RANDSTAD NV (RAND.AS) Stock Fundamental Analysis
AMS:RAND - Euronext Amsterdam - NL0000379121 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to RAND. RAND was compared to 30 industry peers in the Professional Services industry. RAND has an excellent financial health rating, but there are some minor concerns on its profitability. RAND has a valuation in line with the averages, but it does not seem to be growing.
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.
Each year in the past 5 years RAND has been profitable.
Each year in the past 5 years RAND had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.90%, RAND perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
With a Return On Equity value of 10.23%, RAND perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
RAND has a better Return On Invested Capital (8.71%) than 66.67% of its industry peers.
RAND had an Average Return On Invested Capital over the past 3 years of 14.30%. This is above the industry average of 11.50%.
The last Return On Invested Capital (8.71%) for RAND is well below the 3 year average (14.30%), which needs to be investigated, but indicates that RAND had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.23% | ||
| ROIC | 8.71% |
ROA(3y)6.98%
ROA(5y)5.97%
ROE(3y)15.79%
ROE(5y)13.4%
ROIC(3y)14.3%
ROIC(5y)12.56%
1.3 Margins
RAND has a worse Profit Margin (1.76%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of RAND has declined.
RAND has a Operating Margin of 2.39%. This is in the lower half of the industry: RAND underperforms 74.07% of its industry peers.
RAND's Operating Margin has declined in the last couple of years.
RAND has a Gross Margin of 20.00%. This is in the lower half of the industry: RAND underperforms 66.67% 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 | 2.39% | ||
| PM (TTM) | 1.76% | ||
| GM | 20% |
OM growth 3Y15%
OM growth 5Y-3.02%
PM growth 3Y19.25%
PM growth 5Y-3.66%
GM growth 3Y2.89%
GM growth 5Y1.01%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RAND is creating value.
Compared to 1 year ago, RAND has less shares outstanding
The number of shares outstanding for RAND has been reduced compared to 5 years ago.
Compared to 1 year ago, RAND has a worse debt to assets ratio.
2.2 Solvency
RAND has an Altman-Z score of 3.35. 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 3.35, RAND is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
RAND has a debt to FCF ratio of 2.37. This is a good value and a sign of high solvency as RAND would need 2.37 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.37, RAND is doing good in the industry, outperforming 77.78% of the companies in the same industry.
RAND has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
RAND's Debt to Equity ratio of 0.24 is amongst the best of the industry. RAND outperforms 81.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | 3.35 |
ROIC/WACC1.3
WACC6.69%
2.3 Liquidity
RAND has a Current Ratio of 1.10. 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 Current ratio (1.10) which is comparable to the rest of the industry.
A Quick Ratio of 1.10 indicates that RAND should not have too much problems paying its short term obligations.
RAND's Quick ratio of 1.10 is in line compared to the rest of the industry. RAND outperforms 48.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
RAND shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.08%.
The Earnings Per Share has been decreasing by -0.18% on average over the past years.
The Revenue has decreased by -7.73% in the past year.
RAND shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)-31.08%
EPS 3Y20.75%
EPS 5Y-0.18%
EPS Q2Q%-32.69%
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y7.06%
Revenue growth 5Y1.32%
Sales Q2Q%-3.91%
3.2 Future
Based on estimates for the next years, RAND will show a decrease in Earnings Per Share. The EPS will decrease by -4.73% on average per year.
RAND is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.84% yearly.
EPS Next Y-37.42%
EPS Next 2Y-15.1%
EPS Next 3Y-4.73%
EPS Next 5YN/A
Revenue Next Year-6.13%
Revenue Next 2Y-2.29%
Revenue Next 3Y-0.15%
Revenue Next 5Y1.84%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 12.05, the valuation of RAND can be described as correct.
RAND's Price/Earnings ratio is a bit cheaper when compared to the industry. RAND is cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of RAND to the average of the S&P500 Index (28.47), we can say RAND is valued rather cheaply.
RAND is valuated correctly with a Price/Forward Earnings ratio of 12.88.
RAND's Price/Forward Earnings is on the same level as the industry average.
RAND is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RAND.
Based on the Price/Free Cash Flow ratio, RAND is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 9.16 |
4.3 Compensation for Growth
A cheap valuation may be justified as RAND's earnings are expected to decrease with -4.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.1%
EPS Next 3Y-4.73%
5. Dividend
5.1 Amount
RAND has a Yearly Dividend Yield of 5.46%, which is a nice return.
RAND's Dividend Yield is rather good when compared to the industry average which is at 2.85. RAND pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, RAND pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
5.2 History
The dividend of RAND has a limited annual growth rate of 0.75%.
