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Hays plc (GB:HAS)
:HAS

Hays plc (HAS) AI Stock Analysis

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GB

Hays plc

(LSE:HAS)

66Neutral
Hays plc is currently facing financial challenges with declining revenue and profitability, impacting its valuation negatively. However, technical indicators show a positive short-term trend, and a recent director's share purchase suggests confidence in the company's future prospects. While the financial situation is stable, investors should be cautious due to the profitability issues.

Hays plc (HAS) vs. S&P 500 (SPY)

Hays plc Business Overview & Revenue Model

Company DescriptionHays plc (HAS) is a leading global recruitment company, providing expert workforce solutions in a variety of sectors including accountancy, construction, engineering, technology, finance, and healthcare. The company operates in over 30 countries, connecting job seekers with employers and providing a wide range of recruitment services including temporary, permanent, and contract staffing solutions.
How the Company Makes MoneyHays plc generates its revenue primarily through fees charged for placement services. This includes both temporary and permanent recruitment, where the company earns a percentage of the salary or hourly wage of the candidates it places. Additionally, Hays benefits from ongoing contracts and consulting services, offering tailored workforce solutions to its clients. The company's earnings are significantly influenced by economic factors such as employment rates and industry demand, as well as its expansive network and strategic partnerships with businesses across the globe.

Hays plc Financial Statement Overview

Summary
Hays plc faces challenges with declining revenue and profitability, as shown by negative net profit and declining revenue growth rates. The balance sheet indicates moderate leverage but declining equity, while the cash flow statement reflects decreased free cash flow. Overall, the financial position is stable but shows signs of weakening, particularly in profitability and cash flow generation.
Income Statement
58
Neutral
Hays plc has experienced a decline in revenue from 2023 to 2024, with a decrease from 7.58 billion to 6.95 billion, resulting in a negative revenue growth rate of -8.39%. The gross profit margin stands at 16.02%, while the net profit margin is negative at -0.07%, indicating challenges in profitability. Both EBIT and EBITDA margins have decreased significantly compared to the previous year, highlighting reduced operational efficiency.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is 0.44, suggesting a moderate level of leverage. The return on equity is negative at -0.88%, reflecting a decline in profitability. The equity ratio is 31.36%, indicating a reasonable proportion of the company's assets are financed by equity. However, the decrease in stockholders' equity from the previous year is a concern.
Cash Flow
72
Positive
Free cash flow has decreased from 134.9 million to 72.4 million, resulting in a negative free cash flow growth rate of -46.33%. The operating cash flow to net income ratio is negative due to the negative net income, which raises concerns about cash generation relative to profitability. However, the company still maintains positive operating cash flow.
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
6.95B7.58B6.59B5.65B5.93B
Gross Profit
1.11B206.10M221.80M96.90M150.20M
EBIT
25.10M197.00M214.30M91.20M135.00M
EBITDA
94.50M266.90M273.50M162.20M156.50M
Net Income Common Stockholders
-4.90M138.30M154.20M61.50M47.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
121.80M145.60M296.20M410.60M484.50M
Total Assets
1.78B1.90B2.08B1.87B1.94B
Total Debt
244.30M199.80M185.10M201.10M228.70M
Net Debt
122.50M54.20M-111.10M-209.50M-255.80M
Total Liabilities
1.22B1.23B1.28B1.00B1.09B
Stockholders Equity
557.60M670.30M796.20M871.80M853.40M
Cash FlowFree Cash Flow
72.40M134.90M146.80M-13.70M327.00M
Operating Cash Flow
95.80M164.00M171.20M5.10M352.80M
Investing Cash Flow
-20.20M-30.10M-24.40M-18.80M-25.80M
Financing Cash Flow
-98.80M-280.70M-269.40M-56.40M28.30M

Hays plc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price65.00
Price Trends
50DMA
76.11
Negative
100DMA
76.35
Negative
200DMA
81.37
Negative
Market Momentum
MACD
1.79
Positive
RSI
48.97
Neutral
STOCH
6.92
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HAS, the sentiment is Negative. The current price of 65 is below the 20-day moving average (MA) of 79.95, below the 50-day MA of 76.11, and below the 200-day MA of 81.37, indicating a bearish trend. The MACD of 1.79 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 6.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:HAS.

Hays plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
£297.28M6.1621.08%7.25%-10.24%-11.60%
GBHAS
66
Neutral
£1.03B-2.60%4.62%-6.95%-117.14%
64
Neutral
£883.04M30.8610.00%6.64%-13.50%-63.64%
62
Neutral
$7.16B12.213.05%3.43%3.62%-14.48%
54
Neutral
£25.21M42.113.66%3.13%4.14%-45.24%
GBRWA
52
Neutral
£157.48M29.69-3.96%10.22%-16.16%-143.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HAS
Hays plc
69.30
-23.99
-25.72%
GB:RWA
Robert Walters
231.00
-151.68
-39.64%
GB:STEM
SThree plc
239.50
-178.27
-42.67%
GB:GATC
Gattaca
77.00
-25.11
-24.59%
GB:PAGE
PageGroup
256.80
-215.38
-45.61%

Hays plc Corporate Events

Regulatory Filings and Compliance
Hays plc Updates on Voting Rights and Share Capital
Neutral
Apr 1, 2025

Hays plc announced that as of March 31, 2025, its issued share capital consisted of 1,600,433,092 Ordinary shares, with 8,614,305 shares held in treasury, resulting in a total of 1,591,818,787 voting rights. This figure is significant for shareholders as it serves as the denominator for calculating their interest in the company’s share capital under the FCA’s Disclosure Guidance and Transparency Rules.

Executive/Board ChangesBusiness Operations and Strategy
Hays plc Grants Share Options to Executive Team Members
Neutral
Mar 27, 2025

Hays plc announced that two members of its Executive Leadership Team, Tim Fulton and Matthew Dickason, have been granted options over ordinary shares as part of the company’s International Sharesave Plan. This move reflects the company’s ongoing commitment to align the interests of its leadership with those of its shareholders, potentially impacting the company’s operational focus and stakeholder confidence.

Regulatory Filings and Compliance
Hays plc Updates Share Capital and Voting Rights
Neutral
Mar 3, 2025

Hays plc announced that as of February 28, 2025, its issued share capital consisted of 1,600,433,092 Ordinary shares, with 8,614,305 held in treasury, resulting in a total of 1,591,818,787 voting rights. This figure is significant for shareholders as it serves as the denominator for calculating their interests under the FCA’s Disclosure Guidance and Transparency Rules.

Other
Hays plc Director Purchases Shares, Signaling Confidence
Positive
Feb 25, 2025

Hays plc announced a transaction involving Joseph Hurd, a Non-Executive Director, who purchased ordinary shares of the company on the London Stock Exchange. This transaction reflects a potential vote of confidence in the company’s future prospects and may influence stakeholder perceptions positively.

DividendsBusiness Operations and StrategyFinancial Disclosures
Hays plc Reports Strategic Progress Amid First Half Challenges
Neutral
Feb 20, 2025

Hays plc reported a challenging first half of the fiscal year ending December 2024, with a significant decline in net fees and operating profit due to tough market conditions. Despite a decrease in net fees by 13% and a 56% decline in operating profit, the company made strategic progress through improved resource allocation and a 4% increase in consultant fee productivity. The company achieved £25 million in annual structural cost savings through operational restructuring, although it incurred a £9.9 million exceptional charge due to these actions. The company also refinanced its revolving credit facility and completed a full buy-in of its defined benefit pension, which is expected to enhance free cash flow from FY26. The Board proposed an unchanged interim dividend of 0.95 pence per share.

Hays plc Announces New Chair-Designate for Strategic Growth
Jan 16, 2025

Hays plc has announced the appointment of Michael Findlay as a Non-Executive Director and Chair-designate, replacing Andrew Martin who will retire after nearly 8 years on the Board. This leadership change signifies a strategic move for Hays as it continues to navigate significant industry shifts and aims to enhance value for stakeholders through experienced guidance in corporate broking and investment banking.

Hays plc Reports Decline in Quarterly Net Fees Amid Strategic Advancements
Jan 15, 2025

Hays plc reported a 12% decline in net fees on a like-for-like basis for the quarter ending December 2024. The company experienced stability in temporary and contracting roles, while permanent roles saw a decline, particularly in the EMEA, UK&I, and Germany. Despite challenging markets, Hays has made strategic advancements towards cost-saving initiatives and operational improvements, with consultant productivity increasing by 4% year-on-year. The company is positioning itself to capitalize on long-term growth markets and enhance profitability and resilience, expecting a positive impact from its defined benefit pension buy-in by FY26.

Hays plc Announces Leadership Transition with New Serco Appointment
Jan 13, 2025

Hays plc announced that its Non-Executive Director, Anthony Kirby, has been appointed as the Group Chief Executive Designate of Serco Group plc, effective from March 1, 2025. This strategic move highlights Hays’ influential role in the recruitment industry while indicating potential changes in its leadership dynamics and operational focus.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.