Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ADECCO SA-REG. We currently have 10 research reports from 1 professional analysts.
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Strong year-end performance
03 Mar 17
In the financial year 2016, revenues increased 3.2% to €22.71bn and the gross margin declined from 19% to 18.8% due to price and mix effects in temporary staffing. EBIT grew 2.1% to €1.06bn and the EBIT margin remained stable at 4.7%. The EBITDA margin declined marginally from 5.3% to 5.2%. EBITA grew 2.1% to €1.06bn. Net income on a comparable basis (excluding the one-off impairment of goodwill in 2015) declined 3.3% to €725m. Revenues in Q4 16 increased 3.5% to €5.87bn and EBITA grew 11.5% to €292m mainly driven by lower corporate expenses. An unchanged dividend of CHF2.40 per share was proposed by the board of directors. In addition, management is planning to buy back shares for a total volume of €300m.
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.
The tide is turning
20 Apr 17
Any investor worth their salt knows it is impossible to precisely call a bottom in a particular stock. For Gattaca, though, we believe this moment has now passed given the compelling valuation (6.9x EV/EBIT vs 9.8x sector average), attractive 9.8% unlevered cashflow yield and constructive secular trends supporting its specialist markets. Sure, Net Fee Income (NFI) like-for-likes (LFL) have fallen of late, yet equally there are now early indications that organic growth may soon turn positive.
19 Apr 17
We take a look at the supply and demand dynamics of the world’s largest diamonds. Less than 200 very large (>200 carat) gem quality diamonds have ever been found, yet 23 of these have been found in the past three years. This dramatic increase is being driven by a combination of the rapid increase in the number of billionaires and hence price and demand, combined with technological developments that have improved large diamond recovery and a certain amount of geological good luck.
Small Cap Breakfast
19 Apr 17
Global Ports Holding—Intention to float on Standard List. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected 3 May. RTO of Escape Hunt raising £14m at 135p Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1. Admission expected 25 April but capital raising details TBC. ADES International Holding— Intends to join the Standard List in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
19 Apr 17
Lombard Risk Management* (LRM): Beats demanding growth and profit forecasts (CORP) | Frontier Developments* (FDEV): Steaming ahead (CORP) | Tax Systems* (TAX): Right place, right time (CORP) | Acal (ACL): Stronger H2 and brighter outlook (BUY) | Fenner (FENR): Interim results signal upgrades (BUY) | Minds + Machines* (MMX): US and Europe domain sales (CORP)