| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 2/6 |
| Past Performance | 6/6 |
| Financial Health | 6/6 |
| Dividends | 3/6 |
STEM Stock Overview
SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors.
SThree Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£3.59 |
| 52 Week High | UK£6.10 |
| 52 Week Low | UK£3.23 |
| Beta | 1.07 |
| 1 Month Change | -4.91% |
| 3 Month Change | -20.16% |
| 1 Year Change | -10.60% |
| 3 Year Change | 19.70% |
| 5 Year Change | 17.35% |
| Change since IPO | 75.31% |
Recent News & Updates
SThree (LON:STEM) Will Pay A Larger Dividend Than Last Year At UK£0.08
The board of SThree plc ( LON:STEM ) has announced that it will be increasing its dividend on the 10th of June to...
Is SThree plc (LON:STEM) Trading At A 49% Discount?
Does the April share price for SThree plc ( LON:STEM ) reflect what it's really worth? Today, we will estimate the...
SThree (LON:STEM) Is Increasing Its Dividend To UK£0.08
SThree plc ( LON:STEM ) has announced that it will be increasing its dividend on the 10th of June to UK£0.08. This will...
Shareholder Returns
| STEM | GB Professional Services | GB Market | |
|---|---|---|---|
| 7D | 1.4% | -1.2% | 0.6% |
| 1Y | -10.6% | 1.6% | -2.7% |
Return vs Industry: STEM underperformed the UK Professional Services industry which returned 1.8% over the past year.
Return vs Market: STEM underperformed the UK Market which returned -4% over the past year.
Price Volatility
| STEM volatility | |
|---|---|
| STEM Average Weekly Movement | 6.0% |
| Professional Services Industry Average Movement | 5.0% |
| Market Average Movement | 6.0% |
| 10% most volatile stocks in GB Market | 11.6% |
| 10% least volatile stocks in GB Market | 3.1% |
Stable Share Price: STEM is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: STEM's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1986 | 2,731 | Timo Lehne | https://www.sthree.com |
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, and executive search recruitment solutions, as well as support and mobility services. The company provides its services under the Computer Futures, Progressive, Huxley Associates, Real Staffing Group, Global Enterprise Partners, JP Gray, Madison Black, and Newington International brands.
SThree Fundamentals Summary
| STEM fundamental statistics | |
|---|---|
| Market Cap | UK£475.63m |
| Earnings (TTM) | UK£42.25m |
| Revenue (TTM) | UK£1.33b |
11.3x
P/E Ratio0.4x
P/S RatioIs STEM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| STEM income statement (TTM) | |
|---|---|
| Revenue | UK£1.33b |
| Cost of Revenue | UK£975.01m |
| Gross Profit | UK£355.71m |
| Other Expenses | UK£313.46m |
| Earnings | UK£42.25m |
Last Reported Earnings
Nov 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.32 |
| Gross Margin | 26.73% |
| Net Profit Margin | 3.18% |
| Debt/Equity Ratio | 0.01% |
How did STEM perform over the long term?
See historical performance and comparisonDividends
3.1%
Current Dividend Yield34%
Payout RatioValuation
Is SThree undervalued compared to its fair value and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: STEM (£3.59) is trading below our estimate of fair value (£7.62)
Significantly Below Fair Value: STEM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: STEM is good value based on its PE Ratio (11.3x) compared to the UK Professional Services industry average (25.3x).
PE vs Market: STEM is good value based on its PE Ratio (11.3x) compared to the UK market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: STEM is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: STEM is overvalued based on its PB Ratio (3x) compared to the GB Professional Services industry average (2.6x).
Future Growth
How is SThree forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
7.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STEM's forecast earnings growth (7.5% per year) is above the savings rate (0.9%).
Earnings vs Market: STEM's earnings (7.5% per year) are forecast to grow slower than the UK market (11.3% per year).
High Growth Earnings: STEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: STEM's revenue (4% per year) is forecast to grow slower than the UK market (4% per year).
High Growth Revenue: STEM's revenue (4% 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 high in 3 years time (24%)
Past Performance
How has SThree performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
3.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STEM has high quality earnings.
Growing Profit Margin: STEM's current net profit margins (3.2%) are higher than last year (1.6%).
Past Earnings Growth Analysis
Earnings Trend: STEM's earnings have grown by 3.1% per year over the past 5 years.
Accelerating Growth: STEM's earnings growth over the past year (125.2%) exceeds its 5-year average (3.1% per year).
Earnings vs Industry: STEM earnings growth over the past year (125.2%) exceeded the Professional Services industry 39.5%.
Return on Equity
High ROE: STEM's Return on Equity (26.7%) is considered high.
Financial Health
How is SThree's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: STEM's short term assets (£355.6M) exceed its short term liabilities (£218.4M).
Long Term Liabilities: STEM's short term assets (£355.6M) exceed its long term liabilities (£24.0M).
Debt to Equity History and Analysis
Debt Level: STEM has more cash than its total debt.
Reducing Debt: STEM's debt to equity ratio has reduced from 7.6% to 0.02% over the past 5 years.
Debt Coverage: STEM's debt is well covered by operating cash flow (157462.5%).
Interest Coverage: STEM's interest payments on its debt are well covered by EBIT (80.2x coverage).
Balance Sheet
Dividend
What is SThree current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
3.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STEM's dividend (3.07%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: STEM's dividend (3.07%) is low compared to the top 25% of dividend payers in the UK market (4.86%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (34.4%), STEM's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (41.5%), STEM's dividend payments are well covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Timo Lehne
0.33
Tenure
Mr. Timo Lehne serves as Chief Executive Officer and Executive Director of SThree plc since April 2022 and January 01, 2022 respectively, and served as Interim Chief Executive Officer until April 2022. He...
Leadership Team
Experienced Management: STEM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: STEM's board of directors are considered experienced (4.6 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 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
- Implied Market Cap: UK£475.628m
- Shares outstanding: 132.67m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/23 00:00 |
| End of Day Share Price | 2022/05/23 00:00 |
| Earnings | 2021/11/30 |
| Annual Earnings | 2021/11/30 |
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.