a nice return.
RAND's Dividend Yield is rather good when compared to the industry average which is at 2.74. RAND pays more dividend than 93.55% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, RAND pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.95%

5.2 History

The dividend of RAND has a limited annual growth rate of 0.75%.
Dividend Growth(5Y)0.75%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

RAND pays out 96.36% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RAND is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.36%
EPS Next 2Y-1.56%
EPS Next 3Y2.62%

RANDSTAD NV

AMS:RAND (6/21/2024, 7:00:00 PM)

45.36

-0.7 (-1.52%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.04B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 4.95%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 10.96
Fwd PE 10.43
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 5.09%
ROE 13.45%
ROCE
ROIC
ROICexc
ROICexgc
OM 2.97%
PM (TTM) 2.21%
GM 20.55%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.3
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.1
Quick Ratio 1.1
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-25.27%
EPS 3Y20.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-19.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-9.54%
Revenue growth 3Y7.06%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y