SThreeLSE:STEM -0.25%55 Return-on-Tangible-Equity is 9.95% as of Nov. 2025, which is 67% below its 10-year median of 30.27. GuruFocus rates LSE:STEM 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 1,008 Business Services companies, SThree ranks worse than 58.43% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. SThree's annualized net income for the quarter that ended in Nov. 2025 was £21 Mil. SThree's average shareholder tangible equity for the quarter that ended in Nov. 2025 was £211 Mil. Therefore, SThree's annualized Return-on-Tangible-Equity for the quarter that ended in Nov. 2025 was 9.95%.
The historical rank and industry rank for SThree's Return-on-Tangible-Equity or its related term are showing as below:
LSE:STEM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.76 Med: 30.27 Max: 48.49
Current: 8.06
During the past 13 years, SThree's highest Return-on-Tangible-Equity was 48.49%. The lowest was 7.76%. And the median was 30.27%.
LSE:STEM's Return-on-Tangible-Equity is ranked worse than 58.43% of 1008
companies
in the Business Services industry
Industry Median: 10.57
vs LSE:STEM: 8.06
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
SThree Return-on-Tangible-Equity Related Terms
SThree Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SThree's Return-on-Tangible-Equity 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.
LSE:STEM vs KFY, RHI, TNET: Return-on-Tangible-Equity Comparison
For the Staffing & Employment Services subindustry, SThree's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Business Services Industry
For the Business Services industry and Industrials sector, SThree's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SThree's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible 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. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.95% mean?
SThree (LSE:STEM) has a Return-on-Tangible-Equity of 9.95% as of Nov. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SThree and its competitors. This is 67% below median its historical median of 30.27. Over the past decade, SThree's Return-on-Tangible-Equity has ranged from 7.76 to 48.49. According to the industry distribution chart, SThree ranks #589 out of 1008 companies in the Business Services industry, placing it in the top 58.4%.
Is SThree's Return-on-Tangible-Equity too high?
SThree's current Return-on-Tangible-Equity of 9.95% is 67% below median its 10-year median of 30.27. Over the past 10 years, this metric has ranged from a low of 7.76 to a high of 48.49. The Business Services industry median Return-on-Tangible-Equity is 10.57. SThree's value of 9.95% is 5.9% below this industry median. Based on the distribution chart, SThree ranks #589 out of 1008 companies in the Business Services industry, which is below 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 Return-on-Tangible-Equity compare to KFY and RHI?
According to the Business Services industry distribution chart, SThree ranks #589 out of 1008 companies for Return-on-Tangible-Equity. This places SThree in the lower half of its industry. The industry median Return-on-Tangible-Equity is 10.57. SThree's value of 9.95% is 5.9% below this benchmark. Historically, SThree's own Return-on-Tangible-Equity has ranged from 7.76 to 48.49 over the past decade. While the company's 10-year median is 30.27 vs. the industry median of 10.57, SThree has consistently been below 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 Return-on-Tangible-Equity for a Business Services company?
The median Return-on-Tangible-Equity among Business Services companies is 10.57, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SThree's current Return-on-Tangible-Equity of 9.95% is 5.9% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SThree and its competitors. For the Business Services industry, the median Return-on-Tangible-Equity is 10.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SThree's current Return-on-Tangible-Equity is 9.95%, which is 67% below median its own 10-year median of 30.27. 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 (LSE:STEM) is currently considered Significantly Undervalued. The stock's GF Value™ is £2.90, compared to a current price of £1.58 — trading 45.4% below its estimated fair value. The current Return-on-Tangible-Equity is 9.95%, which is 67% below median its 10-year median of 30.27 and 5.9% below the Business Services industry median of 10.57. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For SThree (LSE:STEM), the current Return-on-Tangible-Equity is 9.95% 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 (LSE:STEM) Overvalued in 2026?
Based on GuruFocus' analysis, SThree stock appears to be undervalued.
The current stock price of £1.58 is trading 45.4% below its estimated GF Value™ of £2.90.
GuruFocus considers SThree to be Significantly Undervalued.
Key valuation signals for LSE:STEM:
Return-on-Tangible-Equity: 9.95% (67% below median its 10-year median of 30.27)
GF Value™: £2.90 vs. price of £1.58 (45.4% below fair value)
Industry Position: 5.9% below the Business Services median (#589 of 1008)
No single metric tells the full story. See the LSE:STEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 LSE:STEM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:STEM has been successfully added to your 
