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SThree PLC (GB:STEM)
LSE:STEM
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SThree plc (STEM) AI Stock Analysis

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GB:STEM

SThree plc

(LSE:STEM)

Rating:62Neutral
Price Target:
234.00p
▲(13.59% Upside)
SThree plc's overall score reflects a mix of stable financials and attractive valuation, countered by technical weakness and concerns over revenue and cash flow declines. The stock may appeal to value investors due to its dividend yield and low P/E ratio, despite current bearish momentum.

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 services, which involve sourcing and placing candidates in roles across its specialized sectors. The company earns fees from clients for successful placements, which can be structured as a percentage of the candidate's first-year salary for permanent roles, or as a margin on hourly or daily rates for temporary or contract positions. Additionally, SThree benefits from long-term client relationships and repeat business, which contribute to a stable revenue stream. The company's performance is bolstered by its global presence and the diverse client base it serves, allowing it to capitalize on various market opportunities. Strategic partnerships with organizations in the STEM fields also enhance its service offerings and improve its competitive position in the marketplace.

SThree plc Financial Statement Overview

Summary
SThree plc shows a stable financial position with low leverage and reasonable profitability. However, declining revenue and free cash flow raise concerns about future growth prospects, indicating the need for strategic intervention to sustain financial health.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.49B1.66B1.64B1.33B1.20B
Gross Profit369.08M418.77M411.71M338.00M289.50M
EBITDA84.34M94.53M96.59M78.74M50.95M
Net Income49.69M56.05M54.20M41.98M16.95M
Balance Sheet
Total Assets506.73M472.30M470.44M400.63M338.39M
Cash, Cash Equivalents and Short-Term Investments69.76M83.20M65.81M57.53M50.36M
Total Debt39.87M29.02M34.13M35.09M35.97M
Total Liabilities258.08M249.42M270.05M242.48M209.87M
Stockholders Equity248.64M222.88M200.39M158.15M128.52M
Cash Flow
Free Cash Flow32.85M67.83M41.26M34.27M60.74M
Operating Cash Flow39.68M76.04M44.93M36.92M66.02M
Investing Cash Flow-13.17M-8.21M-3.67M-2.65M-5.28M
Financing Cash Flow-39.92M-52.15M-37.87M-24.10M-21.11M

SThree plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price206.00
Price Trends
50DMA
232.60
Negative
100DMA
234.92
Negative
200DMA
258.54
Negative
Market Momentum
MACD
-9.03
Positive
RSI
31.63
Neutral
STOCH
39.83
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 206 is below the 20-day moving average (MA) of 220.60, below the 50-day MA of 232.60, and below the 200-day MA of 258.54, indicating a bearish trend. The MACD of -9.03 indicates Positive momentum. The RSI at 31.63 is Neutral, neither overbought nor oversold. The STOCH value of 39.83 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
£53.20M13.6044.68%1.44%
67
Neutral
£843.88M70.504.81%6.27%-12.54%-76.55%
64
Neutral
£30.89M51.583.66%3.57%4.14%-45.24%
63
Neutral
$10.83B16.637.96%2.06%2.20%-16.67%
62
Neutral
£261.65M9.4512.99%5.07%-13.93%-48.74%
51
Neutral
£1.00B-2.60%4.77%-6.95%-117.14%
46
Neutral
£94.15M29.69-11.22%12.74%-14.31%-361.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STEM
SThree plc
205.00
-168.16
-45.06%
GB:GATC
Gattaca
98.00
11.14
12.83%
GB:HAS
Hays plc
62.00
-28.35
-31.38%
GB:PAGE
PageGroup
261.60
-114.87
-30.51%
GB:RWA
Robert Walters
136.00
-181.47
-57.16%
GB:STAF
Staffline
46.00
8.50
22.67%

SThree plc Corporate Events

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

SThree plc has announced the total number of voting rights in the company as of July 31, 2025, which stands at 127,791,756. This disclosure is in accordance with the Financial Conduct Authority’s rules and is crucial for shareholders to determine their notification requirements regarding their interests in the company.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £4.28 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 CEO’s Conditional Award Vesting
Neutral
Jul 30, 2025

SThree plc announced the vesting of a conditional award to CEO Timo Lehne under the company’s Long Term Incentive Plan, which vested at 16.2% of the maximum based on performance measures. The transaction involved the sale of shares to cover tax liabilities, with the remaining shares retained, reflecting the company’s ongoing commitment to aligning executive incentives with performance metrics.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £4.28 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
Neutral
Jul 14, 2025

SThree plc, a company involved in the purchase and management of shares, has announced transactions involving its key executives. The company’s Director and Chief Financial Officer, Andrew Beach, and Chief Executive Officer, Timo Lehne, have both engaged in the purchase of partnership shares and have been awarded matching shares under the company’s share incentive plans. These transactions, conducted on the London Stock Exchange, indicate active participation by top management in the company’s equity programs, potentially aligning their interests with those of shareholders.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 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 Change in Major Shareholder Voting Rights
Neutral
Jul 10, 2025

