Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ADECCO SA-REG. We currently have 9 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
M&A strategy difficult to understand
14 Dec 16
Adecco has sold its subsidiary Beeline, which offers software solutions for sourcing and managing an extensive workforce. Beeline has its headquarters in Jacksonville, Florida. Around 450 work for the company. Its major customers are the top Fortune 500 companies, of which over 135 have installed the VMS (vendor management system) software solutions. In 2014, Adecco acquired OneForce, the online staffing management platform and merged it with Beeline. GTCR, a private equity company, has acquired the majority stake in Beeline from Adecco. GTCR also has a stake in the software company IQNavigator which will be merged with Beeline. Adecco received US$100m in cash plus a US$30m note. According to our estimates, the total deal size will be around €400m and Adecco will own 25% of the new company. IQNavigator is the leading independent provider of non-employee workforce management solutions.
Performance driven by cost discipline
17 Nov 16
In Q3 16, revenues increased 2.4% to €5.81bn. Permanent placement grew by 5%, temporary staffing by 3% and outplacement revenues by 8%. By business line, revenues of professional staffing remained stable, however the business unit Medical & Science experienced the strongest growth rate of 10.2% to €108m. The gross margin declined from 18.9% to 18.7%. EBITDA dropped 10% to €315m and the EBITDA margin from 6.2% to 5.4%. EBIT also declined by 9.5% to €285m mainly due to additional restructuring charges of around €26m. The EBIT margin declined from 5.6% to 4.9%. Net profit reached €173m compared to a loss of €513m due to a goodwill impairment of €740m. In the first nine months, revenues grew 3.1% to €16.84bn. The gross margin declined from 18.9% to 18.8% and the EBITDA margin from 5% to 4.8%. EBITA declined marginally by 1.8% to €804m. France and North Americas contributed 54.1% to total EBITA and 42.3% to total revenues.
Q2 16 growth trend continued in July
10 Aug 16
The company reported solid Q2 16 results. Revenues increased 2% (organically 4%) to €5.7bn (estimate: €5.4bn) and EBIT improved 10.5% (organically 11%) to €273m (estimate: €258m). The EBIT margin increased from 4.4% to 4.8% and the gross margin improved from 18.6% to 18.8%. Net income improved 7% from €177m to €190m (estimate €181.6m). The two major markets France and North America contributed 42% to total revenues and 51.4% to EBITA. In the first half year, revenues increased 3.4% to €11.03bn. EBIT improved 3.6% to €492m and the EBIT margin remained unchanged at 4.5%. Also net income remained stable at €334m (-0.9%).
Adding value will be key!
05 Jul 16
IBM announced it is selling part of its customer support service business (CSS) to Adecco. The business is located in Erfurt and Leipzig with around 650 employees, of which 500 people are contract workers. Since the beginning of the year, IBM’s management has reduced the workforce in Germany by around 1,250 people. In total, a reduction in the German workforce of up to 3,000 people from 16,500 is planned up to 2017.
Performance driven by impairment charges and currency effects
09 Mar 16
Revenues increased 10.1% to €22.01bn and 4% at constant currency. Gross profit increased 12.9% to €4.18bn and the gross margin improved from 18.5% to 19%. EBIT before the impairment of €740m jumped 16.7% to €1.04bn and the EBIT margin increased from 4.5% to 4.7%. Net profit, however, plummeted from €640m to €8m mainly due to impairment charges of around €740m in Q3 15. Despite this steep profit decline, management increased the dividend by 14% from CHF2.10 to CHF2.40. In the fourth quarter, revenues increase 9.7% to €5.67bn (at cc 5%). Gross profit increased 11.8% (at cc +6%) to €1.09bn and the gross margin improved from 18.9% to 19.2%. The positive currency effect accounted for 15 basis points and acquisitions 10 basis points. EBIT rose by 6.6% to €250.4m and the EBIT margin declined from 4.8% to 4.6%.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced