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Adecco Group AG (AHEXY)
OTHER OTC:AHEXY
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Adecco Group AG
(OTC:AHEXY)
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Rating:64Neutral
Price Target:
$15.50
â–²(15.50% Upside)
Adecco Group AG's overall stock score reflects a balance of mixed financial performance and bearish technical indicators, offset by a reasonable valuation and positive earnings call highlights. The company's challenges in revenue growth and liquidity, combined with technical bearish signals, weigh on the score. However, the fair valuation and strong earnings call sentiment provide some support.
Adecco Group AG (AHEXY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.47B
Dividend Yield4.46%
Average Volume (3M)332.00
Price to Earnings (P/E)13.9
Beta (1Y)0.62
Revenue Growth-2.35%
EPS Growth-3.74%
CountryUS
Employees33,597
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.27
Shares Outstanding336,853,120
10 Day Avg. Volume343
30 Day Avg. Volume332
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.98
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit2.01
Enterprise Value/Ebitda12.34
Forecast
1Y Price Target
$28.32Price Target Upside111.03% Upside
Rating ConsensusHold
Number of Analyst Covering1
Adecco Group AG Business Overview & Revenue Model
Company DescriptionAdecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa. It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, technology consulting and talent, tech academy, digital staffing services, and talent advisory and solutions under the Adecco, Adia, General Assembly, Badenoch + Clark, LHH, pontoon, Spring, and Modis. The company also operates Hired, a talent recruitment platform. As of December 31, 2021, it operated approximately 4,300 branches in 59 countries and territories. The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.
How the Company Makes MoneyAdecco Group AG generates revenue primarily through its staffing services, which involve charging client companies a fee for placing temporary or permanent workers. The company typically earns a margin on the wages paid to the workers, which is a significant source of income. Additionally, Adecco offers value-added services such as recruitment process outsourcing (RPO), managed services provider (MSP) solutions, and training and development programs, which further contribute to its revenue streams. Key partnerships with businesses across various sectors enhance Adecco's ability to meet demand and secure long-term contracts, thereby stabilizing its income. The company also benefits from economic trends, as increased demand for flexible and skilled labor in various industries drives growth in its business.
Adecco Group AG Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The call highlighted strong revenue growth and market share gains, particularly in the Americas and APAC regions. However, significant challenges remain in the Akkodis segment, especially in Germany, impacting overall profitability. Strong cash conversion and client wins provide some positive outlook.Q2-2025 Updates
Positive Updates
Revenue Growth
Adecco Group reported revenue growth of 2% year-on-year, with Adecco Americas up 14% and Adecco APAC up 9%.
Market Share Gains
The Group increased market share by 205 basis points, with Adecco gaining 130 basis points.
Strong Cash Conversion
Operating cash flow was EUR 81 million with a cash conversion rate of 98%.
APAC Performance
Adecco APAC revenues were 9% higher, with significant growth in Japan (7%), Asia (17%), and India (13%).
Client Wins
Significant client wins include a global OEM for EV battery production and a large-scale recruitment mandate from a global consulting firm.
Negative Updates
Akkodis Germany Challenges
Akkodis revenues were 6% lower year-on-year, with Germany declining 14% due to auto headwinds.
Pressure on Gross Margins
The Group's gross margin was 50 basis points lower year-on-year, driven by pressures in Akkodis Germany and country mix effects.
Permanent Placement Decline
Permanent Placement was 9% lower, impacting margins, especially in France and the U.S.
Restructuring Costs
A EUR 40 million savings plan in Akkodis Germany, with restructuring charges impacting Q3 2025.