SThree plc has announced a change in the voting rights held by Allianz Global Investors GmbH, which has decreased from 5.05% to 4.78% as of July 8, 2025. This change in holdings may impact SThree’s shareholder dynamics and influence future corporate decisions, reflecting a shift in stakeholder engagement.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £300.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
SThree plc Reports Steady H1 FY25 Amid Challenging Market Conditions
Neutral
Jun 24, 2025

SThree plc reported a 14% year-on-year decline in group net fees for the first half of FY25, reflecting challenging market conditions. Despite this, the company saw a modest improvement in Q2, driven by strong contract extensions and improved performance in the USA. The company completed a £20 million share buyback and maintained a robust balance sheet with £48 million in net cash. SThree’s Technology Improvement Programme is progressing well, with significant operational efficiencies expected to yield £6 million in savings. The company remains optimistic about future opportunities, supported by its advanced technology infrastructure and specialist STEM focus.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 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 Leadership Changes with New Appointments
Neutral
Jun 19, 2025

SThree plc announced leadership changes with the appointment of Imogen Joss as Senior Independent Director and Chair of the Remuneration Committee, and Sanjeevan Bala as Employee Engagement NED, effective 1 July 2025. These changes follow the retirement of Denise Collis, who has significantly contributed to the company over her nine-year tenure. The new appointments are expected to continue driving the company’s strategic goals and enhance its commitment to employee engagement.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
SThree plc Announces Change in Voting Rights Structure
Neutral
Jun 12, 2025

SThree plc, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by Van Lanschot Kempen Investment Management NV, based in Amsterdam, Netherlands. The notification indicates that the threshold for voting rights was crossed on June 11, 2025, with Van Lanschot Kempen now holding 9.961350% of the voting rights, down from a previous position of 10.001185%. This adjustment in voting rights could impact the company’s governance and influence the strategic decisions made by its stakeholders.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 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 Executives Acquire Shares, Reinforcing Stakeholder Alignment
Positive
Jun 12, 2025

SThree plc announced transactions involving its Director and Chief Financial Officer, Andrew Beach, and its Director and Chief Executive Officer, Timo Lehne, who both acquired partnership and matching shares under the company’s share incentive plans. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning management interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

DividendsBusiness Operations and Strategy
SThree Executives Acquire Shares via Dividend Reinvestment
Positive
Jun 11, 2025

SThree plc announced that its Chief Financial Officer, Andrew Beach, and Chief Executive Officer, Timo Lehne, have acquired additional ordinary shares through the Dividend Reinvestment Plan. This move, involving the automatic reinvestment of dividends, reflects a commitment to the company and may signal confidence in its future performance. The transactions were conducted on the London Stock Exchange.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackRegulatory Filings and Compliance
SThree plc Updates Total Voting Rights Post Share Buyback
Neutral
May 21, 2025

SThree plc has announced an update regarding its total voting rights following a share buyback program. The company has canceled certain shares, resulting in an issued share capital of 127,827,457 ordinary shares, with 35,767 held in Treasury, leading to a total of 127,791,690 voting rights. This update is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
SThree plc Announces Change in Major Shareholder Holdings
Neutral
May 20, 2025

SThree plc, a staffing and recruitment company, has announced a change in its major holdings. Perpetual Limited, based in Sydney, Australia, has increased its voting rights in SThree plc to 10.038%, crossing the previous threshold of 9.980%. This acquisition of voting rights signifies a notable shift in shareholder influence, potentially impacting the company’s strategic decisions and market positioning.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
SThree Completes £20 Million Share Buyback Programme
Positive
May 15, 2025

SThree plc, a company listed on the London Stock Exchange, has announced the successful completion of its share buyback programme. The programme, which was initially announced in December 2024, involved the purchase and cancellation of 7,779,335 ordinary shares at an average price of 257.09 pence per share, totaling approximately £20 million. This strategic move is aimed at enhancing shareholder value and optimizing the company’s capital structure.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £420.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
SThree plc Executes Share Buyback Programme
Positive
May 14, 2025

SThree plc has announced the purchase of 66,850 of its ordinary shares on the London Stock Exchange as part of its share buyback programme. The company intends to cancel these shares, which were bought at a weighted average price of 245.77 pence per share. This move is part of SThree’s strategy to manage its capital structure and could potentially enhance shareholder value.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £430.00 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 Executives Engage in Share Transactions Under Incentive Plans
Positive
May 13, 2025

SThree plc announced transactions involving its Director and Chief Financial Officer, Andrew Beach, and its Director and Chief Executive Officer, Timo Lehne, who both engaged in purchasing partnership shares and were awarded matching shares under the company’s incentive plans. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning management interests with shareholder value, potentially strengthening its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock Buyback
SThree plc Executes Share Buyback Program
Positive
May 13, 2025

SThree plc has executed a share buyback program, purchasing 91,700 of its ordinary shares on the London Stock Exchange through Berenberg, with prices ranging from 242.00 to 247.00 pence per share. This move, part of a previously announced buyback program, aims to cancel the purchased shares, potentially enhancing shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £430.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock Buyback
SThree plc Executes Share Buyback
Neutral
May 12, 2025

SThree plc has announced the purchase of 93,400 of its own ordinary shares on the London Stock Exchange as part of its share buyback programme. The shares were bought at a weighted average price of 240.15 pence and will be cancelled, potentially impacting the company’s share value and market perception.

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: Jul 30, 2025