LSE:HAS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet established dividend payer.


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


Market Performance


7 Day Return

7.8%

HAS

-4.2%

GB Professional Services

-0.4%

GB Market


1 Year Return

1.5%

HAS

15.2%

GB Professional Services

2.9%

GB Market

Return vs Industry: HAS underperformed the UK Professional Services industry which returned 15.2% over the past year.

Return vs Market: HAS underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

HASIndustryMarket
7 Day7.8%-4.2%-0.4%
30 Day6.4%-5.9%-1.4%
90 Day8.8%-7.0%-2.1%
1 Year8.4%1.5%18.0%15.2%8.0%2.9%
3 Year29.4%11.4%37.8%27.9%18.0%3.6%
5 Year64.4%35.9%113.3%88.1%35.8%6.4%

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?

14.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HAS (£1.6) is trading above our estimate of fair value (£1.51)

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


Price To Earnings Ratio

PE vs Industry: HAS is good value based on its PE Ratio (14.4x) compared to the Professional Services industry average (19.4x).

PE vs Market: HAS is good value based on its PE Ratio (14.4x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: HAS is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: HAS is overvalued based on its PB Ratio (3.3x) compared to the GB Professional Services industry average (2.3x).


Next Steps

Future Growth

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

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HAS's forecast earnings growth (3.7% per year) is above the savings rate (1.2%).

Earnings vs Market: HAS's earnings (3.7% per year) are forecast to grow slower than the UK market (12.6% per year).

High Growth Earnings: HAS's earnings are forecast to grow, but not significantly.

Revenue vs Market: HAS's revenue (2.3% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: HAS's revenue (2.3% 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 high in 3 years time (22.4%)


Next Steps

Past Performance

How has Hays performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HAS's earnings have grown by 13.4% 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 (-2.5%) over the past year, making it difficult to compare to the Professional Services industry average (12.3%).


Return on Equity

High ROE: HAS's Return on Equity (23.1%) is considered high.


Return on Assets

ROA vs Industry: HAS has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: HAS has not improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Hays's financial position?


Financial Position Analysis

Short Term Liabilities: HAS's short term assets (£1.2B) exceeds its short term liabilities (£785.9M)

Long Term Liabilities: HAS's short term assets (1.2B) exceeds its long term liabilities (15.5M)


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 46.2%.

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

Inventory Level: HAS has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HAS's debt is covered by short term assets.


Next Steps

Dividend

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

5.87%

Current Dividend Yield


Dividend Yield vs Market

company5.9%marketbottom25%2.0%markettop25%5.4%industryaverage2.3%forecastin3Years5.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HAS's dividend (5.87%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: HAS's dividend (5.87%) is in the top 25% of dividend payers in the UK market (5.36%)

Stable Dividend: HAS's dividend payments have been volatile in the past 10 years.

Growing Dividend: HAS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.8%), HAS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HAS's dividends in 3 years are forecast to be covered by earnings (69.6% payout ratio).


Next Steps

Management

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

9.5yrs

Average management tenure


CEO

Alistair Cox (58yo)

11.9yrs

Tenure

UK£2,698,000

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 ($USD3.47M) is about average for companies of similar size in the UK market ($USD2.31M).

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


Management Age and Tenure

9.5yrs

Average Tenure

58yo

Average Age

Experienced Management: HAS's management team is seasoned and experienced (9.5 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: HAS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HAS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£13,85330 Aug 19
Peter Williams
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares10,000
Max PriceUK£1.39
SellUK£157,05026 Apr 19
John Faraguna
EntityIndividual
Shares100,000
Max PriceUK£1.57
BuyUK£1,14610 Dec 18
Peter Williams
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares806
Max PriceUK£1.42
SellUK£1,730,96003 Dec 18
Alistair Cox
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares1,100,000
Max PriceUK£1.57
BuyUK£6,57901 Nov 18
Susan Murray
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares4,000
Max PriceUK£1.64

Ownership Breakdown


Management Team

  • Doug Evans (56yo)

    Company Secretary & General Counsel

    • Tenure: 6.7yrs
  • Alistair Cox (58yo)

    CEO & Executive Director

    • Tenure: 11.9yrs
    • Compensation: UK£2.70m
  • Paul Venables (58yo)

    Group Finance Director & Executive Director

    • Tenure: 13.4yrs
    • Compensation: UK£1.95m
  • David Phillips

    Head of Investor Relations

    • Tenure: 0yrs
  • Tina Ling

    Managing Director of France & Benelux

    • Tenure: 0yrs
  • Nick Cox

    Managing Director of Continental Europe & Rest of World

    • Tenure: 0yrs
  • Nigel S. Heap

    Uk & Ireland Managing Director and Chairman of the Asia Pacific Business

    • Tenure: 7.5yrs
  • Steve Weston

    Chief Technology Officer

    • Tenure: 0yrs
  • Simon Winfield

    Managing Director of West & Wales

    • Tenure: 5.9yrs
  • Sholto Douglas-Home

    Chief Marketing Officer

    • Tenure: 11.5yrs

Board Members

  • Torsten Kreindl (56yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: UK£57.00k
  • Susan Murray (61yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£70.00k
  • MT Rainey (63yo)

    Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£61.00k
  • Andy Martin (59yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: UK£205.00k
  • Alistair Cox (58yo)

    CEO & Executive Director

    • Tenure: 11.9yrs
    • Compensation: UK£2.70m
  • Peter Williams (66yo)

    Senior Independent Director

    • Tenure: 0.7yrs
    • Compensation: UK£68.00k
  • Paul Venables (58yo)

    Group Finance Director & Executive Director

    • Tenure: 13.4yrs
    • Compensation: UK£1.95m
  • Cheryl Millington (53yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
    • Compensation: UK£4.00k

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£2.349b
  • Shares outstanding: 1.47b
  • 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 Analysis2019/10/20 20:33
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.