Recruitment company shareprice analysis - Q4 2013

767 views

Published on

Analysis of 12 recruitment companies share price performance since Lehman's filed for bankruptcy in Sept 2008
Companies analysed - Robert Walters, Robert Half, SThree, Adecco, Manpower, Micheal Page, Harvey Nash, Matchtech, Interquest, Hydrogen, Hays and Randstad

1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
767
On SlideShare
0
From Embeds
0
Number of Embeds
17
Actions
Shares
0
Downloads
1
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Recruitment company shareprice analysis - Q4 2013

  1. 1. Recruitment Company Share Price Performance A simple analysis showing the share price performance of 12 recruitment companies* since Lehman's filed for bankruptcy in Sept 2008 *Hays, Michael Page, Robert Walters, Robert Half, Hydrogen, Sthree, Matchtech, Randstad, Manpower, Interquest, Harvey Nash, Adecco Marcus Panton Talent Acquisition Consulting and Training Twitter - @MarcusConGusano LinkedIn - http://uk.linkedin.com/in/marcuspantongusanoltd/
  2. 2. Contents 1. Summary 2. Share Price Performance, Sept 08 to Date with ROI if you’d invested £5,000 over that period 3. The best and worst share price performers of 2013, and ROI if you’d invested £5,000 over that period 4. Graph showing all 12 companies share price performance: Sept 2008 to date 5. Q4 Recruitment Market Sound-bites: (we had it all) rebrands, acquisitions, share price highs and profit warnings
  3. 3. Summary Since Lehman’s filed for bankruptcy in Sept 2008 recruitment company share prices have been experiencing a roller coaster ride and you would have needed nerves of steel to have invested your hard earned cash in any of them. For those with such nerves the rewards were there to be found with 11 of the 12 companies included in this analysis outperforming the FTSE100 index over that time , however there is a staggering 1407% difference between the best and worst performers 2013 has been a strong year for most recruitment company shares with all 12 companies analysed showing positive returns ranging from 107% to 240%. The average share price growth in 2013 across the 12 companies analysed is 159% and leading the way are Interquest, Manpower, Randstad and Matchtech who all achieved a higher than average ROI last year. So recruitment company share prices are on the rise and anecdotal evidence (from the work I do and the conversations I’m having with my own network of recruitment professionals) would suggest there’s a positive feeling going into 2014. However, it’s not all good news and Q4 reminded us of that with a real mix of corporate news ranging from acquisitions, outperform ratings, rebranding's and profit warnings, plus most of the companies analysed are still a long way off their all time share price high.
  4. 4. Recruitment Company Shareprice Performance v's The Market (Since Lehmans filed for Chapter 11 bankruptcy protection on Sept 15th 2008) Share Price Share Price Performance ROI (If you'd invested £5,000) P/L v's Index FTSE 100 FTSE 250 AIM 74.6 245.4 7030.8 139.9 451.1 4113.0 3507.5 31.7 1884.2 1519.5 8778.2 24.9 Headcount Harvey Nash Rob Walters Randstad MatchTech SThree ManPower Robert Half Interquest Hays M. Page Adecco Hydrogen Market Cap (GBP m) Company If you'd invested £5,000 into any of the below recruitment companies just before the market crash in Sept 2008, what would it be worth now? 743 2193 29300 381 2200 28000 12000 223 7810 5099 31000 368 (WC 12/09/08) 35.75 127.75 20.8 259.5 197.5 