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 with solid track record and pays a dividend.


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

-3.3%

LSE:HAS

-1.3%

GB Professional Services

-2.0%

GB Market


1 Year Return

-26.6%

LSE:HAS

11.5%

GB Professional Services

-5.8%

GB Market

HAS underperformed the Professional Services industry which returned 11.2% over the past year.

HAS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.4% over the past year.


Share holder returns

HASIndustryMarket
7 Day-3.3%-1.3%-2.0%
30 Day-1.9%-0.5%-5.1%
90 Day-2.3%5.8%-3.3%
1 Year-23.2%-26.6%14.1%11.5%-1.5%-5.8%
3 Year28.1%15.3%51.6%41.0%17.7%3.9%
5 Year30.9%13.0%116.8%91.4%26.9%0.2%

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

17%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Hays's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Hays's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Hays is good value based on earnings compared to the GB Professional Services industry average.

Hays is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Hays is poor value based on expected growth next year.


Price Based on Value of Assets

Hays is overvalued based on assets compared to the GB Professional Services industry average.


Next Steps

Future Growth

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

4.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hays's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).

Hays's earnings are expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Hays's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Hays's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

Hays's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Hays is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Hays performed over the past 5 years?

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hays's year on year earnings growth rate has been positive over the past 5 years.

Hays's 1-year earnings growth is less than its 5-year average (14% vs 15.1%)

Hays's earnings growth has exceeded the GB Professional Services industry average in the past year (14% vs 7.1%).


Return on Equity

Hays has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Hays used its assets more efficiently than the GB Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

Hays has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Hays's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Hays's level of debt (13.4%) 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 (76.9% vs 13.4% today).

Debt is well covered by operating cash flow (198.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 113.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 12.7x debt.


Next Steps

Dividend

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

6.41%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hays's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.08%).

Hays's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.76%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.3x coverage).


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Alistair Cox (58yo)

11.8yrs

Tenure

UK£2,972,000

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

Alistair's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Alistair's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

9.3yrs

Average Tenure

58yo

Average Age

The average tenure for the Hays management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

1.6yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Hays board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
Shares806
Max PriceUK£1.42
SellUK£1,730,96003 Dec 18
Alistair Cox
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares1,100,000
Max PriceUK£1.57
BuyUK£6,57901 Nov 18
Susan Murray
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUK£1.64
SellUK£110,79212 Sep 18
John Faraguna
EntityIndividual
Shares54,371
Max PriceUK£2.04
SellUK£467,60712 Sep 18
Alistair Cox
EntityIndividual
Role
CEO & Executive Director
Member of the Board of Directors
Shares229,478
Max PriceUK£2.04
SellUK£337,14412 Sep 18
Paul Venables
EntityIndividual
Role
Group Finance Director & Executive Director
Member of the Board of Directors
Shares165,453
Max PriceUK£2.04
SellUK£2,079,55510 Sep 18
Paul Venables
EntityIndividual
Role
Group Finance Director & Executive Director
Member of the Board of Directors
Shares1,019,390
Max PriceUK£2.04

Ownership Breakdown


Management Team

  • Paul Venables (58yo)

    Group Finance Director & Executive Director

    • Tenure: 13.3yrs
    • Compensation: £2.15m
  • Simon Winfield

    Managing Director of West & Wales

    • Tenure: 5.8yrs
  • Nigel S. Heap

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

    • Tenure: 7.3yrs
  • Sholto Douglas-Home

    Chief Marketing Officer

    • Tenure: 11.3yrs
  • Nick Cox

    Managing Director of Continental Europe & Rest of World

  • Tina Ling

    Managing Director of France & Benelux

  • David Phillips

    Head of Investor Relations

  • Alistair Cox (58yo)

    CEO & Executive Director

    • Tenure: 11.8yrs
    • Compensation: £2.97m
  • Doug Evans (56yo)

    Company Secretary & General Counsel

    • Tenure: 6.5yrs
  • Steve Weston

    Chief Information Officer & Global Head of Corporate Accounts


Board Members

  • Torsten Kreindl (56yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: £56.00k
  • Susan Murray (61yo)

    Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: £62.00k
  • MT Rainey (63yo)

    Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: £56.00k
  • Andy Martin (59yo)

    Non-Executive Chairman

    • Tenure: 1.1yrs
    • Compensation: £61.00k
  • Alistair Cox (58yo)

    CEO & Executive Director

    • Tenure: 11.9yrs
    • Compensation: £2.97m
  • Peter Williams (66yo)

    Senior Independent Director

    • Tenure: 0.5yrs
    • Compensation: £56.00k
  • Paul Venables (58yo)

    Group Finance Director & Executive Director

    • Tenure: 13.3yrs
    • Compensation: £2.15m
  • Cheryl Millington (53yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs

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£2.125b
  • Shares outstanding: 1.46b
  • Website: Click here

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 Analysis2019/08/16 20:35
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.