Empresaria (EMR) AI Stock Analysis

• Market Cap: £10.90M
• Dividend Yield: N/A
• Average Volume (3M): 20.93K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.73
• 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: 15,516
• 30 Day Avg. Volume: 20,933
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 21.50p ▼(-4.44% Downside)

Empresaria's overall stock score is primarily impacted by its poor financial performance, bearish technical indicators, and negative valuation metrics. The ongoing corporate governance issues further exacerbate the risk, making the stock less attractive to investors.

Positive Factors

International Presence

Empresaria's international presence allows it to leverage diverse markets, reducing dependency on any single economy and enhancing resilience.

Niche Market Expertise

Specialization in niche markets provides a competitive edge, enabling Empresaria to offer customized services that can command premium pricing.

Diverse Revenue Streams

Multiple revenue streams from various staffing services help stabilize income and mitigate risks associated with market fluctuations.

Negative Factors

Declining Revenue

A decline in revenue indicates potential challenges in market demand or competitive pressures, impacting long-term growth prospects.

High Leverage

Significant leverage can strain financial resources, limiting the company's ability to invest in growth opportunities and increasing financial risk.

Negative Profitability

Sustained negative profitability undermines financial health, reducing the company's ability to reinvest in business operations and innovation.

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: Negative
• Last Price: 22.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EMR, the sentiment is Negative. The current price of 22.5 is below the 20-day moving average (MA) of 24.07, below the 50-day MA of 26.87, and below the 200-day MA of 29.26, indicating a bearish trend. The MACD of -1.28 indicates Negative momentum. The RSI at 17.41 is Positive, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EMR.

Empresaria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEM	75 Outperform	£233.00M	8.41	12.99%	6.45%	-13.93%	-48.74%
STAF	71 Outperform	£52.78M	13.87	44.68%	―	1.44%	―
GATC	71 Outperform	£29.00M	12.90	6.45%	3.26%	2.40%	1101.69%
RTC	70 Outperform	£12.18M	6.89	23.32%	6.47%	-6.12%	4.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWA	53 Neutral	£85.51M	-5.82	-11.22%	12.88%	-14.31%	-361.93%
EMR	40 Underperform	£10.90M	-1.42	-29.38%	―	-1.70%	-29.90%

Empresaria Corporate Events

Empresaria Group Appoints New Auditor

Empresaria Group plc has appointed Kreston Reeves Audit LLP as its new independent auditor for the financial year ending 31 December 2025, following a competitive tender process. The reappointment for the following year will be subject to shareholder approval at the 2026 annual general meeting, and the outgoing auditor, S&W Partners Audit Limited, has no issues to report regarding their departure.

Empresaria Group PLC Announces CFO Leave and Corporate Review

Empresaria Group PLC announced that its Chief Financial Officer, Tim Anderson, is taking a leave of absence, with interim measures being implemented to ensure continuity in the finance function. The company is also undergoing a comprehensive review of its operations under the new Board led by Joost Kreulen, aiming to address challenges, enhance efficiency, and position itself for future market recovery.

Empresaria Group Announces Strategic Board Changes and Operational Focus

Empresaria Group plc has announced changes following a recent general meeting, including the end of an offer period by Legacy UK Holdings Limited, which decided not to make an offer for the company. With a newly appointed board led by Joost Kreulen, the company aims to address operational challenges, enhance efficiency, and position itself for growth in the recovering staffing market. Kreulen, with extensive industry experience, will temporarily dedicate more time to his role as Chair to support these objectives, while Eckhard Koehn will assist in operations in Germany.

Empresaria Announces Board Overhaul and Adviser Change

Empresaria Group plc announced significant changes following a requisitioned general meeting, where all proposed resolutions were passed. This led to the removal of several directors, including the CEO, and the appointment of new non-executive directors, with Joost Kreulen as the new Chair. Additionally, the company changed its Nominated Adviser and joint broker to Allenby Capital Limited, following the resignation of Singer Capital Markets Advisory LLP. These changes are expected to impact the company’s governance structure and strategic direction.

Empresaria Group PLC Announces Board Overhaul and New Adviser Appointment

Empresaria Group PLC announced significant changes following a requisitioned general meeting where all proposed resolutions were passed, resulting in the removal of several directors and the appointment of new ones, including Joost Kreulen as Chair. Additionally, the company has appointed Allenby Capital Limited as its new Nominated Adviser and joint broker, following the resignation of Singer Capital Markets Advisory LLP.

Empresaria Extends Deadline for Potential Takeover Offer by Legacy UK Holdings

Empresaria Group plc has announced an extension of the deadline for Legacy UK Holdings Limited to make a firm offer for the company. The extension, approved by the Panel on Takeovers and Mergers, gives Legacy until 22 October 2025 to announce its intentions, reflecting ongoing positive discussions and due diligence. This development indicates potential changes in ownership that could impact Empresaria’s strategic direction and market positioning.

Empresaria Faces Boardroom Shake-up Amid Shareholder Dispute

Empresaria Group PLC has announced a requisitioned general meeting following a notice from Anthony Martin, a significant shareholder and former chairman, who seeks to remove four current directors and appoint four new ones. The board opposes these resolutions, arguing they could harm shareholder value and lead to the resignation of their nominated adviser, Singer Capital Markets, which could result in the suspension of the company’s shares from trading if a replacement is not found.