Dividend Growth(5Y)0.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
96.72% of the earnings are spent on dividend by RAND. This is not a sustainable payout ratio.
RAND's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP96.72%
EPS Next 2Y-15.1%
EPS Next 3Y-4.73%
RANDSTAD NV
AMS:RAND (2/5/2025, 3:26:01 PM)
41.68
-0.12 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners26%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap7.54B
Analysts51.2
Price Target44.98 (7.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.46% |
Yearly Dividend2.94
Dividend Growth(5Y)0.75%
DP96.72%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.38%
Min EPS beat(2)-11.45%
Max EPS beat(2)-9.32%
EPS beat(4)1
Avg EPS beat(4)3.96%
Min EPS beat(4)-11.45%
Max EPS beat(4)41.5%
EPS beat(8)3
Avg EPS beat(8)8.07%
EPS beat(12)6
Avg EPS beat(12)6.67%
EPS beat(16)7
Avg EPS beat(16)3.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.47%
Min Revenue beat(2)-2.92%
Max Revenue beat(2)-2.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.14%
Min Revenue beat(4)-2.92%
Max Revenue beat(4)-1.38%
Revenue beat(8)0
Avg Revenue beat(8)-2.33%
Revenue beat(12)1
Avg Revenue beat(12)-1.41%
Revenue beat(16)4
Avg Revenue beat(16)-1%
PT rev (1m)-1.42%
PT rev (3m)-3.08%
EPS NQ rev (1m)-5.25%
EPS NQ rev (3m)-5.71%
EPS NY rev (1m)-3.77%
EPS NY rev (3m)-9.67%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 12.88 | ||
| P/S | 0.31 | ||
| P/FCF | 9.88 | ||
| P/OCF | 8.85 | ||
| P/B | 1.81 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 9.16 |
EPS(TTM)3.46
EY8.3%
EPS(NY)3.24
Fwd EY7.76%
FCF(TTM)4.22
FCFY10.12%
OCF(TTM)4.71
OCFY11.3%
SpS133.91
BVpS23.09
TBVpS4.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.9% | ||
| ROE | 10.23% | ||
| ROCE | 10.6% | ||
| ROIC | 8.71% | ||
| ROICexc | 9.45% | ||
| ROICexgc | 27.3% | ||
| OM | 2.39% | ||
| PM (TTM) | 1.76% | ||
| GM | 20% | ||
| FCFM | 3.15% |
ROA(3y)6.98%
ROA(5y)5.97%
ROE(3y)15.79%
ROE(5y)13.4%
ROIC(3y)14.3%
ROIC(5y)12.56%
ROICexc(3y)15.52%
ROICexc(5y)13.53%
ROICexgc(3y)39.48%
ROICexgc(5y)34.73%
ROCE(3y)17.4%
ROCE(5y)15.61%
ROICexcg growth 3Y24.65%
ROICexcg growth 5YN/A
ROICexc growth 3Y21.61%
ROICexc growth 5Y-2.22%
OM growth 3Y15%
OM growth 5Y-3.02%
PM growth 3Y19.25%
PM growth 5Y-3.66%
GM growth 3Y2.89%
GM growth 5Y1.01%
F-Score5
Asset Turnover2.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 22.47% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.3% | ||
| Profit Quality | 178.69% | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.35 |
F-Score5
WACC6.69%
ROIC/WACC1.3
Cap/Depr(3y)33.34%
Cap/Depr(5y)30.17%
Cap/Sales(3y)0.44%
Cap/Sales(5y)0.47%
Profit Quality(3y)128.47%
Profit Quality(5y)207.32%
High Growth Momentum
Growth
EPS 1Y (TTM)-31.08%
EPS 3Y20.75%
EPS 5Y-0.18%
EPS Q2Q%-32.69%
EPS Next Y-37.42%
EPS Next 2Y-15.1%
EPS Next 3Y-4.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.73%
Revenue growth 3Y7.06%
Revenue growth 5Y1.32%
Sales Q2Q%-3.91%
Revenue Next Year-6.13%
Revenue Next 2Y-2.29%
Revenue Next 3Y-0.15%
Revenue Next 5Y1.84%
EBIT growth 1Y-39.2%
EBIT growth 3Y23.12%
EBIT growth 5Y-1.74%
EBIT Next Year-3.31%
EBIT Next 3Y8.06%
EBIT Next 5YN/A
FCF growth 1Y-11.89%
FCF growth 3Y-6.71%
FCF growth 5Y5.04%
OCF growth 1Y-11.89%
OCF growth 3Y-6.53%
OCF growth 5Y4.16%