Randstad shares: Price analysis before buying or selling

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ISIN code: NL0000379121

Ticker: AMS: RAND

Index or market: AEX 25

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Elements to consider before selling or buying Randstad shares

Analysis N°1

You should of course as a priority follow the financial results of this company. These results are published annually and quarterly which enables you to clearly follow the growth of this company.

Analysis N°2

We would also monitor the efforts made by the Randstad Group with the objective of developing its efforts on an international level. In fact, although this company is well implanted in Europe it is still lagging behind concerning its presence in other countries worldwide. We therefore recommend that you pay particular attention to the acquisition of other temporary work companies as well as mergers or partnerships with companies outside the European Union. One of the main areas targeted by this company is of course emerging countries such as India which is the subject of much attention.

Analysis N°3

The temporary work market is of course directly linked to the general employment market. Therefore, concerning the countries where Randstad is best represented it is fairly simple to obtain information on this data with, in particular, the national unemployment rate. However, you also need to take into account the global economic health of the countries with the industry results and those of companies in different sectors which will give you an indication of the availability of future work.

Analysis N°4

Finally, this activity sector is also known as being particularly competitive. You should therefore systematically integrate a comprehensive study of this company’s competitors into your fundamental analysis.

Analysis before buying or selling Randstad shares

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General presentation of Randstad

A good knowledge of Randstad and its main activities and sources of income is essential if you want to make good analyses of this value. We would therefore like to give you a complete overview of the company and its detailed activities:

The Randstad NV group is a Dutch company specialising in the field of human resources. More precisely, this company is currently the second largest player in the world in the provision of human resources services.

In order to better understand the activities carried out by this company, they can be divided into different divisions according to the share of turnover they generate and in this way:

The placement of generalist staff outside the traditional sectors represents the largest share of the group's income with 48.5% of turnover. This concerns in particular administrative staff and staff in light industry.
The next largest category is generalist staffing from on-site agencies, which generates 23.9% of the group's turnover. This includes personnel for clients in the logistics and industrial sectors.
Finally, the placement of specialised personnel represents 22.8% of the group's turnover with engineers and legal, technical and financial specialists. In this segment, the group also offers services for the permanent staff of clients, such as replacement services, reintegration and salary management.
The remaining 4.8% of turnover comes from ancillary activities.

The group currently owns and operates 2,757 branches worldwide and generates 13.6% of its turnover in the Netherlands. The remaining 14.7% is generated in France, 7.5% in Germany, 7% in Italy, 6.8% in Belgium and Luxembourg, 6.1% in Iberia, 9.5% in Europe, 19.9% in North America and 14.9% in the rest of the world.

Photo credits: ©sylv1rob1/123RF.COM

The major competitors of Randstad

We will now take a closer look at the sector in which the Randstad group operates, with a presentation of its main competitors on the market:

Manpower Group

First of all, we will closely follow the Manpower Group which is a multinational company specialising in human resources consulting, recruitment, temporary work and IT infrastructure services. The group was created in 1948 in the United States and is one of the historical players in temporary work. It then diversified over time to expand into other HR services and became the Manpower Group with over 27,000 employees in 2,900 offices across more than 80 countries.

Adecco

Another major competitor to Randstad is the Adecco Group which is a Swiss company specialising in the temporary employment sector and is currently ranked among the top 500 companies in the world by Forbes magazine.

Crit

Another competitor to Randstad is the Crit Group, which is also a temporary employment company but which has recently also developed a business in airport handling. The group is currently listed on the Paris Stock Exchange. It has thus become the leader in airport assistance in France and is also among the 10 leaders in this sector worldwide. Crit is currently also developing activities in engineering and industrial maintenance.

Synergie

Finally, the French group Synergie is also a competitor to watch, specialising in temporary work, recruitment and training. It was founded in 1969 in Nantes and is now present in 17 countries with a network of over 750 agencies employing nearly 4,000 people. It is listed on the Paris Stock Exchange and is part of the CAC Small 90 index.

