STEM Stock Overview
SThree plc provides specialist contract and permanent staffing services for technology, engineering, life sciences, banking and finance, and other sectors.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£3.75|
|52 Week High||UK£6.10|
|52 Week Low||UK£3.13|
|1 Month Change||1.08%|
|3 Month Change||6.53%|
|1 Year Change||-26.47%|
|3 Year Change||44.23%|
|5 Year Change||16.91%|
|Change since IPO||83.37%|
Recent News & Updates
Returns On Capital Signal Tricky Times Ahead For SThree (LON:STEM)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...
|STEM||GB Professional Services||GB Market|
Return vs Industry: STEM underperformed the UK Professional Services industry which returned -2.7% over the past year.
Return vs Market: STEM underperformed the UK Market which returned -9.1% over the past year.
|STEM Average Weekly Movement||5.9%|
|Professional Services Industry Average Movement||4.2%|
|Market Average Movement||5.4%|
|10% most volatile stocks in GB Market||10.8%|
|10% least volatile stocks in GB Market||2.7%|
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
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|
Is STEM overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|STEM income statement (TTM)|
|Cost of Revenue||UK£1.09b|
Last Reported Earnings
May 31, 2022
Next Earnings Date
|Earnings per share (EPS)||0.42|
|Net Profit Margin||3.70%|
How did STEM perform over the long term?See historical performance and comparison
3.5%Current Dividend Yield
Does STEM pay a reliable dividends?See STEM dividend history and benchmarks
|SThree dividend dates|
|Ex Dividend Date||Nov 03 2022|
|Dividend Pay Date||Dec 02 2022|
|Days until Ex dividend||82 days|
|Days until Dividend pay date||111 days|
Does STEM pay a reliable dividends?See STEM dividend history and benchmarks
Is STEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for STEM?
Other financial metrics that can be useful for relative valuation.
|What is STEM's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does STEM's PE Ratio compare to its peers?
|STEM PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
RWA Robert Walters
IPEL Impellam Group
MIND Mind Gym
Price-To-Earnings vs Peers: STEM is good value based on its Price-To-Earnings Ratio (9x) compared to the peer average (27x).
Price to Earnings Ratio vs Industry
How does STEM's PE Ratio compare vs other companies in the GB Professional Services Industry?
Price-To-Earnings vs Industry: STEM is good value based on its Price-To-Earnings Ratio (9x) compared to the UK Professional Services industry average (17.6x)
Price to Earnings Ratio vs Fair Ratio
What is STEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||9x|
|Fair PE Ratio||18.3x|
Price-To-Earnings vs Fair Ratio: STEM is good value based on its Price-To-Earnings Ratio (9x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).
Share Price vs Fair Value
What is the Fair Price of STEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: STEM (£3.75) is trading below our estimate of fair value (£6.86)
Significantly Below Fair Value: STEM is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is SThree forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STEM's forecast earnings growth (0.3% per year) is below the savings rate (0.9%).
Earnings vs Market: STEM's earnings (0.3% per year) are forecast to grow slower than the UK market (9.4% per year).
High Growth Earnings: STEM's earnings are forecast to grow, but not significantly.
Revenue vs Market: STEM's revenue (5% per year) is forecast to grow faster than the UK market (4.2% per year).
High Growth Revenue: STEM's revenue (5% 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 (25.9%)
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How has SThree performed over the past 5 years?
Past Performance Score5/6
Past Performance Score 5/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STEM has a high level of non-cash earnings.
Growing Profit Margin: STEM's current net profit margins (3.7%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: STEM's earnings have grown by 7.5% per year over the past 5 years.
Accelerating Growth: STEM's earnings growth over the past year (86.5%) exceeds its 5-year average (7.5% per year).
Earnings vs Industry: STEM earnings growth over the past year (86.5%) exceeded the Professional Services industry 49.8%.
Return on Equity
High ROE: STEM's Return on Equity (31.2%) is considered high.
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How is SThree's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: STEM's short term assets (£391.2M) exceed its short term liabilities (£231.3M).
Long Term Liabilities: STEM's short term assets (£391.2M) exceed its long term liabilities (£22.7M).
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 12.3% to 0.01% over the past 5 years.
Debt Coverage: STEM's debt is well covered by operating cash flow (277938.5%).
Interest Coverage: STEM's interest payments on its debt are well covered by EBIT (120.1x coverage).
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What is SThree current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: STEM's dividend (3.47%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: STEM's dividend (3.47%) is low compared to the top 25% of dividend payers in the UK market (5.13%).
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 (31.3%), STEM's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (51.8%), STEM's dividend payments are covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management 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...
Experienced Management: STEM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Experienced Board: STEM's board of directors are considered experienced (4.9 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SThree plc's employee growth, exchange listings and data sources
- Name: SThree plc
- Ticker: STEM
- Exchange: LSE
- Founded: 1986
- Industry: Human Resource and Employment Services
- Sector: Commercial Services
- Implied Market Cap: UK£497.519m
- Shares outstanding: 132.67m
- Website: https://www.sthree.com
Number of Employees
- SThree plc
- 75 King William Street
- 1st Floor
- Greater London
- EC4N 7BE
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/12 00:00|
|End of Day Share Price||2022/08/12 00:00|
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.