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Empresaria Group PLC (GB:EMR)
LSE:EMR

Empresaria (EMR) AI Stock Analysis

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GB

Empresaria

(LSE:EMR)

Rating:46Neutral
Price Target:
Empresaria's overall score reflects significant financial and operational challenges, with declining revenue and profitability, high leverage, and technical indicators suggesting bearish stock momentum. The negative P/E ratio is concerning, though the dividend yield provides some investor return. The CFO's share purchase indicates potential future confidence but is offset by strategic challenges.

Empresaria (EMR) vs. iShares MSCI United Kingdom ETF (EWC)

Empresaria Business Overview & Revenue Model

Company DescriptionEmpresaria Group plc provides staffing and recruitment services in the United Kingdom, Continental Europe, the Asia Pacific, and the Americas. It offers permanent placement, temporary and contract placement, executive search, offshore recruitment, and recruitment process outsourcing services, as well as bespoke solutions for clients and candidates. The company serves clients in professional, information technology, healthcare, commercial, and offshore recruitment, as well as property, construction, and engineering sectors. Empresaria Group plc was founded in 1996 and is based in Crawley, the United Kingdom.
How the Company Makes MoneyEmpresaria generates revenue primarily through the provision of staffing and recruitment services. The company earns fees from clients by placing temporary, contract, and permanent workers. They charge clients a markup on the wages paid to temporary and contract workers, while for permanent placements, they typically receive a one-time fee based on a percentage of the candidate's first-year salary. Additionally, Empresaria benefits from its diversified geographical presence and sector focus, which allows it to mitigate risks associated with economic fluctuations in specific markets. The company's strategic partnerships with local recruitment firms and its investment in technology and innovation also play a role in enhancing its service offerings and expanding its market reach.

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
45
Neutral
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
50
Neutral
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue246.20M250.30M261.30M258.40M256.50M
Gross Profit50.40M57.50M65.40M59.50M54.00M
EBITDA5.20M10.40M17.00M14.80M8.30M
Net Income-10.40M-2.90M4.80M2.30M-3.20M
Balance Sheet
Total Assets101.10M112.90M123.80M123.90M122.10M
Cash, Cash Equivalents and Short-Term Investments17.20M17.10M22.30M21.10M20.80M
Total Debt38.90M35.10M38.10M43.00M43.80M
Total Liabilities69.70M70.00M74.80M81.60M79.70M
Stockholders Equity24.40M36.40M42.80M37.40M37.20M
Cash Flow
Free Cash Flow600.00K4.10M12.60M5.90M13.50M
Operating Cash Flow1.40M5.50M14.70M7.60M14.20M
Investing Cash Flow0.00-800.00K-1.80M-1.40M-600.00K
Financing Cash Flow-900.00K-8.80M-12.40M-5.00M-10.50M

Empresaria Technical Analysis

Technical Analysis Sentiment
Negative
Last Price26.20
Price Trends
50DMA
28.40
Negative
100DMA
27.33
Negative
200DMA
28.00
Negative
Market Momentum
MACD
-0.53
Negative
RSI
40.70
Neutral
STOCH
54.17
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 26.2 is below the 20-day moving average (MA) of 26.59, below the 50-day MA of 28.40, and below the 200-day MA of 28.00, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 40.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£303.72M6.4421.08%5.59%-10.24%-11.60%
GBRTC
69
Neutral
£11.93M7.3023.50%10.53%-2.04%2.36%
69
Neutral
£56.06M8.52%5.83%19.29%
60
Neutral
£25.21M42.113.66%2.50%4.14%-45.24%
58
Neutral
$1.34B4.24-2.93%7.38%3.67%-51.13%
GBRWA
56
Neutral
£120.85M29.69-3.96%14.20%-16.16%-145.46%
GBEMR
46
Neutral
£13.33M-34.21%3.51%-1.64%-255.16%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EMR
Empresaria
26.20
-14.30
-35.31%
GB:GATC
Gattaca
78.00
-10.30
-11.66%
GB:RWA
Robert Walters
175.00
-197.20
-52.98%
GB:RTC
RTC Group plc
95.00
-6.28
-6.20%
GB:STAF
Staffline
46.80
8.45
22.03%
GB:STEM
SThree plc
241.00
-178.63
-42.57%

Empresaria Corporate Events

Shareholder MeetingsFinancial Disclosures
Empresaria Announces 2025 AGM and Annual Report Release
Neutral
Apr 10, 2025

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.

Business Operations and Strategy
Empresaria CFO Increases Stake with Significant Share Purchase
Positive
Mar 31, 2025

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.

Business Operations and StrategyFinancial Disclosures
Empresaria Group’s 2024 Results and Strategic Shift Amid Market Challenges
Negative
Mar 27, 2025

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.

Business Operations and StrategyFinancial Disclosures
Empresaria to Present Full Year Results and Strategy Update
Neutral
Mar 3, 2025

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.

Business Operations and Strategy
Empresaria Group PLC Announces Strategic Focus on Core Markets and Offshore Services
Positive
Feb 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 24, 2025