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1. Company Snapshot

1.a. Company Description

Adecco Group AG, together with its subsidiaries, provides human resource services to businesses and organizations in Europe, North America, Asia Pacific, South America, and North Africa.It offers flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition and workforce transformation, technology consulting and talent, tech academy, digital staffing services, and talent advisory and solutions under the Adecco, Adia, General Assembly, Badenoch + Clark, LHH, pontoon, Spring, and Modis.The company also operates Hired, a talent recruitment platform.


As of December 31, 2021, it operated approximately 4,300 branches in 59 countries and territories.The company was formerly known as Adecco S.A. Adecco Group AG was founded in 1957 and is based in Zurich, Switzerland.

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1.b. Last Insights on ADEN

Adecco Group AG faces challenges despite recent earnings growth. The company's Q3 2025 results revealed a 3.4% revenue increase, driven by strong US growth and market share gains. However, concerns around industry recovery and market uncertainties persist. Analysts have slightly upgraded their fair value estimate, but caution remains. The company's focus on creating an "agility advantage" for organizations and workers in the intelligent era may be a strategic response to evolving market conditions. Medical care costs and competition may weigh on growth.

1.c. Company Highlights

2. Akkodis' Turnaround Gains Momentum

The company's Q3 financial performance was marked by revenue growth, with the actual EPS coming in at 0.626, slightly below estimates of 0.663. The revenue growth was driven by various segments, including autos, which was up 10% year-on-year, with growth in France, Spain, the U.S., and Germany. The EBITA margin, excluding Germany, was 6.5% in Q3, indicating a significant improvement in the Akkodis unit's profitability. As Coram Williams noted, "the Akkodis unit has already seen a significant improvement in its EBITA margin, excluding Germany, which was 6.5% in Q3."

Publication Date: Nov -11

📋 Highlights
  • Q4 Targeted Savings:: EUR 50 million anticipated, with EUR 36 million already achieved via Akkodis Germany headcount adjustments.
  • Akkodis Germany Turnaround:: EUR 16 million loss expected to turn positive in Q4, with EUR 36 million in run-rate savings secured.
  • Strong Q3 Cash Flow:: DSO at 53.6 days (best-in-class) driven by tight working capital management and stable SG&A despite seasonal pressures.
  • High-Growth Adjacent Services:: Training/upskilling segment grew 28% (underlying), with 60% gross margins and 48% growth in G&A.

Segmental Performance

The autos segment was a key driver of growth, with an 10% year-on-year increase, driven by growth in France, Spain, the U.S., and Germany. Akkodis, however, was down 7% year-on-year, but the company is confident in its demand for the longer term due to the German OEMs' reconfiguration of product plans and offshoring of R&D work. Logistics was down 8% year-on-year, but the company is well-positioned for the medium to longer term, with growth in Italy and Japan.

Cost Savings and Restructuring

The company is making progress in its restructuring efforts, with EUR 36 million of run-rate savings locked in, and a clear plan to reach a run-rate of EUR 50 million, which would deliver healthy run-rate profitability by the end of the year. Akkodis restructuring costs were forecasted to be EUR 25 million in Q4, almost all of which would be related to Akkodis Germany.

Valuation and Outlook

The company's valuation metrics indicate a relatively attractive profile, with a P/E Ratio of 15.42, P/B Ratio of 1.4, and Dividend Yield of 4.03%. The company's guidance for next year's revenue growth is 3.0%, and analysts expect the company to deliver structural cost savings ahead of the market organically next year. With a ROIC of 4.78% and ROE of 8.49%, the company is expected to outperform the market on a sustainable basis.

3. NewsRoom

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The Adecco Group introduces the agility advantage to grow, adapt and lead in the intelligent era

Nov -26

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The Adecco Group introduces the agility advantage to grow, adapt and lead in the intelligent era

Nov -26

Source: prnewswire.com

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There May Be Some Bright Spots In Adecco Group's (VTX:ADEN) Earnings

Nov -14

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How the Narrative Surrounding Adecco Group Is Shifting With Analyst Upgrades and New Leadership

Nov -08

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CFOs On the Move: Week ending Nov. 7

Nov -07

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Adecco Group AG (AHEXY) Q3 2025 Earnings Call Highlights: Strong US Growth and Market Share ...

Nov -06

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THE ADECCO GROUP Q3 2025 RESULTS

Nov -06

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The Adecco Group announces new chief financial officer

Nov -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Adecco

Expected Growth: 3.5%

Adecco's 3.5% growth is driven by increasing demand for temporary staffing, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, innovative HR solutions, and strong brand recognition contribute to its growth. Furthermore, the rising trend of flexible work arrangements and the need for companies to adapt to changing workforce dynamics also support Adecco's growth momentum.

Akkodis

Expected Growth: 3.8%

Akkodis' 3.8% growth is driven by increasing demand for digital transformation and IT consulting services, particularly in the European market. The company's expertise in cloud, cybersecurity, and data analytics, combined with its strong client relationships and strategic acquisitions, have enabled it to capitalize on this trend.

Lee Hecht Harrison

Expected Growth: 4.2%

Lee Hecht Harrison's 4.2% growth is driven by increasing demand for career transition and talent development services, fueled by the rise of the gig economy and companies' need for agile workforce management. Additionally, the segment benefits from Adecco Group's global reach and reputation, as well as strategic acquisitions and investments in digital platforms.

7. Detailed Products

Permanent Recruitment

Adecco Group AG provides permanent recruitment services, connecting clients with top talent to fill permanent positions.

Temporary Staffing

Adecco Group AG offers temporary staffing solutions, providing clients with flexible workforce solutions to meet changing business needs.

Contractor Management

Adecco Group AG's contractor management services help clients manage their contingent workforce, ensuring compliance and cost savings.

Outsourcing

Adecco Group AG provides outsourcing services, taking over specific business processes or functions, allowing clients to focus on core activities.

Career Transition

Adecco Group AG's career transition services help individuals transition to new roles, providing outplacement support and career guidance.

Talent Development

Adecco Group AG offers talent development services, providing training and development programs to enhance employee skills and performance.

Recruitment Process Outsourcing (RPO)

Adecco Group AG's RPO services provide clients with a comprehensive recruitment solution, managing the entire recruitment process.

8. Adecco Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Adecco Group AG is moderate, as there are alternative staffing solutions available in the market, but the company's strong brand and extensive network of clients and candidates provide a competitive advantage.

Bargaining Power Of Customers

The bargaining power of customers is low, as Adecco Group AG has a diverse client base and a strong market position, which reduces the dependence on individual clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Adecco Group AG relies on a network of suppliers for various services, but the company's scale and market position provide some negotiating power.

Threat Of New Entrants

The threat of new entrants is low, as the staffing industry has high barriers to entry, including regulatory requirements, capital requirements, and the need for an established network of clients and candidates.

Intensity Of Rivalry

The intensity of rivalry is high, as the staffing industry is highly competitive, with many established players competing for market share, and Adecco Group AG faces competition from both traditional staffing companies and new digital platforms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.52%
Debt Cost 3.95%
Equity Weight 49.48%
Equity Cost 10.73%
WACC 7.30%
Leverage 102.11%

11. Quality Control: Adecco Group AG passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Logista

A-Score: 7.4/10

Value: 7.0

Growth: 5.9

Quality: 5.8

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Strabag

A-Score: 6.6/10

Value: 8.1

Growth: 4.7

Quality: 6.2

Yield: 8.1

Momentum: 10.0

Volatility: 2.7

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Wallenius Wilhelmsen

A-Score: 5.8/10

Value: 9.2

Growth: 8.2

Quality: 7.9

Yield: 6.2

Momentum: 1.0

Volatility: 2.3

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Serco

A-Score: 5.6/10

Value: 4.6

Growth: 5.1

Quality: 3.0

Yield: 3.1

Momentum: 9.0

Volatility: 9.0

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Randstad

A-Score: 4.7/10

Value: 5.4

Growth: 2.0

Quality: 3.1

Yield: 10.0

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

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Adecco

A-Score: 4.4/10

Value: 7.0

Growth: 2.4

Quality: 2.7

Yield: 8.8

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.96$

Current Price

21.96$

Potential

-0.00%

Expected Cash-Flows