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SThree plc
(LSE:STEM)
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Rating:69Neutral
Price Target:
173.00 p
â–¼(-5.98% Downside)
Action:Downgraded
Date:01/29/26
The score is driven primarily by resilient cash generation and a still-manageable balance sheet, partially offset by a notable recent deterioration in revenue and margins. Technicals are moderately positive with improving momentum (though still just below the 200-day trend), and valuation is supportive due to a reasonable P/E and high dividend yield.
Positive Factors
Strong free cash flow generation
SThree generated ~£56m of free cash flow in 2025 (≈94% of net income), showing strong cash conversion despite earnings weakness. This durable cash generation funds dividends, working-capital needs, debt reduction and selective investment, providing a buffer through cyclical downturns.
Negative Factors
Revenue deterioration
Top-line weakness (2025 revenue down ~5.5%) highlights cyclical exposure in staffing demand. Persistent revenue erosion reduces scale benefits and fee accruals, undermining operating leverage and constraining reinvestment and hiring of specialist teams across markets over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
SThree generated ~£56m of free cash flow in 2025 (≈94% of net income), showing strong cash conversion despite earnings weakness. This durable cash generation funds dividends, working-capital needs, debt reduction and selective investment, providing a buffer through cyclical downturns.
Read all positive factors
SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£198.89M
Dividend Yield6.35%
Average Volume (3M)785.24K
Price to Earnings (P/E)11.9
Beta (1Y)1.01
Revenue Growth-12.77%
EPS Growth-63.39%
CountryUK
Employees2,742
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding122,762,310
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.30B | 1.49B | 1.66B | 1.64B | 1.33B |
| Gross Profit | 305.02M | 369.08M | 418.77M | 411.71M | 338.00M |
| EBITDA | 45.28M | 84.34M | 94.53M | 96.59M | 78.74M |
| Net Income | 17.67M | 49.69M | 56.05M | 54.20M | 41.98M |
Balance Sheet | |||||
| Total Assets | 483.40M | 506.73M | 472.30M | 470.44M | 400.63M |
| Cash, Cash Equivalents and Short-Term Investments | 67.96M | 69.76M | 83.20M | 65.81M | 57.53M |
| Total Debt | 84.45M | 39.87M | 29.02M | 34.13M | 35.09M |
| Total Liabilities | 248.31M | 258.08M | 249.42M | 270.05M | 242.48M |
| Stockholders Equity | 235.10M | 248.64M | 222.88M | 200.39M | 158.15M |
Cash Flow | |||||
| Free Cash Flow | 56.21M | 32.85M | 67.83M | 41.26M | 34.27M |
| Operating Cash Flow | 59.60M | 39.68M | 76.04M | 44.93M | 36.92M |
| Investing Cash Flow | -8.63M | -13.17M | -8.21M | -3.67M | -2.65M |
| Financing Cash Flow | -52.49M | -39.92M | -52.15M | -38.54M | -24.97M |
SThree plc Technical Analysis
Positive
184.00
Price Trends
162.63
Positive
158.68
Positive
158.60
Positive
Market Momentum
-1.03
Positive
51.79
Neutral
47.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STEM, the sentiment is Positive. The current price of 184 is above the 20-day moving average (MA) of 163.85, above the 50-day MA of 162.63, and above the 200-day MA of 158.60, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 47.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:STEM.
SThree plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £198.89M | 11.92 | 7.83% | 6.35% | -12.77% | -63.39% | |
68 Neutral | £12.87M | 7.27 | 24.41% | 6.40% | -1.26% | 7.69% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £47.77M | 14.28 | 11.07% | 3.35% | 5.91% | 458.42% | |
48 Neutral | £357.20M | 41.13 | 4.18% | 7.58% | -8.19% | -67.95% | |
46 Neutral | £54.33M | -2.12 | -24.67% | 12.88% | -12.44% | -346.71% | |
45 Neutral | £526.03M | -50.76 | -2.24% | 1.76% | -4.16% | 26.67% |
* Industrials Sector Average
GB:STEM
SThree plc
163.40
-60.15
-26.91%
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14.99%
SThree plc Corporate Events
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...
