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SThree plc (STEM) AI Stock Analysis

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GB:STEM

SThree plc

(LSE:STEM)

Select Model
Rating:65Neutral
Price Target:GBX 326.00â–²(10.70% Upside)
Action:reiterated
Date:09/10/26

The score is driven primarily by solid cash-flow resilience and a still-manageable balance sheet, offset by a clear cyclical downturn in revenue and margins. Technicals add support via a strong multi-timeframe uptrend, while valuation is constrained by a high P/E despite an attractive dividend yield.

Positive Factors
Strong cash generationRobust free cash flow despite much lower reported earnings demonstrates useful cash conversion and supports financial resilience through the cycle. Positive operating cash flow in every year shown also gives SThree capacity to fund operations and meet obligations internally.
Negative Factors
Recent revenue contractionRevenue deterioration across the latest periods indicates weaker client demand or activity across SThree’s specialist staffing markets. A sustained top-line decline can reduce recruiter productivity, limit operating leverage and make recovery dependent on a broader improvement in STEM hiring conditions.

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

-25%0%25%50%75%100%125%GB:STEM+93.03%EWC+18.10%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
GBP 354.40M
Dividend Yield
4.86%
Average Volume (3M)
308.11K
Price to Earnings (P/E)
28.9
Beta (1Y)
1.07
Revenue Growth
-9.15%
EPS Growth
-53.32%
Country
UK
Employees
1,807
Sector
Industrials
Sector Strength
63
Industry
Staffing & Employment Services

SThree plc Business Overview & Revenue Model

Company Description

SThree plc is a global recruitment consultancy that delivers specialized permanent and contract staffing services for a wide array of sectors, including technology, engineering, life sciences, and banking and finance. The company's service offerings...

How the Company Makes Money

SThree makes money primarily by acting as an intermediary between employers that need STEM talent and candidates/contractors who provide that talent. Its key revenue streams are: (1) Contract (temporary) staffing: when SThree places a contractor with...

SThree plc Financial Statement Overview

Summary

Financials are mixed: cash flow is a clear strength (2025 FCF ~£56m and strong conversion vs. net income), and the balance sheet remains serviceable despite higher leverage (debt ~0.36x equity). However, performance has weakened materially with revenue down (~5.5% in 2025) and profitability compressed (net margin ~1.4% vs. ~3.3% in 2022–2024), driving a sharp drop in ROE (~7.5%).

Income Statement

58Neutral

Balance Sheet

63Positive

Cash Flow

72Positive
Financial statement breakdown
BreakdownTTMNov 2025Nov 2024Nov 2023Nov 2022Nov 2021
Income Statement
Total Revenue1.25B1.30B1.49B1.66B1.64B1.33B
Gross Profit285.04M305.02M369.08M418.77M411.71M338.00M
EBITDA39.22M45.28M84.34M94.53M96.59M78.74M
Net Income13.04M17.67M49.69M56.05M54.20M41.98M
Balance Sheet
Total Assets422.92M483.40M506.73M472.30M470.44M400.63M
Cash, Cash Equivalents and Short-Term Investments42.98M67.96M69.76M83.20M65.81M57.53M
Total Debt49.01M84.45M39.87M29.02M34.13M35.09M
Total Liabilities212.15M248.31M258.08M249.42M270.05M242.48M
Stockholders Equity210.77M235.10M248.64M222.88M200.39M158.15M
Cash Flow
Free Cash Flow39.34M56.21M32.85M67.83M41.26M34.27M
Operating Cash Flow42.34M59.60M39.68M76.04M44.93M36.92M
Investing Cash Flow-8.25M-8.63M-13.17M-8.21M-3.67M-2.65M
Financing Cash Flow-38.82M-52.49M-39.92M-52.15M-38.54M-24.97M

SThree plc Technical Analysis

Technical Analysis SentimentNeutral
Last Price294.50

Price Trends

50DMA300.18Negative
100DMA267.31Positive
200DMA213.80Positive

Market Momentum

MACD-1.30Positive
RSI45.38Neutral
STOCH24.77Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STEM, the sentiment is Neutral. The current price of 294.50 is below the 20-day moving average (MA) of 304.15, below the 50-day MA of 300.18, and above the 200-day MA of 213.80, indicating a neutral trend. The MACD of -1.30 indicates Positive momentum. The RSI at 45.38 is Neutral, neither overbought nor oversold. The STOCH value of 24.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:STEM.

