SThree PLC
LSE:STEM

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SThree PLC Logo
SThree PLC
LSE:STEM
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Price: 362 GBX 2.4% Market Closed
Market Cap: 479.5m GBX
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Intrinsic Value

The intrinsic value of one STEM stock under the Base Case scenario is 622.83 GBX. Compared to the current market price of 362 GBX, SThree PLC is Undervalued by 42%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

STEM Intrinsic Value
622.83 GBX
Undervaluation 42%
Intrinsic Value
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SThree PLC

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
SThree PLC

Current Assets 421.3m
Cash & Short-Term Investments 90m
Receivables 331.3m
Non-Current Assets 46.9m
PP&E 31.1m
Intangibles 10m
Other Non-Current Assets 5.8m
Current Liabilities 223m
Accounts Payable 195.3m
Other Current Liabilities 27.6m
Non-Current Liabilities 18.4m
Long-Term Debt 16.4m
Other Non-Current Liabilities 2m
Efficiency

Earnings Waterfall
SThree PLC

Revenue
1.6B GBP
Cost of Revenue
-1.2B GBP
Gross Profit
398.9m GBP
Operating Expenses
-316.6m GBP
Operating Income
82.3m GBP
Other Expenses
-25.8m GBP
Net Income
56.5m GBP

Free Cash Flow Analysis
SThree PLC

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

SThree, amidst market uncertainties, perseveres with a robust performance. Despite a modest 2% dip in profit before tax to GBP 77.9 million, their profit after tax remained stable at GBP 56.1 million. Operating profit surpassed market expectations, reaching GBP 76.4 million with continued investments in technology, boasting an 18.2% profit conversion ratio. Projected operational expenses and capital expenditures fit within the GBP 30 million to GBP 35 million range conveyed earlier. With earnings per share up 4% to 42.4p, shareholders will see a final dividend of 11.6p per share, totalling a full-year dividend of 16.6p – a 4% raise from the prior year. SThree looks to its technology improvement program and strategic investments for long-term growth and value creation for shareholders, despite a 4% decline in net fees and an order book down by just 4%.

What is Earnings Call?
Fundamental Scores

STEM Profitability Score
Profitability Due Diligence

SThree PLC's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

Exceptional 3-Year Average ROIC
Exceptional 3-Year Average ROE
Exceptional ROIC
Positive Gross Profit
61/100
Profitability
Score

SThree PLC's profitability score is 61/100. The higher the profitability score, the more profitable the company is.

STEM Solvency Score
Solvency Due Diligence

SThree PLC's solvency score is 89/100. The higher the solvency score, the more solvent the company is.

High Interest Coverage
High Altman Z-Score
Negative Net Debt
Low D/E
89/100
Solvency
Score

SThree PLC's solvency score is 89/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

STEM Price Targets Summary
SThree PLC

Wall Street analysts forecast STEM stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for STEM is 505.58 GBX with a low forecast of 424.2 GBX and a high forecast of 577.5 GBX.

Lowest
Price Target
424.2 GBX
17% Upside
Average
Price Target
505.58 GBX
40% Upside
Highest
Price Target
577.5 GBX
60% Upside
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Dividends

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Dividend Per Share
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Previous Payment
-
Today
Next Payment
-
Today
Nov 2, 2024
Previous Payment
-
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Ex-Dividend Date
-
Shareholder Yield

Current shareholder yield for STEM is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Profile

SThree PLC Logo
SThree PLC

Country

United Kingdom

Industry

Professional Services

Market Cap

488.8m GBP

Dividend Yield

4.59%

Description

SThree Plc engages in the provision of permanent and contract specialist staffing services. The firm provides permanent and contract staff to sectors, including information and communication technology (ICT), banking and finance, life sciences, engineering and energy. The firm's recruitment brands include Computer Futures, Progressive Recruitment, Huxley and Real Staffing. The Company’s other brands include Global Enterprise Partners, JP Gray, Madison Black, Newington International and Orgtel. The firm's markets include Germany, the Netherlands, the United States, the United Kingdom and Japan. The firm delivers contract, permanent, projects, retained and executive search recruitment solutions.

Contact

London
75 King William Street
+442072686000.0
www.sthree.com

IPO

2005-11-10

Employees

1 985

Officers

CEO & Executive Director
Mr. Timo Lehne
CFO & Executive Director
Mr. Andrew William Beach
Chief Operations Officer
Mr. Nicholas Folkes
Chief Legal Officer & Company Secretary
Ms. Kate Danson
Chief People Officer
Ms. Sarah Mason
President of US
Ms. Sunny Ackerman
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Chief Commercial Officer
Mr. Jelte Hacquebord
Managing Director Netherlands & Spain
Ms. Margot van Soest
Managing Director of UK, France & Belgium
Mr. Tom Way
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See Also

Discover More
What is the Intrinsic Value of one STEM stock?

The intrinsic value of one STEM stock under the Base Case scenario is 622.83 GBX.

Is STEM stock undervalued or overvalued?

Compared to the current market price of 362 GBX, SThree PLC is Undervalued by 42%.

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