Regis Healthcare Ltd. (REG) AI Stock Analysis

• Market Cap: AU$2.10B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 55.1
• Beta (1Y): 1.03
• Revenue Growth: 14.61%
• EPS Growth: N/A
• Country: AU
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.10
• Shares Outstanding: 302,361,500
• 10 Day Avg. Volume: 1,078,239
• 30 Day Avg. Volume: 1,722,836
• PEG Ratio: -0.15
• Price to Book (P/B): -141.20
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 10.75
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$8.46
• Price Target Upside: 21.73% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.19
• Revenue Forecast (FY): AU$1.34B

• Rating: 56 Neutral
• Price Target: AU$7.00 ▲(0.72% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Regis Healthcare Ltd. demonstrates positive technical momentum and operational efficiency, contributing to a moderate overall score. However, financial risks due to high leverage and a high P/E ratio indicating potential overvaluation are significant concerns. The lack of earnings call data and corporate events limits further insights.

Positive Factors

Stable, policy-linked revenue mix

Revenue is anchored to government funding plus resident fees, creating predictable, policy-linked cash flows. Government subsidies tied to assessed care needs provide structural support while demographic ageing underpins long-term demand and occupancy stability for the core business.

Revenue recovery and margin improvement

Reported revenue recovery and a materially improved gross margin indicate operational leverage and better cost control at the facility level. Healthy EBIT/EBITDA margins suggest core operations can sustainably convert incremental revenue into operating cash, supporting reinvestment and resilience.

Strong operating cash generation

Operating cash flow strength versus net income shows the business converts underlying earnings into cash reliably, aiding debt servicing and working capital. This durable cash generation supports ongoing operations and gives management flexibility despite cyclical pressures.

Negative Factors

High leverage and negative equity

Negative shareholders' equity and an unfavorable debt-to-equity ratio signal elevated financial leverage. This restricts strategic flexibility, increases refinancing and interest-rate vulnerability, and limits the firm's ability to fund capex or acquisitions without raising external capital.

Low net profitability

Despite improved gross margins, a structurally low net margin indicates persistent cost, financing, or operational pressures. Low net profitability reduces retained earnings availability to deleverage or fund improvements and leaves less buffer against regulatory, wage, or reimbursement headwinds.

Declining free cash flow growth

A 9.13% decline in free cash flow growth weakens the firm's internal funding for capex, remediation, or strategic projects. Coupled with high leverage, declining FCF increases reliance on external financing, raising execution risk and potentially slowing necessary facility or quality investments.

Regis Healthcare Ltd. Business Overview & Revenue Model

Company Description

Regis Healthcare Limited provides residential aged care services in Australia. The company offers home care services, including personal hygiene and care, dressing and undressing, mobility and transportation, rehabilitation, and others; and home help services, such as cleaning, cooking, shopping, transportation, and facilitating social outings. It also provides companionship, and government-funded and private home care services; and owns and operates specialist retirement and independent living villages, which offers laundry, meals, and cleaning, as well as allied health services comprising physiotherapy, podiatry, diversional therapy, and therapeutic activities. In addition, the company provides aged care services, including ageing-in-place, respite care, dementia care, and palliative care services; in-home disability support and veterans' home care services; and therapeutic services to people living in the community, in retirement villages, and low care homes, as well as operates Day Respite centres. As of June 30, 2022, it owned and operated 64 residential aged care homes. The company was formerly known as Fairway Investment Holdings Pty Ltd. and changed its name to Regis Healthcare Limited in 2014. Regis Healthcare Limited was founded in 1994 and is based in Armadale, Australia.

How the Company Makes Money

Regis Healthcare generates revenue primarily through the provision of aged care services, which are funded through a combination of government subsidies, resident fees, and private funding. A significant portion of its income comes from the Australian Government's Aged Care Funding Instrument (ACFI), which allocates funding based on the care needs of residents. Additionally, the company earns revenue from accommodation payments made by residents, which can include both refundable and non-refundable contributions. Regis Healthcare also benefits from strategic partnerships with healthcare providers and organizations that enhance its service offerings and operational efficiencies, contributing to its overall earnings.

