Daily Stock Analysis: Randstad N.V. (RANJY)

Randstad NV, ticker RANJY, is a mid-cap staffing and employment services company operating in the industrials business sector. This is the first of five industrials candidates competing for the forty-fourth slot in the Viital folio. It is my first ever report on Randstad NV for my Viital portfolio or any of my previous six portfolios.

Established in 1960 and domiciled in the Netherlands, Randstad is one of only three global recruitment providers, placing over 200,000 permanent candidates and 2 million temporary candidates annually.

Randstad has traditionally been focused on the general staffing market, but has in recent years begun diversifying into the professional space, as well as in-house services, in which consultants work remotely from clients’ premises.

The company has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally.

The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018.

Randstad N.V. is headquartered in Diemen, the Netherlands.

Three key data points gauge any dividend equity or fund such as Randstad NV:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

RANJY Price

Randstad NV’s price per share was $25.22 as of Friday's market close.  One year ago its price was $36.40. Thus, RANJY share price fell $11.18 or about 31% in the past year.

If Randstad NV’s stock trades in the range of $20.00 to $40.00 this next year, its recent $25.22 share price might rise by $1.18 to reach $26.40 by next year. My $1.18 upside estimate is based on the average of one-year price upsides for RANJY shares over the past ten years.

RANJY Dividends

Randstad NV’s most recently declared semi-annual dividend of $1.56 is payable October 19th, to shareholders on record as of September 29th.

Since May 5, 2011, Randstad NV has paid variable Semi-annual dividends.  The current forward looking annual dividend of $2.75 equates to an annual yield of 10.9% as of Fridays $25.22 share price.

RANJY Returns

Adding the $2.75 Randstad annual dividend to my estimated one-year price upside estimate of $1.18 shows a $3.93 potential gross gain, per share, to be reduced by any costs to trade RANJY shares.

At Friday's $25.22 closing price, a little over $1000 would buy 40 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.25 per share.

Subtract that maybe $0.25 brokerage cost from my estimated $3.93 gross gain estimate per share results in a net gain of $3.68 X 40 shares = $147.20, for a 14.7% net gain including a 10.9% forward looking annual dividend yield.

Over the next year our $1K investment in RANJY shares should generate $109.00 in cash dividends. Of course, a single share of RANJY stock bought at Friday's $25.33 price is over 4 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a prime time to pick up Randstad NV shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is 4.3 times more than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Randstad NV. Only time and money invested in this stock will determine its market value.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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