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Hays

LSE:HAS
Snowflake Description

Flawless balance sheet with outstanding track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HAS
LSE
£3B
Market Cap
  1. Home
  2. GB
  3. Commercial Services
Company description

Hays plc operates as a specialist recruitment company in the Asia Pacific, Continental Europe, the United Kingdom, Ireland, and internationally. The last earnings update was 203 days ago. More info.


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HAS Share Price and Events
Price Volatility
HAS
Industry
5yr Volatility vs Market

Value

 Is Hays undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hays to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hays.

LSE:HAS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:HAS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Professional Services Unlevered Beta Simply Wall St/ S&P Global 0.54
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.537 (1 + (1- 19%) (2.81%))
0.549
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.8 * 8.6%)
8.28%

Discounted Cash Flow Calculation for LSE:HAS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hays is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:HAS DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (GBP, Millions) 121.23 147.96 166.35 194.70 211.41
Source Analyst x6 Analyst x6 Analyst x5 Analyst x1 Extrapolated @ (8.58%)
Present Value
Discounted (@ 8.28%)
111.96 126.20 131.04 141.64 142.04
Present value of next 5 years cash flows £653
LSE:HAS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= £211 × (1 + 1.4%) ÷ (8.28% – 1.4%)
£3,115
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= £3,115 ÷ (1 + 8.28%)5
£2,093
LSE:HAS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= £653 + £2,093
£2,745
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,745 / 1,451
£1.89
LSE:HAS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £1.89
Current discount Discount to share price of £1.96
= -1 x (£1.96 - £1.89) / £1.89
-3.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hays is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hays's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hays's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:HAS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings () in GBP £0.11
LSE:HAS Share Price ** LSE (2018-07-20) in GBP £1.96
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PE Ratio Median Figure of 33 Publicly-Listed Professional Services Companies 17.85x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 884 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hays.

LSE:HAS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:HAS Share Price ÷ EPS (both in GBP)

= 1.96 ÷ 0.11

18.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hays is overvalued based on earnings compared to the GB Professional Services industry average.
  • Hays is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Hays's expected growth come at a high price?
Raw Data
LSE:HAS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
11.4%per year
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PEG Ratio Median Figure of 19 Publicly-Listed Professional Services Companies 1.8x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 601 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

LSE:HAS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.69x ÷ 11.4%

1.64x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hays is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hays's assets?
Raw Data
LSE:HAS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings () in GBP £0.40
LSE:HAS Share Price * LSE (2018-07-20) in GBP £1.96
United Kingdom of Great Britain and Northern Ireland Professional Services Industry PB Ratio Median Figure of 44 Publicly-Listed Professional Services Companies 2.35x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,517 Publicly-Listed Companies 1.71x
LSE:HAS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:HAS Share Price ÷ Book Value per Share (both in GBP)

= 1.96 ÷ 0.40

4.89x

* Primary Listing of Hays.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hays is overvalued based on assets compared to the GB Professional Services industry average.
X
Value checks
We assess Hays's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Professional Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Professional Services industry average (and greater than 0)? (1 check)
  5. Hays has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hays expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hays expected to grow at an attractive rate?
  • Hays's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Hays's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Hays's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:HAS Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:HAS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 11.4%
LSE:HAS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 5.3%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Earnings Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:HAS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:HAS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 6,943 1
2021-06-30 6,613 237 1
2020-06-30 6,279 202 200 9
2019-06-30 5,935 177 180 9
2018-06-30 5,635 149 162 8
LSE:HAS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2017-12-31 5,425 121 152
2017-09-30 5,253 127 145
2017-06-30 5,081 134 139
2016-12-31 4,672 142 130
2016-09-30 4,452 123 125
2016-06-30 4,231 103 121
2015-12-31 3,975 87 111
2015-09-30 3,909 110 108
2015-06-30 3,843 132 105

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hays's earnings are expected to grow by 11.4% yearly, however this is not considered high growth (20% yearly).
  • Hays's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:HAS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Hays Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HAS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 0.16 0.16 0.16 1.00
2020-06-30 0.14 0.16 0.13 8.00
2019-06-30 0.13 0.14 0.12 8.00
2018-06-30 0.11 0.11 0.11 8.00
LSE:HAS Past Financials Data
Date (Data in GBP Millions) EPS *
2017-12-31 0.11
2017-09-30 0.10
2017-06-30 0.10
2016-12-31 0.09
2016-09-30 0.09
2016-06-30 0.08
2015-12-31 0.08
2015-09-30 0.08
2015-06-30 0.07

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hays is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Hays's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hays has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hays performed over the past 5 years?