Regis Healthcare Ltd. Financial Statement Overview

Summary

Regis Healthcare Ltd. shows signs of revenue recovery and operational efficiency, as evidenced by improved margins. However, the balance sheet reveals high leverage and negative equity, posing financial risks. Cash flow generation is robust, but declining free cash flow growth could be a concern. Overall, while there are positive trends, financial stability remains a challenge.

Income Statement

Regis Healthcare Ltd. has shown a positive revenue growth rate of 4.98% in the latest year, indicating a recovery trend. The gross profit margin has significantly improved to over 100%, suggesting effective cost management. However, the net profit margin remains low at 4.25%, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are healthy, indicating operational efficiency.

Balance Sheet

The company has a negative stockholders' equity, resulting in an unfavorable debt-to-equity ratio. This indicates high financial leverage and potential risk. The return on equity is negative, suggesting inefficiencies in generating returns from shareholders' investments. The equity ratio is also concerning, highlighting a reliance on debt financing.

Cash Flow

Operating cash flow is strong relative to net income, indicating good cash generation from operations. However, free cash flow has declined by 9.13%, which could impact future investments. The free cash flow to net income ratio is healthy, suggesting that the company is generating sufficient cash relative to its earnings.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.25B	1.15B	1.01B	771.48M	717.89M	685.87M
Gross Profit	139.90M	141.46M	47.17M	-3.78M	5.18M	67.54M
EBITDA	169.58M	240.44M	191.45M	96.81M	55.86M	82.65M
Net Income	38.03M	48.95M	-21.41M	-28.45M	-38.80M	19.95M
Balance Sheet
Total Assets	2.60B	2.11B	1.81B	1.71B	1.76B	1.75B
Cash, Cash Equivalents and Short-Term Investments	197.97M	192.47M	64.91M	61.32M	4.15M	3.89M
Total Debt	7.99M	5.11M	3.84M	71.07M	113.32M	153.41M
Total Liabilities	2.63B	2.12B	1.84B	1.67B	1.68B	1.61B
Stockholders Equity	-29.95M	-16.72M	-22.89M	38.39M	79.01M	141.97M
Cash Flow
Free Cash Flow	233.44M	219.64M	186.57M	53.73M	67.60M	87.75M
Operating Cash Flow	389.26M	306.11M	252.30M	105.16M	114.79M	105.03M
Investing Cash Flow	-320.67M	-132.74M	-136.59M	6.58M	-48.62M	7.50M
Financing Cash Flow	-50.54M	-45.81M	-112.12M	-43.17M	-62.39M	-119.47M

Regis Healthcare Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:REG, the sentiment is Positive. The current price of 6.95 is above the 20-day moving average (MA) of 6.62, above the 50-day MA of 6.81, and below the 200-day MA of 7.37, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:REG.

Regis Healthcare Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACL	59 Neutral	AU$432.39M	16.69	18.59%	4.60%	6.73%	37.16%
REG	56 Neutral	AU$2.10B	55.07	―	2.30%	14.61%	―
IDX	55 Neutral	AU$909.42M	64.72	0.94%	2.65%	33.54%	―
RHC	54 Neutral	$9.89B	36.29	0.38%	2.25%	6.82%	-99.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BOT	44 Neutral	AU$124.21M	-1.20	-90.93%	―	456.50%	-457.14%

Regis Healthcare Ltd. Corporate Events

Regis Healthcare lifts revenue and dividend as statutory profit halves

Regis Healthcare Limited reported an 18.4% increase in revenue from ordinary activities to $667.7 million for the half-year ended 31 December 2025, while statutory net profit after tax attributable to members fell 44.8% to $13.4 million. Underlying net profit after tax was essentially flat at $29.7 million, highlighting the impact of one-off items on statutory earnings and underscoring relatively stable core operating performance.

