[Stock-Analysis] Recruit Holdings: Is the Owner of Indeed & Glassdoor Worth Recruiting to Your Portfolio?

The world's largest recruitment company has a relatively high valuation, but a huge potential for growth

Disclaimer: The information in this article represents my opinions, and should not be construed as personalized or individualized investment advice and are subject to change.

Recruit Holdings (6098) might not be that famous outside of Japan, but it’s the world’s largest recruitment company. Since 2016, the company has been on a global acquisition spree and bought up globally renowned companies such as Indeed, Glassdoor and Fishbowl.

Categorizing itself as a holding company, Recruit Holdings see itself as a recruitment platform, leaving its assets relatively autonomous and self-sufficient.

The question is, has this resulted in good value for shareholders, or should value investors stay away?

I analyzed the business performance trends, stock price charts, and dividend trends to see what will happen to stock prices and dividends in the future.

TL;DR

• Recruit Holding’s stock is overpriced and the dividend yield is low.

• The stock has risen sharply over the long term, but recent turmoil in the market has made it drop significantly.

• Recruit have had an amazing growth story both organically and through acquisitions with a 9.5% revenue growth rate over the past 10 years. Also, the company has managed to increase its profit margin from 6% to 10% in the same time.

• Recruit’s heavy acquisition strategy has room for growth, but there are definitely points of concern for the already acquired assets.

Konichi-Value Table

🤩 = Amazing

🙂 = Good

😑 = Acceptable

😖= Bad

What is Recruit Holdings (TSE: 6098, USOTC: RCRRF)?

Recruit Holdings Co., Ltd. is a holding company of the Recruit Group, which handles services such as job advertisements, recruitment, sales promotion, and IT solutions. Overseas sales ratio exceeds 40%. As of 2016, it is the owner of the recruitment platform Indeed and the job review sites Glassdoor and Fishbowl.

Recruit holdings is also a massive part of the Japanese real-estate market, owning Japan’s biggest housing site “SUUMO”.

Table of contents:

1. Recruit's business profitability & Cash-flow

2. Recruit's Opportunities and Risks

3. Financial soundness

4. Stock price

5. Dividends