SThree PLC (GB:STEM)
LSE:STEM
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SThree plc
(LSE:STEM)
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Rating:69Neutral
Price Target:
163.00 p
▼(-11.41% Downside)
Action:DowngradedDate: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 converts earnings into cash at a high rate (FCF ~£56m, ~94% of net income in 2025). Durable cash generation supports dividend payouts, debt service, and reinvestment, providing financial flexibility through staffing cycle volatility.
Negative Factors
Recent revenue decline / cyclicality
Top-line weakness in 2025 highlights exposure to cyclical demand for staffing services. Sustained revenue declines reduce operating leverage and can erode market position if competitors win share during downturns, making recovery and growth harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
SThree converts earnings into cash at a high rate (FCF ~£56m, ~94% of net income in 2025). Durable cash generation supports dividend payouts, debt service, and reinvestment, providing financial flexibility through staffing cycle volatility.
Read all positive factors
SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£185.73M
Dividend Yield6.35%
Average Volume (3M)785.24K
Price to Earnings (P/E)12.2
Beta (1Y)1.00
Revenue Growth-13.93%
EPS Growth-48.74%
CountryUK
Employees2,742
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.08
Shares Outstanding126,028,015
10 Day Avg. Volume338,111
30 Day Avg. Volume785,241
Financial Highlights & Ratios
PEG Ratio-0.20
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 Upside35.87% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.05
Revenue Forecast (FY)£1.03B
SThree plc Business Overview & Revenue Model
Company Description
SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors. It offers permanent, contract, project, retained, and executive search recruitment solution...
How the Company Makes Money
SThree primarily generates revenue by matching STEM professionals with client companies and earning fees based on successful placements. Its largest revenue stream typically comes from contract (temporary) staffing: when a contractor is placed wit...
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
Negative
184.00
Price Trends
170.48
Negative
172.24
Negative
179.83
Negative
Market Momentum
-7.05
Positive
30.87
Neutral
27.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STEM, the sentiment is Negative. The current price of 184 is above the 20-day moving average (MA) of 157.75, above the 50-day MA of 170.48, and above the 200-day MA of 179.83, indicating a bearish trend. The MACD of -7.05 indicates Positive momentum. The RSI at 30.87 is Neutral, neither overbought nor oversold. The STOCH value of 27.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | £13.50M | 3.24 | 24.41% | 6.40% | -6.12% | 4.30% | |
71 Outperform | £35.32M | 5.49 | 11.07% | 3.35% | 2.40% | 1101.69% | |
69 Neutral | £185.73M | 12.17 | 7.83% | 6.35% | -13.93% | -48.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | £423.83M | 81.54 | 4.18% | 7.58% | -12.54% | -76.55% | |
46 Neutral | £55.78M | -3.34 | -24.67% | 12.88% | -14.31% | -361.93% | |
45 Neutral | £507.25M | 748.65 | -2.24% | 1.76% | -4.92% | -58.06% |
* Industrials Sector Average
GB:STEM
SThree plc
148.60
-65.33
-30.54%
GB:GATC
Gattaca
112.00
38.93
53.27%
GB:HAS
Hays plc
31.72
-34.53
-52.12%
GB:PAGE
PageGroup
134.20
-100.96
-42.93%
GB:RWA
Robert Walters
84.80
-124.13
-59.41%
GB:RTC
RTC Group plc
107.50
20.53
23.61%
SThree plc Corporate Events
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...
Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights and Share Capital
Neutral
Apr 1, 2026
SThree plc has confirmed that as of 31 March 2026 it had 126,340,184 ordinary shares in issue, of which 35,767 are held in treasury, leaving 126,304,417 voting rights in the company. The updated voting rights figure provides investors with the ref...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Reduces Share Capital with Latest Buyback on London Market
Positive
Mar 27, 2026
SThree plc has repurchased a total of its own ordinary shares on the London Stock Exchange between 19 and 25 March 2026, with daily buybacks executed via Investec Bank at volume‑weighted average prices ranging from about 147.8p to 161.0p. Th...