Company Guidance
In the Adecco Group's Q2 2025 earnings call, the company reported notable market share gains, with the Group and Adecco ahead of key competitors by 205 and 130 basis points, respectively. Revenue increased by 2% year-on-year on a trading day-adjusted basis, driven by strong growth in Adecco Americas (up 14%) and Adecco APAC (up 9%). The Group's gross profit reached EUR 1.1 billion with a gross margin of 18.9%, while EBITDA excluding one-offs was EUR 141 million, reflecting a 2.5% margin. Adjusted EPS was EUR 0.46, and operating cash flow stood at EUR 81 million, with a strong cash conversion rate of 98%. Adecco's EBITA margin was 3.2%, with varied performance across regions; for instance, Adecco Americas' revenue grew 14%, while Akkodis faced a 6% decline. The call also highlighted strategic client wins and ongoing restructuring efforts, particularly in Akkodis Germany, aimed at improving profitability by year-end.Adecco Group AG Financial Statement Overview
Summary
Adecco Group AG's financial performance is mixed, with declining revenue growth and profit margins indicating operational challenges. The balance sheet shows moderate stability but increased leverage, while cash flow analysis reveals declining free cash flow, raising liquidity concerns.Income Statement
Adecco Group AG's income statement shows a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -0.3% TTM, indicating potential challenges in market demand or competition. Gross profit margin is stable at around 19.2% TTM, but net profit margin has decreased slightly to 1.26% TTM, reflecting pressure on profitability. EBIT and EBITDA margins have also seen slight declines, suggesting operational challenges. Overall, while the company maintains profitability, the declining revenue and margins indicate areas for improvement.65
Positive
Balance Sheet
The balance sheet of Adecco Group AG reflects moderate financial stability. The debt-to-equity ratio has increased to 1.14 TTM, indicating a higher reliance on debt financing, which could pose risks if interest rates rise. Return on equity remains stable at 8.49% TTM, showing consistent returns to shareholders. The equity ratio is not provided, but the overall leverage suggests a need for careful debt management. The company appears to be managing its equity and debt levels, but the increasing debt ratio warrants attention.70
Positive
Cash Flow
Cash flow analysis reveals some concerns for Adecco Group AG. The free cash flow growth rate is negative at -15.48% TTM, indicating a decline in cash available for reinvestment or debt reduction. The operating cash flow to net income ratio is 0.11 TTM, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is 0.76 TTM, which is reasonable but shows a decline from previous periods. Overall, the cash flow situation highlights potential liquidity challenges that need to be addressed.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.93B | 23.14B | 23.96B | 23.64B | 20.95B | 19.56B |
| Gross Profit | 4.41B | 4.50B | 4.97B | 4.97B | 4.28B | 3.79B |
| EBITDA | 718.00M | 760.00M | 841.00M | 770.00M | 971.00M | 307.00M |
| Net Income | 290.00M | 303.00M | 325.00M | 342.00M | 586.00M | -97.00M |
Balance Sheet | ||||||
| Total Assets | 11.85B | 12.10B | 12.43B | 13.26B | 11.87B | 9.79B |
| Cash, Cash Equivalents and Short-Term Investments | 270.00M | 482.00M | 556.00M | 782.00M | 3.05B | 1.49B |
| Total Debt | 3.65B | 3.48B | 3.67B | 3.70B | 3.48B | 2.29B |
| Total Liabilities | 8.64B | 8.51B | 8.83B | 9.36B | 8.06B | 6.57B |
| Stockholders Equity | 3.20B | 3.58B | 3.60B | 3.88B | 3.79B | 3.21B |
Cash Flow | ||||||
| Free Cash Flow | 415.00M | 563.00M | 347.00M | 328.00M | 590.00M | 563.00M |
| Operating Cash Flow | 549.00M | 707.00M | 563.00M | 543.00M | 722.00M | 720.00M |
| Investing Cash Flow | -144.00M | -157.00M | -209.00M | -1.45B | -206.00M | -162.00M |
| Financing Cash Flow | -416.00M | -634.00M | -620.00M | -1.38B | 980.00M | -290.00M |
Adecco Group AG Technical Analysis
Negative
13.42
Price Trends
15.46
Negative
14.89
Negative
13.91
Negative
Market Momentum
-0.68
Positive
32.48
Neutral
19.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AHEXY, the sentiment is Negative. The current price of 13.42 is below the 20-day moving average (MA) of 14.46, below the 50-day MA of 15.46, and below the 200-day MA of 13.91, indicating a bearish trend. The MACD of -0.68 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AHEXY.
Adecco Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 1.19B | 22.75 | 23.85% | 0.71% | 9.48% | 11.62% | |
68 Neutral | 3.82B | 15.50 | 13.22% | 2.35% | 0.79% | 34.85% | |
64 Neutral | $4.47B | 13.90 | 8.57% | 4.46% | -2.35% | -3.74% | |
64 Neutral | 3.55B | 19.93 | 13.57% | 6.81% | -6.95% | -41.84% | |
54 Neutral | 1.75B | -98.52 | -0.81% | 6.05% | -3.79% | -138.56% | |
49 Neutral | 1.93B | 49.03 | 35.71% | 4.75% | 2.40% | -75.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
AHEXY
Adecco Group AG
13.42
-2.47
-15.54%
BBSI
Barrett Business Services
45.35
9.18
25.38%
NSP
Insperity
50.54
-33.41
-39.80%
KFY
Korn Ferry
72.44
1.36
1.91%
MAN
ManpowerGroup
37.33
-31.81
-46.01%
RHI
Robert Half
33.79
-29.24
-46.39%
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.