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Adecco Group AG (0QNM.L)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$17.80 - $28.70$22.71
Multi-Stage$33.54 - $36.83$35.16
Blended Fair Value$28.93
Current Price$25.23
Upside14.68%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.71%4.03%2.572.512.432.172.272.142.082.222.212.07
YoY Growth--2.37%3.18%12.05%-4.20%5.83%2.86%-6.42%0.54%6.90%19.59%
Dividend Yield--9.30%7.08%7.28%5.28%3.94%5.95%4.31%3.85%3.33%3.62%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)280.00
(-) Cash Dividends Paid (M)176.00
(=) Cash Retained (M)104.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)56.0035.0021.00
Cash Retained (M)104.00104.00104.00
(-) Cash Required (M)-56.00-35.00-21.00
(=) Excess Retained (M)48.0069.0083.00
(/) Shares Outstanding (M)168.18168.18168.18
(=) Excess Retained per Share0.290.410.49
LTM Dividend per Share1.051.051.05
(+) Excess Retained per Share0.290.410.49
(=) Adjusted Dividend1.331.461.54
WACC / Discount Rate6.91%6.91%6.91%
Growth Rate-0.53%0.47%1.47%
Fair Value$17.80$22.71$28.70
Upside / Downside-29.46%-9.98%13.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)280.00281.31282.63283.95285.28286.62295.21
Payout Ratio62.86%68.29%73.71%79.14%84.57%90.00%92.50%
Projected Dividends (M)176.00192.10208.34224.73241.27257.95273.07

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.91%6.91%6.91%
Growth Rate-0.53%0.47%1.47%
Year 1 PV (M)177.89179.68181.46
Year 2 PV (M)178.66182.27185.92
Year 3 PV (M)178.46183.90189.44
Year 4 PV (M)177.42184.67192.13
Year 5 PV (M)175.67184.67194.05
PV of Terminal Value (M)4,753.464,997.265,250.96
Equity Value (M)5,641.555,912.446,193.96
Shares Outstanding (M)168.18168.18168.18
Fair Value$33.54$35.16$36.83
Upside / Downside32.95%39.34%45.97%

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