  • Hays's last earnings update was 203 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hays's growth in the last year to its industry (Professional Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hays's year on year earnings growth rate has been positive over the past 5 years.
  • Hays's 1-year earnings growth exceeds its 5-year average (17.1% vs 12.5%)
  • Hays's earnings growth has exceeded the GB Professional Services industry average in the past year (17.1% vs 12.7%).
Earnings and Revenue History
Hays's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hays Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:HAS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2017-12-31 5,425.40 151.70 158.30
2017-09-30 5,253.20 145.40 158.35
2017-06-30 5,081.00 139.10 158.40
2016-12-31 4,672.00 129.60 130.30
2016-09-30 4,451.70 125.35 130.70
2016-06-30 4,231.40 121.10 131.10
2015-12-31 3,974.70 110.90 137.40
2015-09-30 3,908.75 108.15 137.25
2015-06-30 3,842.80 105.40 137.10
2014-12-31 3,741.30 96.80 138.20
2014-09-30 3,709.90 91.40 138.15
2014-06-30 3,678.50 86.00 138.10
2013-12-31 3,696.70 78.50 143.20
2013-09-30 3,696.80 75.10 142.50
2013-06-30 3,696.90 71.70 141.80
2013-03-31 3,668.85 71.50 143.00
2012-12-31 3,640.80 71.30 144.20
2012-09-30 3,647.70 73.40 143.50
2012-06-30 3,654.60 75.50 142.80
2012-03-31 3,598.90 79.85 136.25
2011-12-31 3,543.20 84.20 129.70
2011-09-30 3,399.60 81.25 130.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hays has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Hays used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.
  • Hays has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hays's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Professional Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hays has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hays's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hays's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hays is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hays's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hays's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 13.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hays Company Filings, last reported 6 months ago.

LSE:HAS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2017-12-31 582.90 80.00 114.50
2017-09-30 582.90 80.00 114.50
2017-06-30 586.40 0.40 112.00
2016-12-31 500.70 66.10 114.00
2016-09-30 500.70 66.10 114.00
2016-06-30 457.80 26.10 62.90
2015-12-31 293.10 120.50 64.40
2015-09-30 293.10 120.50 64.40
2015-06-30 269.60 100.50 69.80
2014-12-31 220.80 135.70 56.50
2014-09-30 220.80 135.70 56.50
2014-06-30 240.70 110.80 48.00
2013-12-31 195.80 150.90 45.40
2013-09-30 195.80 150.90 45.40
2013-06-30 216.40 145.70 40.00
2013-03-31 216.40 145.70 40.00
2012-12-31 209.10 206.10 59.80
2012-09-30 209.10 206.10 59.80
2012-06-30 190.60 172.70 38.70
2012-03-31 190.60 172.70 38.70
2011-12-31 168.20 238.60 60.90
2011-09-30 168.20 238.60 60.90
  • Hays's level of debt (13.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.2% vs 13.7% today).
  • Debt is well covered by operating cash flow (150.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 80.4x coverage).
X
Financial health checks
We assess Hays's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hays has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hays's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.64%
Current annual income from Hays dividends. Estimated to be 3.51% next year.
If you bought £2,000 of Hays shares you are expected to receive £33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hays's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.72%).
  • Hays's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (4.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:HAS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Professional Services Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 744 Stocks 3.9%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 0.9%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 4.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:HAS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 0.05 1.00
2020-06-30 0.07 12.00
2019-06-30 0.07 13.00
2018-06-30 0.07 12.00
LSE:HAS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2017-10-30 0.032 1.716
2016-09-01 0.029 1.836
2015-10-01 0.028 2.176
2015-08-27 0.028 1.765
2014-10-01 0.026 1.766
2014-08-28 0.026 2.092
2013-08-29 0.025 1.911
2013-02-28 0.025 2.601
2012-08-30 0.025 3.018
2012-02-22 0.048 6.080
2011-09-01 0.058 8.082
2010-09-02 0.058 5.354
2009-09-03 0.058 5.662
2009-06-30 0.058 6.253
2009-02-26 0.037 4.587
2008-09-02 0.058 7.857
2008-07-23 0.050 5.668

