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PageGroup PLC (GB:PAGE)
LSE:PAGE
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PageGroup (PAGE) AI Stock Analysis

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GB:PAGE

PageGroup

(LSE:PAGE)

Rating:61Neutral
Price Target:
275.00p
▲(19.88% Upside)
PageGroup faces significant challenges with declining revenue and profitability, reflected in a moderate financial performance score. Technical indicators suggest bearish momentum, while valuation metrics indicate potential overvaluation despite a strong dividend yield. The earnings call highlights both challenges and strategic progress, suggesting potential for recovery. Overall, the stock score reflects these mixed factors, with financial performance and technical analysis being the most significant contributors.

PageGroup (PAGE) vs. iShares MSCI United Kingdom ETF (EWC)

PageGroup Business Overview & Revenue Model

Company DescriptionPageGroup (PAGE) is a leading professional recruitment consultancy specializing in the recruitment of permanent, contract, and temporary positions across various sectors. Established in 1976 and headquartered in the UK, the company operates through multiple brands, including Michael Page, Page Personnel, and Page Executive, serving diverse industries such as finance, engineering, healthcare, and technology. PageGroup focuses on matching skilled professionals with organizations, leveraging its extensive global network and expertise to deliver tailored recruitment solutions.
How the Company Makes MoneyPageGroup generates revenue primarily through the placement of candidates in various job positions, earning fees based on a percentage of the candidate's first-year salary for permanent positions or a fixed fee for temporary placements. The company has diversified its income streams by offering additional services such as recruitment process outsourcing (RPO) and managed services provider (MSP) solutions, which provide organizations with ongoing recruitment support. Significant partnerships with employers across multiple industries allow PageGroup to maintain a steady pipeline of job openings, further contributing to its earnings. The company's strong global presence, combined with its specialized knowledge in various sectors, enables it to attract top talent and fulfill client demands efficiently, which is crucial for sustaining its revenue growth.

PageGroup Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging financial period with significant declines in profit metrics, particularly in EMEA and the technology sector. However, there are notable achievements in strategic goals, AI integration, and recovery in the U.S. market, suggesting potential for recovery and growth in the future.
Q2-2025 Updates
Positive Updates
Progress on Strategic Goals
The company changed over 55,000 lives in H1 2025, with a total of over 700,000 lives changed since the strategic goal was set. Net Promoter Score increased to 66 in H1 2025, up from 61 in 2024.
Enterprise Solutions Growth
Enterprise Solutions delivered a 19% growth in H1 and a record performance, indicating strong demand for strategic customer partnerships.
U.S. Market Recovery
The U.S. business delivered three successive quarters of growth driven by an improvement in the conversion rate of offers to placements.
AI Integration Benefits
AI-driven job ad generator increased applications by 47% per job, with a 22% better conversion to fill rate.
Negative Updates
Decline in Group Gross Profit
Group gross profit was down 9.7% in constant currencies to GBP 389.7 million in H1 2025.
Decrease in Operating Profit
Operating profit decreased from GBP 28.4 million in H1 2024 to GBP 2.1 million in H1 2025.
Challenges in Technology Sector
Technology sector gross profit was down 16% in H1 2025 versus 2024, below the group average.
Weaker Trading in EMEA
Conversion rate in EMEA was 5.2%, down from 14.6% in the prior year, with profitability decreasing due to tougher trading conditions.
Company Guidance
In the recent PageGroup Interim Results Presentation, several financial metrics were highlighted. The group reported a gross profit decline of 9.7% in constant currencies, totaling GBP 389.7 million for H1 2025. Operating profit dropped significantly to GBP 2.1 million from GBP 28.4 million in H1 2024, with a conversion rate of 0.5%. When excluding one-off restructuring and transformation costs amounting to GBP 13 million, the underlying operating profit was GBP 14.9 million, reflecting a conversion rate of 3.8%. The group's net cash position was GBP 10.8 million, and they announced an interim dividend of 5.36p per share, consistent with 2024, amounting to GBP 16.7 million. The effective tax rate decreased to 37.3% from 39.5% in the previous year, influenced by reduced prior-year tax adjustments. The group's balance sheet saw trade and other receivables decrease by GBP 31.6 million compared to June 2024, and net assets fell from GBP 274 million in H1 2024 to GBP 217 million in H1 2025.

PageGroup Financial Statement Overview

Summary
PageGroup's financial performance in 2024 shows challenges with declining revenue and profitability margins, impacting its income statement. The balance sheet indicates a prudent use of leverage, but declining equity and returns could affect long-term stability. Strong cash flow management remains a highlight, ensuring liquidity and operational flexibility. Continued focus on improving profitability and managing costs will be crucial for future growth.
Income Statement
65
Positive
PageGroup experienced a revenue decrease from 2023 to 2024, with a revenue growth of -13.5%. Gross profit margin for 2024 was approximately 48.5%, indicating efficient cost management. However, net profit margin for 2024 declined significantly to 1.6%, suggesting increased operational costs or other expenses impacting profitability. EBIT and EBITDA margins also decreased, reflecting reduced operational efficiency.
Balance Sheet
72
Positive
The company's debt-to-equity ratio increased to 0.52 in 2024, indicating a moderate level of leverage. Return on equity decreased to 10.8%, showing reduced profitability relative to shareholder investments. The equity ratio of 40.4% suggests a balanced approach to financing, though a declining trend in equity could pose future risks.
Cash Flow
75
Positive
PageGroup maintained strong operating cash flows in 2024, with an operating cash flow to net income ratio of 4.45, indicating robust cash generation relative to profits. Free cash flow remained stable, though there was a slight decline in free cash flow from 2023. The free cash flow to net income ratio of 3.9 reflects strong cash flow management despite profit declines.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.74B2.01B1.99B1.64B1.30B
Gross Profit842.59M1.01B1.08B877.72M610.25M
EBITDA117.54M187.83M264.25M229.07M84.01M
Net Income28.44M77.07M139.01M118.36M-5.74M
Balance Sheet
Total Assets650.10M704.57M794.94M724.46M629.83M
Cash, Cash Equivalents and Short-Term Investments95.35M90.14M131.48M153.98M165.99M
Total Debt136.79M110.93M109.83M102.34M103.47M
Total Liabilities387.69M398.09M442.74M384.35M313.93M
Stockholders Equity262.41M306.49M352.20M340.11M315.90M
Cash Flow
Free Cash Flow110.99M121.63M152.99M120.32M114.72M
Operating Cash Flow126.66M153.01M184.66M148.69M137.38M
Investing Cash Flow-13.73M-28.56M-29.59M-25.73M-21.74M
Financing Cash Flow-106.09M-156.76M-183.53M-131.19M-53.22M

PageGroup Technical Analysis

Technical Analysis Sentiment
Negative
Last Price229.40
Price Trends
50DMA
256.51
Negative
100DMA
256.45
Negative
200DMA
281.99
Negative
Market Momentum
MACD
-8.53
Positive
RSI
30.64
Neutral
STOCH
13.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PAGE, the sentiment is Negative. The current price of 229.4 is below the 20-day moving average (MA) of 247.09, below the 50-day MA of 256.51, and below the 200-day MA of 281.99, indicating a bearish trend. The MACD of -8.53 indicates Positive momentum. The RSI at 30.64 is Neutral, neither overbought nor oversold. The STOCH value of 13.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PAGE.

PageGroup Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
£30.57M51.053.66%3.68%4.14%-45.24%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
63
Neutral
£53.20M13.6044.68%1.44%
62
Neutral
£245.65M8.8712.99%5.39%-13.93%-48.74%
61
Neutral
£723.23M59.894.81%7.46%-12.54%-76.55%
51
Neutral
£973.46M-1.52%4.88%-4.92%-58.06%
46
Neutral
£107.84M29.69-11.22%11.00%-14.31%-361.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PAGE
PageGroup
229.40
-116.67
-33.71%
GB:GATC
Gattaca
97.00
1.98
2.08%
GB:HAS
Hays plc
61.45
-25.39
-29.24%
GB:RWA
Robert Walters
157.50
-148.93
-48.60%
GB:STAF
Staffline
42.20
7.70
22.32%
GB:STEM
SThree plc
194.80
-183.58
-48.52%

