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SThree PLC (GB:STEM)
LSE:STEM
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SThree plc (STEM) AI Stock Analysis

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GB:STEM

SThree plc

(LSE:STEM)

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Neutral 67 (OpenAI - 4o)
Rating:67Neutral
Price Target:
173.00p
▲(9.91% Upside)
SThree plc's overall stock score is primarily influenced by its stable financial position and attractive valuation, with a low P/E ratio and high dividend yield. However, the stock's technical indicators suggest bearish momentum, and declining revenue and cash flow raise concerns about future growth prospects.

SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)

SThree plc Business Overview & Revenue Model

Company DescriptionSThree 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. It has operations in the United Kingdom, Germany, the United States, the Netherlands, Japan, Dubai, Belgium, France, Ireland, Luxembourg, Spain, Austria, Switzerland, Hong Kong, Malaysia, Singapore, and internationally. SThree plc was founded in 1986 and is headquartered in London, the United Kingdom.
How the Company Makes MoneySThree generates revenue primarily through recruitment services, which involve sourcing and placing candidates in roles across its specialized sectors. The company earns fees from clients for successful placements, which can be structured as a percentage of the candidate's first-year salary for permanent roles, or as a margin on hourly or daily rates for temporary or contract positions. Additionally, SThree benefits from long-term client relationships and repeat business, which contribute to a stable revenue stream. The company's performance is bolstered by its global presence and the diverse client base it serves, allowing it to capitalize on various market opportunities. Strategic partnerships with organizations in the STEM fields also enhance its service offerings and improve its competitive position in the marketplace.

SThree plc Financial Statement Overview

Summary
SThree plc exhibits stable financial health with low leverage and reasonable profitability. However, declining revenue and a significant drop in free cash flow present challenges for future growth.
Income Statement
68
Positive
SThree plc has shown a mixed performance in its income statement. The gross profit margin for the latest period is approximately 24.73%, with a net profit margin of 3.33%. However, both revenue and net income have declined compared to the previous year, with a revenue decrease of about 10.24%. The EBIT margin stands at 4.43%, and the EBITDA margin is 4.69%, indicating reasonable operational efficiency. While the margins suggest stability, the declining revenue trend poses a concern.
Balance Sheet
75
Positive
The balance sheet of SThree plc reflects a solid financial position with a debt-to-equity ratio of 0.16, indicating low leverage. The equity ratio is 49.06%, which suggests a healthy proportion of equity financing. Return on equity is modest at 19.98%, reflecting moderate profitability. Overall, the company appears financially stable with manageable debt levels.
Cash Flow
62
Positive
The cash flow statement shows a decline in free cash flow by approximately 51.58% from the previous year, which is concerning. The operating cash flow to net income ratio is 0.80, indicating a decent conversion of net income into cash flow. However, the free cash flow to net income ratio is 0.66, which could be improved. The cash flow situation reflects some operational challenges and needs attention.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.38B1.49B1.66B1.64B1.33B1.20B
Gross Profit339.40M369.08M418.77M411.71M338.00M289.50M
EBITDA43.09M84.34M94.53M96.59M78.74M50.95M
Net Income28.79M49.69M56.05M54.20M41.98M16.95M
Balance Sheet
Total Assets443.28M506.73M472.30M470.44M400.63M338.39M
Cash, Cash Equivalents and Short-Term Investments47.88M69.76M83.20M65.81M57.53M50.36M
Total Debt43.55M39.87M29.02M34.13M35.09M35.97M
Total Liabilities227.01M258.08M249.42M270.05M242.48M209.87M
Stockholders Equity216.26M248.64M222.88M200.39M158.15M128.52M
Cash Flow
Free Cash Flow18.09M32.85M67.83M41.26M34.27M60.74M
Operating Cash Flow24.98M39.68M76.04M44.93M36.92M66.02M
Investing Cash Flow-12.69M-13.17M-8.21M-3.67M-2.65M-5.28M
Financing Cash Flow-55.33M-39.92M-52.15M-38.54M-24.97M-21.59M

SThree plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price157.40
Price Trends
50DMA
169.24
Negative
100DMA
198.75
Negative
200DMA
220.95
Negative
Market Momentum
MACD
-2.71
Negative
RSI
37.32
Neutral
STOCH
34.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STEM, the sentiment is Negative. The current price of 157.4 is below the 20-day moving average (MA) of 161.07, below the 50-day MA of 169.24, and below the 200-day MA of 220.95, indicating a bearish trend. The MACD of -2.71 indicates Negative momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:STEM.

SThree plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
£53.21M13.8744.68%1.44%
£200.73M7.3412.99%6.67%-13.93%-48.74%
£745.34M62.274.81%7.30%-12.54%-76.55%
$10.79B15.437.44%2.01%2.89%-14.66%
£29.63M13.676.45%3.59%2.40%1101.69%
£100.31M-6.51-11.22%11.82%-14.31%-361.93%
£943.00M-120.51-1.52%2.10%-4.92%-58.06%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STEM
SThree plc
157.40
-185.89
-54.15%
GB:GATC
Gattaca
95.50
10.92
12.91%
GB:HAS
Hays plc
59.05
-17.73
-23.09%
GB:PAGE
PageGroup
236.00
-106.32
-31.06%
GB:RWA
Robert Walters
150.50
-197.71
-56.78%
GB:STAF
Staffline
45.40
16.80
58.74%

SThree plc Corporate Events

Other
SThree plc Announces Executive Share Transactions
Neutral
Oct 14, 2025

SThree plc has announced transactions involving its senior management, specifically the purchase of partnership shares and the award of matching shares under the company’s Share Incentive and Global All Employee Plans. These transactions, involving CFO Andrew Beach and CEO Timo Lehne, took place on the London Stock Exchange and reflect the company’s ongoing commitment to aligning management interests with shareholder value.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
SThree plc Announces Board Leadership Change
Neutral
Oct 6, 2025

SThree plc, a company involved in staffing and recruitment, has announced a significant change in its board of directors. Elaine O’Donnell, a non-executive director at SThree plc, has been appointed as the non-executive Chair of The Beauty Tech Group PLC, a company listed on the London Stock Exchange. This move is part of the company’s ongoing efforts to strengthen its leadership and governance, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackDividendsShareholder Meetings
SThree plc Passes Key Special Resolution at General Meeting
Positive
Oct 1, 2025

SThree plc announced that a Special Resolution was passed at their General Meeting, authorizing the regularization of procedural requirements related to dividends and buy-backs, the release of claims against shareholders and directors, and the purchase of ordinary shares from brokers. This resolution, overwhelmingly supported by shareholders, with 99.98% votes in favor, is expected to streamline the company’s financial operations and potentially enhance shareholder value.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Regulatory Filings and Compliance
SThree plc Announces Total Voting Rights Update
Neutral
Sep 30, 2025

SThree plc announced its total voting rights as of 30 September 2025, with an issued share capital consisting of 127,858,067 ordinary shares and 127,822,300 total voting rights. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
SThree plc Issues Shares to CEO Timo Lehne in Strategic Transaction
Neutral
Sep 17, 2025

SThree plc has announced a transaction involving the issuance of ordinary shares to its CEO, Timo Lehne, as consideration for the purchase of minority interests he held. This transaction, conducted off-market, involves a total of 7,404 shares at a price of £1.39 each, amounting to £10,292. This move reflects the company’s strategic efforts to consolidate its ownership structure and potentially strengthen its leadership alignment, which could have implications for its market positioning and stakeholder interests.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £2.50 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyStock BuybackFinancial Disclosures
SThree Reports Q3 FY25 Trading Update with Strategic Investments Ahead
Neutral
Sep 16, 2025

SThree plc reported a 12% year-on-year decline in group net fees for Q3 FY25, with a modest sequential improvement driven by growth in the US market. Despite challenges in new business activity and macroeconomic uncertainties, the company remains committed to its FY25 profit guidance and plans further investments in AI and cost optimization to enhance future scalability and efficiency. The company is also set to initiate a share buyback program in FY26, aiming to strengthen its market position and capitalize on emerging opportunities in the STEM recruitment industry.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £390.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
SThree plc Executives Participate in Share Incentive Plans
Neutral
Sep 15, 2025

SThree plc announced transactions involving its Chief Financial Officer, Andrew Beach, and Chief Executive Officer, Timo Lehne, who both participated in the company’s share incentive plans. These transactions, conducted on the London Stock Exchange, reflect the company’s commitment to aligning management interests with shareholder value, potentially impacting executive motivation and stakeholder confidence.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £390.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Stock BuybackDividendsRegulatory Filings and ComplianceShareholder Meetings
SThree plc Addresses Technical Compliance Issue with Past Distributions
Neutral
Sep 5, 2025

SThree plc, a company involved in recruitment and staffing services, has identified a technical compliance issue with certain past distributions, including dividends and share buybacks, which did not meet the Companies Act 2006 requirements. Despite this, the company had sufficient overall profits and reserves, and the issue does not affect its financial outlook or capital return policy. To resolve the matter, SThree is convening a general meeting to propose a special resolution that would authorize the appropriation of distributable profits to cover the distributions and enter into deeds of release with past and present shareholders and directors. The company also seeks to lawfully transfer shares involved in the buybacks from its brokers.

The most recent analyst rating on (GB:STEM) stock is a Buy with a £390.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Business Operations and Strategy
SThree plc Executives Participate in Share Incentive Plans
Neutral
Aug 26, 2025

SThree plc has announced transactions involving its senior executives, Andrew Beach and Timo Lehne, who have purchased partnership shares and received matching shares under the company’s share incentive plans. These transactions, conducted on the London Stock Exchange, reflect the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £234.00 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Regulatory Filings and Compliance
SThree plc Announces Total Voting Rights Update
Neutral
Aug 1, 2025

SThree plc has announced the total number of voting rights in the company as of July 31, 2025, which stands at 127,791,756. This disclosure is in accordance with the Financial Conduct Authority’s rules and is crucial for shareholders to determine their notification requirements regarding their interests in the company.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £4.28 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Executive/Board Changes
SThree plc Announces CEO’s Conditional Award Vesting
Neutral
Jul 30, 2025

SThree plc announced the vesting of a conditional award to CEO Timo Lehne under the company’s Long Term Incentive Plan, which vested at 16.2% of the maximum based on performance measures. The transaction involved the sale of shares to cover tax liabilities, with the remaining shares retained, reflecting the company’s ongoing commitment to aligning executive incentives with performance metrics.

The most recent analyst rating on (GB:STEM) stock is a Hold with a £4.28 price target. To see the full list of analyst forecasts on SThree plc stock, see the GB:STEM Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025