SThree Plc (STEM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Norman Broadbent Plc

Staffline Group Plc

Rtc Group Plc

SThree Plc

Gattaca Plc

Impellam Group Plc

PageGroup Plc

Empresaria Group Plc

Hays plc

Robert Walters Plc

Why is SThree Plc ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 23.67%

Healthy long term growth as Net Sales has grown by an annual rate of 1.60%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 60.21

Negative results in Nov 25

PRE-TAX PROFIT(Q) At GBP 15.42 MM has Fallen at -46.03%
NET PROFIT(Q) At GBP 10.44 MM has Fallen at -51.49%
OPERATING CASH FLOW(Y) Lowest at GBP 97.84 MM

With ROE of 7.51%, it has a very attractive valuation with a 0.95 Price to Book Value

Over the past year, while the stock has generated a return of -43.00%, its profits have fallen by -64.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -43.00% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SThree Plc should be less than 10%
Overall Portfolio exposure to Diversified Commercial Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified Commercial Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SThree Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SThree Plc

-44.81%

-1.58

39.83%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.60%

EBIT Growth (5y)

-6.67%

EBIT to Interest (avg)

60.21

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

7.08

Tax Ratio

26.53%

Dividend Payout Ratio

104.38%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

48.60%

ROE (avg)

23.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.95

EV to EBIT

6.19

EV to EBITDA

3.73

EV to Capital Employed

0.94

EV to Sales

0.13

PEG Ratio

Dividend Yield

858.94%

ROCE (Latest)

15.15%

ROE (Latest)

7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 111.79%

-12What is not working for the Company

PRE-TAX PROFIT(Q)

At GBP 15.42 MM has Fallen at -46.03%

NET PROFIT(Q)

At GBP 10.44 MM has Fallen at -51.49%

OPERATING CASH FLOW(Y)

Lowest at GBP 97.84 MM

ROCE(HY)

Lowest at 7.31%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.68 times

INTEREST(Q)

Highest at GBP 1.15 MM

Here's what is working for SThree Plc

Dividend Payout Ratio

Highest at 111.79%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at GBP 9.34 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for SThree Plc

Pre-Tax Profit

At GBP 15.42 MM has Fallen at -46.03%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (GBP MM)

Net Profit

At GBP 10.44 MM has Fallen at -51.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Operating Cash Flow

Lowest at GBP 97.84 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Interest

Highest at GBP 1.15 MM

in the last five periods and Increased by 24.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debtors Turnover Ratio

Lowest at 3.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio