| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 1.74 | -95 |
| Graham Formula | 0.98 | -97 |
Volt Information Sciences, Inc. (NYSE: VOLT) is a leading provider of staffing and workforce solutions, serving diverse industries such as aerospace, automotive, IT, finance, and healthcare. Founded in 1950 and headquartered in Orange, California, Volt operates through three key segments: North American Staffing, International Staffing, and North American MSP (Managed Service Programs). The company offers contingent staffing, direct placement, recruitment process outsourcing (RPO), and specialized talent management solutions. Volt differentiates itself through its managed service programs, which optimize workforce procurement, supplier management, and payroll services for clients. With a global footprint spanning the U.S., Europe, Canada, and Asia Pacific, Volt caters to multinational corporations and local businesses alike. Despite challenges in the competitive staffing industry, Volt maintains relevance through its diversified service offerings and adaptability to evolving labor market trends. The company’s focus on technology-driven staffing solutions positions it as a key player in the $152 billion global staffing industry.
Volt Information Sciences presents a high-risk, high-reward investment opportunity due to its volatile beta (2.48) and modest market cap (~$67.6M). The company reported FY2021 revenue of $885.4M and net income of $1.37M, reflecting thin margins typical of the staffing industry. While Volt maintains a solid cash position ($71.4M), its total debt ($99.6M) raises leverage concerns. The staffing sector is highly cyclical, and Volt’s performance is sensitive to macroeconomic conditions. However, its diversified service portfolio and managed service programs (MSP) provide recurring revenue streams. Investors should weigh the company’s exposure to labor market fluctuations against its potential for recovery in a post-pandemic hiring surge.
Volt Information Sciences competes in the fragmented staffing industry, where differentiation is challenging. Its primary competitive advantage lies in its managed service programs (MSP), which offer end-to-end workforce solutions, including supplier management and payroll services—a sticky revenue stream. However, Volt lacks the scale of industry giants like ManpowerGroup or Adecco, limiting its pricing power. The company’s international presence provides geographic diversification but also exposes it to currency risks and regulatory complexities. Volt’s beta of 2.48 indicates higher volatility than peers, likely due to its smaller size and reliance on cyclical industries. While its technology-driven staffing solutions are a strength, Volt faces intense competition from larger firms with stronger brand recognition and digital platforms. The company’s ability to maintain profitability (EPS of $0.06 in FY2021) in a low-margin industry is commendable but may not be sustainable without operational improvements. Its debt-to-equity ratio suggests financial leverage could constrain growth initiatives.