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SThree plc
(LSE:STEM)
Select Model
Select Model
Rating:69Neutral
Price Target:
326.00 p
â–²(36.40% Upside)
Action:Reiterated
Date:07/29/26
The score is supported primarily by strong technical trend strength (price well above key moving averages) and resilient cash generation, which helps offset the current cyclical earnings/margin downturn. Valuation is mixed: a high dividend yield is a positive, but the P/E looks rich relative to the weakened profitability.
Positive Factors
Resilient Cash Generation
Strong free cash flow despite weaker earnings supports ongoing investment, dividends and financial flexibility. Consistently positive operating cash flow also indicates that the staffing model can convert activity into cash through a downturn.
Negative Factors
Declining Revenue
Recent revenue contraction signals weaker client hiring activity and lower placement volumes. If demand remains subdued across STEM end markets, reduced scale could constrain growth and make recovery dependent on a broader staffing-cycle improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Cash Generation
Strong free cash flow despite weaker earnings supports ongoing investment, dividends and financial flexibility. Consistently positive operating cash flow also indicates that the staffing model can convert activity into cash through a downturn.
Read all positive factors
SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£361.14M
Dividend Yield3.42%
Average Volume (3M)785.24K
Price to Earnings (P/E)29.3
Beta (1Y)1.05
Revenue Growth-9.15%
EPS Growth-53.32%
CountryUK
Employees1,807
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.10
Shares Outstanding122,234,890
10 Day Avg. Volume338,111
30 Day Avg. Volume785,241
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)0.92
Price to Sales (P/S)0.17
P/FCF Ratio3.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£250.00Price Target Upside4.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)£1.25B
SThree plc Business Overview & Revenue Model
Company Description
SThree plc is a global recruitment consultancy that delivers specialized permanent and contract staffing services for a wide array of sectors, including technology, engineering, life sciences, and banking and finance. The company's service offerin...
How the Company Makes Money
SThree makes money primarily by providing recruitment and staffing services that match STEM professionals with client demand, with revenue generated when placements are made and workers are supplied. The largest component of its activity is typica...
SThree plc Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.30B | 1.49B | 1.66B | 1.64B | 1.33B |
| Gross Profit | 285.04M | 305.02M | 369.08M | 418.77M | 411.71M | 338.00M |
| EBITDA | 45.68M | 45.28M | 84.34M | 94.53M | 96.59M | 78.74M |
| Net Income | 13.04M | 17.67M | 49.69M | 56.05M | 54.20M | 41.98M |
Balance Sheet | ||||||
| Total Assets | 422.92M | 483.40M | 506.73M | 472.30M | 470.44M | 400.63M |
| Cash, Cash Equivalents and Short-Term Investments | 42.98M | 67.96M | 69.76M | 83.20M | 65.81M | 57.53M |
| Total Debt | 49.01M | 84.45M | 39.87M | 29.02M | 34.13M | 35.09M |
| Total Liabilities | 212.15M | 248.31M | 258.08M | 249.42M | 270.05M | 242.48M |
| Stockholders Equity | 210.77M | 235.10M | 248.64M | 222.88M | 200.39M | 158.15M |
Cash Flow | ||||||
| Free Cash Flow | 39.34M | 56.21M | 32.85M | 67.83M | 41.26M | 34.27M |
| Operating Cash Flow | 42.34M | 59.60M | 39.68M | 76.04M | 44.93M | 36.92M |
| Investing Cash Flow | -8.25M | -8.63M | -13.17M | -8.21M | -3.67M | -2.65M |
| Financing Cash Flow | -38.82M | -52.49M | -39.92M | -52.15M | -38.54M | -24.97M |
SThree plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £11.61M | 8.13 | 23.24% | 7.46% | -3.65% | -15.04% | |
69 Neutral | £361.14M | 29.27 | 5.85% | 5.98% | -9.15% | -53.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £49.35M | 14.75 | 11.07% | 2.22% | 5.91% | 458.42% | |
62 Neutral | £1.13B | -109.32 | -2.24% | 0.75% | -2.81% | -657.14% | |
58 Neutral | £707.44M | 57.14 | 5.95% | 4.65% | -2.55% | 7.92% | |
51 Neutral | £96.69M | -4.08 | -25.40% | ― | -2.82% | -66.89% |
* Industrials Sector Average
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SThree plc Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels Newly Repurchased Shares in Capital Management Move
Positive
Aug 21, 2026
SThree plc has repurchased a total of 83,808 ordinary shares of 1 pence each on the London Stock Exchange between 13 and 19 August 2026, at volume-weighted average prices ranging from about 285p to 296p. The buyback was executed through Investec B...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Continues Share Buyback, Plans Cancellation of Repurchased Stock
Positive
Aug 14, 2026
SThree plc has continued its share buyback activity, purchasing a total of 57,363 ordinary shares between 6 and 12 August 2026 on the London Stock Exchange at volume-weighted average prices ranging from about 270 pence to 288 pence. The company ha...
