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Adecco Group AG
(OTC:AHEXY)
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Rating:69Neutral
Price Target:
$16.00
▲(6.24% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by steady-but-unspectacular financial performance (flat revenue, thin and compressed margins, and softer recent free cash flow). Offsetting this, technicals are strong with clear uptrend signals, and the latest earnings call was upbeat on improving profitability and operational momentum, despite ongoing restructuring one-offs and near-term cash seasonality. Valuation is supportive with a reasonable P/E and a high dividend yield.
Positive Factors
Market Share and Revenue Growth
Organic growth alongside sustained market-share gains indicates improving competitive execution and client demand. If maintained, broader adoption can support higher volumes, strengthen scale benefits, and improve Adecco’s position across workforce services.
Negative Factors
Thin and Compressed Margins
Very thin profitability leaves limited protection against wage inflation, pricing pressure, utilization declines, or weaker hiring demand. The historical margin compression also suggests that revenue recovery may not translate fully into durable earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Share and Revenue Growth
Organic growth alongside sustained market-share gains indicates improving competitive execution and client demand. If maintained, broader adoption can support higher volumes, strengthen scale benefits, and improve Adecco’s position across workforce services.
Read all positive factors
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.18B
Dividend Yield4.36%
Average Volume (3M)1.55K
Price to Earnings (P/E)14.7
Beta (1Y)0.37
Revenue Growth9.36%
EPS Growth8.51%
CountryUS
Employees34,000
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding347,389,770
10 Day Avg. Volume1,663
30 Day Avg. Volume1,546
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)2.44
Price to Sales (P/S)0.36
P/FCF Ratio17.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.4
Revenue Forecast (FY)$27.44B
Adecco Group AG Business Overview & Revenue Model
Company Description
Adecco Group AG stands as a leading global provider of human resource solutions, assisting businesses and organizations across Europe, North America, Asia Pacific, South America, and North Africa. The company delivers a comprehensive array of serv...
How the Company Makes Money
Adecco Group primarily makes money by matching labor supply with client demand and charging fees for workforce-related services.
1) Temporary staffing (flexible placement) revenue: A major portion of revenue is generated when Adecco employs assoc...
Adecco Group AG Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: solid organic revenue growth, meaningful EBITA and EBITDA margin expansion, strong market share gains, successful early deployment of agentic AI with measurable productivity benefits, and progress on deleveraging. Key challenges include elevated one-off restructuring charges (notably in Akkodis Germany), working-capital-driven Q2 cash outflow, and pockets of regional and service-line softness (e.g., Adecco France, Akkodis APAC, permanent placement). Management expects sequential margin improvement, further SG&A discipline, and continued deleveraging into H2 and 2027.Positive Updates
Organic Revenue Growth
Group organic revenue rose 5.6% year-on-year on a trading-days adjusted basis in Q2 2026.
Negative Updates
Akkodis Germany and Auto Sector Weakness
Akkodis Germany experienced benching due to OEM project slowdowns, autos down ~19% in Akkodis Germany; autos represent ~20% of Akkodis revenue (higher in Germany), prompting additional restructuring.
Read all updates
Q2-2026 Updates
Positive
Negative
Organic Revenue Growth
Group organic revenue rose 5.6% year-on-year on a trading-days adjusted basis in Q2 2026.
Read all positive updates
Company Guidance
Management guided Q3 to a modest sequential improvement in gross margin and sequentially lower SG&A (ex‑one‑offs), while noting tougher comps (c.300 bps headwind) but continued positive volume momentum and expected year‑on‑year EBITDA margin improvement into H2; some restructuring one‑offs will spill into Q3 with savings starting in Q4 and full impact in 2027. They reiterated deleveraging priorities — net debt/EBITDA (ex‑one‑offs) is 2.7x (‑0.5x YoY) with a goal of ≤1.5x by end‑2027 — and strong cash focus (Q2 cash from operations €23m, free cash outflow €14m after €37m capex, LTM cash conversion 83%, DSO 53 days). On AI they raised the agentic‑AI target to 70% of revenue by end‑2026 (from 50% at end‑Q2, agents live in 10 countries, 2.2m conversations to date) and cited operating benefits to date (10% fill‑rate improvement, 40% faster time‑to‑submit, 25–35% recruiter time saved). These guidance points sit alongside the quarter’s results (organic revenue +5.6% YoY, gross profit €1.1bn, gross margin 18.6% or ‑20 bps organic, EBITA ex‑one‑offs €165m +21% YoY, EBITDA margin 2.8%, organic drop‑down 64%, adjusted EPS +31%).Adecco Group AG Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
60
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.43B | 23.08B | 23.14B | 23.96B | 23.64B | 20.95B |
| Gross Profit | 4.40B | 4.42B | 4.50B | 4.97B | 4.97B | 4.28B |
| EBITDA | 770.07M | 716.00M | 760.00M | 841.00M | 770.00M | 971.00M |
| Net Income | 293.31M | 283.36M | 303.00M | 325.00M | 342.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 12.42B | 11.75B | 12.10B | 12.43B | 13.26B | 11.87B |
| Cash, Cash Equivalents and Short-Term Investments | 494.00M | 387.83M | 482.00M | 556.00M | 782.00M | 3.05B |
| Total Debt | 3.61B | 3.18B | 3.48B | 3.67B | 3.70B | 3.48B |
| Total Liabilities | 8.91B | 8.36B | 8.51B | 8.83B | 9.36B | 8.06B |
| Stockholders Equity | 3.50B | 3.38B | 3.58B | 3.60B | 3.88B | 3.79B |
Cash Flow | ||||||
| Free Cash Flow | 364.38M | 463.94M | 563.00M | 347.00M | 328.00M | 590.00M |
| Operating Cash Flow | 502.52M | 588.81M | 707.00M | 563.00M | 543.00M | 722.00M |
| Investing Cash Flow | -168.37M | -149.84M | -157.00M | -209.00M | -1.45B | -206.00M |
| Financing Cash Flow | -100.41M | -443.77M | -634.00M | -620.00M | -1.38B | 980.00M |
Adecco Group AG Technical Analysis
Positive
15.06
Price Trends
13.19
Positive
11.92
Positive
12.59
Positive
Market Momentum
0.38
Positive
60.27
Neutral
32.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHEXY, the sentiment is Positive. The current price of 15.06 is above the 20-day moving average (MA) of 14.71, above the 50-day MA of 13.19, and above the 200-day MA of 12.59, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 60.27 is Neutral, neither overbought nor oversold. The STOCH value of 32.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AHEXY.
Adecco Group AG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.38B | 15.95 | 14.21% | 2.41% | 6.43% | 13.64% | |
70 Outperform | $821.81M | 24.40 | 15.76% | 0.94% | 5.59% | -33.45% | |
69 Neutral | $5.18B | 14.69 | 8.54% | 4.36% | 9.36% | 8.51% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $1.98B | -123.71 | -24.52% | 4.62% | 2.64% | -140.86% | |
58 Neutral | $4.36B | 37.03 | 9.18% | 5.54% | -4.95% | -34.47% | |
47 Neutral | $2.88B | 27.67 | 5.06% | 2.32% | 6.72% | ― |
* Industrials Sector Average
AHEXY
Adecco Group AG
14.91
0.89
6.38%
BBSI
Barrett Business Services
33.91
-13.20
-28.02%
NSP
Insperity
51.96
2.59
5.24%
KFY
Korn Ferry
85.35
15.01
21.33%
MAN
ManpowerGroup
61.98
25.31
69.01%
RHI
Robert Half
42.58
9.49
28.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.