Regulatory Filings and Compliance
SThree Non-Executive Director Increases Stake With Share Purchase
Positive
Mar 26, 2026
SThree plc reported that non-executive director Rosie Shapland has purchased 12,000 ordinary shares in the company on 26 March 2026 on the London Stock Exchange. The shares were acquired at a price of approximately £1.50 per share, representi...
Business Operations and StrategyStock Buyback
SThree Cancels Shares After Targeted London Buyback
Positive
Mar 20, 2026
SThree plc has executed a share buyback between 12 and 18 March 2026, repurchasing its own ordinary shares on the London Stock Exchange at volume-weighted average prices ranging from about 160.7p to 174.3p. The transactions, carried out via Invest...
Business Operations and Strategy
SThree Expands Employee Share Trust with £1.49m Share Purchase
Positive
Mar 18, 2026
SThree plc disclosed that its Employees’ Share Ownership Plan Trust has acquired 857,933 ordinary shares on the London Stock Exchange between 6 and 16 March 2026, at a total cost of about £1.49 million. The discretionary trust will hold...
Executive/Board ChangesShareholder Meetings
SThree outlines CFO succession as Andrew Beach to depart after AGM
Neutral
Mar 17, 2026
SThree plc, the global STEM workforce consultancy, said Chief Financial Officer Andrew Beach will step down from the board at the close of the 29 April 2026 AGM and leave the business after the 21 July 2026 half-year results, following nearly five...
Business Operations and StrategyStock BuybackFinancial Disclosures
SThree Holds FY26 Outlook as U.S. and Japan Offset Softer European Demand
Neutral
Mar 17, 2026
SThree reported an 8% year-on-year decline in group net fees for the first quarter of FY26, with contract fees down 10% and permanent fees flat, but highlighted improved productivity, resilient contract renewals and strong growth in the U.S., Japa...
Executive/Board ChangesRegulatory Filings and Compliance
SThree Executives Acquire Shares Under Incentive and Global Employee Plans
Neutral
Mar 13, 2026
SThree plc disclosed that Chief Financial Officer Andrew Beach acquired 87 partnership shares and received 29 matching shares in the company under its Share Incentive Plan, with the transaction executed on 12 March 2026 on the London Stock Exchang...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels 68,653 Shares After Latest Buyback on LSE
Positive
Mar 12, 2026
SThree plc has repurchased 68,653 of its own ordinary shares on 11 March 2026 via Investec Bank at prices between 171.40p and 175.40p, with a volume-weighted average price of 174.2459p. The company plans to cancel these shares, a move that will ma...
Business Operations and StrategyStock Buyback
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
Positive
Mar 11, 2026
SThree plc has continued its share buyback activity, repurchasing 49,117 ordinary shares on 10 March 2026 via Investec Bank at prices between 170.80p and 175.40p, with a volume-weighted average price of 173.0885p. The company plans to cancel these...
Executive/Board Changes
SThree Grants New LTIP Awards to Executives as Earlier Plan Pays Out Zero
Neutral
Mar 10, 2026
SThree plc has granted nil-cost performance share awards under its Long Term Incentive Plan to chief executive Timo Lehne and chief financial officer Andrew Beach, covering 439,381 and 320,408 shares respectively. The awards will vest after three ...
Business Operations and StrategyStock Buyback
SThree Continues Share Buyback with Cancellation of 44,315 Shares
Positive
Mar 10, 2026
SThree plc has continued its share buyback activity, purchasing 44,315 ordinary shares on 9 March 2026 via Investec Bank at prices ranging between 168.00p and 175.20p, with a volume-weighted average price of 173.3113p. The company plans to cancel ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
SThree Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 9, 2026
SThree plc has published its Annual Report and Accounts for the year ended 30 November 2025 and released the notice of its 2026 Annual General Meeting on its website, with the documents also being made available via the UK financial regulator̵...
Business Operations and StrategyStock Buyback
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
Positive
Mar 9, 2026
SThree plc has executed a share buyback transaction, repurchasing 48,885 ordinary shares on 6 March 2026 via Investec Bank at prices between 174.00p and 179.60p, with a volume-weighted average price of 177.0126p. The company intends to cancel thes...