The major partners of Randstad

Let's take a look at the Randstad Group's strategic allies, which often form alliances with other companies in order to boost their business or profitability. Here are two recent examples of such partnerships:

GamersOrigin

In 2020, the group partnered with GamersOrigin to help professional or amateur gamers identify their softskills and thus facilitate their access to the job market in the video game industry or other sectors. Through this partnership agreement, the two companies welcomed this collaboration, which was designed around shared values such as professionalism, commitment and team spirit. The partnership will allow players to identify their key skills and to enhance them on the job market. Through this collaboration, GamersOrigin will also be able to benefit from Randstad's expertise in recruiting job profiles related to the operation of an esport structure.

Brussels Airlines

In the midst of the coronavirus crisis that hit the aviation sector hard, Brussels Airlines staff were forced into short-time working. But with the recovery of the demand for air travel in the market taking longer than expected, this temporary work system has been extended. Thus, in order to further limit the financial and social impact of this long period of inactivity on its employees, the airline signed a partnership with Randstad in 2020 to help employees who wish to return to work to find another job on a temporary basis while waiting to regain their position within the company.

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The factors in favour of a rise in the Randstad share price:

Anticipating the future movements of the Randstad share price requires a certain knowledge of this group’s abilities to entice and reassure the investors. For this you need to be able to identify the current factors that could promote a rise in this share price and the factors that could also lead to a drop in this asset price. We therefore offer you our assistance on this subject by detailing firstly the different factors that could support a rise in the price of Randstad shares during the next few years which therefore constitute the strengths of this group.

Firstly, we can of course note among the positive arguments for this asset the fact that the Randstad Group benefits from its advantageous position among the leaders in its activity sector on both local and international levels. In fact, the Randstad group is currently number two in HR services worldwide. This confirms its significant popularity and ability to attract new clients, both individuals and companies.
Of course, the fact that Randstad is present in various countries around the world is also advantageous for this asset’s growth possibilities. We know for example that the group offers its services in over 39 different countries with no less than 800 agencies on French territory alone. This strong geographical distribution enables it to protect itself against the risks related to local economic crises.
Another factor that is reassuring to investors relating to Randstad shares concerns the excellent financial health of the group. From the turnover figures for the group to the treasury flow, the financial figures are positive and have remained so from one year to the next which demonstrates the financial stability of the group over time.
Still relating to the factors in favour of a rise in the Randstad share price we can also positively note the great diversification of this group’s activities that target several sectors relating to its core activity such as recruitment, advice, training, placements and the foundations. Due to this admirable flexibility Randstad can thereby respond to all the requirements of its company clients.
Randstad can also be proud of its prominent presence in the construction sector which represents a strong demand on the market. It actually operates no less than 550 specialised temporary work agencies in this sector which thereby represent contact with numerous targets.

The factors in favour of a drop in the Randstad share price:

We have just examined the different current factors that favour a rising movement in the Randstad share price. Although these factors seem numerous and convincing these are not the only factors that should be taken into account in your analyses of this asset. In fact there are other factors that reflect the possibility that the Randstad share price may fall in the future or the rising trend may slow. We now offer you the opportunity to learn about these negative factors more in detail.

Firstly, although the group is relatively well positioned in the temporary work sector particularly relating to very short duration jobs it does encounter difficulties placing employees with more precarious contracts. This is due to the strong psychological barrier in this sector which of course weighs heavily on this group’s reputation.
Finally, in current society, the world of temporary work suffers greatly from an image that is seen as unstable and this activity sector therefore has a tendency to see parts of its markets share lost to other work related solutions.

You may have observed that the factors in favour of a fall in the Randstad share price are fewer than those in favour of a rise in this asset price. However you should still take them into account if you wish to take a position that is both judicious and intelligent on this asset.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

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Analysis before buying or selling Randstad shares