Regulatory Filings and Compliance
SThree CEO acquires shares under global employee equity plan
Positive
Aug 13, 2026
SThree plc has disclosed a routine share transaction involving its chief executive officer, Timo Lehne, under market abuse regulation requirements. Lehne acquired partnership shares and received matching shares in the company under SThree’s ...
Business Operations and StrategyStock Buyback
SThree Cancels Shares After Targeted Buyback Programme
Positive
Aug 7, 2026
SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 30 July and 5 August 2026 through Investec Bank, at volume-weighted average prices ranging from about 257 pence to nearly 271 pence per share. The ...
Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights
Neutral
Aug 3, 2026
SThree plc has confirmed that its issued share capital as of 31 July 2026 comprised 122,475,237 ordinary shares of 1 pence each, with 35,767 of these held in treasury. This leaves a total of 122,439,470 voting rights, which shareholders must use a...
Business Operations and StrategyStock Buyback
SThree cancels newly repurchased shares in latest buyback move
Positive
Jul 24, 2026
SThree plc has repurchased 28,972 of its own ordinary shares on 21 July 2026 on the London Stock Exchange at a volume-weighted average price of 211.2587 pence. The company intends to cancel these shares, effectively reducing its share capital and ...
Business Operations and StrategyDividendsFinancial Disclosures
SThree leans on U.S. growth and cost controls as profits slide
Neutral
Jul 21, 2026
SThree reported half‑year FY26 net fees of £147.7 million, down seven per cent year on year, with revenue and profits also lower amid softer conditions in key European markets. Strong growth in the U.S. and Japan, resilient contract ext...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels Shares After London Buyback Programme
Positive
Jul 17, 2026
SThree plc has executed a share buyback, purchasing its own ordinary shares on the London Stock Exchange between 9 July and 15 July 2026 via Investec Bank, at volume-weighted average prices around 161–168 pence and aggregated volumes in the ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Corrects Data in Share Buyback Notice and Confirms Cancellation of Purchased Shares
Positive
Jul 16, 2026
SThree plc corrected a previous announcement to clarify that the volume-weighted average price and aggregated volume figures in its recent share buyback disclosure had been mistakenly transposed, while confirming all other details were accurate. T...
Business Operations and StrategyRegulatory Filings and Compliance
SThree CEO Increases Shareholding Through Global Employee Plan
Positive
Jul 14, 2026
SThree plc has disclosed a transaction involving its director and chief executive officer, Timo Lehne, in line with Market Abuse Regulation requirements. Lehne purchased partnership shares and received matching shares in the company under SThree&#...
Business Operations and StrategyStock Buyback
SThree Moves to Cancel Latest Tranche of Share Buybacks
Positive
Jul 10, 2026
SThree plc has continued its share buyback activity, repurchasing a series of ordinary shares of 1 pence each on the London Stock Exchange between 2 and 8 July 2026 through Investec Bank. The trades were executed at volume-weighted average prices ...