Business Operations and StrategyStock Buyback
SThree Buys Back and Cancels Further Shares in Ongoing Capital Return
Positive
Mar 6, 2026
SThree plc has continued its share buyback activity, repurchasing 53,138 ordinary shares on 5 March 2026 through Investec Bank at prices ranging between 172.20p and 176.40p, with a volume-weighted average price of 173.5344p. The company plans to c...
Business Operations and StrategyStock Buyback
SThree Cancels Further Shares After Targeted Buyback on London Market
Positive
Mar 5, 2026
SThree plc has continued its share buyback activity, repurchasing 44,643 ordinary shares on 4 March 2026 via Investec Bank at prices between 171.8p and 176.6p, with a volume-weighted average price of 174.4698p. The company intends to cancel these ...
Executive/Board Changes
SThree Executives Take Bonuses in Shares Under Long-Term Incentive Plan
Neutral
Mar 4, 2026
SThree plc disclosed that chief executive Timo Lehne and chief financial officer Andrew Beach have acquired additional ordinary shares in the company. The transactions, carried out on 3 March 2026 on the London Stock Exchange, involved 26,654 shar...
Business Operations and StrategyStock Buyback
SThree Buys Back and Cancels 51,730 Shares in Ongoing Capital Return
Positive
Mar 4, 2026
SThree plc has repurchased 51,730 of its ordinary shares on 3 March 2026 via Investec Bank at prices between 170.00p and 175.80p, with a volume-weighted average price of 172.6163p. The company plans to cancel these shares, a move that will reduce ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Continues Share Buyback With Purchase and Cancellation of 50,276 Shares
Positive
Mar 3, 2026
SThree plc has continued its share buyback activity, purchasing 50,276 ordinary shares on 2 March 2026 via Investec Bank at prices ranging between 171.80p and 175.40p, with a volume-weighted average price of 173.97p. The company plans to cancel th...
Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights and Share Capital
Neutral
Mar 2, 2026
SThree plc has confirmed that as of 27 February 2026 its issued share capital stands at 127,635,346 ordinary shares of 1 pence each, of which 35,767 are held in treasury and do not carry voting rights. This leaves a total of 127,599,579 voting rig...
Business Operations and StrategyStock Buyback
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
Positive
Mar 2, 2026
SThree plc has continued its share buyback activity, purchasing 27,135 ordinary shares on 27 February 2026 via Investec Bank at prices ranging between 168.40p and 175.00p, with a volume-weighted average price of 172.2060p. The company plans to can...
Stock Buyback
SThree Continues Share Buyback With Cancellation of Newly Repurchased Stock
Positive
Feb 27, 2026
SThree plc has continued its share buyback activity, purchasing 36,607 ordinary shares on 26 February 2026 via Investec Bank at prices between 164.80p and 169.20p, with a volume‑weighted average price of 167.2462p. The company intends to can...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Continues Share Buyback with Cancellation of 39,607 Shares
Positive
Feb 26, 2026
SThree plc has continued its share buyback activity, repurchasing 39,607 ordinary shares on 25 February 2026 via Investec Bank at prices between 164.40p and 168.00p, with a volume-weighted average price of 166.9076p. The company plans to cancel th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree cancels further shares after latest London buyback
Positive
Feb 25, 2026
SThree plc has continued its share buyback activity, repurchasing 46,634 ordinary shares on 24 February 2026 via Investec Bank at prices between 167.20p and 171.60p, with a volume-weighted average of 169.5937p. The company plans to cancel these sh...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
Positive
Feb 24, 2026
SThree plc has continued its share buyback activity, repurchasing 35,392 ordinary shares on 23 February 2026 at a volume-weighted average price of 173.93 pence through Investec Bank on the London Stock Exchange. The company plans to cancel these s...
Stock BuybackRegulatory Filings and Compliance
SThree cancels newly repurchased shares after fresh buyback tranche
Positive
Feb 23, 2026
SThree plc said it bought back 38,597 of its 1 pence ordinary shares on 20 February 2026 via Investec Bank at prices between 172.40p and 175.40p, with a volume-weighted average price of 173.8932p on the London Stock Exchange. The company plans to ...
