Market's view on SThree
Published on April 2024
- SThree’s full-year and half-year results presentations for 2023 were delivered by CEO Timo Lehne and CFO Andrew Beach, indicating resilient performance driven by the contract business.
- The company consistently provided quarterly trading updates throughout the year, remaining in line with market expectations as confirmed by various stock watchers.
- Despite macroeconomic challenges, SThree managed to maintain strong results and a healthy cash balance, as observed in the half-year trading update for 2023.
- Stock watchers have noted the company’s broad offering across different geographical locations and sectors, which adds to its attractiveness.
- There were mixed reactions to SThree’s trading updates; while some watchers expected better results, others found the outcomes as anticipated and reflected in the minimal change in share price.
- Concerns were raised about the company’s reliance on the stickability of their people and client relationships, highlighting the underlying risks despite seeming undervaluation.
- The potential for SThree to make acquisitions was discussed, pointing out specific companies as undervalued and suitable targets for SThree.
- The company’s inclusion in the 250 index was seen as beneficial, likely attracting tracker funds to hold the stock.
- SThree’s technology improvement programme was outlined in an investor briefing, suggesting ongoing efforts to enhance operational efficacy.