BATS-CHIXE:RANDA

Stock Analysis Report

Executive Summary

Randstad N.V. provides solutions in the field of work and human resources (HR) services.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Randstad's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RANDA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.8%

RANDA

-5.1%

GB Professional Services

-5.4%

GB Market


1 Year Return

6.6%

RANDA

20.9%

GB Professional Services

2.0%

GB Market

Return vs Industry: RANDA underperformed the UK Professional Services industry which returned 19.7% over the past year.

Return vs Market: RANDA exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

RANDAIndustryMarket
7 Day-7.8%-5.1%-5.4%
30 Day-5.2%-0.9%-4.2%
90 Day-4.8%5.1%-2.6%
1 Year15.1%6.6%23.8%20.9%7.6%2.0%
3 Year7.1%-9.3%49.2%39.1%11.4%-2.7%
5 Year22.0%-2.5%108.5%84.1%29.0%-0.6%

Price Volatility Vs. Market

How volatile is Randstad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Randstad undervalued compared to its fair value and its price relative to the market?

30.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RANDA (€50.38) is trading below our estimate of fair value (€72.49)

Significantly Below Fair Value: RANDA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RANDA is good value based on its PE Ratio (15.4x) compared to the Professional Services industry average (22.7x).

PE vs Market: RANDA is good value based on its PE Ratio (15.4x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: RANDA is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: RANDA is good value based on its PB Ratio (2.2x) compared to the GB Professional Services industry average (2.9x).


Next Steps

Future Growth

How is Randstad forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RANDA's forecast earnings growth (5.5% per year) is above the savings rate (0.5%).

Earnings vs Market: RANDA's earnings (5.5% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: RANDA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RANDA's revenue (1.8% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: RANDA's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RANDA's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has Randstad performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RANDA has high quality earnings.

Growing Profit Margin: RANDA's current net profit margins (2.5%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: RANDA's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: RANDA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RANDA had negative earnings growth (-14.6%) over the past year, making it difficult to compare to the Professional Services industry average (13.7%).


Return on Equity

High ROE: RANDA's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Randstad's financial position?


Financial Position Analysis

Short Term Liabilities: RANDA's short term assets (€5.1B) exceed its short term liabilities (€5.0B).

Long Term Liabilities: RANDA's short term assets (€5.1B) exceed its long term liabilities (€691.0M).


Debt to Equity History and Analysis

Debt Level: RANDA's debt to equity ratio (21.9%) is considered satisfactory.

Reducing Debt: RANDA's debt to equity ratio has increased from 16.3% to 21.9% over the past 5 years.

Debt Coverage: RANDA's debt is well covered by operating cash flow (129.4%).

Interest Coverage: RANDA's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet

Inventory Level: RANDA has a low level of unsold assets or inventory.

Debt Coverage by Assets: RANDA's debt is covered by short term assets (assets are 5.2x debt).


Next Steps

Dividend

What is Randstad's current dividend yield, its reliability and sustainability?

8.65%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Randstad before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.6%marketbottom25%1.9%markettop25%5.4%industryaverage2.1%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: RANDA's dividend (8.65%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: RANDA's dividend (8.65%) is in the top 25% of dividend payers in the UK market (5.34%)


Stability and Growth of Payments

Stable Dividend: RANDA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RANDA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.5%), RANDA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RANDA's dividends in 3 years are forecast to be well covered by earnings (47.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.9yrs

Average management tenure


CEO

Jacques van den Broek (59yo)

5.9yrs

Tenure

€3,370,000

Compensation

Mr. Jacques van den Broek has been the Chairman of the Executive Board and Chief Executive Officer at Randstad NV since March 1, 2014 and has been its Member of the Executive Board since 2004. Mr. van den  ...


CEO Compensation Analysis

Compensation vs Market: Jacques's total compensation ($USD3.67M) is about average for companies of similar size in the UK market ($USD4.70M).

Compensation vs Earnings: Jacques's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jacques van den Broek
Chairman of the Executive Board & CEO5.9yrs€3.37m0.063% 5.8m
Henry Schirmer
CFO & Member of Executive Board2.1yrs€2.38m0.010% 939.7k
Chris Heutink
Director of Operations5.8yrs€2.28m0.023% 2.1m
Francois Beharel
Member of the Executive Board7.1yrs€2.68m0.057% 5.3m
Karen Fichuk
Member of Executive Board & CEO of North America Business0.9yrs€1.53m0.00072% 66.3k
Rebecca Henderson
Member of Executive Board0.9yrs€1.70m0.0046% 426.6k
Rob Fenne
Managing Director of Group Accounting9.3yrsno datano data
David Tailleur
Director of Investor Relations0yrsno datano data
James King
Managing Director of Group legal12.1yrsno datano data
Ingrid Pouw
Director of Group Communications0yrsno datano data

5.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: RANDA's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eckard Gatzke
Chairman of Randstad Germany and Chief Executive Officer of Randstad Germany17.1yrsno datano data
Wout Dekker
Chairman of Supervisory Board4.8yrsno datano data
Frank Dorjee
Member of Supervisory Board5.8yrsno datano data
Rudy Provoost
Member of Supervisory Board4.8yrsno datano data
Paul van de Kerkhof
Chairman of Randstad India0yrsno datano data
Henri M. E. V. d'Estaing
Member of Supervisory Board11.8yrsno datano data
Antoinette Aris
Member of Supervisory Board1.9yrsno datano data
Jaap Winter
Vice Chairman of Supervisory Board0yrsno datano data
Barbara Borra
Member of Supervisory Board4.8yrsno datano data

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: RANDA's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RANDA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Randstad N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Randstad N.V.
  • Ticker: RANDA
  • Exchange: BATS-CHIXE
  • Founded: 1960
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: €9.213b
  • Shares outstanding: 182.94m
  • Website: https://www.randstad.com

Number of Employees


Location

  • Randstad N.V.
  • Diemermere 25
  • Diemen
  • Noord-Holland
  • 1112 TC
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RANJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RANDENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJan 1992
0NW2LSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1992
RSHDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RANDABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1992
RDNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
RANDWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1992
RAND NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
RANJ.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Randstad N.V. provides solutions in the field of work and human resources (HR) services. It offers temporary staffing and permanent placements. The company recruits supervisors, managers, professionals, interim specialists, and consultants for middle and senior leadership positions. It also offers other HR services, such as recruitment process outsourcing, managed services programs, payroll services, outplacement, and job posting and resume services on digital platforms. The company serves clients primarily in the fast-moving consumer goods, automotive, life sciences, contact centers, manufacturing, logistics, administrative, and professionals segments. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 19:37
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.