SThree PLC (GB:STEM)
LSE:STEM
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SThree plc
(LSE:STEM)
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Rating:69Neutral
Price Target:
178.00 p
▼(-3.26% 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 cash generation
Robust free cash flow relative to earnings is a durable strength: converting earnings into cash (~£56m; ~94% of net income) improves solvency and funds dividends, working-capital needs and selective investment without relying on external financing during cycles.
Negative Factors
Revenue weakness
A sustained revenue decline signals cyclically sensitive end markets and weaker client hiring demand. For a staffing business, lower placements and contractor days directly depress recurring revenue and make recovery reliant on broad market improvement rather than idiosyncratic fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust free cash flow relative to earnings is a durable strength: converting earnings into cash (~£56m; ~94% of net income) improves solvency and funds dividends, working-capital needs and selective investment without relying on external financing during cycles.
Read all positive factors
SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£205.67M
Dividend Yield6.35%
Average Volume (3M)785.24K
Price to Earnings (P/E)12.2
Beta (1Y)1.03
Revenue Growth-12.77%
EPS Growth-63.39%
CountryUK
Employees2,742
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.14
Shares Outstanding123,759,480
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)£1.03B
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
156.44
Positive
160.97
Positive
159.50
Positive
Market Momentum
2.96
Negative
55.48
Neutral
52.37
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 163.92, above the 50-day MA of 156.44, and above the 200-day MA of 159.50, indicating a bullish trend. The MACD of 2.96 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 52.37 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 | £205.67M | 12.23 | 7.83% | 6.35% | -12.77% | -63.39% | |
68 Neutral | £12.74M | 6.93 | 24.41% | 6.40% | -1.26% | 7.69% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | £43.36M | 13.09 | 11.07% | 3.35% | 5.91% | 458.42% | |
48 Neutral | £386.57M | 44.60 | 4.18% | 7.58% | -8.19% | -67.95% | |
46 Neutral | £55.91M | -2.29 | -24.67% | 12.88% | -12.44% | -346.71% | |
45 Neutral | £563.49M | -53.74 | -2.24% | 1.76% | -4.16% | 26.67% |
* Industrials Sector Average
GB:STEM
SThree plc
167.60
-61.00
-26.68%
GB:GATC
Gattaca
137.50
61.04
79.83%
GB:HAS
Hays plc
35.36
-36.58
-50.85%
GB:PAGE
PageGroup
122.40
-142.97
-53.88%
GB:RWA
Robert Walters
85.00
-128.00
-60.09%
GB:RTC
RTC Group plc
101.50
10.01
10.94%
SThree plc Corporate Events
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...
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...
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.