Raising Adecco's Fair Value Estimate on Strengthening Hiring Demand

Adecco operates in the human resources services industry, with most of its revenue coming from temporary and permanent talent placement. The staffing industry is highly fragmented. Adecco is one of three global recruitment firms, along with Randstad and Manpower; they each have roughly a 5% market share. All three struggle to differentiate their services, client networks, and talent—averaging gross and EBIT margins of about 20% and 3%, respectively, over the past decade.