SThree plc Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

GB:STEM against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:RTCGB:RTC70OutperformGBP 11.61M8.1317.93%7.06%-3.65%-15.04%
GB:GATCGB:GATC68NeutralGBP 48.56M11.9212.79%2.16%11.12%82.23%
GB:STEMGB:STEM65NeutralGBP 354.16M28.935.85%4.86%-9.15%-53.32%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
GB:HASGB:HAS59NeutralGBP 896.93M-15.35-13.31%0.77%-2.81%-657.14%
GB:PAGEGB:PAGE53NeutralGBP 648.07M52.355.95%2.28%-2.55%7.92%
GB:RWAGB:RWA53NeutralGBP 89.78M-3.79-25.40%―-2.82%-66.89%

* Industrials Sector Average

Performance Comparison

-50%0%50%100%GB:STEMGB:GATCGB:HASGB:PAGEGB:RWAGB:RTCDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
GB:STEM and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:STEMSThree plc294.50144.3196.08%
GB:GATCGattaca plc154.0063.5970.33%
GB:HASHays plc56.95-2.35-3.97%
GB:PAGEMichael Page Plc205.20-28.05-12.03%
GB:RWARobert Walters136.50-3.50-2.50%
GB:RTCRTC Group plc95.005.866.57%

SThree plc Corporate Events

M&A TransactionsRegulatory Filings and Compliance

SThree Confirms Highly Conditional Takeover Approach From Circle8

Neutral
Sep 9, 2026

SThree plc has confirmed that it received an unsolicited, preliminary and highly conditional approach from Circle8 Group Inc. regarding a possible takeover offer for the entire issued and to be issued share capital of the company. The approach follow...

Business Operations and StrategyStock Buyback

SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme

Positive
Sep 4, 2026

SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 27 August and 3 September 2026, with daily volumes ranging from just over 10,000 to nearly 17,000 shares at volume-weighted average prices around 286p...

Regulatory Filings and Compliance

SThree Updates Market on Total Voting Rights and Share Capital

Neutral
Sep 1, 2026

SThree plc has reported that as of 31 August 2026 its issued share capital comprised 122,192,091 ordinary shares of 1 pence each, with 35,767 of those shares held in treasury. After accounting for treasury holdings, the company confirmed that the tot...

Private Placements and FinancingRegulatory Filings and Compliance

SThree Admits New Shares Under Employee SAYE Scheme

Neutral
Sep 1, 2026

SThree plc has issued 2,153 new ordinary shares of 1p each, which have been admitted to trading on the London Stock Exchange’s Main Market and are fully fungible with its existing shares. Following this small issuance, the company’s total number of o...

Business Operations and StrategyStock Buyback

SThree cancels shares after latest London buyback

Positive
Aug 28, 2026

SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 20 and 26 August 2026, executing the trades via Investec Bank. The buyback covered tens of thousands of shares at volume-weighted average prices aroun...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

SThree Cancels Newly Repurchased Shares in Capital Management Move

Positive
Aug 21, 2026

SThree plc has repurchased a total of 83,808 ordinary shares of 1 pence each on the London Stock Exchange between 13 and 19 August 2026, at volume-weighted average prices ranging from about 285p to 296p. The buyback was executed through Investec Bank...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

SThree Continues Share Buyback, Plans Cancellation of Repurchased Stock

Positive
Aug 14, 2026

SThree plc has continued its share buyback activity, purchasing a total of 57,363 ordinary shares between 6 and 12 August 2026 on the London Stock Exchange at volume-weighted average prices ranging from about 270 pence to 288 pence. The company has s...

Regulatory Filings and Compliance

SThree CEO acquires shares under global employee equity plan

Positive
Aug 13, 2026

SThree plc has disclosed a routine share transaction involving its chief executive officer, Timo Lehne, under market abuse regulation requirements. Lehne acquired partnership shares and received matching shares in the company under SThree’s Global Al...

Business Operations and StrategyStock Buyback

SThree Cancels Shares After Targeted Buyback Programme

Positive
Aug 7, 2026

SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 30 July and 5 August 2026 through Investec Bank, at volume-weighted average prices ranging from about 257 pence to nearly 271 pence per share. The com...

Regulatory Filings and Compliance

SThree Updates Market on Total Voting Rights

Neutral
Aug 3, 2026

SThree plc has confirmed that its issued share capital as of 31 July 2026 comprised 122,475,237 ordinary shares of 1 pence each, with 35,767 of these held in treasury. This leaves a total of 122,439,470 voting rights, which shareholders must use as t...

Business Operations and StrategyStock Buyback

SThree cancels newly repurchased shares in latest buyback move

Positive
Jul 24, 2026

SThree plc has repurchased 28,972 of its own ordinary shares on 21 July 2026 on the London Stock Exchange at a volume-weighted average price of 211.2587 pence. The company intends to cancel these shares, effectively reducing its share capital and pot...