Business Operations and StrategyStock Buyback
SThree Reduces Share Capital with Further Buyback and Cancellation
Positive
Jul 3, 2026
SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 25 June and 1 July 2026, executing the trades via Investec Bank plc at volume-weighted average prices in the mid-150p to around 160p range. The com...
Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
SThree plc has reported that its issued share capital as of 30 June 2026 comprises 122,798,077 ordinary shares of 1 pence each, with 35,767 of those shares held in treasury and therefore not carrying voting rights. This leaves a total of 122,762,3...
Business Operations and StrategyStock Buyback
SThree cancels shares after latest buyback on London market
Positive
Jun 26, 2026
SThree plc has repurchased a total of ordinary shares between 18 and 24 June 2026 on the London Stock Exchange through Investec Bank, at volume-weighted average prices ranging from about 156p to 167p. The company has stated that it intends to canc...
Business Operations and StrategyStock Buyback
SThree Buys Back and Cancels 250,560 Shares in Capital Management Move
Positive
Jun 19, 2026
SThree plc has repurchased a total of 250,560 of its ordinary shares between 11 and 17 June 2026 on the London Stock Exchange, at volume-weighted average prices ranging from about 166 pence to 171 pence. The shares were bought through Investec Ban...
Dividends
SThree Executives Increase Holdings Through Dividend Reinvestment
Positive
Jun 16, 2026
SThree plc disclosed that Chief Executive Officer Timo Lehne and Interim Chief Financial Officer Damian Fehrenberg have acquired additional ordinary shares in the company through the automatic reinvestment of dividends. The transactions, executed ...
Business Operations and StrategyStock BuybackFinancial Disclosures
SThree Holds FY26 Guidance as U.S. Growth and Cost Cuts Ease Fee Decline
Positive
Jun 16, 2026
SThree reported a 7% year-on-year decline in first-half net fees to £147.7 million, with contract and permanent fees both lower but the rate of decline easing as the period progressed, helped by strong growth in the U.S. and Japan. The group ...
Business Operations and StrategyExecutive/Board Changes
SThree Extends Chair’s Tenure to Oversee CFO Appointment
Positive
Jun 15, 2026
SThree plc has extended the tenure of its Chair, James Bilefield, by seven months to April 2027 following consultation with shareholders. The move is intended to give Bilefield, as Chair of the Nomination Committee, sufficient time to oversee the ...
Other
SThree Executives Increase Stakes Through Global All Employee Share Plan
Positive
Jun 15, 2026
SThree plc has disclosed share transactions by its Chief Executive Officer, Timo Lehne, and Interim Chief Financial Officer, Damian Fehrenberg, under the company’s Global All Employee Plan. Both executives purchased ordinary partnership shar...
Business Operations and StrategyStock Buyback
SThree Launches Share Buyback and Plans Cancellation of Repurchased Stock
Positive
Jun 12, 2026
SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 4 and 10 June 2026, executing transactions at volume‑weighted average prices in the high‑160p to low‑170p range. The company inte...
Business Operations and StrategyStock Buyback
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
Positive
Jun 5, 2026
SThree plc has continued its share buyback programme, repurchasing ordinary shares on the London Stock Exchange between 28 May and 3 June 2026 at volume‑weighted average prices around 166p to 169p per share. The transactions, executed throug...
Regulatory Filings and Compliance
SThree Confirms Updated Total Voting Rights and Share Capital
Neutral
Jun 1, 2026
SThree plc has announced that its issued share capital as of 29 May 2026 comprised 124,224,643 ordinary shares, of which 35,767 were held in treasury. As a result, the company confirmed that the total number of voting rights currently stands at 12...
Business Operations and StrategyStock Buyback
SThree cancels shares after latest London Stock Exchange buyback
Positive
May 29, 2026
SThree plc has repurchased and intends to cancel a series of its own ordinary shares, acquired via Investec Bank between 21 and 27 May 2026 on the London Stock Exchange at volume‑weighted average prices around 161–165 pence. The cancel...
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.