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$17.55 - $28.16$22.35
Multi-Stage$32.65 - $35.84$34.22
Blended Fair Value$28.28
Current Price$25.23
Upside12.10%
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 Rate7.02%7.02%7.02%
Growth Rate-0.53%0.47%1.47%
Fair Value$17.55$22.35$28.16
Upside / Downside-30.45%-11.43%11.61%

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 Rate7.02%7.02%7.02%
Growth Rate-0.53%0.47%1.47%
Year 1 PV (M)177.71179.50181.29
Year 2 PV (M)178.31181.91185.55
Year 3 PV (M)177.93183.35188.88
Year 4 PV (M)176.73183.94191.37
Year 5 PV (M)174.80183.77193.10
PV of Terminal Value (M)4,606.084,842.325,088.15
Equity Value (M)5,491.565,754.796,028.34
Shares Outstanding (M)168.18168.18168.18
Fair Value$32.65$34.22$35.84
Upside / Downside29.42%35.62%42.07%

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