| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.70 | -13 |
| Intrinsic value (DCF) | 10.83 | -52 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 8.20 | -64 |
Adecco Group AG (ADEN.SW) is a global leader in human resource services, providing staffing, recruitment, and workforce solutions across 59 countries through its extensive network of approximately 4,300 branches. Headquartered in Zurich, Switzerland, the company operates under well-known brands such as Adecco, Adia, LHH, Modis, and General Assembly, offering services ranging from temporary staffing and permanent placement to upskilling, career transition, and digital talent solutions. Adecco serves diverse industries, leveraging its expertise in workforce transformation and technology consulting to meet evolving labor market demands. As part of the Industrials sector, Adecco plays a critical role in bridging talent gaps for businesses worldwide, supported by its strong digital platforms like Hired. With a revenue of CHF 23.1 billion (2023), the company remains a key player in the competitive staffing and employment services industry.
Adecco Group AG presents a mixed investment case. On the positive side, its global footprint, diversified service offerings, and strong brand recognition provide resilience in cyclical labor markets. The company’s focus on digital transformation (e.g., Modis for tech talent and General Assembly for upskilling) aligns with growing demand for specialized workforce solutions. However, risks include exposure to economic downturns (evidenced by its beta of 1.2), high debt (CHF 3.48 billion), and margin pressures from wage inflation and competition. The dividend yield (~2.7% at CHF 1/share) offers income appeal, but investors should weigh cyclical risks against long-term structural trends in flexible staffing.
Adecco Group competes in a fragmented global staffing industry, where scale, geographic reach, and specialization are critical. Its primary competitive advantage lies in its extensive international presence (59 countries) and multi-brand strategy, which allows it to serve diverse client needs—from blue-collar temp staffing (Adecco) to high-end tech talent (Modis) and executive search (LHH). However, the company faces intense competition from larger rivals like Randstad (more diversified revenue) and specialized players like Robert Half (strong in professional staffing). Adecco’s digital initiatives (e.g., Adia for gig work, Hired for tech recruitment) position it well against disruptors like Upwork, but adoption lags pure-play platforms. Margins remain under pressure due to pricing competition and wage inflation, though its outsourcing and MSP (Managed Service Provider) businesses provide sticky revenue streams. The company’s debt load (CHF 3.48 billion) limits flexibility compared to leaner peers, but its Swiss base offers financial stability.