olivLaw · European equity research
SThree plc STEM.L
United Kingdom · London Stock Exchange · ISIN GB00B0KM9T71 · Vertical: Listed companies from United Kingdom
SThree plc is a global STEM recruitment firm (technology, engineering and life sciences) that earns net fees from contract and permanent placements. In fiscal 2025 net fees fell 12% in a weak market, and the company watches whether demand recovers, which remained uncertain in Europe.
At the close of 05 Nov 2026, SThree plc (STEM.L) stock was 3.01 GBP (+0.00% on the day), with market capitalisation 388.3 m GBP, P/E 22.1 on diluted EPS of 0.14 GBP over the last 12 months, dividend yield 4.77%, beta 0.66, 52-week range 1.46–3.20 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 49.0
- neutral
- Bollinger (20, 2)
- 2.92 – 3.20
- in the lower half of the band · %B 0.32 · band width 9.3%
- SMA 50 / 200
- 3.00 / 2.16
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.00 / 0.02
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.6% | −0.6% | +3.2 pp | — |
| 3 months | +10.9% | −4.2% | +15.0 pp | — |
| 6 months | +64.7% | +4.3% | +60.3 pp | — |
| Year to date | +57.6% | +7.5% | +50.1 pp | — |
| 1 year | +90.0% | +9.9% | +80.1 pp | +5.8% |
| 3 years | −20.2% | +49.8% | −70.0 pp | +26.3% |
| 5 years | −47.5% | +42.8% | −90.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 9.6, median 9.7, max 12.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | unavailable | 1.7 bn | 1.5 bn | 1.3 bn |
| Revenue YoY | unavailable | unavailable | −10.2% | −12.8% |
| Net income | unavailable | 56.1 m | 49.7 m | 17.7 m |
| Net income YoY | unavailable | unavailable | −11.3% | −64.4% |
| Diluted EPS | unavailable | 0.42 | 0.37 | 0.14 |
| Diluted EPS YoY | unavailable | unavailable | −10.6% | −63.3% |
| net % | unavailable | 3.4% | 3.3% | 1.4% |
| Free cash flow | unavailable | 67.7 m | 32.8 m | 58.3 m |
Balance sheet & financial health
Fiscal year 2025 · 30 Nov 2025
- Cash
- 68.0 m GBP
- Financial debt
- 0 GBP
- Net debt
- -68.0 m GBP
- Equity
- 235.1 m GBP
- Total assets
- 483.4 m GBP
- Debt / equity
- 0.00x
- Current ratio
- 1.97x
- ROE
- 7.3%
- ROA
- 3.6%
- FCF margin
- 4.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | — | 1.7 bn | 1.5 bn | 1.3 bn | esef· 10 Mar 2026verified |
| Cost of revenue | — | 1.2 bn | 1.1 bn | 979.5 m | esef· 10 Mar 2026verified |
| Gross profit | — | 418.8 m | 369.1 m | 322.7 m | esef· 10 Mar 2026verified |
| Operating income | — | 76.4 m | 66.2 m | 26.1 m | esef· 10 Mar 2026verified |
| Interest expense | — | 698.0 k | 1.4 m | 2.1 m | esef· 10 Mar 2026verified |
| Pre-tax income | — | 77.9 m | 67.6 m | 25.5 m | esef· 10 Mar 2026verified |
| Income tax | — | 21.9 m | 17.9 m | 7.9 m | esef· 10 Mar 2026verified |
| Net income | — | 56.1 m | 49.7 m | 17.7 m | esef· 10 Mar 2026verified |
| Diluted EPS | — | 0.42 | 0.37 | 0.14 | esef· 10 Mar 2026verified |
| Dividend per share | 0.11 | 0.12 | 0.09 | 0.14 | esef· 10 Mar 2026derived |
Balance sheet · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | — | 83.2 m | 69.8 m | 68.0 m | esef· 10 Mar 2026verified |
| Receivables | — | 345.1 m | 364.9 m | 330.9 m | esef· 10 Mar 2026verified |
| Current assets | — | 428.3 m | 445.0 m | 410.1 m | esef· 10 Mar 2026verified |
| Property, plant & equipment, net | — | 31.1 m | 46.2 m | — | esef· 06 Mar 2025verified |
| Total assets | — | 472.3 m | 506.7 m | 483.4 m | esef· 10 Mar 2026verified |
| Accounts payable | — | 200.1 m | 198.2 m | 182.9 m | esef· 10 Mar 2026verified |
| Short-term debt | — | 0 | 88.0 k | 0 | esef· 10 Mar 2026verified |
| Current liabilities | — | 229.5 m | 225.1 m | 207.9 m | esef· 10 Mar 2026verified |
| Total liabilities | — | 249.4 m | 258.1 m | 248.3 m | esef· 10 Mar 2026verified |
| Equity | 200.4 m | 222.9 m | 248.6 m | 235.1 m | esef· 10 Mar 2026verified |
| Shares outstanding at year end | — | 132.2 m | 132.9 m | 129.0 m | esef· 10 Mar 2026derived |
Cash flow · GBP
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | — | 69.7 m | 39.7 m | 61.7 m | esef· 10 Mar 2026verified |
| Capex | — | 2.0 m | 6.8 m | 3.4 m | esef· 10 Mar 2026verified |
| Free cash flow | — | 67.7 m ≈ | 32.8 m ≈ | 58.3 m ≈ | esef· 10 Mar 2026derived |
| Investing cash flow | — | -8.2 m | -13.2 m | -8.6 m | esef· 10 Mar 2026verified |
| Financing cash flow | — | -45.8 m | -39.9 m | -54.6 m | esef· 10 Mar 2026verified |
| Dividends paid | — | 21.0 m | 15.9 m | 18.5 m | esef· 10 Mar 2026verified |
| Share repurchases | — | 10.0 m | 10.0 m | 1.2 m | esef· 10 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 69 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 388.3 m GBP
Key indicators
Coverage and freshness
Score by group
- Quality55
- Returns84
- Balance sheet99
- Valuation60
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 69/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.5% | 46 (vs peers) | 17% |
| Net margin · Quality | 1.4% | 26 (vs peers) | 10% |
| FCF conversion · Quality | 329.8% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 12.6x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 2.0x | 98 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 22.1x | 28 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 15.0% | 100 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 5.1% | 73 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 31.8% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet99/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality55/100 · 3/3 factors with a value
- Returns84/100 · 2/2 factors with a value
- Valuation60/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
STHREE PLC (STEM.L). Latest full fiscal year: 2025; data up to 2025-11-30.
Figures computed from the financial statements: revenue 1.3 bn GBP in 2025; YoY growth -12.8%; net margin 1.4%; ROE 7.3%.
The estimated value range is 1.54–2.37 GBP per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 1.96 GBP, the price of 3.01 GBP leaves a potential of -34.8% (value / price − 1) and a margin of safety of -53.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 69/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 329.8%
- Interest coverage: 12.6x
- Current ratio: 2.0x
- FCF yield: 15.0%
- Shareholder yield (distributions): 5.1%
- Payout ratio (FCF): 31.8%
What contradicts it
- Net margin: 1.4%
- P/E (TTM): 22.1x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| STEM.LSthree PLC | 388.3 m | 22.1 | 7.3% | 1.4% | −12.8% | +81% / −25% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for STEM.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 1.62 Total return -43% · Per year -43% | 2.88 Total return 0% · Per year 0% | 4.36 Total return 50% · Per year 50% |
| 3 years | 1.29 Total return -49% · Per year -20% | 2.60 Total return -1% · Per year -0% | 4.36 Total return 61% · Per year 17% |
| 5 years | 1.02 Total return -53% · Per year -14% | 2.35 Total return -2% · Per year -1% | 4.36 Total return 71% · Per year 11% |
- Exit P/E± 0.65
- Net margin± 0.45
- Annual revenue growth± 0.41
- Annual dilution± 0.04
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
SThree plc is a global STEM recruitment firm (technology, engineering and life sciences) that earns net fees from contract and permanent placements. In fiscal 2025 net fees fell 12% in a weak market, and the company watches whether demand recovers, which remained uncertain in Europe 1.
SWOT
Strengths
- The company has a global network of consultants specialised in STEM fields and a presence in several countries 1.
- A high share of contracts gives visibility and more predictable revenue than one-off placements 1.
- A unified digital platform and common processes can support operational efficiency and client service 1.
Weaknesses
Opportunities
- A possible return of client confidence, especially in the United States and Europe, could restart new orders 1.
- Megatrends such as digitalisation and the energy transition can create new demand for STEM specialists 1.
- Expanding consultancy and project-team services could deepen relationships with large clients 1.
Risks
- Weak demand for new ordershigh
If client confidence stays low, new orders could remain weaker than the company expects, hitting fee income 1.
- Reduced operating profitabilityhigh
The fall in revenue cut the operating margin, and a slow recovery could keep pressure on profitability 1.
- Exposure to contractorsmedium
A high share of contractors makes revenue sensitive to short-term demand changes and contract renewals 1.
- Dependence on scarce talentmedium
A shrinking STEM talent pool could make it harder to meet client demand, which could affect growth 1.
- Employee moralelow
A lower eNPS score could affect staff retention and service quality if the trend persists 1.
Investment thesis
What would need to be true (bull case)
- If demand for STEM talent returns in key markets, the contract-based model could produce rapid fee growth on an established client base 1.
- Digitalisation and the energy transition create long-term structural demand for STEM specialists, which the global network can serve 1.
- The digital infrastructure and lower cost base could support a margin recovery if business volume rises 1.
What would break the thesis
- If macroeconomic uncertainty persists, new orders could stay weak, and revenue and profitability could keep falling 1.
- The decline in earnings per share and operating margin shows the company's sensitivity to the market cycle 1.
- Low employee morale and competitive pressure could affect talent retention and the ability to win new clients 1.
What to watch
- Trend in new orders in Europe and the United StatesQ1 2027
- Operating profit conversion ratio against the medium-term target2027
- Share of contracts in net feesnext 10-K
- eNPS score and employee retention2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
SThree operates through networks of consultants specialised in STEM fields, with approximately 2,400 employees worldwide 1. It earns net fees, the mark-up on time worked by contractors plus placement fees for permanent candidates 1. Its strategy emphasises contracts, which the source says give better fee visibility and higher lifetime value than permanent placements 1.
Revenue is heavily tied to contractors: in fiscal 2025, Independent Contractors made up 43% of net fees, Employed Contractors 41%, and Permanent placements 16% 1. The company operates through sector brands such as Real for science, Computer Futures for technology and Progressive for engineering 1.
The company reports it placed 12,042 candidates in fiscal 2025 and worked with about 6,000 clients worldwide 1. Its operating profit conversion ratio fell to 8.1% in fiscal 2025, reflecting weaker new business, particularly in Technology and Life Sciences 1.
Segments
Technology (Computer Futures, Global Enterprise Partners)
Technology accounted for 30% of net fees in fiscal 2025, up from 29% in fiscal 2024, according to the source 1. The segment was affected by lower new business, though it remains a major part of the portfolio 1.
Market context
The STEM market is supported by megatrends such as digitalisation, demographic change and the shift to a low-carbon economy, which raise demand for specialists 1. However, client confidence has been hit by macroeconomic and geopolitical uncertainty, and a broader recovery has yet to materialise, particularly in Europe 1.
The company points to the United States as a market showing encouraging recent new business at the close of fiscal 2025 1. If the recovery extends to Europe, it could support fee growth, though the source gives no quantitative forecast 1.
Trends
- Weaker demand for recruitmentheadwind
Macroeconomic and geopolitical uncertainty reduced client confidence, leading to fewer new orders in both contract and permanent placements 1. The effect is negative for near-term revenue.
- Contract extensionsmixed
Clients extended contracts to retain scarce STEM skills, which supported fees in a weak period 1. This can provide visibility, although it does not fully offset the decline in new orders.
- Shortage of STEM talenttailwind
An ageing population and scarce STEM talent increase the need for strong relationships with the candidate pool, which can favour firms with established networks 1. This factor could support long-term activity.
- Flexible and remote workmixed
Flexible working models increase the number of contractors moving between assignments, favouring the contract-based model 1. The same flexibility may reduce permanent placements, which remain a smaller part of revenue 1.
Competitive position
The STEM recruitment market is competitive, and the source says SThree aims to differentiate from more transactional competitors through consultancy services and full project delivery 1. The company says it outperforms key competitors in difficult conditions but does not name them 1.
Differentiation through consultancy services and project teams could help the company keep large clients, while price pressure in the market remains a risk factor 1.
- Regional STEM recruitment firms
The source does not name competitors; the company refers only to more transactional rivals and its local peer group 1.
- Technical consultancy providers
Rivals offering consultancy and project services, which SThree aims to outpace through its wider offer 1.
- Transactional recruitment agencies
Firms focused on simple placements, from which the company distinguishes itself through long-term client relationships 1.
- Technology professional services firms
Competitors drawing on the same STEM talent pool and corporate clients 1.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202510 Mar 2026
- Annual report 202510 Mar 2026
- Annual report 202406 Mar 2025
Sources
- [1] Annual report, fiscal year ended 2025-11-30 (ESEF) · SEC / SThree plc · 30 Nov 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.