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Market Cap

UK£2.8b

Last Updated

2021/05/18 18:40 UTC

Data Sources

Company Financials +

Executive Summary

Hays plc operates as a recruitment company in Australia, New Zealand, Germany, the United Kingdom, Ireland, and internationally. More Details

Rewards

Trading at 30.1% below our estimate of its fair value

Earnings are forecast to grow 64.36% per year

Risk Analysis

No risks detected for HAS from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Hays's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HAS is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: HAS's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

0.6%

HAS

-0.7%

GB Professional Services

0.2%

GB Market


1 Year Return

57.6%

HAS

7.9%

GB Professional Services

22.8%

GB Market

Return vs Industry: HAS exceeded the UK Professional Services industry which returned 7.9% over the past year.

Return vs Market: HAS exceeded the UK Market which returned 22.8% over the past year.


Shareholder returns

HASIndustryMarket
7 Day0.6%-0.7%0.2%
30 Day-0.7%-3.1%0.1%
90 Day5.6%1.7%5.1%
1 Year57.6%57.6%10.0%7.9%28.3%22.8%
3 Year-3.0%-12.6%27.6%19.6%9.4%-3.1%
5 Year47.1%24.8%84.9%65.5%47.0%19.3%

Long-Term Price Volatility Vs. Market

How volatile is Hays's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hays undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HAS (£1.66) is trading below our estimate of fair value (£2.37)

Significantly Below Fair Value: HAS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HAS is unprofitable, so we can't compare its PE Ratio to the UK Professional Services industry average.

PE vs Market: HAS is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HAS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HAS is overvalued based on its PB Ratio (3.4x) compared to the GB Professional Services industry average (2.9x).


Future Growth

How is Hays forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

64.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: HAS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HAS's is expected to become profitable in the next 3 years.

Revenue vs Market: HAS's revenue (9.2% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: HAS's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HAS's Return on Equity is forecast to be low in 3 years time (15.8%).


Past Performance

How has Hays performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAS is currently unprofitable.

Growing Profit Margin: HAS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HAS is unprofitable, and losses have increased over the past 5 years at a rate of 12.1% per year.

Accelerating Growth: Unable to compare HAS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HAS is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-10.4%).


Return on Equity

High ROE: HAS has a negative Return on Equity (-0.9%), as it is currently unprofitable.


Financial Health

How is Hays's financial position?


Financial Position Analysis

Short Term Liabilities: HAS's short term assets (£1.1B) exceed its short term liabilities (£662.6M).

Long Term Liabilities: HAS's short term assets (£1.1B) exceed its long term liabilities (£194.4M).


Debt to Equity History and Analysis

Debt Level: HAS is debt free.

Reducing Debt: HAS has no debt compared to 5 years ago when its debt to equity ratio was 40.5%.

Debt Coverage: HAS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HAS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.39%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate HAS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HAS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HAS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HAS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HAS is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HAS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Alistair Cox (59 yo)

13.5yrs

Tenure

UK£1,397,000

Compensation

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 has been the CEO of Hays Recruitment ...


CEO Compensation Analysis

Compensation vs Market: Alistair's total compensation ($USD1.97M) is about average for companies of similar size in the UK market ($USD1.66M).

Compensation vs Earnings: Alistair's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HAS's management team is seasoned and experienced (11.1 years average tenure).


Board Members

Experienced Board: HAS's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hays plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hays plc
  • Ticker: HAS
  • Exchange: LSE
  • Founded: 1968
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£2.778b
  • Shares outstanding: 1.68b
  • Website: https://www.haysplc.com

Number of Employees


Location

  • Hays plc
  • 20 Triton Street
  • London
  • Greater London
  • NW1 3BF
  • United Kingdom

Listings


Biography

Hays plc operates as a recruitment company in Australia, New Zealand, Germany, the United Kingdom, Ireland, and internationally. The company offers permanent, temporary, and contractor recruitment services...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 18:40
End of Day Share Price2021/05/18 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


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.