Business Operations and StrategyDividendsFinancial Disclosures

SThree leans on U.S. growth and cost controls as profits slide

Neutral
Jul 21, 2026

SThree reported half‑year FY26 net fees of £147.7 million, down seven per cent year on year, with revenue and profits also lower amid softer conditions in key European markets. Strong growth in the U.S. and Japan, resilient contract extensions and a...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

SThree Cancels Shares After London Buyback Programme

Positive
Jul 17, 2026

SThree plc has executed a share buyback, purchasing its own ordinary shares on the London Stock Exchange between 9 July and 15 July 2026 via Investec Bank, at volume-weighted average prices around 161–168 pence and aggregated volumes in the tens of t...

Business Operations and StrategyStock BuybackRegulatory Filings and Compliance

SThree Corrects Data in Share Buyback Notice and Confirms Cancellation of Purchased Shares

Positive
Jul 16, 2026

SThree plc corrected a previous announcement to clarify that the volume-weighted average price and aggregated volume figures in its recent share buyback disclosure had been mistakenly transposed, while confirming all other details were accurate. The...

Business Operations and StrategyRegulatory Filings and Compliance

SThree CEO Increases Shareholding Through Global Employee Plan

Positive
Jul 14, 2026

SThree plc has disclosed a transaction involving its director and chief executive officer, Timo Lehne, in line with Market Abuse Regulation requirements. Lehne purchased partnership shares and received matching shares in the company under SThree’s Gl...

Business Operations and StrategyStock Buyback

SThree Moves to Cancel Latest Tranche of Share Buybacks

Positive
Jul 10, 2026

SThree plc has continued its share buyback activity, repurchasing a series of ordinary shares of 1 pence each on the London Stock Exchange between 2 and 8 July 2026 through Investec Bank. The trades were executed at volume-weighted average prices in...

Business Operations and StrategyStock Buyback

SThree Reduces Share Capital with Further Buyback and Cancellation

Positive
Jul 3, 2026

SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 25 June and 1 July 2026, executing the trades via Investec Bank plc at volume-weighted average prices in the mid-150p to around 160p range. The compan...

Regulatory Filings and Compliance

SThree Updates Market on Total Voting Rights and Share Capital

Neutral
Jul 1, 2026

SThree plc has reported that its issued share capital as of 30 June 2026 comprises 122,798,077 ordinary shares of 1 pence each, with 35,767 of those shares held in treasury and therefore not carrying voting rights. This leaves a total of 122,762,310...

Business Operations and StrategyStock Buyback

SThree cancels shares after latest buyback on London market

Positive
Jun 26, 2026

SThree plc has repurchased a total of ordinary shares between 18 and 24 June 2026 on the London Stock Exchange through Investec Bank, at volume-weighted average prices ranging from about 156p to 167p. The company has stated that it intends to cancel...

Business Operations and StrategyStock Buyback

SThree Buys Back and Cancels 250,560 Shares in Capital Management Move

Positive
Jun 19, 2026

SThree plc has repurchased a total of 250,560 of its ordinary shares between 11 and 17 June 2026 on the London Stock Exchange, at volume-weighted average prices ranging from about 166 pence to 171 pence. The shares were bought through Investec Bank a...

Dividends

SThree Executives Increase Holdings Through Dividend Reinvestment

Positive
Jun 16, 2026

SThree plc disclosed that Chief Executive Officer Timo Lehne and Interim Chief Financial Officer Damian Fehrenberg have acquired additional ordinary shares in the company through the automatic reinvestment of dividends. The transactions, executed via...

Business Operations and StrategyStock BuybackFinancial Disclosures

SThree Holds FY26 Guidance as U.S. Growth and Cost Cuts Ease Fee Decline

Positive
Jun 16, 2026

SThree reported a 7% year-on-year decline in first-half net fees to £147.7 million, with contract and permanent fees both lower but the rate of decline easing as the period progressed, helped by strong growth in the U.S. and Japan. The group highligh...

Business Operations and StrategyExecutive/Board Changes

SThree Extends Chair’s Tenure to Oversee CFO Appointment

Positive
Jun 15, 2026

SThree plc has extended the tenure of its Chair, James Bilefield, by seven months to April 2027 following consultation with shareholders. The move is intended to give Bilefield, as Chair of the Nomination Committee, sufficient time to oversee the rec...

Other

SThree Executives Increase Stakes Through Global All Employee Share Plan

Positive
Jun 15, 2026

SThree plc has disclosed share transactions by its Chief Executive Officer, Timo Lehne, and Interim Chief Financial Officer, Damian Fehrenberg, under the company’s Global All Employee Plan. Both executives purchased ordinary partnership shares on the...

Business Operations and StrategyStock Buyback

SThree Launches Share Buyback and Plans Cancellation of Repurchased Stock

Positive
Jun 12, 2026

SThree plc has repurchased a series of its own ordinary shares on the London Stock Exchange between 4 and 10 June 2026, executing transactions at volume‑weighted average prices in the high‑160p to low‑170p range. The company intends to cancel these s...

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: Sep 10, 2026