Business Operations and StrategyStock Buyback
SThree cancels 26,721 shares after latest buyback on London market
Positive
Feb 20, 2026
SThree plc has repurchased 26,721 of its ordinary shares on 19 February 2026 via Investec Bank at prices ranging between 172.20p and 175.80p, with a volume-weighted average price of 173.4221p. The company plans to cancel these shares, modestly red...
Business Operations and StrategyStock Buyback
SThree Cancels 30,785 Shares After Latest Buyback Tranche
Positive
Feb 19, 2026
SThree plc has repurchased 30,785 of its own ordinary shares on 18 February 2026 via Investec Bank at prices ranging between 170.00p and 176.00p, with a volume-weighted average price of 173.8257p. The company plans to cancel these shares, a move t...
Business Operations and StrategyStock Buyback
SThree Continues Share Buyback with Cancellation of 37,561 Shares
Positive
Feb 18, 2026
SThree plc has repurchased 37,561 of its own ordinary shares on 17 February 2026 via Investec Bank at prices between 171.40p and 174.00p, with a volume-weighted average price of 172.7793p on the London Stock Exchange. The company plans to cancel t...
Business Operations and StrategyStock Buyback
SThree cancels 35,960 shares after latest buyback on London market
Positive
Feb 17, 2026
SThree plc has repurchased 35,960 of its ordinary shares on 16 February 2026 via Investec Bank at prices ranging between 172.20p and 180.40p, with a volume‑weighted average price of about 175.0p. The company plans to cancel these shares, mar...
Business Operations and StrategyStock Buyback
SThree Buys Back and Cancels 34,198 Shares in Ongoing Capital Return
Positive
Feb 16, 2026
SThree plc continued its share buyback activity, repurchasing 34,198 ordinary shares on 13 February 2026 via Investec Bank at prices between 177.20p and 180.40p, with a volume-weighted average price of 179.6253p. The company plans to cancel these ...
Regulatory Filings and Compliance
SThree Directors Increase Holdings Through Incentive Share Plans
Positive
Feb 13, 2026
SThree plc has disclosed routine share transactions involving Chief Financial Officer Andrew Beach and Chief Executive Officer Timo Lehne, who acquired ordinary shares under the company’s Share Incentive Plan and Global All Employee Plan. Th...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
SThree cancels 18,899 shares in latest buyback move
Positive
Feb 13, 2026
SThree plc has repurchased 18,899 of its ordinary shares on 12 February 2026 via Investec Bank at prices ranging between 179.00p and 185.80p, with a volume-weighted average price of 183.5856p. The company plans to cancel these shares, a move that ...
Business Operations and StrategyStock Buyback
SThree launches up to £20m share buyback to reduce capital
Positive
Feb 12, 2026
SThree plc has launched a share buyback programme of up to £20 million in ordinary shares, to be executed by Investec and Berenberg under non‑discretionary agreements running until no later than 30 November 2026. The brokers will operat...
Regulatory Filings and Compliance
SThree Confirms Total Voting Rights at 127.8 Million Shares
Neutral
Feb 2, 2026
SThree plc has reported that as of 30 January 2026 its issued share capital comprised 127,858,067 ordinary shares of 1 pence each, of which 35,767 shares are held in treasury. The resulting total number of voting rights stands at 127,822,300, a fi...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
SThree Profits Slump but Tech Upgrade and Cash Strength Support New Buyback
Negative
Jan 27, 2026
SThree reported a sharp fall in profitability for the year to 30 November 2025 as challenging macroeconomic conditions drove a 12% like-for-like decline in net fees and a 62% drop in profit before tax to £25.5m, though trends improved sequent...
Regulatory Filings and Compliance
SThree Executives Acquire Shares Under Company Employee Plans
Positive
Jan 13, 2026
SThree plc has disclosed share transactions by two senior executives under its employee share schemes, in line with market abuse regulations. Chief Financial Officer Andrew Beach acquired partnership shares and received matching shares under the S...
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.