Empresaria (EMR) AI Stock Analysis

• Market Cap: £17.69M
• Dividend Yield: 3.51%
• Average Volume (3M): 30.89K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.35
• Revenue Growth: -1.70%
• EPS Growth: -29.90%
• Country: UK
• Employees: 6,156
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): >-0.01
• Shares Outstanding: 49,853,000
• 10 Day Avg. Volume: 21,102
• 30 Day Avg. Volume: 30,886
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 21.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £32.00
• Price Target Upside: -4.48% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: 32.00p ▼(-4.48% Downside)

Empresaria's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, negative profitability, and high leverage. Technical analysis shows mixed signals with some bearish momentum. Valuation metrics are poor due to negative earnings and lack of dividends, further contributing to the low score.

Empresaria Business Overview & Revenue Model

Company Description

Empresaria Group plc is a global specialist staffing group that operates in various sectors, including engineering, information technology, and healthcare. The company provides a range of recruitment and staffing services, focusing on delivering tailored solutions to meet the specific needs of its clients across different industries. By leveraging its international presence and expertise in niche markets, Empresaria aims to connect businesses with skilled professionals, enhancing workforce efficiency and effectiveness.

How the Company Makes Money

Empresaria generates revenue primarily through fees charged for its recruitment and staffing services. The company earns money by placing candidates in temporary, contract, and permanent positions, receiving a percentage of the candidates' salaries as commission. Key revenue streams include placement fees, temporary staffing fees, and consultancy services related to workforce management. Additionally, Empresaria may enter into strategic partnerships or alliances with businesses to provide specialized staffing solutions, which can further enhance its earnings. The company's ability to adapt to market demands and leverage its expertise in various sectors plays a crucial role in sustaining its revenue growth.

Empresaria Financial Statement Overview

Summary

Empresaria is facing financial difficulties with declining revenue, negative profitability, and increased leverage. The income statement indicates operational and pricing challenges, while the balance sheet reveals weakened financial stability due to high debt levels. Cash flow position has deteriorated, limiting financial flexibility and increasing risk.

Income Statement

The income statement shows declining revenue and profitability over recent years. Gross profit margin stands at 20.5% in 2024, down from previous years, indicating pressure on pricing or cost structure. Net profit margin is negative due to a net loss of €10.4 million in 2024. Revenue has decreased by 1.64% from 2023, and EBIT margin is negative, reflecting operational challenges.

Balance Sheet

The balance sheet exhibits a high debt-to-equity ratio of 1.59 in 2024, indicating significant leverage. The equity ratio is 24.1%, suggesting moderate equity financing. However, the decline in stockholders' equity and assets over time raises concerns about financial stability. ROE is negative in 2024 due to net losses, highlighting profitability challenges.

Cash Flow

Cash flow analysis reveals a sharp decline in free cash flow, down 85.37% from 2023 to 2024. The operating cash flow to net income ratio is positive, indicating operational cash generation, but the free cash flow to net income ratio has deteriorated, reflecting reduced financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	242.20M	246.20M	250.30M	261.30M	258.40M	256.50M
Gross Profit	47.30M	50.40M	57.50M	65.40M	59.50M	54.00M
EBITDA	10.00M	5.20M	10.40M	17.00M	14.80M	8.10M
Net Income	-7.80M	-10.40M	-2.90M	3.40M	2.30M	-3.10M
Balance Sheet
Total Assets	96.70M	101.10M	112.90M	123.80M	123.90M	122.10M
Cash, Cash Equivalents and Short-Term Investments	15.60M	17.20M	17.10M	22.30M	21.10M	20.80M
Total Debt	36.10M	38.90M	35.10M	38.10M	43.00M	43.80M
Total Liabilities	68.10M	69.70M	70.00M	74.80M	81.60M	79.70M
Stockholders Equity	21.70M	24.40M	36.40M	42.80M	37.40M	37.20M
Cash Flow
Free Cash Flow	5.50M	600.00K	4.10M	12.60M	5.90M	13.50M
Operating Cash Flow	6.20M	1.40M	5.50M	14.70M	7.60M	14.20M
Investing Cash Flow	-1.10M	-800.00K	-800.00K	-1.80M	-1.40M	-600.00K
Financing Cash Flow	-4.50M	-900.00K	-8.80M	-12.40M	-5.00M	-10.50M

Empresaria Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EMR, the sentiment is Positive. The current price of 33.5 is above the 20-day moving average (MA) of 33.49, below the 50-day MA of 35.22, and above the 200-day MA of 29.52, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 43.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EMR.

Empresaria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STAF	69 Neutral	£52.59M	13.69	44.68%	―	1.44%	―
RTC	68 Neutral	£11.93M	6.75	23.32%	6.54%	-6.12%	4.30%
GATC	64 Neutral	£26.63M	44.47	3.66%	4.14%	4.14%	-45.24%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STEM	62 Neutral	£203.27M	7.34	12.99%	6.64%	-13.93%	-48.74%
EMR	48 Neutral	£17.69M	―	-29.38%	3.51%	-1.70%	-29.90%
RWA	46 Neutral	£102.70M	29.69	-11.22%	11.55%	-14.31%	-361.93%

Empresaria Corporate Events

Empresaria Announces 2025 AGM and Annual Report Release

Empresaria Group PLC has announced the details of its 2025 Annual General Meeting, which will take place on May 20, 2025, at the offices of Singer Capital Markets in London. The company has also released its Annual Report and Accounts for the year ending December 31, 2024, which are available on its website and are being mailed to shareholders who opted for a hard copy.

Empresaria CFO Increases Stake with Significant Share Purchase

Empresaria Group plc announced that its Chief Financial Officer, Tim Anderson, has purchased 60,000 ordinary shares in the company, increasing his total shareholding to 395,000 shares. This transaction, conducted on the London Stock Exchange’s AIM, reflects a strategic move that may signal confidence in the company’s future prospects and could influence stakeholder perceptions positively.

Empresaria Group’s 2024 Results and Strategic Shift Amid Market Challenges

Empresaria Group plc reported a challenging financial year for 2024, with a 2% decline in revenue and a significant drop in net fee income and adjusted operating profit. Despite the adverse market conditions, the company is focusing on an accelerated strategy to streamline operations by concentrating on core sectors in the UK and US, and Offshore Services in India. This strategic shift is expected to enhance operational efficiency, reduce complexity, and strengthen the financial position by exiting non-core operations, ultimately aiming to improve shareholder value.

Empresaria to Present Full Year Results and Strategy Update

Empresaria Group plc announced an upcoming online presentation for its full year results and strategy acceleration, scheduled for March 27. This event is open to existing and potential shareholders, allowing them to submit questions. The presentation aims to provide insights into the company’s operational focus and strategic direction, emphasizing its commitment to enhancing services in the UK, US, and Offshore markets.

Empresaria Group PLC Announces Strategic Focus on Core Markets and Offshore Services

Empresaria Group PLC has announced a strategic update ahead of its full-year results, emphasizing a sharpened focus on core operations in the UK and US and the expansion of its offshore services in India. The company plans to exit non-core operations in various countries to streamline its business, aiming to leverage growth opportunities in two of the world’s largest staffing markets. This strategic transformation is expected to enhance operational efficiency, improve financial standing, and increase shareholder value, with a focus on eliminating net debt and reducing overheads over the next two years.