Company DescriptionHays PLC is a British staffer and recruiting agency. The company offers recruitment services for a temporary, contractor, and permanent roles in the information technology, accounting and finance, construction and property, engineering, and office support sectors. The revenue generated through fees is equally split between permanent and temporary contract types. The largest end market for Hays is Continental Europe and the rest of the world, followed by the United Kingdom and Ireland.

How the Company Makes Money

Hays plc Financial Statement Overview

Summary

Hays plc's financial performance reflects challenges with declining revenue and profitability, as evidenced by the negative net profit margin and revenue growth. The balance sheet indicates moderate leverage but declining equity, while cash flow shows decreased free cash flow. Overall, the financial position is stable, but there are signs of weakening in profitability and cash flow.

Income Statement

Neutral

Hays plc has experienced a decline in revenue from 2023 to 2024, with a decrease from 7.58 billion to 6.95 billion, resulting in a negative revenue growth rate of -8.39%. The gross profit margin stands at 16.02%, while the net profit margin is negative at -0.07%, indicating challenges in profitability. Both EBIT and EBITDA margins have decreased significantly compared to the previous year, highlighting reduced operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.44, suggesting a moderate level of leverage. The return on equity is negative at -0.88%, reflecting a decline in profitability. The equity ratio is 31.36%, indicating a reasonable proportion of the company's assets are financed by equity. However, the decrease in stockholders' equity from the previous year is a concern.

Cash Flow

Positive

Free cash flow has decreased from 134.9 million to 72.4 million, resulting in a negative free cash flow growth rate of -46.33%. The operating cash flow to net income ratio is negative due to the negative net income, which raises concerns about cash generation relative to profitability. However, the company still maintains positive operating cash flow.

Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
6.95B	7.58B	6.59B	5.65B	5.93B
	Gross Profit
1.11B	206.10M	221.80M	96.90M	150.20M
	EBIT
25.10M	197.00M	214.30M	91.20M	135.00M
	EBITDA
94.50M	266.90M	273.50M	162.20M	156.50M
	Net Income Common Stockholders
-4.90M	138.30M	154.20M	61.50M	47.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.80M	145.60M	296.20M	410.60M	484.50M
	Total Assets
1.78B	1.90B	2.08B	1.87B	1.94B
	Total Debt
244.30M	199.80M	185.10M	201.10M	228.70M
	Net Debt
122.50M	54.20M	-111.10M	-209.50M	-255.80M
	Total Liabilities
1.22B	1.23B	1.28B	1.00B	1.09B
	Stockholders Equity
557.60M	670.30M	796.20M	871.80M	853.40M
Cash Flow		Free Cash Flow
72.40M	134.90M	146.80M	-13.70M	327.00M
	Operating Cash Flow
95.80M	164.00M	171.20M	5.10M	352.80M
	Investing Cash Flow
-20.20M	-30.10M	-24.40M	-18.80M	-25.80M
	Financing Cash Flow
-98.80M	-280.70M	-269.40M	-56.40M	28.30M

Hays plc Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEM	69 Neutral	£315.02M	6.43	21.08%	6.94%	-10.24%	-11.81%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
GATC	57 Neutral	£26.32M	141.53	0.66%	2.92%	1.13%	-84.64%
HAS	55 Neutral	£1.08B	―	-2.60%	4.41%	-8.36%	-103.61%

* Industrials Sector Average

Performance Comparison

GB:HAS

Hays plc

74.50

-17.58

-19.09%

GB:EMR

Empresaria

27.50

-8.09

-22.73%

GB:GATC

Gattaca

83.50

-25.90

-23.67%

GB:PAGE

PageGroup

325.40

-108.43

-24.99%

GB:RWA

Robert Walters

255.00

-133.33

-34.33%

GB:STEM

SThree plc

239.00

-164.86

-40.82%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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