Your first priority should be to follow this company's financial results. These results are published both annually and quarterly, which gives you a good idea of how they are developing.
Your first priority should be to follow this company's financial results. These results are published both annually and quarterly, which gives you a good idea of how they are developing.
It's also worth keeping an eye on the Randstad group's efforts to develop its international activities. Although the company is already particularly well established in Europe, it is still lagging behind in the rest of the world. In this context, priority should be given to acquisitions of temporary employment agencies, mergers or partnerships outside the European Union. One of the Group's major targets is of course the emerging markets, including India, which is attracting a great deal of attention.
The temporary employment market is of course directly linked to the labour market in general. As far as the countries most representative of Randstad's business are concerned, it's fairly easy to obtain information on this, including the national unemployment rate. But you also need to take into account the country's overall economic health, with the results for industry and companies in the various sectors giving you an idea of how many jobs are opening up in the future.
Finally, this sector of activity is also known to be particularly competitive. You should therefore systematically include a complete and serious study of this competition in your fundamental analyses.
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 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
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:
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.
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.
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.
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.
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:
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.
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.
Before selling or buying Randstad shares, 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.
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.
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.
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