SThree (CHIX:STEML) Interest Coverage: 14.36 (As of Nov. 2025) — 80% Below Median


CHIX:STEML SThree PLC CHIX:STEML
55 GF Score
Price £1.59
GF Value £2.90
Valuation Significantly Undervalued
! 6 Warning Signs
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What is SThree Interest Coverage?

SThree CHIX:STEML +1.15% 55 Interest Coverage is 14.36 as of Nov. 2025, which is 80% below its 10-year median of 70.68. GuruFocus rates CHIX:STEML with a GF Score™ of 55/100 and a GF Value™ of £2.90 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 812 Business Services companies, SThree ranks better than 50.49% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. SThree's Operating Income for the six months ended in Nov. 2025 was £17 Mil. SThree's Interest Expense for the six months ended in Nov. 2025 was £-1 Mil. SThree's interest coverage for the quarter that ended in Nov. 2025 was 14.36. The higher the ratio, the stronger the company's financial strength is.

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

CHIX:STEMl' s Interest Coverage Range Over the Past 10 Years
Min: 13.35   Med: 70.68   Max: 125.95
Current: 13.35


CHIX:STEMl's Interest Coverage is ranked better than
50.49% of 812 companies
in the Business Services industry
Industry Median: 12.98 vs CHIX:STEMl: 13.35

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


SThree  (CHIX:STEMl) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


SThree Interest Coverage Related Terms


SThree Interest Coverage Historical Data

* Premium members only.

The historical data trend for SThree's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

SThree Interest Coverage Chart

SThree Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 73.16 125.95 121.41 45.04 13.35

SThree Semi-Annual Data
May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25
Interest Coverage 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 108.08 76.47 27.69 12.09 14.36

CHIX:STEML vs KFY, RHI, TNET: Interest Coverage Comparison

For the Staffing & Employment Services subindustry, SThree's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry

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

* The bar in red indicates where SThree's Interest Coverage falls into.


CHIX:STEML
55GF Score
SThree PLC CHIX:STEML
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SThree Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

SThree's Interest Coverage for the fiscal year that ended in Nov. 2025 is calculated as

Here, for the fiscal year that ended in Nov. 2025, SThree's Interest Expense was £-2 Mil. Its Operating Income was £28 Mil. And its Long-Term Debt & Capital Lease Obligation was £37 Mil.

Interest Coverage=-1* Operating Income (A: Nov. 2025 )/Interest Expense (A: Nov. 2025 )
=-1*27.645/-2.071
=13.35

SThree's Interest Coverage for the quarter that ended in Nov. 2025 is calculated as

Here, for the six months ended in Nov. 2025, SThree's Interest Expense was £-1 Mil. Its Operating Income was £17 Mil. And its Long-Term Debt & Capital Lease Obligation was £37 Mil.

Interest Coverage=-1* Operating Income (Q: Nov. 2025 )/Interest Expense (Q: Nov. 2025 )
=-1*16.501/-1.149
=14.36

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 14.36 mean?
SThree (CHIX:STEML) has a Interest Coverage of 14.36 as of Nov. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SThree and its competitors. This is 80% below median its historical median of 70.68. Over the past decade, SThree's Interest Coverage has ranged from 13.35 to 125.95. According to the industry distribution chart, SThree ranks #402 out of 812 companies in the Business Services industry, placing it in the top 49.5%.
Is SThree's Interest Coverage too high?
SThree's current Interest Coverage of 14.36 is 80% below median its 10-year median of 70.68. Over the past 10 years, this metric has ranged from a low of 13.35 to a high of 125.95. The Business Services industry median Interest Coverage is 12.98. SThree's value of 14.36 is 10.6% above this industry median. Based on the distribution chart, SThree ranks #402 out of 812 companies in the Business Services industry, which is above the industry midpoint. Overall, SThree has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SThree's Interest Coverage compare to KFY and RHI?
According to the Business Services industry distribution chart, SThree ranks #402 out of 812 companies for Interest Coverage. This puts SThree in the upper half of its industry. The industry median Interest Coverage is 12.98. SThree's value of 14.36 is 10.6% above this benchmark. Historically, SThree's own Interest Coverage has ranged from 13.35 to 125.95 over the past decade. While the company's 10-year median is 70.68 vs. the industry median of 12.98, SThree has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SThree's current Interest Coverage of 14.36 is 10.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SThree and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SThree's current Interest Coverage is 14.36, which is 80% below median its own 10-year median of 70.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SThree stock overvalued right now?
Based on GuruFocus' analysis, SThree (CHIX:STEML) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.90, compared to a current price of £1.59 — trading 45.2% below its estimated fair value. The current Interest Coverage is 14.36, which is 80% below median its 10-year median of 70.68 and 10.6% above the Business Services industry median of 12.98. SThree's overall GF Score™ is 55/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For SThree (CHIX:STEML), the current Interest Coverage is 14.36 as of Nov. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is SThree (CHIX:STEML) Overvalued in 2026?

Based on GuruFocus' analysis, SThree stock appears to be undervalued. The current stock price of £1.59 is trading 45.2% below its estimated GF Value™ of £2.90. GuruFocus considers SThree to be Significantly Undervalued.

Key valuation signals for CHIX:STEML:

  • Interest Coverage: 14.36 (80% below median its 10-year median of 70.68)
  • GF Value™: £2.90 vs. price of £1.59 (45.2% below fair value)
  • GF Score™: 55/100 with 6 warning signs
  • Industry Position: 10.6% above the Business Services median (#402 of 812)

No single metric tells the full story. See the CHIX:STEML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


SThree Business Description

Other Exchanges STEM:UK
Address 8 Bishopsgate, Level 16, London, GBR, EC2N 4BQ
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 Progressive, Computer Futures, Real Staffing Group, and Huxley Associates. The company generated its revenue from DACH, Rest of Europe, Netherlands including Spain, USA, Middle East & Asia.
55GF Score

Get the complete analysis for CHIX:STEML

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.59
Price
£2.90
GF Value