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Hays's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (3.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (2.4x coverage).
X
Income/ dividend checks
We assess Hays's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hays afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hays has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hays's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alistair Cox, image provided by Google.
Alistair Cox
COMPENSATION £2,866,000
AGE 57
TENURE AS CEO 10.7 years
CEO Bio

Mr. Alistair Richard Cox has been the Chief Executive Officer of Hays plc since November 2007 and also has been its Executive Director since September 1, 2007. Mr. Cox served as the President of Lafarge Malaysia Berhad. He served as the Chief Executive Officer of Xansa PLC (now, Steria UK Corporate Ltd.) from August 2002 to June 4, 2007. He served as a Regional President of Asia, Lafarge and Group Strategy Director of Blue Circle (subsequently Lafarge) from 1994 to 2002 and McKinsey & Co from 1990 to 1994. He served as an Executive Officer of Hays plc since June 2007. An Engineer by background, his early business experience was with British Aerospace and Schlumberger in the United Kingdom and United States. He has been an Independent Non-Executive Director at JUST EAT plc since May 2, 2017. He serves as a Director of Hays Specialist Recruitment (Australia) Pty Limited New Zealand Branch. He served as a Non-Executive Director of 3i Group plc from October 2009 to November 10, 2015. He served as a Director of Steria UK Corporate Ltd. until June 2007. Mr. Cox is a Chartered Engineer and has an M.B.A. from the Stanford Business school in California. He holds a first class Honors Degree in Aeronautical Engineering from Salford University.

CEO Compensation
  • Alistair's compensation has been consistent with company performance over the past year.
  • Alistair's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Hays management team in years:

8.3
Average Tenure
57
Average Age
  • The average tenure for the Hays management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alistair Cox

TITLE
CEO & Executive Director
COMPENSATION
£3M
AGE
57
TENURE
10.7 yrs

Paul Venables

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
AGE
57
TENURE
12.2 yrs

Steve Weston

TITLE
Chief Information Officer & Global Head of Corporate Accounts

David Walker

TITLE
Head of Investor Relations

Doug Evans

TITLE
Company Secretary & General Counsel
AGE
55
TENURE
5.4 yrs

Sholto Douglas-Home

TITLE
Chief Marketing Officer
TENURE
10.3 yrs

Tina Ling

TITLE
Managing Director of France & Benelux

Nick Cox

TITLE
Managing Director of Continental Europe & Rest of World

Simon Winfield

TITLE
Managing Director of West & Wales
TENURE
4.7 yrs

Nigel S. Heap

TITLE
Uk & Ireland Managing Director and Chairman of the Asia Pacific Business
TENURE
6.3 yrs
Board of Directors Tenure

Average tenure and age of the Hays board of directors in years:

5.1
Average Tenure
58
Average Age
  • The tenure for the Hays board of directors is about average.
Board of Directors

Alan Thomson

TITLE
Non-Executive Chairman
COMPENSATION
£250K
AGE
71
TENURE
7.7 yrs

Alistair Cox

TITLE
CEO & Executive Director
COMPENSATION
£3M
AGE
57
TENURE
10.8 yrs

Paul Venables

TITLE
Group Finance Director & Executive Director
COMPENSATION
£2M
AGE
57
TENURE
12.2 yrs

Vicky Jarman

TITLE
Independent Non-Executive Director
COMPENSATION
£67K
AGE
46
TENURE
6.8 yrs

Susan Murray

TITLE
Independent Non-Executive Director
AGE
60
TENURE
1 yrs

Andy Martin

TITLE
Senior Independent Non-Executive Director
AGE
58
TENURE
0.7 yrs

Torsten Kreindl

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
55
TENURE
5.1 yrs

Peter Williams

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
65
TENURE
3.4 yrs

MT Rainey

TITLE
Independent Non-Executive Director
COMPENSATION
£55K
AGE
62
TENURE
2.6 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess Hays's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hays has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Why Hays plc (LON:HAS) Is A Buy When Markets Go Down

Hays plc is a financially healthy and robust stock with a proven track record of outperformance. … We all know Hays, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Today I will give a high-level overview of the stock, and why I believe it's still attractive.

