No-Moat Adecco Overvalued Due to Weak Macroeconomic Environment

Adecco is in the human resources services industry, with the majority of its revenue from the temporary and permanent placement of talent. The staffing industry is highly fragmented. Adecco is one of three global recruitment firms, along with Randstad and Manpower, that each have roughly a 5% market share. They all struggle to differentiate their services, network of clients, and talent—all averaging gross and EBIT margins of approximately 20% and 3%, respectively, over the past decade.