Executive/Board ChangesRegulatory Filings and Compliance
SThree Awards Interim CFO Conditional Long-Term Share Incentive
Positive
May 22, 2026
SThree plc has granted Interim CFO Damian Fehrenberg a conditional share award over 62,189 ordinary shares under its 2026 Long Term Incentive Plan, with no price payable on grant or vesting. The award, which is subject to performance conditions, c...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree cancels shares after latest buyback round
Positive
May 22, 2026
SThree plc has executed a share buyback over the period from 14 to 20 May 2026, repurchasing tranches of its 1 pence ordinary shares on the London Stock Exchange at volume-weighted average prices ranging from about 153p to 162p. The company plans ...
Business Operations and StrategyStock Buyback
SThree advances capital return with cancellation of latest share buybacks
Positive
May 15, 2026
SThree plc has continued its share buyback programme, repurchasing a series of tranches of ordinary shares between 7 and 13 May 2026 on the London Stock Exchange at volume-weighted average prices ranging from about 176p to 183p. The company intend...
Business Operations and StrategyRegulatory Filings and Compliance
SThree CEO acquires shares under Global All Employee Plan
Positive
May 12, 2026
SThree plc disclosed that its director and chief executive officer, Timo Lehne, participated in the company’s Global All Employee Plan through the purchase of ordinary shares. The transaction involved the acquisition of partnership shares an...
Business Operations and StrategyStock Buyback
SThree Cancels Newly Repurchased Shares After Latest Buyback Round
Positive
May 8, 2026
SThree plc has undertaken a share buyback, purchasing ordinary shares on the London Stock Exchange between 30 April and 6 May 2026 at volume-weighted average prices ranging from about 167p to 174p. The company plans to cancel all of the repurchase...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels 218,975 Shares After Latest Buyback Programme
Positive
May 8, 2026
SThree plc has repurchased a total of 218,975 ordinary shares between 30 April and 6 May 2026, executing the buybacks on the London Stock Exchange via Investec Bank. The company stated that all purchased shares will be cancelled, reducing the over...
Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights and Share Capital
Neutral
May 1, 2026
SThree plc has confirmed that as of 30 April 2026 its issued share capital stood at 125,468,896 ordinary shares, of which 35,767 shares were held in treasury, leaving 125,433,129 voting rights in the company. The disclosure, made in line with UK f...
Business Operations and StrategyStock Buyback
SThree to Cancel 248,000 Shares After Latest Buyback Tranche
Positive
May 1, 2026
SThree plc has repurchased a total of 248,495 ordinary shares between 23 and 29 April 2026, executing the transactions on the London Stock Exchange at volume-weighted average prices ranging from about 156.8p to 164.1p per share. The company plans ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
SThree shareholders back all AGM resolutions and renew board powers
Positive
Apr 29, 2026
SThree plc reported that all resolutions at its latest Annual General Meeting were approved by shareholders, with both ordinary and special resolutions passing by comfortable margins on a poll. The meeting backed the receipt of the 2025 annual rep...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree cancels newly repurchased shares in latest buyback round
Positive
Apr 24, 2026
SThree plc has repurchased a series of its own ordinary shares between 16 and 22 April 2026 via Investec Bank on the London Stock Exchange, at volume-weighted average prices ranging from roughly 154.8p to 158.6p. The company plans to cancel these ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels 206,679 Shares After Latest Buyback Tranche
Positive
Apr 17, 2026
SThree plc has repurchased a total of 206,679 ordinary shares over the period from 9 to 15 April 2026, executing the buybacks on the London Stock Exchange at volume-weighted average prices ranging from about 148p to 154p. The company plans to canc...
Executive/Board ChangesRegulatory Filings and Compliance
SThree Executives Increase Holdings Through Share Incentive Plans
Positive
Apr 13, 2026
SThree plc reported that Chief Financial Officer Andrew Beach has acquired 102 partnership shares and received 34 matching shares in the company under its Share Incentive Plan, with the transaction conducted on the London Stock Exchange on 13 Apri...
Business Operations and StrategyStock Buyback
SThree Continues Share Buyback With Purchase and Cancellation of 175,000 Shares
Positive
Apr 10, 2026
SThree plc has continued its share buyback activity, purchasing a total of 175,057 ordinary shares between 2 and 8 April 2026 on the London Stock Exchange at volume-weighted average prices ranging from about 146.6p to 154.8p. The company plans to ...
Business Operations and StrategyStock Buyback
SThree Advances Share Buyback with Further Share Cancellations
Positive
Apr 7, 2026
SThree plc has continued its share buyback programme, repurchasing and cancelling a series of ordinary shares between 26 March and 1 April 2026 on the London Stock Exchange. The purchases, executed via Investec Bank, were made at volume-weighted a...
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.