SThree plc AI Stock Analysis
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SThree plc (STEM) AI Stock Analysis
SThree plc
(LSE:STEM)
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.
SThree plc (STEM) vs. iShares MSCI United Kingdom ETF (EWC)
- 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
58NeutralBalance Sheet
63PositiveCash Flow
72Positive| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.25B | 1.30B | 1.49B | 1.66B | 1.64B | 1.33B |
| Gross Profit | 285.04M | 305.02M | 369.08M | 418.77M | 411.71M | 338.00M |
| EBITDA | 39.22M | 45.28M | 84.34M | 94.53M | 96.59M | 78.74M |
| Net Income | 13.04M | 17.67M | 49.69M | 56.05M | 54.20M | 41.98M |
Balance Sheet | ||||||
| Total Assets | 422.92M | 483.40M | 506.73M | 472.30M | 470.44M | 400.63M |
| Cash, Cash Equivalents and Short-Term Investments | 42.98M | 67.96M | 69.76M | 83.20M | 65.81M | 57.53M |
| Total Debt | 49.01M | 84.45M | 39.87M | 29.02M | 34.13M | 35.09M |
| Total Liabilities | 212.15M | 248.31M | 258.08M | 249.42M | 270.05M | 242.48M |
| Stockholders Equity | 210.77M | 235.10M | 248.64M | 222.88M | 200.39M | 158.15M |
Cash Flow | ||||||
| Free Cash Flow | 39.34M | 56.21M | 32.85M | 67.83M | 41.26M | 34.27M |
| Operating Cash Flow | 42.34M | 59.60M | 39.68M | 76.04M | 44.93M | 36.92M |
| 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
Price Trends
Market Momentum
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
GB:RTC70Outperform
GB:GATC68Neutral
GB:STEM65Neutral
GB:HAS59Neutral
GB:PAGE53Neutral
GB:RWA53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 70Outperform | GBP 11.61M | 8.13 | 17.93% | 7.06% | -3.65% | -15.04% | |
| 68Neutral | GBP 48.56M | 11.92 | 12.79% | 2.16% | 11.12% | 82.23% | |
| 65Neutral | GBP 354.16M | 28.93 | 5.85% | 4.86% | -9.15% | -53.32% | |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| 59Neutral | GBP 896.93M | -15.35 | -13.31% | 0.77% | -2.81% | -657.14% | |
| 53Neutral | GBP 648.07M | 52.35 | 5.95% | 2.28% | -2.55% | 7.92% | |
| 53Neutral | GBP 89.78M | -3.79 | -25.40% | ― | -2.82% | -66.89% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:STEM | SThree plc | 294.50 | 144.31 | 96.08% | |
| GB:GATC | Gattaca plc | 154.00 | 63.59 | 70.33% | |
| GB:HAS | Hays plc | 56.95 | -2.35 | -3.97% | |
| GB:PAGE | Michael Page Plc | 205.20 | -28.05 | -12.03% | |
| GB:RWA | Robert Walters | 136.50 | -3.50 | -2.50% | |
| GB:RTC | RTC Group plc | 95.00 | 5.86 | 6.57% |
SThree plc Corporate Events
SThree Confirms Highly Conditional Takeover Approach From Circle8
NeutralSThree 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...
SThree Cancels Newly Repurchased Shares in Ongoing Buyback Programme
PositiveSThree 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...
SThree Updates Market on Total Voting Rights and Share Capital
NeutralSThree 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...
SThree Admits New Shares Under Employee SAYE Scheme
NeutralSThree 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...
SThree cancels shares after latest London buyback
PositiveSThree 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...
SThree Cancels Newly Repurchased Shares in Capital Management Move
PositiveSThree 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...
SThree Continues Share Buyback, Plans Cancellation of Repurchased Stock
PositiveSThree 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...
SThree CEO acquires shares under global employee equity plan
PositiveSThree 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...
SThree Cancels Shares After Targeted Buyback Programme
PositiveSThree 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...
SThree Updates Market on Total Voting Rights
NeutralSThree 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...
SThree cancels newly repurchased shares in latest buyback move
PositiveSThree 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...
SThree leans on U.S. growth and cost controls as profits slide
NeutralSThree 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...
SThree Cancels Shares After London Buyback Programme
PositiveSThree 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...
SThree Corrects Data in Share Buyback Notice and Confirms Cancellation of Purchased Shares
PositiveSThree 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...
SThree CEO Increases Shareholding Through Global Employee Plan
PositiveSThree 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...
SThree Moves to Cancel Latest Tranche of Share Buybacks
PositiveSThree 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...
SThree Reduces Share Capital with Further Buyback and Cancellation
PositiveSThree 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...
SThree Updates Market on Total Voting Rights and Share Capital
NeutralSThree 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...
SThree cancels shares after latest buyback on London market
PositiveSThree 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...
SThree Buys Back and Cancels 250,560 Shares in Capital Management Move
PositiveSThree 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...
SThree Executives Increase Holdings Through Dividend Reinvestment
PositiveSThree 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...
SThree Holds FY26 Guidance as U.S. Growth and Cost Cuts Ease Fee Decline
PositiveSThree 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...
SThree Extends Chair’s Tenure to Oversee CFO Appointment
PositiveSThree 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...
SThree Executives Increase Stakes Through Global All Employee Share Plan
PositiveSThree 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...
SThree Launches Share Buyback and Plans Cancellation of Repurchased Stock
PositiveSThree 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...
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
