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Adcorp (ADR) Fair Value & Analysis

Industrials · ZA · Market cap 669M ZAC · ISIN ZAE000000139

What is Adcorp really worth?

A Adcorp ADR · JSE
PriceR6.25
Fair ValueR16.00
Upside+156.0%
Quality61/100

A solid business, trading 61% below our fair value of R16.00.

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Strengths

Low debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Weak Growth (revenue 5y +1.2 %/yr)
!Thin margins · 1.2% net margin
!Narrow moat 29/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range R11.39 – R22.10

Fair value as of: Aug 19, 2026

From 24 valuation models · updated 12 days ago

Share price −0.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (R11.39). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R11.39 to R22.10) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

R7.47 R3.17 Fair Value R16.00 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.

How to read this chart

60‑month range R3.17 – R7.47 · fair‑value band R11.39 – R22.10 · the R6.25 price screens below the R16.00 fair value. Dashed = 300-day average. As of Aug 19, 2026.

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Analysis

Adcorp (ADR) currently trades at R6.25, while our model-based Fair Value estimate is R16.00, implying the stock looks roughly 60.9% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials sector. Bull case: the Growth Earnings group reads highest at a median of R24.72 per share, and 24 of the 24 models we run sit above the R6.25 price. Bear case: the Growth DCF group reads lowest at R7.49, and 0 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Adcorp generated revenue of 12.5B ZAR at a net margin of 1.2%. Revenue declined 6.2% year over year. It earns a return on equity of 9.7%. The balance sheet holds a net cash position of 46.5M ZAR. Fundamentals as of Aug 19, 2026

Our scenario range runs from R11.39 (bear case) to R22.10 (bull case); at R6.25, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at 22% fair-value upside, at 156%, ADR screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 6 months have passed since. In that time the company retained roughly 0.6893 ZAR per share, which is 4.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence R6.53 R7.55 R8.84 82
Growth DCF R6.57 R7.49 R8.59 80
Owner Earnings R22.39 R29.31 R38.04 78
All 24 models by family
DCF Models
FCF DCF best evidence R6.53 R7.55 R8.84 82
Owner Earnings R22.39 R29.31 R38.04 78
5Y Revenue Exit R12.05 R17.86 R25.19 73
5Y EBITDA Exit R15.44 R23.97 R33.70 75
5Y P/E Exit R16.42 R25.72 R35.19 71
10Y Revenue Exit R9.35 R13.78 R19.53 67
10Y EBITDA Exit R11.62 R17.58 R25.26 68
10Y P/E Exit R12.18 R18.67 R26.26 64
Earnings-Based
Graham-Dodd R9.65 R24.50 R31.85 65
PEG = 1.0 R4.55 R6.50 R8.45 57
EPV R14.01 R15.41 R16.57 74
Dividend Discount
Gordon GGM R5.89 R10.02 R14.49 67
DDM Multi-Stage R5.89 R8.46 R10.87 67
Multiples
P/E Multiple R22.35 R29.80 R37.25 63
P/S Multiple R18.09 R24.12 R30.15 58
P/B Multiple R18.09 R24.12 R30.15 55
EV/EBIT R21.90 R27.94 R33.98 66
EV/EBITDA R24.23 R31.05 R37.87 67
EV/Revenue R16.71 R22.26 R27.80 54
Asset-Based
NCAV (Graham) R7.44 R9.97 R14.88 54
Growth DCF
Growth DCF R6.57 R7.49 R8.59 80
Economic Profit
Residual Income R12.22 R13.18 R14.82 76
ROIC Compounder R14.01 R15.58 R17.47 72
Growth Earnings
Growth-Adj P/E R17.30 R24.72 R32.13 67

Widest divergence: Growth Earnings (R24.72) versus Growth DCF (R7.49). Highest evidence: FCF DCF (82).

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Key figures & financial health

P/E ratio 4.6
P/S ratio 0.05 P/E × margin
EPS (TTM) R1.36 price ÷ EPS = P/E 4.6
Dividend yield 11.5% payout 53.0%
Net margin 1.2% FY2026
Return on equity 9.7% TTM
More key figures
Profitability
Return on assets (EBIT) 5.2% avg 5y
Operating margin 1.7% TTM
Growth
Revenue (TTM) 12.5B ZAR TTM
Revenue growth (YoY) −6.2% 3y avg +1.1%
EPS growth (YoY) −16.4%
Balance sheet & cash flow
Free cash flow 31.6M ZAC FY2026
Net cash 46.5M ZAC FY2026

Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 43

Profitability 55
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 54
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 38
Distance to the 52-week high (market factor)
Net Issuance 78
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Adcorp Holdings Limited provides workforce solutions in South Africa and Australia. The company operates through Contingent Staffing, Professional Services, Staffing Solutions, and Business Support segments.