PageGroup Corporate Events

Business Operations and StrategyFinancial Disclosures
PageGroup Reports Resilient H1 2025 Amid Economic Uncertainty
Neutral
Aug 12, 2025

PageGroup plc reported a resilient performance for the first half of 2025 despite macro-economic uncertainties, with revenue and gross profit experiencing declines of 11.1% and 12.3% respectively. The company faced challenges in market conditions, particularly in Continental Europe, but saw improvements in Asia and the US. Strategic cost optimization and resource reallocation were implemented to address these challenges, with a focus on long-term growth opportunities. The company continues to leverage technology and AI to enhance productivity and customer experience, while maintaining a strong balance sheet and adaptable business model to navigate the uncertain economic environment.

The most recent analyst rating on (GB:PAGE) stock is a Buy with a £515.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
PageGroup Reports Resilient H1 2025 Amid Market Challenges
Negative
Aug 12, 2025

PageGroup plc reported a resilient performance in the first half of 2025 despite challenging market conditions, with revenue and gross profit experiencing declines of 11.1% and 12.3% respectively. The company faced a significant drop in operating profit due to restructuring costs, but maintained its interim dividend. PageGroup continues to focus on optimizing its cost base and reallocating resources to areas with long-term growth potential, while leveraging technology and AI to enhance productivity and customer experience.

The most recent analyst rating on (GB:PAGE) stock is a Buy with a £515.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
PageGroup Shows Resilience Amid Market Uncertainty in Q2 2025
Neutral
Jul 10, 2025

PageGroup reported a resilient performance in Q2 2025 despite ongoing market uncertainties, with a 10.5% decline in group gross profit compared to Q2 2024. The company faced mixed results across regions, with a significant decline in Europe but growth in the US and Asia. The recruitment process was impacted by macroeconomic uncertainties, leading to a decrease in permanent recruitment as clients sought flexible options. PageGroup continued to invest in innovation and technology to enhance productivity and customer experience, while maintaining a strong balance sheet and adaptable business model amid challenging conditions.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
PageGroup to Release Q2 2025 Trading Update
Neutral
Jul 8, 2025

PageGroup plc announced that it will release its Second Quarter 2025 Trading Update on 10 July 2025, with a conference call scheduled for analysts and investors. This update is anticipated to provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Executive/Board Changes
PageGroup Announces New Board Appointment
Positive
Jun 11, 2025

PageGroup plc has announced the appointment of Paul Harrison as an independent Non-Executive Director, effective from 1 July 2025. This strategic addition to the board, with Harrison’s extensive experience in financial and operational roles in technology companies, is expected to strengthen PageGroup’s governance and potentially enhance its market positioning.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Business Operations and Strategy
PageGroup Announces Change in Major Shareholder Holdings
Neutral
Jun 9, 2025

PageGroup Plc, a recruitment company, has announced a change in its major holdings. Apex Group Fiduciary Services Limited, acting as a trustee for the Michael Page Employees’ Benefit Trust, has increased its voting rights from 4.90% to 5.28%. This change in voting rights reflects a strategic adjustment in the company’s shareholder structure, potentially impacting its governance and decision-making processes.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
PageGroup Announces Change in Voting Rights Structure
Neutral
Jun 4, 2025

PageGroup plc has announced a significant change in its voting rights structure, following Liontrust Investment Partners LLP’s acquisition or disposal of shares. The transaction has resulted in Liontrust holding 4.994% of the voting rights, a decrease from their previous position of 9.782%. This shift in voting rights could influence PageGroup’s decision-making processes and impact its strategic direction, affecting stakeholders and potentially altering its market positioning.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
PageGroup plc Announces Successful AGM Resolutions
Positive
Jun 3, 2025

PageGroup plc announced that all resolutions proposed at its Annual General Meeting on June 3, 2025, were passed by shareholders. The resolutions included re-elections of directors, approval of financial reports, and other governance-related matters. The successful passing of these resolutions indicates strong shareholder support and stability in the company’s governance structure, which may positively impact its operational efficiency and stakeholder confidence.

The most recent analyst rating on (GB:PAGE) stock is a Hold with a £440.00 price target. To see the full list of analyst forecasts on PageGroup stock, see the GB:PAGE Stock Forecast page.

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: Aug 19, 2025