Simply Wall St -

Calculating The Fair Value Of Hays plc (LON:HAS)

Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Hays plc (LON:HAS) An Attractive Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … In the past 10 years Hays plc (LON:HAS) has returned an average of 4.00% per year to investors in the form of dividend payouts. … Does Hays tick all the boxes of a great dividend stock?

Simply Wall St -

Why Hays plc (LON:HAS) Should Have A Place In Your Portfolio

Hays plc (LON:HAS) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Is It Time To Buy Hays plc (LON:HAS) Based Off Its PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Hays plc (LON:HAS). … While this makes HAS appear like a great stock to buy, you might change your mind after I explain the assumptions behind the P/E ratio.

Simply Wall St -

Hays plc (LON:HAS): Has Recent Earnings Growth Beaten Long-Term Trend?

Check out our latest analysis for Hays Could HAS beat the long-term trend and outperform its industry? … Given that these figures are somewhat nearsighted, I’ve estimated an annualized five-year value for HAS's earnings, which stands at UK£97.89M This shows that, generally, Hays has been able to steadily grow its profits over the past few years as well. … Let's see if it is only due to industry tailwinds, or if Hays has seen some company-specific growth.

Simply Wall St -

Hays plc (LON:HAS): What The Forecasts Are Telling Us

Margin Calculation for HAS Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 151.70 Million ÷ 5.43 Billion = 2.80% There has been an expansion in Hays's margin over the past five years, with a 11.95% average growth in net income outstripping a 6.47% average growth in revenue, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth. … Thus, it is essential to run your own analysis on Hays's future earnings whilst maintaining a watchful eye over the sustainability of their cost management methods and the runway for top line growth.

Simply Wall St -

Is Hays plc (LON:HAS) A Smart Pick For Income Investors?

See our latest analysis for Hays Here's how I find good dividend stocks When researching a dividend stock, I always follow the following screening criteria: Is its annual yield among the top 25% of dividend-paying companies? … Going forward, analysts expect HAS's payout to increase to 39.91% of its earnings, which leads to a dividend yield of around 3.39%. … The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.

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Have Investors Priced In Hays plc's (LON:HAS) Growth?

Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. … It seems like the market has already priced in HAS’s positive outlook, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Is Hays plc's (LON:HAS) ROE Of 26.03% Sustainable?

Check out our latest analysis for Hays Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity LSE:HAS Last Perf Mar 14th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management. … And finally, financial leverage is simply how much of assets are funded by equity, which exhibits how sustainable the company’s capital structure is.

Simply Wall St -

Company Info

Map
Description

Hays plc operates as a specialist recruitment company in the Asia Pacific, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers permanent, temporary, and contractor recruitment services, such as qualified, professional, and skilled recruitment to public and private sector. It specializes in offering recruitment services in the areas of accountancy and finance, construction and property, information technology, life sciences, sales and marketing, banking and capital markets, contact centers, education, engineering and manufacturing, executive, financial services, health and social care, human resources, legal, office professionals, energy, oil and gas, purchasing, retail, resources and mining, and telecoms. Hays plc was founded in 1968 and is headquartered in London, the United Kingdom.

Details
Name: Hays plc
HAS
Exchange: LSE
Founded: 1968
£2,848,978,435
1,451,338,989
Website: http://www.haysplc.com
Address: Hays plc
250 Euston Road,
London,
Greater London, NW1 2AF,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE HAS Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK HAYP.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB HAY Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE HASL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK HAYP.Y ADR Pink Sheets LLC US USD 17. Feb 2010
Number of employees
Current staff
Staff numbers
10,800
Hays employees.
Industry
Human Resource and Employment Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/07/22 18:23
End of day share price update: 2018/07/20 00:00
Last estimates confirmation: 2018/07/16
Last earnings update: 2017/12/31
Last annual earnings update: 2017/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.