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SThree (SThree) ROE % : 26.93% (As of Nov. 2023)


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What is SThree ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. SThree's annualized net income for the quarter that ended in Nov. 2023 was $71 Mil. SThree's average Total Stockholders Equity over the quarter that ended in Nov. 2023 was $262 Mil. Therefore, SThree's annualized ROE % for the quarter that ended in Nov. 2023 was 26.93%.

The historical rank and industry rank for SThree's ROE % or its related term are showing as below:

STREF' s ROE % Range Over the Past 10 Years
Min: 13.82   Med: 33.13   Max: 48.15
Current: 27.07

During the past 13 years, SThree's highest ROE % was 48.15%. The lowest was 13.82%. And the median was 33.13%.

STREF's ROE % is ranked better than
88.08% of 1040 companies
in the Business Services industry
Industry Median: 8.71 vs STREF: 27.07

SThree ROE % Historical Data

The historical data trend for SThree's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

SThree ROE % Chart

SThree Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.81 13.98 29.55 28.38 27.22

SThree Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.91 36.79 22.93 28.68 26.93

Competitive Comparison of SThree's ROE %

For the Staffing & Employment Services subindustry, SThree's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


SThree's ROE % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, SThree's ROE % distribution charts can be found below:

* The bar in red indicates where SThree's ROE % falls into.



SThree ROE % Calculation

SThree's annualized ROE % for the fiscal year that ended in Nov. 2023 is calculated as

ROE %=Net Income (A: Nov. 2023 )/( (Total Stockholders Equity (A: Nov. 2022 )+Total Stockholders Equity (A: Nov. 2023 ))/ count )
=69.715/( (234.926+277.219)/ 2 )
=69.715/256.0725
=27.22 %

SThree's annualized ROE % for the quarter that ended in Nov. 2023 is calculated as

ROE %=Net Income (Q: Nov. 2023 )/( (Total Stockholders Equity (Q: May. 2023 )+Total Stockholders Equity (Q: Nov. 2023 ))/ count )
=70.588/( (247.036+277.219)/ 2 )
=70.588/262.1275
=26.93 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Nov. 2023) net income data. ROE % is displayed in the 30-year financial page.


SThree  (GREY:STREF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Nov. 2023 )
=Net Income/Total Stockholders Equity
=70.588/262.1275
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(70.588 / 2084.468)*(2084.468 / 566.282)*(566.282 / 262.1275)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.39 %*3.681*2.1603
=ROA %*Equity Multiplier
=12.48 %*2.1603
=26.93 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Nov. 2023 )
=Net Income/Total Stockholders Equity
=70.588/262.1275
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (70.588 / 98.07) * (98.07 / 110.402) * (110.402 / 2084.468) * (2084.468 / 566.282) * (566.282 / 262.1275)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7198 * 0.8883 * 5.3 % * 3.681 * 2.1603
=26.93 %

Note: The net income data used here is two times the semi-annual (Nov. 2023) net income data. The Revenue data used here is two times the semi-annual (Nov. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


SThree ROE % Related Terms

Thank you for viewing the detailed overview of SThree's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


SThree (SThree) Business Description

Traded in Other Exchanges
Address
75 King William Street, 1st Floor, London, GBR, EC4N 7BE
SThree PLC is involved in the staffing business. It provides contract and permanent recruitment services. The company operates in information and communication, engineering, energy, life sciences, banking, and finance sectors. It provides its service through various brands such as computer future, progressive, Huxley, real, orgtel, jpgray, Newington international and enterprise partners. The company operates in the UK, Ireland, Continental Europe, America, Asia Pacific and the Middle east.

SThree (SThree) Headlines

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