Market Cap
UK£444.3m
Last Updated
2021/03/02 20:40 UTC
Data Sources
Company Financials +
Executive Summary
SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has SThree's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: STEM is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: STEM's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
STEM
-1.8%
GB Professional Services
-0.2%
GB Market
1 Year Return
4.6%
STEM
-9.4%
GB Professional Services
1.1%
GB Market
Return vs Industry: STEM exceeded the UK Professional Services industry which returned -7.1% over the past year.
Return vs Market: STEM exceeded the UK Market which returned 2% over the past year.
Shareholder returns
| STEM | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | -1.8% | -0.2% |
| 30 Day | 5.1% | -5.0% | 3.6% |
| 90 Day | 9.7% | -5.0% | 4.2% |
| 1 Year | 4.6%4.6% | -7.6%-9.4% | 7.0%1.1% |
| 3 Year | 8.6%-1.2% | 26.6%18.5% | 10.6%-2.7% |
| 5 Year | 31.7%9.7% | 72.8%54.2% | 40.5%13.4% |
Long-Term Price Volatility Vs. Market
How volatile is SThree's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Estimating The Fair Value Of SThree plc (LON:STEM)1 month ago | Simply Wall St
Should You Investigate SThree plc (LON:STEM) At UK£3.25?1 month ago | Simply Wall St
We Think SThree's (LON:STEM) Statutory Profit Might Understate Its Earnings PotentialValuation
Is SThree undervalued compared to its fair value and its price relative to the market?
23.83x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: STEM (£3.39) is trading above our estimate of fair value (£2.85)
Significantly Below Fair Value: STEM is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: STEM is good value based on its PE Ratio (23.8x) compared to the GB Professional Services industry average (31.2x).
PE vs Market: STEM is good value based on its PE Ratio (23.8x) compared to the UK market (24x).
Price to Earnings Growth Ratio
PEG Ratio: STEM is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: STEM is overvalued based on its PB Ratio (3.5x) compared to the GB Professional Services industry average (2.7x).
Next Steps
Future Growth
How is SThree forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
25.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STEM's forecast earnings growth (25.4% per year) is above the savings rate (1%).
Earnings vs Market: STEM's earnings (25.4% per year) are forecast to grow faster than the UK market (23.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: STEM's revenue (6.1% per year) is forecast to grow slower than the UK market (7.3% per year).
High Growth Revenue: STEM's revenue (6.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: STEM's Return on Equity is forecast to be low in 3 years time (19.6%).
Next Steps
Past Performance
How has SThree performed over the past 5 years?
5.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STEM has high quality earnings.
Growing Profit Margin: STEM's current net profit margins (1.6%) are lower than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: STEM's earnings have grown by 5.1% per year over the past 5 years.
Accelerating Growth: STEM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: STEM had negative earnings growth (-54.5%) over the past year, making it difficult to compare to the Professional Services industry average (-23.5%).
Return on Equity
High ROE: STEM's Return on Equity (14.6%) is considered low.
Next Steps
Financial Health
How is SThree's financial position?
Financial Position Analysis
Short Term Liabilities: STEM's short term assets (£287.8M) exceed its short term liabilities (£180.0M).
Long Term Liabilities: STEM's short term assets (£287.8M) exceed its long term liabilities (£26.0M).
Debt to Equity History and Analysis
Debt Level: STEM's debt to equity ratio (0.4%) is considered satisfactory.
Reducing Debt: STEM's debt to equity ratio has reduced from 33.7% to 0.4% over the past 5 years.
Debt Coverage: STEM's debt is well covered by operating cash flow (14210%).
Interest Coverage: STEM's interest payments on its debt are well covered by EBIT (31.7x coverage).
Balance Sheet
Next Steps
Dividend
What is SThree current dividend yield, its reliability and sustainability?
2.95%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STEM's dividend (2.95%) is higher than the bottom 25% of dividend payers in the UK market (1.47%).
High Dividend: STEM's dividend (2.95%) is low compared to the top 25% of dividend payers in the UK market (4.52%).
Stability and Growth of Payments
Stable Dividend: STEM's dividend payments have been volatile in the past 10 years.
Growing Dividend: STEM's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35.2%), STEM's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: STEM's dividends in 3 years are forecast to be well covered by earnings (43.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Mark Dorman (49 yo)
2yrs
Tenure
UK£500,200
Compensation
Mr. Mark Dorman has been Chief Executive Officer and Executive Director of SThree Plc since March 18, 2019. He served as President of Higher Education, Professional & International at McGraw-Hill Global Ed...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD697.90K) is below average for companies of similar size in the UK market ($USD1.03M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | UK£500.20k | 0.0032% £ 14.0k | |
| CFO & Executive Director | 12.83yrs | UK£490.30k | 0.29% £ 1.3m | |
| Chief Operating Officer | 0.17yr | no data | no data | |
| Chief Sales Officer | 4.17yrs | no data | no data | |
| Managing Director of USA | 4.92yrs | no data | no data | |
| Head of Learning & Development | no data | no data | no data | |
| Managing Director of DACH | 4.17yrs | no data | no data | |
| Managing Director of Europe excluding DACH Region | no data | no data | no data | |
| Group Company Secretary | 14.42yrs | no data | no data | |
| Deputy Company Secretary | no data | no data | no data | |
| Senior Company Secretary Assistant | no data | no data | no data |
4.2yrs
Average Tenure
50.5yo
Average Age
Experienced Management: STEM's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2yrs | UK£500.20k | 0.0032% £ 14.0k | |
| CFO & Executive Director | 12.83yrs | UK£490.30k | 0.29% £ 1.3m | |
| Independent Non-Executive Director | 3.5yrs | UK£44.80k | no data | |
| Senior Independent Director | 2.42yrs | UK£65.80k | 0.0038% £ 16.9k | |
| Chairman | 2.92yrs | UK£140.00k | 0.0076% £ 33.9k | |
| Independent Non-Executive Director | 5.42yrs | UK£54.10k | 0.0031% £ 13.5k |
3.2yrs
Average Tenure
54yo
Average Age
Experienced Board: STEM's board of directors are considered experienced (3.2 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
SThree plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: SThree plc
- Ticker: STEM
- Exchange: LSE
- Founded: 1986
- Industry: Human Resource and Employment Services
- Sector: Commercial Services
- Market Cap: UK£444.260m
- Shares outstanding: 131.24m
- Website: https://www.sthree.com
Number of Employees
Location
- SThree plc
- 75 King William Street
- 1st Floor
- London
- Greater London
- EC4N 7BE
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STEM | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Nov 2005 |
| STEML | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Nov 2005 |
| STRE.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Nov 2005 |
| S8T | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Nov 2005 |
Biography
SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors. It offers permanent, contract, project, retained,...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/02 20:40 |
| End of Day Share Price | 2021/03/02 00:00 |
| Earnings | 2020/11/30 |
| Annual Earnings | 2020/11/30 |
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.