49.17 25.98 60 88 336.25 51 94 (02/01/2014) 102.67 315.25 47.38 575 362.75 85.01 41.72 91 128.8 492 71 106.5 (%) 287.2% 246.8% 227.8% 221.6% 183.7% 172.9% 160.6% 151.7% 146.4% 146.3% 139.2% 113.3% (£) £14,359.4 £12,338.6 £11,389.4 £11,079.0 £9,183.5 £8,644.5 £8,029.3 £7,583.3 £7,318.2 £7,316.0 £6,960.8 £5,664.9 (£) £9,359.4 £7,338.6 £6,389.4 £6,079.0 £4,183.5 £3,644.5 £3,029.3 £2,583.3 £2,318.2 £2,316.0 £1,960.8 £664.9 5240.7 8966.8 768.6 6749.09 15935.28 850.86 128.8% 177.7% 110.7% £6,439.1 £8,885.7 £5,535.1 £1,439.1 £3,885.7 £535.1 Notes I simply took the opening price for each stock (and indices) for the week commencing Sept 12th 2008, and for Thursday 2nd Jan 2014 I will update this analysis at the end of each quarter and build an ongoing picture of recruitment company shareprice performance overtime If you are reading this and would like me to add other listed recruitment companies into the mix - please DM via LinkedIn or Twitter This exercise was done purely out of professional curiousity as an active trader, investor and recruitment professional.
  5. 5. Recruitment Company Shareprice Performance v's The Market Share price performance 2013 - Jan 1st 2013 - Jan 2nd 2014 Share price performance Q4 2013 (Jan 1st 2013) (Jan 2nd 2014) (Oct 1st) (Jan 2nd 2014) MatchTech 240 575.0 240% £11,979.2 £6,979.2 441.0 575.0 130% £6,519.3 ManPower 41.82 85.0 203% £10,163.8 £5,163.8 72.2 85.0 118% £5,883.9 Interquest 52.5 91.0 173% £8,666.7 £3,666.7 80.0 91.0 114% £5,687.5 Randstad 27.41 47.4 173% £8,642.8 £3,642.8 41.8 47.4 113% £5,672.9 Harvey Nash 62.5 102.7 164% £8,213.6 £3,213.6 90.0 102.7 114% £5,703.9 Robert Walters 196.2 315.3 161% £8,033.9 £3,033.9 325.6 315.3 97% £4,841.8 Hays 83.1 128.8 155% £7,749.7 £2,749.7 118.4 128.8 109% £5,439.2 Adecco 48.95 71.0 145% £7,252.3 £2,252.3 64.8 71.0 110% £5,482.6 Robert Half 31.4 41.7 133% £6,643.3 £1,643.3 38.5 41.7 108% £5,412.6 Hydrogen 85 106.5 125% £6,264.7 £1,264.7 92.5 106.5 115% £5,756.8 Micheal Page 393.4 492.0 125% £6,253.2 £1,253.2 491.9 492.0 100% £5,001.0 SThree 340 362.8 107% £5,334.6 £334.6 346.0 362.8 105% £5,242.1 v's Index FTSE 100 FTSE 250 AIM 5925.37 12359.7 704.78 6749.1 15938.3 850.9 114% 129% 121% £5,695.1 £695.1 6462.2 £6,447.7 £1,447.7 14905.8 £6,036.4 £1,036.4 796.5 6749.1 15938.3 850.9 P/L ROI (If you'd invested £5,000) Performance Price Price P/L ROI (If you'd invested £5,000) Performance Price Price Company If you'd invested £5,000 into any of the below recruitment companies at the start of 2013 and at the beginning of Q4 what would it be worth now? £1,519.3 £883.9 £687.5 £672.9 £703.9 -£158.2 £439.2 £482.6 £412.6 £756.8 £1.0 £242.1 104.4% £5,222.0 £222.0 106.9% £5,346.3 £346.3 106.8% £5,341.2 £341.2
  6. 6. 0 2008 Apr 2009 2010 2011 2012 2013 Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun 300 May 500 Mar Feb Jan Dec Nov Oct Sept 12th 600 Recruitment Company Shareprice Performance: Sept 2008 - Date Harvey Nash Robert Walters SThree MatchTech Robert Half 400 Interquest Micheal Page ManPower Adecco Hays 200 100