Full company description

Adcorp Holdings Limited provides workforce solutions in South Africa and Australia. The company operates through Contingent Staffing, Professional Services, Staffing Solutions, and Business Support segments. The Contingent Staffing segment offers industrial contingent staffing solutions to the blue-collar and healthcare personnel and skills development solutions. The Staffing Solutions segment offers productivity and process efficiencies services to FMCG, warehousing, telecommunications, and logistics sectors, as well as offers niche industrial and office cleaning services. The Professional Services segment provides ICT personnel resourcing; project management; temporary and permanent placement services for front and back-office professionals across multiple industries; and operates a fully digital marketplace for freelancers and hirers, as well as offers training for the Microsoft product suite. The Business Support segment offers finance, human resources, payroll, IT, legal, risk, compliance, and marketing services. Adcorp Holdings Limited was founded in 1968 and is based in Johannesburg, South Africa.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Adcorp reported revenue of 12.5B ZAR in FY2026 versus 11.5B ZAR in FY2022, a compound +2.0%/yr. Reported net income was 146M ZAR in FY2026, compounding +5.8%/yr from FY2022.

Growth Quality 34/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
12.5B ZAR
Latest YoY
−5.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.1%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.2%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.6%
Value creation/yr (5Y, in ZAR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+31.8% (20.3 + 11.5)
Revenue +2.0%/yr
FY22 11.5B ZAR
FY23 12.0B ZAR
FY24 13.0B ZAR
FY25 13.2B ZAR
FY26 12.5B ZAR
Net income +5.8%/yr
FY22 116M ZAR
FY23 121M ZAR
FY24 86.2M ZAR
FY25 139M ZAR
FY26 146M ZAR
Character of growth · EPS growth decomposed (2015-2026) −5.8 % p.a.
Revenue per share −0.8 %

of which total revenue −1.2 % · buybacks/dilution +0.4 %

EBIT margin −10.1 %
Tax rate −0.1 %
Residual (interest, one-offs) +5.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Adcorp Fair Value". https://www.fairvalue-calculator.com/stock/ADR

Peer Group

Staffing & Employment Services · 84 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Above median
Fair Value upside +156% · Top 25%
Return on equity (TTM) 10% · Above median
Return on assets 4% · Above median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth −6% · Below median
Dividend yield (TTM) 11.5% · Top 25%

Valuation Multiples vs Staffing & Employment Services median · lower = cheaper

P/E (TTM) 4.6× · Cheaper than 75% of peers
P/B 0.44× · Cheaper than 75% of peers
P/S (TTM) 0.05× · Cheaper than 75% of peers
P/FCF 1.3× · Cheaper than median
EV/EBITDA 1.4× · Cheaper than 75% of peers
PEG 19.43× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 44
FUTURE0 · sector 0
PAST39 · sector 39
HEALTH100 · sector 96
DIVIDEND100 · sector 60

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Staffing & Employment Services stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).

Stock Price Fair Value vs Fair Value
Adecco Group ADEN CHF 24.06 CHF 24.15 +0%
Korn Ferry, KFY $83.30 $114.56 +38%
Robert Half Inc RHI $44.54 $20.51 −54%
TriNet Group TNET $69.61 $97.07 +39%
ManpowerGroup Inc MAN $61.96 $23.19 −63%
Insperity, Inc NSP $51.91 $17.34 −67%
FESCO Group 600861 ¥13.02 ¥45.46 +249%
Grupa Pracuj S.A GPP 53.50 PLN 65.45 PLN +22%
Barrett Business Services, Inc BBSI $32.95 $38.11 +16%
Maharah for Human Resources Company 1831 4.68 SAR 6.87 SAR +47%

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Frequently asked questions

Is Adcorp (ADR) overvalued or undervalued?
As of Aug 19, 2026, our model estimates a fair value of R16.00 versus a price of R6.25, about +156% upside (undervalued).
What is the fair value of ADR?
Our model-based fair value for Adcorp is R16.00 (as of Aug 19, 2026), built from audited fundamentals. The current price: R6.25.
What is the quality score of ADR?
Adcorp has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Adcorp (ADR)?
Adcorp reported trailing-twelve-month revenue of about 12.5B ZAR (latest available figure, as of Aug 19, 2026).
What is the net profit margin of ADR?
The net profit margin of Adcorp is about 1.2%, meaning it keeps roughly 1.2% of revenue as net income. Based on the latest reported figures.
Does Adcorp pay a dividend?
Adcorp currently shows a dividend yield of about 11.53% relative to its recent price (as of Aug 19, 2026).
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