Randstad (AO) | Hold | Beat on top line but gross margin a clear miss

研报英文原文证据摘录

Randstad (AO) | Hold | Beat on top line but gross margin a clear miss

Randstad Hold | Target Price: EUR27.00

Company description Management

Randstad is the second largest staffing company, active in 38 countries, with Sander van 't Noordende, CEO

leading positions in the Benelux, Italy, and Germany. Furthermore, the company Jorge Vazquez, CFO

has a strong positioning in the US, which accounts for c. 19% of sales. The Chris Heutink

Benelux also accounts for c. 19% of revenues, with France being its third-largest Key shareholders

market at c.15% of revenues. Free float 62.00%

Randstad Beheer BV 38.11%

Pzena 7.32%

Silchester 4.35%

Investment case Valuation methodology

Randstad shares have derated due to ongoing weakness in Our EUR 27.00 price target is derived as the mid-point between a

staffing markets. While regions such as the US, LATAM, APAC, DCF valuation, assuming a terminal growth rate of 1.0% and a

and Southern Europe show signs of growth, its overall terminal EBITA margin of 4.0%, and an EV/EBITDA-based

geographic footprint remains unfavourable in our view, with valuation applying an 7.5x NTM EBITDA multiple, which we view

uncertainty in the Dutch market due to regulatory changes in as appropriate given recent market share losses and an overall

staffing. uncertain macro environment.

Randstad is undergoing a digital push with more shifts being Risks to our rating

fulfilled trough digital market places, however we need to see A slowdown in global hiring or recessions in key markets.

clearer proof that this is gaining traction and turning the Loss of market share and margin pressure from competitors.

business around, especially after several quarters of market Regulatory risk, changes in labor laws, or employment

share losses.