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SThree PLC (GB:STEM)
LSE:STEM

SThree plc (STEM) AI Stock Analysis

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GB:STEM

SThree plc

(LSE:STEM)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
188.00p
▲(2.17% Upside)
SThree plc's overall stock score is driven by strong valuation metrics and positive corporate events. The financial performance is stable but challenged by declining revenue and cash flow. Technical indicators show bullish momentum, supporting a positive outlook.
Positive Factors
Business Model Strength
SThree's focus on STEM sectors and its recruitment expertise provide a durable business model, leveraging specialized knowledge to maintain client relationships and revenue stability.
Balance Sheet Health
Low leverage and a healthy equity ratio suggest financial stability, allowing SThree to navigate market fluctuations and invest in growth opportunities without excessive financial strain.
Global Presence
SThree's global operations and diverse client base reduce dependency on any single market, enhancing resilience and enabling the company to capitalize on international growth opportunities.
Negative Factors
Declining Revenue
The decline in revenue suggests challenges in maintaining market share or pricing power, potentially impacting long-term growth and profitability if not addressed.
Declining Free Cash Flow
A significant drop in free cash flow indicates potential operational inefficiencies or increased costs, which could limit the company's ability to invest in growth or return capital to shareholders.
Revenue Growth Concerns
The ongoing decline in revenue growth raises concerns about SThree's ability to sustain its market position and adapt to competitive pressures, potentially affecting long-term strategic goals.

SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)

SThree plc Business Overview & Revenue Model

Company DescriptionSThree 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 solutions, as well as support and mobility services. The company provides its services under the Computer Futures, Progressive, Huxley Associates, Real Staffing Group, Global Enterprise Partners, JP Gray, Madison Black, and Newington International brands. It has operations in the United Kingdom, Germany, the United States, the Netherlands, Japan, Dubai, Belgium, France, Ireland, Luxembourg, Spain, Austria, Switzerland, Hong Kong, Malaysia, Singapore, and internationally. SThree plc was founded in 1986 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySThree generates revenue primarily through recruitment fees, which are charged to clients for successfully placing candidates in permanent or temporary positions. The company has a diverse revenue model that includes fees from both contract and permanent placements, with contract recruitment typically providing a more stable revenue stream due to ongoing placements and renewals. Additionally, SThree may earn revenues from consulting services and talent management solutions. Key partnerships with various organizations in the STEM sectors enhance its recruitment capabilities and drive earnings, allowing SThree to leverage its extensive network and industry expertise to match qualified candidates with suitable employers effectively.

SThree plc Financial Statement Overview

Summary
SThree plc demonstrates a stable financial position with low leverage and reasonable profitability. However, declining revenue and free cash flow raise concerns about future growth prospects. The company needs to address these issues to sustain its financial health and improve its performance metrics.
Income Statement
68
Positive
SThree plc has shown a mixed performance in its income statement. The gross profit margin for the latest period is approximately 24.73%, with a net profit margin of 3.33%. However, both revenue and net income have declined compared to the previous year, with a revenue decrease of about 10.24%. The EBIT margin stands at 4.43%, and the EBITDA margin is 4.69%, indicating reasonable operational efficiency. While the margins suggest stability, the declining revenue trend poses a concern.
Balance Sheet
75
Positive
The balance sheet of SThree plc reflects a solid financial position with a debt-to-equity ratio of 0.16, indicating low leverage. The equity ratio is 49.06%, which suggests a healthy proportion of equity financing. Return on equity is modest at 19.98%, reflecting moderate profitability. Overall, the company appears financially stable with manageable debt levels.
Cash Flow
62
Positive
The cash flow statement shows a decline in free cash flow by approximately 51.58% from the previous year, which is concerning. The operating cash flow to net income ratio is 0.80, indicating a decent conversion of net income into cash flow. However, the free cash flow to net income ratio is 0.66, which could be improved. The cash flow situation reflects some operational challenges and needs attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.38B1.49B1.66B1.64B1.33B1.20B
Gross Profit339.40M369.08M418.77M411.71M338.00M289.50M
EBITDA43.09M84.34M94.53M96.59M78.74M50.95M
Net Income28.79M49.69M56.05M54.20M41.98M16.95M
Balance Sheet
Total Assets443.28M506.73M472.30M470.44M400.63M338.39M
Cash, Cash Equivalents and Short-Term Investments47.88M69.76M83.20M65.81M57.53M50.36M
Total Debt43.55M39.87M29.02M34.13M35.09M35.97M
Total Liabilities227.01M258.08M249.42M270.05M242.48M209.87M
Stockholders Equity216.26M248.64M222.88M200.39M158.15M128.52M
Cash Flow
Free Cash Flow18.09M32.85M67.83M41.26M34.27M60.74M
Operating Cash Flow24.98M39.68M76.04M44.93M36.92M66.02M
Investing Cash Flow-12.69M-13.17M-8.21M-3.67M-2.65M-5.28M
Financing Cash Flow-55.33M-39.92M-52.15M-38.54M-24.97M-21.59M

SThree plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price184.00
Price Trends
50DMA
171.13
Positive
100DMA
166.63
Positive
200DMA
194.96
Negative
Market Momentum
MACD
3.12
Positive
RSI
54.80
Neutral
STOCH
45.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STEM, the sentiment is Neutral. The current price of 184 is below the 20-day moving average (MA) of 184.83, above the 50-day MA of 171.13, and below the 200-day MA of 194.96, indicating a neutral trend. The MACD of 3.12 indicates Positive momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 45.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:STEM.

SThree plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£232.24M8.3812.99%6.35%-13.93%-48.74%
71
Outperform
£33.72M15.016.45%3.35%2.40%1101.69%
70
Outperform
£12.55M7.1123.32%6.40%-6.12%4.30%
64
Neutral
£660.07M55.154.81%7.58%-12.54%-76.55%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
£84.85M-5.73-11.22%12.88%-14.31%-361.93%
46
Neutral
£742.00M-94.69-1.52%1.76%-4.92%-58.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STEM
SThree plc
182.80
-83.79
-31.43%
GB:GATC
Gattaca
107.00
28.22
35.82%
GB:HAS
Hays plc
46.40
-29.30
-38.71%
GB:PAGE
PageGroup
209.00
-88.09
-29.65%
GB:RWA
Robert Walters
129.00
-158.86
-55.19%
GB:RTC
RTC Group plc
100.00
8.33
9.09%

SThree plc Corporate Events

Regulatory Filings and Compliance
SThree Updates Market on Total Voting Rights
Neutral
Jan 2, 2026

SThree plc has reported that as of 31 December 2025 its issued share capital comprised 127,858,067 ordinary shares, of which 35,767 are held in treasury, resulting in a total of 127,822,300 voting rights. The updated voting rights figure provides shareholders with the denominator needed to assess and disclose significant holdings in line with UK financial transparency rules, ensuring ongoing compliance with regulatory requirements and clarity over the company’s capital structure for investors and market participants.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and Strategy
SThree Expands Employee Benefit Trust with £744,771 Share Purchase
Neutral
Jan 2, 2026

SThree plc has disclosed that its Employee Benefit Trust, administered by Computershare Trustees (Jersey) Limited, acquired 400,478 ordinary shares on the London Stock Exchange between 17 and 30 December 2025 for a total consideration of £744,771. The shares, to be held in the SThree Employees’ Share Ownership Plan Trust, will be used to satisfy awards under the group’s employee share schemes, bringing the trust’s total holding to 977,032 shares, or 0.76% of the company’s issued share capital, underscoring ongoing use of equity-based incentives to align employees’ interests with shareholders.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Dividends
SThree Executives Boost Holdings via Dividend Reinvestment Plan
Positive
Dec 19, 2025

