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Stock Analysis & ValuationFreelance.com S.A. (ALFRE.PA)

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Previous Close
2.47
Sector Valuation Confidence Level
Moderate
Valuation methodValue, Upside, %
Artificial intelligence (AI)24.10876
Intrinsic value (DCF)250.8510056
Graham-Dodd Methodn/a
Graham Formula9.36279

Strategic Investment Analysis

Company Overview

Freelance.com SA is a leading player in the staffing and employment services sector, specializing in connecting companies with freelance professionals across multiple geographies, including France, Germany, the UK, Morocco, Switzerland, and Singapore. Founded in 1995 and headquartered in Paris, the company operates in the industrials sector, providing a critical bridge between businesses and intellectual service providers. With a market capitalization of approximately €132.8 million, Freelance.com SA has established itself as a key intermediary in the gig economy, leveraging its extensive network and digital platform to facilitate flexible workforce solutions. The company’s diversified geographic presence and focus on high-demand freelance services position it well in the evolving labor market, where remote and project-based work is increasingly prevalent. Freelance.com SA’s financial stability, evidenced by its €1.05 billion in revenue and €18 million net income in the latest fiscal year, underscores its resilience and adaptability in a competitive industry.

Investment Summary

Freelance.com SA presents a mixed investment profile. On the positive side, the company operates in the growing gig economy, benefiting from trends toward flexible work arrangements and digital intermediation. Its revenue of €1.05 billion and net income of €18 million reflect a stable operational base, supported by a strong cash position of €99.3 million. However, the company’s high beta of 1.322 indicates significant volatility relative to the market, which may deter risk-averse investors. Additionally, the staffing and employment services sector is highly competitive, with low barriers to entry and pricing pressures. While the dividend yield of €0.08 per share provides some income appeal, investors should weigh the potential for margin compression and economic sensitivity against the company’s growth prospects in the freelance marketplace.

Competitive Analysis

Freelance.com SA competes in the crowded staffing and employment services industry, where differentiation is often challenging. The company’s primary competitive advantage lies in its established presence in multiple European markets and its specialization in freelance intermediation, a niche that has grown significantly with the rise of remote work. Unlike traditional staffing firms that focus on permanent placements, Freelance.com SA’s platform caters to the demand for project-based and flexible labor, aligning with modern workforce trends. However, the company faces intense competition from both global staffing giants and digital-first freelance platforms. Its relatively small market cap (€132.8 million) limits its ability to scale as aggressively as larger peers, and its geographic concentration in Europe exposes it to regional economic fluctuations. The company’s ability to maintain profitability (€18 million net income) despite these challenges suggests operational efficiency, but long-term success will depend on its capacity to innovate and expand its digital offerings to stay ahead of tech-savvy competitors.

Major Competitors

  • Randstad NV (RAND.AS): Randstad is a global leader in staffing and HR services, with a much larger scale (€24.6 billion revenue in 2022) and broader service offerings compared to Freelance.com SA. Its extensive international network and strong brand give it an edge in attracting corporate clients, but its focus on traditional staffing may limit agility in the freelance segment where Freelance.com SA specializes.
  • Adecco Group AG (ADEN.PA): Adecco is another staffing giant with a global footprint and diversified services, including temporary staffing and permanent placements. While its scale (€22.4 billion revenue in 2022) dwarfs Freelance.com SA, Adecco’s slower adaptation to digital freelance platforms could be a vulnerability as the market shifts toward flexible work arrangements.
  • Upwork Inc. (UPWK): Upwork is a pure-play digital freelance platform with a strong technological edge and a global user base. Unlike Freelance.com SA, which has a regional focus, Upwork operates worldwide and benefits from network effects. However, its lack of localized services in Europe may give Freelance.com SA an advantage in certain markets.
  • Freelancer Limited (FREEL.BR): Freelancer Limited is a smaller, Australia-based competitor with a similar freelance intermediation model. While it lacks Freelance.com SA’s European presence, its aggressive pricing and global platform could pose a threat if it expands further into Europe.
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