  7. 7. Recruitment News/Q4 sound bites: share price highs, acquisitions, re-brands and profit warnings Manpower Reaches 52-Week High Shares of ManpowerGroup Inc. hit a new 52-week high of $83.99 on Dec 16, eventually closing at $83.40. Source: www.nasdaq.com http://www.nasdaq.com/article/manpower-reaches-52week-high-analyst-blogcm311941#ixzz2pHCJJgvPhttp://www.nasdaq.com/article/manpower-reaches-52week-high-analyst-blog-cm311941 InterQuest Group Plc acquires ECOM Recruitment Limited InterQuest Group Plc:Says it has acquired ECOM Recruitment Limited, UK's digital technology recruitment business for a total consideration of up to 7.04 million pounds. Source: Reuters http://www.reuters.com/finance/stocks/ITQ.L/key-developments/article/2877034 Robert Half Hits 52-Week High Shares of the leading specialized staffing firm Robert Half International Inc. reached a 52-week high of $41.24 on Friday, Dec 20, 2013 following the launch of a mobile application, Protiviti Mobiliti, by Protiviti, the wholly owned subsidiary of RHI Source: www.nasdaq.com http://www.nasdaq.com/article/robert-half-hits-52week-high-analyst-blog-cm313455#ixzz2pHIprWI0 Hydrogen end year with a Profit Warning The Board expects that profit before tax for the second half of the year will be lower than the first half, and therefore that profit before tax for the year to 31 December 2013 will be below market expectations. Source: Staffing Industry Analysis http://www.staffingindustry.com/eng/Research-Publications/Daily-News/UK-Hydrogen-ends-year-with-a-profit-warning28378#sthash.ohI9yl9l.dpuf
  8. 8. Recruitment News/Q4 sound bites: Cont’… Hays plc’s Outperform Rating Reaffirmed at BNP Paribas BNP Paribas reissued their outperform rating on shares of Hays plc in a research report released on Wednesday morning, Analyst RN reports. BNP Paribas currently has a GBX 130 ($2.13) price objective on the stock. Source: WKRB News: http://www.wkrb13.com/markets/239133/hays-plcs-outperform-rating-reaffirmed-at-bnp-paribas-has/ Michael Page International Plc Issues FY 2013 Operating Profit Guidance - Below Analysts' Estimates Michael Page International Plc announced that it expects fiscal 2013 operating profit to be around GBP68 million. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report operating profit of GBP90 million for fiscal 2013. Source: Reuters http://www.reuters.com/finance/stocks/MPI.L/key-developments/article/2846859 SThree Full-Year Profit Set To Fall, But Meet Analysts' Expectations Staffing company SThree PLC predicted a further decline in its full-year pretax profit as a rise in profits from contract placements failed to offset a further fall in profits from permanent placements, but said business had picked up in the fourth quarter. Source: www.lse.co.uk http://www.lse.co.uk/AllNews.asp?code=zovhxssn&headline=SThree_FullYear_Profit_Set_To_Fall_But_Meet_Analysts_Exp ectations Randstad Rebrands Operating Companies Under One Brand Randstad Finance & Accounting, Randstad Human Resources, The Mergis Group and Accountants International to be called Randstad Professionals Source: The Sacramento Bee http://www.sacbee.com/2013/12/23/6022834/randstad-rebrands-operating-companies.html
  9. 9. About GusanoLtd Gusano is a Talent Acquisition Consultancy that brings together a collection of industry experts from all corners of the recruitment profession, (in-house, agency and RPO), to design and deliver bespoke training programmes and consultancy projects with a simple goal in mind; 'To enhance performance, raise standards, and enable change through support and learning'. Specialties DSO - Direct Sourcing Optimisation (in-house) Social Media Sourcing New Starter Selection, On-Boarding and Training One2One Coaching, Leadership Development Control & Influence 360 Degree Recruitment Bespoke Recruitment Training Marcus Panton – 07538 122 433 Talent Acquisition Consulting and Training Twitter - @MarcusConGusano LinkedIn - http://uk.linkedin.com/in/marcuspantongusanoltd/

×