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Randstad NV (RANJY)
OTHER OTC:RANJY

Randstad NV (RANJY) AI Stock Analysis

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Randstad NV

(OTC:RANJY)

57Neutral
Randstad NV's overall score reflects financial challenges, including declining revenue and profitability, which are partially offset by operational improvements and strategic focus in key markets. Technical indicators suggest short-term strength, but the high P/E ratio indicates potential overvaluation. Dividend yield provides some investor appeal.

Randstad NV (RANJY) vs. S&P 500 (SPY)

Randstad NV Business Overview & Revenue Model

Company DescriptionRandstad NV is a global leader in the HR services industry, providing a comprehensive range of solutions aimed at the world of work. The company operates across various sectors, including staffing, recruitment, and workforce management. Randstad offers services such as temporary and permanent staffing, employee training, talent management, and outplacement. With a presence in numerous countries, Randstad serves a diverse clientele, helping organizations meet their workforce needs while supporting job seekers in finding suitable employment opportunities.
How the Company Makes MoneyRandstad NV generates revenue primarily through fees for its staffing and recruitment services. The company's key revenue streams include temporary staffing, where it earns income by placing workers on temporary assignments and charging client companies a fee for these services. Permanent placement services also contribute to revenue, with fees collected when clients hire candidates presented by Randstad. Additionally, Randstad provides HR solutions such as payroll services, managed services, and outsourcing, which further augment its income. The company's earnings are supported by its extensive global network and partnerships with a wide range of industries, allowing it to tap into diverse markets and economic conditions.

Randstad NV Financial Statement Overview

Summary
Randstad NV's financial performance shows several challenges. The income statement reflects declining revenues and profitability, with a net profit margin of only 0.51% and a negative revenue growth rate. The balance sheet indicates rising debt levels with a debt-to-equity ratio increasing to 0.54, and a declining ROE. While cash flow generation is strong relative to net income, the free cash flow has declined, showing operational inefficiencies.
Income Statement
45
Neutral
Randstad NV has shown a decline in revenue over the past few years. The net profit margin for 2024 was 0.51%, indicating very thin profitability. Gross profit margin decreased to 19.49% in 2024, down from 20.76% in 2023. EBITDA margin also fell to 2.51% in 2024 from 4.6% in 2023, reflecting operational challenges. The revenue growth rate was negative, with a decline of 5.13% from 2023 to 2024, showing a downward trend in revenue generation.
Balance Sheet
60
Neutral
The company's balance sheet shows a stable equity ratio of 36.92% in 2024, which indicates a moderate level of financial leverage. The debt-to-equity ratio rose to 0.54 in 2024 from 0.25 in 2020, reflecting an increase in debt levels. Return on Equity (ROE) decreased to 2.98% from 13.28% in 2023, indicating reduced profitability relative to shareholder equity. The increase in total debt over the years could pose a risk if not managed carefully.
Cash Flow
55
Neutral
Randstad NV's operating cash flow to net income ratio was 5.28 in 2024, suggesting strong cash generation relative to net income. However, free cash flow declined significantly from 2023, with a free cash flow to net income ratio of 4.59. The free cash flow growth rate was negative due to reduced operational efficiency and capital expenditure increases, indicating a need for improved cash management.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.84B24.12B25.43B27.57B24.64B20.72B
Gross Profit
4.58B4.70B5.28B5.75B4.90B3.95B
EBIT
454.00M405.00M831.00M1.14B1.03B384.00M
EBITDA
771.00M606.00M1.17B1.47B1.38B798.00M
Net Income Common Stockholders
114.00M123.00M624.00M929.00M768.00M304.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
340.00M357.00M261.00M274.00M859.00M474.00M
Total Assets
10.88B11.19B10.69B11.11B11.04B9.59B
Total Debt
1.08B2.22B1.18B1.14B1.27B729.00M
Net Debt
745.00M1.86B923.00M870.00M415.00M255.00M
Total Liabilities
6.39B7.06B5.99B6.19B6.14B4.92B
Stockholders Equity
4.49B4.13B4.70B4.91B4.90B4.67B
Cash FlowFree Cash Flow
651.00M565.00M1.10B951.00M786.00M1.36B
Operating Cash Flow
733.00M649.00M1.19B1.07B914.00M1.46B
Investing Cash Flow
-532.00M-518.00M-147.00M-290.00M-207.00M-112.00M
Financing Cash Flow
-245.00M-21.00M-1.03B-1.37B-322.00M-1.09B

