As of May 31, 2025, Staffline Group PLC has a Discounted Cash Flow (DCF) derived fair value of $65.47 per share. With the current market price at $39.40, this represents a potential upside of 66.2%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $67.66 |
| DCF Fair Value (10-year) | $65.47 |
| Potential Upside (5-year) | 71.7% |
| Potential Upside (10-year) | 66.2% |
| Discount Rate (WACC) | 9.3% - 12.7% |
Revenue is projected to grow from $993 million in 12-2024 to $1476 million by 12-2034, representing a compound annual growth rate of approximately 4.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 993 | 6% |
| 12-2025 | 1078 | 9% |
| 12-2026 | 1133 | 5% |
| 12-2027 | 1177 | 4% |
| 12-2028 | 1200 | 2% |
| 12-2029 | 1224 | 2% |
| 12-2030 | 1249 | 2% |
| 12-2031 | 1308 | 5% |
| 12-2032 | 1386 | 6% |
| 12-2033 | 1416 | 2% |
| 12-2034 | 1476 | 4% |
Net profit margin is expected to improve from 0% in 12-2024 to 0% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 4 | 0% |
| 12-2025 | 4 | 0% |
| 12-2026 | 5 | 0% |
| 12-2027 | 5 | 0% |
| 12-2028 | 5 | 0% |
| 12-2029 | 5 | 0% |
| 12-2030 | 5 | 0% |
| 12-2031 | 5 | 0% |
| 12-2032 | 6 | 0% |
| 12-2033 | 6 | 0% |
| 12-2034 | 6 | 0% |
with a 5-year average of $4 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 4 |
| 12-2026 | 4 |
| 12-2027 | 4 |
| 12-2028 | 4 |
| 12-2029 | 4 |
| 12-2030 | 4 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 49 |
| Days Inventory | 0 |
| Days Payables | 8 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2025 | 15 | 1 | 4 | (20) | 30 |
| 2026 | 15 | 1 | 4 | 13 | (3) |
| 2027 | 16 | 1 | 4 | 12 | (2) |
| 2028 | 16 | 1 | 4 | (4) | 15 |
| 2029 | 16 | 1 | 5 | 5 | 5 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 67.66 | 71.7% |
| 10-Year DCF (Growth) | 65.47 | 66.2% |
| 5-Year DCF (EBITDA) | 75.14 | 90.7% |
| 10-Year DCF (EBITDA) | 75.82 | 92.4% |
Is Staffline Group PLC (STAF.L) a buy or a sell? Staffline Group PLC is definitely a buy. Based on our DCF analysis, Staffline Group PLC (STAF.L) appears to be significantly undervalued with upside potential of 66.2%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $39.40.