Regis Healthcare Ltd. (REG) AI Stock Analysis

• Market Cap: AU$2.03B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 40.7
• Beta (1Y): 0.96
• Revenue Growth: 14.61%
• EPS Growth: N/A
• Country: AU
• Employees: 11,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 0.08
• 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$7.83
• Price Target Upside: 13.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: AU$7.00 ▲(1.45% Upside)

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

Operating cash generation

Sustained operating cash flow strength provides durable internal funding for day-to-day resident care, working capital and maintenance capex. Over 2-6 months this reduces liquidity strain from high leverage, supports service continuity and fewer external financing needs during funding cycles.

Revenue recovery trend

Consistent revenue growth signals recovering demand and better utilization across the facility network. Given core funding via government subsidies and resident fees, a sustained revenue uptrend improves predictability of cash flows and underpins medium-term operational planning and capacity investment.

Leading market position and scale

Large national footprint and scale support bargaining power with suppliers, staffing deployment flexibility and reputation-led demand. Structural aging demographics and government funding create durable demand that favors established providers able to leverage operational scale and partnerships.

Negative Factors

High financial leverage and negative equity

Negative equity and heavy leverage materially constrain financial flexibility and raise refinancing and covenant risks. Over the coming months this limits capacity for strategic investments, renders the balance sheet sensitive to interest or funding changes, and pressures credit metrics.

Declining free cash flow

A falling free cash flow trend reduces the firm's ability to fund maintenance, upgrades and debt repayment from operations. Persisting declines would force greater reliance on external financing or asset sales, increasing vulnerability to cost or policy shifts in the aged-care sector over the medium term.

Thin net profit margin

Low net margins limit retained earnings and the capacity to rebuild equity or absorb cost inflation. In a sector with wage and regulatory cost pressures, narrow profitability increases sensitivity to reimbursement changes and reduces resilience against unexpected operational shocks.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.16B	1.15B	1.01B	771.48M	717.89M	685.87M
Gross Profit	168.77M	141.46M	47.17M	-3.78M	5.18M	67.54M
EBITDA	182.10M	240.44M	191.45M	96.81M	55.86M	82.65M
Net Income	48.95M	48.95M	-21.41M	-28.45M	-38.80M	19.95M
Balance Sheet
Total Assets	2.11B	2.11B	1.81B	1.71B	1.76B	1.75B
Cash, Cash Equivalents and Short-Term Investments	192.47M	192.47M	64.91M	61.32M	4.15M	3.89M
Total Debt	5.11M	5.11M	3.84M	71.07M	113.32M	153.41M
Total Liabilities	2.12B	2.12B	1.84B	1.67B	1.68B	1.61B
Stockholders Equity	-16.72M	-16.72M	-22.89M	38.39M	79.01M	141.97M
Cash Flow
Free Cash Flow	219.64M	219.64M	186.57M	53.73M	67.60M	87.75M
Operating Cash Flow	306.11M	306.11M	252.30M	105.16M	114.79M	105.03M
Investing Cash Flow	-132.74M	-132.74M	-136.59M	6.58M	-48.62M	7.50M
Financing Cash Flow	-45.81M	-45.81M	-112.12M	-43.17M	-62.39M	-119.47M

Regis Healthcare Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.90
• 50DMA: Negative
• 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 Negative. The current price of 6.9 is above the 20-day moving average (MA) of 6.82, below the 50-day MA of 7.21, and below the 200-day MA of 7.41, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 40.65 is Neutral, neither overbought nor oversold. The STOCH value of 49.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	AU$524.76M	15.69	18.59%	4.60%	6.73%	37.16%
REG	56 Neutral	AU$2.03B	40.68	―	2.30%	14.61%	―
IDX	55 Neutral	AU$977.07M	173.03	0.94%	2.65%	33.54%	―
RHC	54 Neutral	AU$8.35B	1,222.97	0.38%	2.25%	6.82%	-99.27%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BOT	47 Neutral	AU$216.71M	-2.35	-90.93%	―	456.50%	-457.14%

Regis Healthcare Ltd. Corporate Events

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.

Regis Healthcare Successfully Concludes Annual General Meeting with Key Resolutions Passed

Regis Healthcare Limited announced the results of its Annual General Meeting, where all resolutions, including the re-election of directors and the adoption of the FY25 remuneration report, were successfully carried. The approval of performance rights for the CEO under the long-term incentive plan and the reinsertion of the proportional takeover approval provision were also confirmed, reflecting strong shareholder support and strategic alignment.

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 Ltd Focuses on Sustainable Growth and Expansion in Aged Care

Regis Healthcare Ltd’s recent Annual General Meeting highlighted its focus on improving care outcomes and sustainable business growth. The company reported significant improvements in key performance indicators and employee engagement, alongside a multi-pronged investment strategy. This includes greenfield developments, with new facilities like Regis Camberwell achieving full occupancy, and ongoing construction in other locations. Regis is also expanding its development pipeline and pursuing strategic acquisitions to meet its goal of operating 10,000 quality beds by FY28, reflecting its commitment to adapting to the growing demand and evolving needs 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.