People Corp (PEO) is an HR services provider that is growing by consolidating a fragmented industry in Canada. Our recent report on this company outlines the company's strategy and our view of the People Corp Stock. However, we wanted to expand on the analysis a little and are providing further thoughts on the company here for members (Click here to join).
Industry and Revenue
The players in the human resources industry are mainly large institutional players serving larger companies and small local players serving smaller enterprises. However, PEO is uniquely PEO somewhere in the middle, having a diverse array of companies under its umbrella and national outreach providing it with a competitive advantage in the smaller to medium-sized enterprise base.
The recurring and integrative nature of PEOs revenues and segments provide the company with a synergetic advantage compared to many of its peers, allowing it to keep to have stable and ‘sticky’ client base. For example: