LSE:STHR

Stock Analysis Report

Executive Summary

SThree plc provides permanent and contract specialist staffing services for information and communication technology, banking and finance, energy, engineering, and the life science sectors.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


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


Market Performance


7 Day Return

3.2%

STHR

0.2%

GB Professional Services

0.05%

GB Market


1 Year Return

-20.7%

STHR

17.2%

GB Professional Services

-0.7%

GB Market

STHR underperformed the Professional Services industry which returned 17.2% over the past year.

STHR underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -0.7% over the past year.


Share holder returns

STHRIndustryMarket
7 Day3.2%0.2%0.05%
30 Day15.9%-2.4%3.5%
90 Day0.2%-2.3%-0.1%
1 Year-16.8%-20.7%20.0%17.2%4.1%-0.7%
3 Year39.0%21.2%48.1%37.8%21.2%6.7%
5 Year3.3%-16.9%116.6%91.0%31.5%3.8%

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 months ago | Simply Wall St

Is SThree plc (LON:STHR) A Financially Sound Company?

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SThree's share price is below the future cash flow value, and at a moderate discount (> 20%).

SThree's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

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

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


Price Based on Expected Growth

SThree is good value based on expected growth next year.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is SThree expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

10.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SThree's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

SThree's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

SThree's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

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

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


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has SThree performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

SThree's 1-year earnings growth exceeds its 5-year average (42.7% vs 16.6%)

SThree's earnings growth has exceeded the GB Professional Services industry average in the past year (42.7% vs 8.8%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

SThree's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SThree's financial position?


Financial Position Analysis

SThree is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SThree's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SThree's level of debt (31.5%) 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 (87.9% vs 31.5% today).

Debt is well covered by operating cash flow (70.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 58.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 9.6x debt.


Next Steps

Dividend

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

5.14%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase SThree before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

SThree's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).

SThree's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.49%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

7.0yrs

Average management tenure


CEO

Mark Dorman (48yo)

0.5yrs

Tenure

0

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 ...


Management Age and Tenure

7.0yrs

Average Tenure

49.5yo

Average Age

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


Board Age and Tenure

1.7yrs

Average Tenure

53yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Steve Hornbuckle (51yo)

    Group Company Secretary & Executive Director

    • Tenure: 0yrs
  • Mark Dorman (48yo)

    CEO & Executive Director

    • Tenure: 0.5yrs
  • Alex Smith (53yo)

    CFO & Executive Director

    • Tenure: 11.3yrs
    • Compensation: UK£813.10k
  • Sarah Anderson

    Deputy Company Secretary

    • Tenure: 0yrs
  • Dave Rees (47yo)

    Chief Sales Officer

    • Tenure: 2.7yrs
  • Simon Chilley

    Head of Learning & Development

    • Tenure: 0yrs
  • Kirsty Mulholland

    Senior Company Secretary Assistant

    • Tenure: 0yrs

Board Members

  • Barrie Brien (53yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: UK£45.00k
  • Denise Collis (61yo)

    Senior Independent Director

    • Tenure: 0.9yrs
    • Compensation: UK£52.00k
  • Steve Hornbuckle (51yo)

    Group Company Secretary & Executive Director

    • Tenure: 0yrs
  • Mark Dorman (48yo)

    CEO & Executive Director

    • Tenure: 0.5yrs
  • Alex Smith (53yo)

    CFO & Executive Director

    • Tenure: 11.3yrs
    • Compensation: UK£813.10k
  • James Bilefield (50yo)

    Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£104.40k
  • Anne Fahy (58yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: UK£52.00k

Company Information

SThree plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SThree plc
  • Ticker: STHR
  • Exchange: LSE
  • Founded: 1986
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: UK£395.150m
  • Shares outstanding: 130.41m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STHRLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2005
STHRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2005
STRE.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2005

Biography

SThree plc provides permanent and contract specialist staffing services for information and communication technology, banking and finance, energy, engineering, and the life science sectors. It offers perma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/19 20:50
End of Day Share Price2019/09/19 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.