Randstad NV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.28
Price Trends
50DMA
20.55
Positive
100DMA
20.39
Positive
200DMA
21.31
Negative
Market Momentum
MACD
0.38
Negative
RSI
60.47
Neutral
STOCH
86.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RANJY, the sentiment is Positive. The current price of 21.28 is above the 20-day moving average (MA) of 20.39, above the 50-day MA of 20.55, and below the 200-day MA of 21.31, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 60.47 is Neutral, neither overbought nor oversold. The STOCH value of 86.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RANJY.

Randstad NV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KFKFY
77
Outperform
$3.53B14.6713.92%2.33%-3.27%62.57%
64
Neutral
$4.43B12.015.15%249.50%3.98%-11.60%
RHRHI
62
Neutral
$4.84B23.6314.49%4.62%-7.81%-40.22%
57
Neutral
$7.70B65.312.90%3.25%-4.97%-80.31%
MAMAN
57
Neutral
$2.04B18.805.19%7.11%-5.52%133.51%
56
Neutral
$441.83M11.43-1.60%2.44%-3.49%-140.04%
NSNSP
53
Neutral
$2.70B42.9448.65%3.38%1.90%-60.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RANJY
Randstad NV
21.28
-4.87
-18.62%
NSP
Insperity
71.75
-30.03
-29.50%
KELYA
Kelly Services
12.53
-9.31
-42.63%
KFY
Korn Ferry
68.44
4.25
6.62%
MAN
ManpowerGroup
43.97
-28.63
-39.44%
RHI
Robert Half
47.99
-20.10
-29.52%

Randstad NV Earnings Call Summary

Earnings Call Date:Apr 23, 2025
(Q1-2025)
|
% Change Since: 12.12%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with Randstad successfully protecting its margins and showing growth in certain markets and segments, despite overall revenue decline and challenges in specific regions and sectors. The company is navigating uncertainty with operational discipline and strategic focus.
Q1-2025 Updates
Positive Updates
EBITA Margin Protection
Despite a 4.2% revenue decline, Randstad maintained an EBITA margin of 3% for the quarter, showcasing strategic choices and disciplined execution.
Growth in Key Markets
Continued growth in Spain, Italy, and Japan due to investments in digital and skilled trade segments.
North America Improvement
Sequential improvement in North America with the US operational business returning to growth in March and digital specialization showing positive growth.
Strong Performance in Specific Segments
Growth observed in logistics, financial services, and double-digit growth in the RiseSmart outplacement business.
Operational Discipline in Asia Pacific
Japan demonstrated solid growth combined with strong profitability, with digital specialization growing at 16%.
Negative Updates
Overall Revenue Decline
Organic revenue declined by 4.2% year-over-year, attributed to challenging market conditions.
Challenges in Northern Europe
Northern Europe experienced difficult trading conditions, especially in the automotive sector, and did not show improvement in growth rate.
Subdued Permanent Hiring
Professional solutions and permanent hiring in North America remained subdued, declining 19% and 15% respectively.
Automotive Sector Weakness
The automotive sector faced significant challenges, impacting revenue, especially in Germany and France.
Company Guidance
In the first quarter of 2025, Randstad reported an EBITA of €167 million with an EBITA margin of 3%, despite a 4.2% decline in revenue. The company saw growth in Spain, Italy, and Japan, driven by investments in digital and skilled trade segments. North America showed signs of stabilization, with the US operational business returning to growth in March. However, Northern Europe and France faced challenges, particularly in the automotive sector, with automotive decline rates at minus 10% in Germany. The EBITDA margin in North America improved by 90 basis points year-over-year to 3.2%. The gross margin was down 90 basis points due to a mix and idle time, while operating expenses decreased by €18 million sequentially, resulting in a 68% recovery ratio. Free cash flow was €59 million, with a stable leverage ratio of 1.6. Looking ahead to Q2, Randstad anticipates a modest sequential decline in gross margin due to seasonal impacts and mix, with operating expenses expected to remain stable.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.