Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Adecco Group AG (0QNM.L)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$13.28 - $19.58$16.30
Multi-Stage$20.18 - $22.08$21.11
Blended Fair Value$18.70
Current Price$25.23
Upside-25.86%
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 Rate9.45%9.45%9.45%
Growth Rate-0.53%0.47%1.47%
Fair Value$13.28$16.30$19.58
Upside / Downside-47.38%-35.39%-22.38%

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 Rate9.45%9.45%9.45%
Growth Rate-0.53%0.47%1.47%
Year 1 PV (M)173.77175.51177.26
Year 2 PV (M)170.48173.92177.40
Year 3 PV (M)166.34171.41176.58
Year 4 PV (M)161.55168.14174.94
Year 5 PV (M)156.24164.26172.59
PV of Terminal Value (M)2,565.462,697.042,833.97
Equity Value (M)3,393.843,550.293,712.74
Shares Outstanding (M)168.18168.18168.18
Fair Value$20.18$21.11$22.08
Upside / Downside-20.02%-16.33%-12.50%

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