Randstad (ENXTAM:RAND) Valuation in Focus After Weaker Q3 and Nine-Month Earnings Update

Randstad (ENXTAM:RAND) posted its third quarter and nine-month 2025 earnings, with both sales and net income falling compared to last year. This earnings update gives investors a direct look at the company’s latest performance.

See our latest analysis for Randstad.

Following these results, Randstad’s share price momentum has cooled, with a 17.85% drop in the past 90 days and a total shareholder return of -16.02% over the last year. While recent earnings have weighed on sentiment, some long-term investors may view this as a potential reset for future growth if company fundamentals begin to improve.

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With the stock trading at a notable discount compared to analyst targets, yet dealing with slowing earnings, investors must now consider whether Randstad is undervalued or if the market has already accounted for any future turnaround potential.

Most Popular Narrative: 17.2% Undervalued

Randstad’s most popular narrative sees its fair value as meaningfully above the last close price, suggesting potential mispricing in the current market. Investors looking for signals on future upside will want to explore the rationale behind this bullish stance.

Randstad's ongoing investment and demonstrated growth in digital staffing platforms and AI-driven talent matching are increasing operational efficiency and productivity (for example, more placements per FTE, robust digital marketplace adoption in the US, APAC, and Australia/NZ), which should support improved net margins and drive future earnings growth.

Read the complete narrative.

Want to know why this narrative claims a value edge? The answer is a combination of bold earnings improvements, strategic digital bets, and efficiency gains. Discover which game-changing forecasts are behind the numbers. Don’t miss what could move Randstad’s price.

Result: Fair Value of $41.53 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent uncertainty in hiring and margin pressure from large clients could challenge Randstad’s ability to deliver the strong earnings growth that is anticipated.

Find out about the key risks to this Randstad narrative.

Another View: Market Multiples Send a Different Message

While the earlier fair value calculation points to Randstad being undervalued, a look at its price-to-earnings ratio complicates the picture. Randstad trades at 115.8 times earnings, which is far higher than both peers (18.7x) and the industry average (20.9x), and even above its fair ratio of 36.2x. This significant premium raises questions about whether the market is overlooking risks, or pricing in a quick turnaround that has not materialized. Could these competing signals mean investors need to dig deeper?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Randstad Narrative

If you have a different perspective or want to run your own analysis, it takes just a few minutes to generate your own narrative and insights. Do it your way

A great starting point for your Randstad research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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