PageGroup (PAGE) AI Stock Analysis

• Market Cap: £731.45M
• Dividend Yield: 7.39%
• Average Volume (3M): 643.34K
• Price to Earnings (P/E): 61.1
• Beta (1Y): 1.45
• Revenue Growth: -12.54%
• EPS Growth: -76.55%
• Country: UK
• Employees: 7,361
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.00
• Shares Outstanding: 328,618,770
• 10 Day Avg. Volume: 802,367
• 30 Day Avg. Volume: 643,341
• PEG Ratio: -0.61
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 9.72
• 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: £286.67
• Price Target Upside: 23.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 257.00p ▲(10.97% Upside)

PageGroup's overall stock score is primarily influenced by its financial performance, which shows challenges with declining revenue and profitability margins. Technical analysis and valuation present mixed signals, with short-term bullishness but concerns over long-term trends and high valuation. The earnings call highlights both challenges and potential recovery opportunities, particularly in strategic initiatives and the U.S. market.

Positive Factors

Enterprise Solutions Growth

The strong growth in Enterprise Solutions indicates robust demand for strategic partnerships, enhancing long-term revenue potential and market positioning.

AI Integration Benefits

AI integration improves operational efficiency and effectiveness, potentially leading to higher placement rates and client satisfaction, supporting sustainable growth.

U.S. Market Recovery

Consistent growth in the U.S. market suggests recovery and expansion opportunities, contributing to overall revenue diversification and stability.

Negative Factors

Decline in Group Gross Profit

A significant decline in gross profit indicates challenges in maintaining revenue levels, which could impact financial health and investment capacity.

Decrease in Operating Profit

The sharp drop in operating profit suggests reduced operational efficiency, potentially affecting the company's ability to reinvest and grow.

Challenges in Technology Sector

Declining profits in the technology sector highlight sector-specific challenges, which may hinder growth in a key industry segment for the company.

PageGroup Business Overview & Revenue Model

Company Description

PageGroup plc, together with its subsidiaries, provides recruitment consultancy and other ancillary services in the United Kingdom, rest of Europe, the Middle East, Africa, the Asia Pacific, and the Americas. The company offers executive search services under the Page Executive brand; recruitment services for qualified professional on permanent, temporary, and contract or interim basis under the Michael Page brand; recruitment services to organizations requiring permanent employees and temporary or contract staff at technical and administrative support, professional clerical, and junior management levels under the Page Personnel brand; and flexible recruitment outsourcing services under the Page Outsourcing brand. It also provides assessment, consulting, and talent services under the Page Assessment, Page Consulting, and Page Talent supplementary brands. The company was formerly known as Michael Page International plc and changed its name to PageGroup plc in June 2016. PageGroup plc was founded in 1976 and is headquartered in Addlestone, the United Kingdom.

How the Company Makes Money

PageGroup generates revenue primarily through fees charged for its recruitment services. The company operates on a contingency fee model, where it earns a commission once a candidate is successfully placed in a role. This commission is typically a percentage of the candidate's first-year salary. Additionally, PageGroup offers contract staffing services, which provide a steady income stream through billable hours. The company benefits from strong relationships with clients across various industries, enabling it to secure repeat business and maintain a robust pipeline of job placements. Furthermore, PageGroup's international reach allows it to tap into diverse markets, contributing to its revenue growth. Collaborations with various businesses and organizations further enhance its service offerings and revenue potential.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	1.74B	2.01B	1.99B	1.64B	1.30B
Gross Profit	788.10M	842.59M	1.01B	1.08B	877.72M	610.25M
EBITDA	88.01M	117.54M	187.83M	257.77M	222.53M	79.40M
Net Income	11.81M	28.44M	77.07M	139.01M	118.36M	-5.74M
Balance Sheet
Total Assets	615.25M	650.10M	704.57M	794.94M	724.46M	629.83M
Cash, Cash Equivalents and Short-Term Investments	33.84M	95.35M	90.14M	131.48M	153.98M	165.99M
Total Debt	165.91M	136.79M	110.93M	109.83M	102.34M	103.47M
Total Liabilities	398.26M	387.69M	398.09M	442.74M	384.35M	313.93M
Stockholders Equity	216.99M	262.41M	306.49M	352.20M	340.11M	315.90M
Cash Flow
Free Cash Flow	61.34M	110.99M	121.63M	152.99M	120.32M	114.72M
Operating Cash Flow	76.00M	126.66M	153.01M	184.66M	148.69M	137.38M
Investing Cash Flow	-15.62M	-13.73M	-28.56M	-29.59M	-25.73M	-21.74M
Financing Cash Flow	-81.98M	-106.09M	-156.76M	-183.53M	-131.19M	-53.22M

PageGroup Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 231.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 231.6 is below the 20-day moving average (MA) of 233.73, below the 50-day MA of 236.25, and below the 200-day MA of 252.25, indicating a bearish trend. The MACD of -1.56 indicates Positive momentum. The RSI at 46.30 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PAGE.

PageGroup 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%	6.36%	-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%
PAGE	64 Neutral	£731.45M	61.11	4.81%	7.39%	-12.54%	-76.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWA	53 Neutral	£85.51M	-5.82	-11.22%	13.22%	-14.31%	-361.93%
HAS	46 Neutral	£871.53M	-111.02	-1.52%	2.28%	-4.92%	-58.06%

PageGroup Corporate Events

PageGroup Faces Mixed Q3 Results Amid Global Market Challenges

PageGroup reported a 6.7% decline in group gross profit for Q3 2025 compared to the previous year, with challenging conditions in Europe and the UK, but growth in the US and Asia. The company is focusing on cost optimization and resource reallocation to areas with long-term opportunities, while maintaining a strong balance sheet and adaptable business model to navigate market uncertainties.