LSE:HAS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.2%

HAS

-5.5%

GB Professional Services

-5.1%

GB Market


1 Year Return

-33.3%

HAS

-4.8%

GB Professional Services

-20.0%

GB Market

Return vs Industry: HAS underperformed the UK Professional Services industry which returned -4% over the past year.

Return vs Market: HAS underperformed the UK Market which returned -19.3% over the past year.


Shareholder returns

HASIndustryMarket
7 Day-6.2%-5.5%-5.1%
30 Day-5.5%-7.6%-4.3%
90 Day-2.0%-0.1%-4.5%
1 Year-33.3%-33.3%-3.0%-4.8%-17.0%-20.0%
3 Year-36.5%-43.1%15.2%7.7%-13.6%-24.3%
5 Year-12.1%-26.0%83.4%63.0%10.2%-14.6%

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?

34.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAS (£1.07) is trading above our estimate of fair value (£0.49)

Significantly Below Fair Value: HAS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HAS is poor value based on its PE Ratio (34.1x) compared to the GB Professional Services industry average (23.7x).

PE vs Market: HAS is poor value based on its PE Ratio (34.1x) compared to the UK market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HAS is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: HAS is good value based on its PB Ratio (2.1x) compared to the GB Professional Services industry average (2.2x).


Next Steps

Future Growth

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

36.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAS's forecast earnings growth (36.4% per year) is above the savings rate (1.2%).

Earnings vs Market: HAS's earnings (36.4% per year) are forecast to grow faster than the UK market (23.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HAS's revenue (1.3% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: HAS's revenue (1.3% 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 (12.4%).


Next Steps

Past Performance

How has Hays performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HAS has a large one-off loss of £39.9M impacting its June 30 2020 financial results.

Growing Profit Margin: HAS's current net profit margins (0.8%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: HAS's earnings have grown by 2.1% per year over the past 5 years.

Accelerating Growth: HAS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HAS had negative earnings growth (-70.6%) over the past year, making it difficult to compare to the Professional Services industry average (-16.3%).


Return on Equity

High ROE: HAS's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

How is Hays's financial position?


Financial Position Analysis

Short Term Liabilities: HAS's short term assets (£1.4B) exceed its short term liabilities (£884.9M).

Long Term Liabilities: HAS's short term assets (£1.4B) exceed its long term liabilities (£201.6M).


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 37.4%.

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


Next Steps

Dividend

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

2.52%

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?

10.5yrs

Average management tenure


CEO

Alistair Cox (59 yo)

12.92yrs

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 served as the President of Lafarge Ma ...


CEO Compensation Analysis

Compensation vs Market: Alistair's total compensation ($USD1.81M) is about average for companies of similar size in the UK market ($USD1.72M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alistair Cox
CEO & Executive Director12.92yrsUK£1.40m0.24%
£ 4.3m
Paul Venables
Group Finance Director & Executive Director14.42yrsUK£1.01m0.087%
£ 1.6m
Steve Weston
Chief Technology Officerno datano datano data
David Phillips
Head of Investor Relationsno datano datano data
Douglas Evans
Company Secretary & General Counsel7.58yrsno datano data
Sholto Douglas-Home
Chief Marketing Officer12.5yrsno datano data
Sandra Henke
Group Head of People and Cultureno datano datano data
Tina Ling
Managing Director of France & Beneluxno datano datano data
Nick Cox
Managing Director of Continental Europe & Rest of Worldno datano datano data
Simon Winfield
Managing Director of West & Wales6.92yrsno datano data
Nigel S. Heap
Uk & Ireland Managing Director and Chairman of the Asia Pacific Business8.5yrsno datano data
Christine Wright
Managing Director of Asiano datano datano data

10.5yrs

Average Tenure

59yo

Average Age

Experienced Management: HAS's management team is seasoned and experienced (10.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alistair Cox
CEO & Executive Director12.92yrsUK£1.40m0.24%
£ 4.3m
Paul Venables
Group Finance Director & Executive Director14.42yrsUK£1.01m0.087%
£ 1.6m
Torsten Kreindl
Independent Non-Executive Director7.33yrsUK£57.00kno data
Susan Murray
Independent Non-Executive Director3.25yrsUK£69.00k0.00024%
£ 4.3k
Mary-Teresa Rainey
Non-Executive Director1.58yrsUK£69.00k0.0029%
£ 52.2k
Andrew Martin
Independent Non-Executive Chairman2.25yrsUK£219.00k0.011%
£ 202.9k
Peter Williams
Senior Independent Director1.58yrsUK£80.00k0.0028%
£ 50.0k
Cheryl Millington
Independent Non-Executive Director1.33yrsUK£57.00kno data

2.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: HAS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 14.4%.


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£1.792b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HAYP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
HASLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
HAYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
HASLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
HAYP.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDFeb 2010

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 Analysis2020/10/30 21:28
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.