Basic earnings per share declined 44.9% to 4.46 cents, but underlying basic EPS was steady at 9.83 cents, indicating that recurring profitability remained resilient despite headline profit pressure. The board declared a fully franked interim dividend of 9.0 cents per share, higher than the prior interim payout, even as net tangible asset backing per share deteriorated further into negative territory, which may influence investor perceptions of balance sheet strength and capital structure.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Appoints Former Ramsay Executive Carmel Monaghan to Board

Regis Healthcare Limited has appointed experienced healthcare executive Carmel Monaghan as an independent non-executive director, effective 1 February 2026. Monaghan, former CEO of Ramsay Health Care Australia and an experienced board member in both domestic and international healthcare organisations, is expected to strengthen Regis’s board with her extensive operational, strategic, governance and stakeholder engagement expertise. The board sees her appointment as an important step in guiding Regis’s strategic direction and business performance as the company navigates a complex regulatory environment and pursues its next phase of growth in the aged care sector.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$7.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Announces Lapse of 60,164 Performance Rights

Regis Healthcare Limited has notified the market that 60,164 performance rights (ASX code REGAA) have lapsed after the conditions attached to those rights were not met or became incapable of being satisfied, with cessation dated 6 November 2025. The lapse reduces the pool of potential future equity issuance under this particular incentive instrument, marginally tightening the company’s prospective share capital structure and indicating that performance or vesting hurdles linked to these rights were not achieved.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.50 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Sets Date for FY26 Half-Year Results and Investor Briefing

Regis Healthcare Limited has scheduled the release of its financial results for the half-year ended 31 December 2025 for Monday, 23 February 2026. The company will host a briefing conference call for investors and analysts on the same day, led by Managing Director and CEO Dr Linda Mellors and CFO Rick Rostolis, providing the market with an opportunity to gain insights into recent performance and operating trends within Australia’s aged care sector.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare CEO Dr Linda Mellors to Step Down After Six Years

Regis Healthcare has announced the resignation of Chief Executive Officer and Managing Director Dr Linda Mellors after more than six years in the role, with Mellors remaining in position during a six‑month notice period while the board undertakes a transition process. The board credited her with steering the company through the Aged Care Royal Commission, the COVID‑19 pandemic and major legislative reforms, overseeing significant growth and investment in people and systems that have left Regis in a strong financial and operational position, and it will now launch an executive search to appoint a new CEO.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Sells Two Aged Care Homes in Queensland

Regis Healthcare Limited has announced the sale of two residential aged care homes in Far North Queensland to Ozcare, a not-for-profit provider. This divestment is part of Regis’ strategy to optimize its national portfolio and focus on high-demand, premium locations. The transaction is expected to yield a one-off pre-tax gain of approximately $25 million, which will be reflected in the company’s FY26 financial results. The sale is anticipated to be completed by March 2026, ensuring a smooth transition for residents, families, and staff. Additionally, Regis has recently completed the acquisition of two facilities in Victoria, further expanding its presence in the region.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Announces Director’s Interest Change

Regis Healthcare Ltd announced a change in the director’s interest, with Linda Jane Mellors being granted 115,236 performance rights under the FY26 Long-Term Incentive (LTI) plan. This grant, approved at the Annual General Meeting, is part of a strategy to align the director’s interests with company performance over a three-year period, potentially impacting the company’s governance and stakeholder confidence.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.

Regis Healthcare Issues Performance Rights to Employees

Regis Healthcare Ltd. has announced the issuance of 305,330 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s strategy to incentivize and retain its workforce, potentially enhancing employee engagement and aligning their interests with the company’s long-term objectives.

The most recent analyst rating on (AU:REG) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Regis Healthcare Ltd. stock, see the AU:REG Stock Forecast page.