RANDSTAD NV (RAND.AS) Stock Fundamental Analysis
Europe - Euronext Amsterdam - AMS:RAND - NL0000379121 - Common Stock
28.09 EUR
-0.66 (-2.3%)
Taking everything into account, RAND scores 5 out of 10 in our fundamental rating. RAND was compared to 36 industry peers in the Professional Services industry. While RAND has a great health rating, there are worries on its profitability. RAND is valued quite cheap, while showing a decent growth score. This is a good combination! RAND also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- RAND had positive earnings in the past year.
- In the past year RAND had a positive cash flow from operations.
- RAND had positive earnings in each of the past 5 years.
- In the past 5 years RAND always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 0.49%, RAND is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
- RAND's Return On Equity of 1.33% is on the low side compared to the rest of the industry. RAND is outperformed by 66.67% of its industry peers.
- The Return On Invested Capital of RAND (4.68%) is worse than 63.89% of its industry peers.
- RAND had an Average Return On Invested Capital over the past 3 years of 10.69%. This is in line with the industry average of 11.62%.
- The 3 year average ROIC (10.69%) for RAND is well above the current ROIC(4.68%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 1.33% | ||
| ROIC | 4.68% |
ROA(3y)5.03%
ROA(5y)5.01%
ROE(3y)11.54%
ROE(5y)11.3%
ROIC(3y)10.69%
ROIC(5y)10.17%
1.3 Margins
- RAND's Profit Margin of 0.22% is on the low side compared to the rest of the industry. RAND is outperformed by 69.44% of its industry peers.
- In the last couple of years the Profit Margin of RAND has declined.
- RAND has a worse Operating Margin (1.58%) than 66.67% of its industry peers.
- In the last couple of years the Operating Margin of RAND has declined.
- The Gross Margin of RAND (18.76%) is worse than 72.22% of its industry peers.
- In the last couple of years the Gross Margin of RAND has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.58% | ||
| PM (TTM) | 0.22% | ||
| GM | 18.76% |
OM growth 3Y-19.3%
OM growth 5Y-9.36%
PM growth 3Y-46.34%
PM growth 5Y-28.26%
GM growth 3Y-0.53%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RAND is still creating some value.
- The number of shares outstanding for RAND has been reduced compared to 1 year ago.
- RAND has less shares outstanding than it did 5 years ago.
- RAND has a worse debt/assets ratio than last year.
2.2 Solvency
- RAND has an Altman-Z score of 3.02. This indicates that RAND is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.02, RAND is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
- RAND has a debt to FCF ratio of 3.01. This is a good value and a sign of high solvency as RAND would need 3.01 years to pay back of all of its debts.
- RAND has a Debt to FCF ratio of 3.01. This is amongst the best in the industry. RAND outperforms 83.33% of its industry peers.
- A Debt/Equity ratio of 0.41 indicates that RAND is not too dependend on debt financing.
- RAND has a better Debt to Equity ratio (0.41) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 3.01 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.71
WACC6.55%
2.3 Liquidity
- RAND has a Current Ratio of 1.18. This is a normal value and indicates that RAND is financially healthy and should not expect problems in meeting its short term obligations.
- RAND has a better Current ratio (1.18) than 63.89% of its industry peers.
- RAND has a Quick Ratio of 1.18. This is a normal value and indicates that RAND is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.18, RAND is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- RAND shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -42.77%.
- The earnings per share for RAND have been decreasing by -11.25% on average. This is quite bad
- Looking at the last year, RAND shows a decrease in Revenue. The Revenue has decreased by -3.62% in the last year.
- RAND shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
EPS 1Y (TTM)-42.77%
EPS 3Y-19.25%
EPS 5Y-11.25%
EPS Q2Q%-2.86%
Revenue 1Y (TTM)-3.62%
Revenue growth 3Y-0.7%
Revenue growth 5Y0.37%
Sales Q2Q%-3.41%
3.2 Future
- RAND is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.14% yearly.
- Based on estimates for the next years, RAND will show a small growth in Revenue. The Revenue will grow by 0.85% on average per year.
EPS Next Y12.16%
EPS Next 2Y14.42%
EPS Next 3Y14.14%
EPS Next 5YN/A
Revenue Next Year-2.88%
Revenue Next 2Y-0.33%
Revenue Next 3Y0.82%
Revenue Next 5Y0.85%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.19, which indicates a correct valuation of RAND.
- 86.11% of the companies in the same industry are more expensive than RAND, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, RAND is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 9.37, the valuation of RAND can be described as reasonable.
- RAND's Price/Forward Earnings ratio is rather cheap when compared to the industry. RAND is cheaper than 86.11% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, RAND is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RAND is valued a bit cheaper than 75.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, RAND is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.27 | ||
| EV/EBITDA | 8.07 |
4.3 Compensation for Growth
- RAND's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as RAND's earnings are expected to grow with 14.14% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y14.42%
EPS Next 3Y14.14%
5. Dividend
5.1 Amount
- RAND has a Yearly Dividend Yield of 5.51%, which is a nice return.
- RAND's Dividend Yield is rather good when compared to the industry average which is at 2.39. RAND pays more dividend than 88.89% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, RAND pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
- The dividend of RAND has a limited annual growth rate of 0.81%.
Dividend Growth(5Y)0.81%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- RAND pays out 988.46% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of RAND is growing, but earnings are growing more, so the dividend growth is sustainable.
DP988.46%
EPS Next 2Y14.42%
EPS Next 3Y14.14%
RANDSTAD NV / RAND.AS FAQ
Can you provide the ChartMill fundamental rating for RANDSTAD NV?
ChartMill assigns a fundamental rating of 5 / 10 to RAND.AS.
What is the valuation status for RAND stock?
ChartMill assigns a valuation rating of 7 / 10 to RANDSTAD NV (RAND.AS). This can be considered as Undervalued.
What is the profitability of RAND stock?
RANDSTAD NV (RAND.AS) has a profitability rating of 3 / 10.
Can you provide the financial health for RAND stock?
The financial health rating of RANDSTAD NV (RAND.AS) is 7 / 10.
How sustainable is the dividend of RANDSTAD NV (RAND.AS) stock?
The dividend rating of RANDSTAD NV (RAND.AS) is 7 / 10 and the dividend payout ratio is 988.46%.