SThree plc has disclosed that Chief Financial Officer Andrew Beach and Chief Executive Officer Timo Lehne acquired additional ordinary shares in the company through its Dividend Reinvestment Plan on 16 December 2025. The transactions, executed on the London Stock Exchange, involved the automatic reinvestment of cash dividends into SThree shares held via nominees, modestly increasing the executives’ equity stakes and signalling continued alignment of senior management’s interests with those of shareholders.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyStock BuybackFinancial Disclosures
SThree plc Reports FY25 Performance and Strategic Advancements
Neutral
Dec 16, 2025

SThree plc reported its FY25 performance in line with expectations, despite a 12% year-on-year decline in net fees. The company successfully completed its Technology Improvement Programme (TIP) across all markets, enhancing operational efficiency and positioning for scalable growth. The US market returned to growth, mitigating declines in other regions. SThree maintained a strong balance sheet with net cash of £68 million, and plans for a further share buyback program. The company remains focused on capturing growth opportunities and improving productivity amid challenging market conditions.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Other
SThree plc Executives Engage in Share Transactions
Positive
Dec 15, 2025

SThree plc has announced transactions involving its Director and Chief Financial Officer, Andrew Beach, and its Director and Chief Executive Officer, Timo Lehne. Both executives have engaged in the purchase of partnership shares and received matching shares under the company’s Share Incentive Plan and Global All Employee Plan, respectively. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning its leadership’s interests with shareholder value, potentially enhancing stakeholder confidence in its governance practices.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £188.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Regulatory Filings and Compliance
SThree plc Announces Total Voting Rights Update
Neutral
Dec 1, 2025

SThree plc has announced its total voting rights as of November 30, 2025, which consist of 127,822,300 voting rights. This information is crucial for shareholders to determine their reporting obligations under the Financial Conduct Authority’s rules, potentially impacting their investment decisions and the company’s shareholder dynamics.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £173.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
SThree Chair Appointed to HBX Group Leadership
Positive
Nov 26, 2025

SThree plc has announced that its non-executive Chair, James Bilefield, has been appointed as a non-executive director and Chair designate of HBX Group International plc. This strategic move is expected to strengthen SThree’s leadership presence and influence in the market, as HBX Group is listed on the Spanish Stock Exchange, potentially offering new opportunities and collaborations.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £173.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Executive/Board Changes
SThree plc Announces New Non-Executive Director Appointment
Neutral
Nov 26, 2025

SThree plc has announced the appointment of Rosie Shapland as an Independent Non-Executive Director, effective 27 November 2025. Rosie, with over 30 years of audit experience and a background in chairing audit and risk committees for UK-listed companies, will bring significant expertise in accounting, financial reporting, and governance to SThree. She will succeed Elaine O’Donnell as Chair of the Audit and Risk Committee following Elaine’s resignation due to other business commitments. This transition is part of SThree’s ongoing succession planning and aims to strengthen the Board’s strategic execution.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £173.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and Strategy
SThree plc Announces Management Share Transactions
Positive
Nov 13, 2025

SThree plc has announced transactions involving its senior management, specifically Andrew Beach, the Chief Financial Officer, and Timo Lehne, the Chief Executive Officer, under the company’s Share Incentive Plan and Global All Employee Plan. These transactions, involving the purchase of partnership shares and the award of matching shares, reflect the company’s ongoing commitment to aligning management interests with shareholder value and enhancing employee participation in the company’s growth.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £173.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Regulatory Filings and Compliance
SThree plc Announces Total Voting Rights Update
Neutral
Oct 31, 2025

SThree plc has announced its total voting rights in accordance with the Financial Conduct Authority’s rules. As of 31 October 2025, the company has an issued share capital of 127,858,067 ordinary shares, with 35,767 held in treasury, resulting in 127,822,300 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s transparency rules.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £173.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Other
SThree plc Announces Executive Share Transactions
Neutral
Oct 14, 2025

SThree plc has announced transactions involving its senior management, specifically the purchase of partnership shares and the award of matching shares under the company’s Share Incentive and Global All Employee Plans. These transactions, involving CFO Andrew Beach and CEO Timo Lehne, took place on the London Stock Exchange and reflect the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM 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: Dec 07, 2025