No other reason than that I forgot about it. Thanks for the reminder, and for your great write-up from April.
I'm delighted to see they are still doing well operationally, and far better than the European peers. They still lagged the S&P in the last ten years, but it was closer.
The $545m mkt cap and $0.5m liquidity are similar to Robert Walters, but profitability (24% conversion ratio) and growth momentum (GP making new highs) are much stronger.
A balanced GP mix of 33% perm, 26% temp and 40% training business mean it is differentiated from pure staffing models. 100% in Germany seems to be working well for them - perhaps the Japan of Europe in certain ways. Possible LT risk of running out of TAM in their niche, as you mentioned.
It has now de-rated to 11.8x current P/E, pretty much the lowest in history.
Have any fresh negatives or challenges arisen since April? Do you have any further thoughts on how they consistently outperform the peers with strong German presence (Hays, SThree) and similar business models?
I think the interesting aspect is that they also have a training segment which in theory should benefit from higher unemployment. So their business model should be better hedged for a downturn.
But the situation right now in Germany is clearly not optimal. Many pundits had hoped for a 2024 second half recovery which is not coming. Let's see what next year is giving us...
Basically it is all very low quality, based on my experience Amadeus recruiters are bad but not as bad as others!
The low qualities despite realms of data and technology. I guess the data is often used for quantity (ie searching LinkedIn for certain keyword(s) and contacting many potential candidates without understanding either the job profiles in detail nor the candidates profiles. Recruiters are often very young without significant experience.
And yet, the market is their...
Amadeus seems to have some employees who came back, so employer might be better than others, and benefit from better experience in employee pool
Great post. Any reason why you haven't mentioned Amadeus Fire as a competitor ?
No other reason than that I forgot about it. Thanks for the reminder, and for your great write-up from April.
I'm delighted to see they are still doing well operationally, and far better than the European peers. They still lagged the S&P in the last ten years, but it was closer.
The $545m mkt cap and $0.5m liquidity are similar to Robert Walters, but profitability (24% conversion ratio) and growth momentum (GP making new highs) are much stronger.
A balanced GP mix of 33% perm, 26% temp and 40% training business mean it is differentiated from pure staffing models. 100% in Germany seems to be working well for them - perhaps the Japan of Europe in certain ways. Possible LT risk of running out of TAM in their niche, as you mentioned.
It has now de-rated to 11.8x current P/E, pretty much the lowest in history.
Have any fresh negatives or challenges arisen since April? Do you have any further thoughts on how they consistently outperform the peers with strong German presence (Hays, SThree) and similar business models?
I think the interesting aspect is that they also have a training segment which in theory should benefit from higher unemployment. So their business model should be better hedged for a downturn.
But the situation right now in Germany is clearly not optimal. Many pundits had hoped for a 2024 second half recovery which is not coming. Let's see what next year is giving us...
Good points!
Basically it is all very low quality, based on my experience Amadeus recruiters are bad but not as bad as others!
The low qualities despite realms of data and technology. I guess the data is often used for quantity (ie searching LinkedIn for certain keyword(s) and contacting many potential candidates without understanding either the job profiles in detail nor the candidates profiles. Recruiters are often very young without significant experience.
And yet, the market is their...
Amadeus seems to have some employees who came back, so employer might be better than others, and benefit from better experience in employee pool
Another great read. I have always thought that Linkedin would disrupt the core recruitment market.
Thanks for the great write up Alex.
Have you looked at 5871 - Solize Co. JP stock? Wondering if you have any thoughts on this name.