Regis Healthcare Ltd. (REG) AI Stock Analysis

• Market Cap: AU$1.86B
• Dividend Yield: 2.3%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): 39.0
• Beta (1Y): 1.08
• 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$8.48
• Price Target Upside: 37.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.18
• Revenue Forecast (FY): AU$1.39B

• Rating: 56 Neutral
• Price Target: AU$6.50 ▲(5.52% 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 government-backed revenue

Regis's core revenue is largely recurring and derived from government funding and resident fees tied to assessed care needs and statutory payment frameworks. This creates predictable baseline cash flow and demand visibility over months, reducing revenue volatility from discretionary consumer spending.

Improving operational margins

Significant gross margin improvement and healthy EBIT/EBITDA margins indicate stronger cost control and operational leverage within care operations. Sustained margin gains support reinvestment in facilities and staffing, enhancing long-term profitability resilience if occupancy and funding remain stable.

Solid operating cash generation

Strong operating cash versus reported earnings shows the business converts underlying activity into cash, underpinning liquidity for capex and servicing obligations. A healthy FCF-to-net-income ratio supports medium-term financial flexibility even as absolute FCF trends are monitored.

Negative Factors

High financial leverage

Negative equity and heavy leverage materially constrain balance sheet flexibility, increasing refinancing and covenant risk. In an industry with tight margins and regulation-driven funding, elevated debt raises the chance that operational hiccups could force difficult financing choices or equity-like recapitalisations.

Declining free cash flow

A near-term decline in free cash flow reduces capacity for reinvestment, debt reduction, or buffer against regulatory or staffing cost shocks. Even with healthy operating cash conversion, a falling FCF trend can erode financial headroom and limit strategic options over the next several quarters.

Low net profitability and weak ROE

Low net margins coupled with negative return on equity signal challenges in turning revenue into shareholder returns. Persistent low profitability limits retained earnings, complicates balance sheet repair, and reduces capacity to self-fund growth or absorb policy-driven funding changes over the medium term.

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 primarily makes money by operating residential aged care facilities and charging for the services provided to residents. Revenue is generally generated from (1) government funding and subsidies for eligible aged care services, which are tied to the assessed care needs of residents and applicable government payment frameworks, and (2) resident contributions/fees associated with accommodation and daily living/care services. Additional revenue can arise from extra or optional services provided to residents (where permitted under applicable aged care rules) and other ancillary facility-related income. The company’s earnings are therefore driven by occupancy levels, the mix and assessed acuity of residents (which influences care funding), regulated pricing/fee settings, wage and clinical staffing costs, and broader Australian aged care policy and compliance requirements. Specific material partnerships contributing to earnings: null.

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: Negative
• Last Price: 6.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.16 is below the 20-day moving average (MA) of 6.56, below the 50-day MA of 6.56, and below the 200-day MA of 7.18, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, 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	59 Neutral	AU$367.14M	23.92	16.35%	4.60%	6.73%	37.16%
REG	56 Neutral	AU$1.86B	39.00	―	2.30%	14.61%	―
IDX	55 Neutral	AU$905.69M	26.42	2.05%	2.65%	33.54%	―
RHC	54 Neutral	$9.14B	12.30	5.75%	2.25%	6.82%	-99.27%
BOT	53 Neutral	AU$90.94M	-2.00	-131.13%	―	456.50%	-457.14%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Regis Healthcare Ltd. Corporate Events

Regis Healthcare Cancels 125,816 Unvested Performance Rights

Regis Healthcare Limited has notified the market that 125,816 performance rights, classified under ASX security code REGAA, have lapsed. The lapse occurred because the conditions attached to these conditional rights were not met or could no longer be satisfied, resulting in a reduction of potential future equity issuance and signalling a tightening in the company’s outstanding performance-based securities.

The cessation of these securities, effective 6 January 2026, slightly alters Regis Healthcare’s capital position by removing these unvested rights from its pool of potential shares. This change may modestly affect dilution expectations for existing shareholders and provides transparency around the status of performance-linked incentives within the company’s remuneration framework.

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 Director Carmel Monaghan Acquires Initial Shareholding

Regis Healthcare has disclosed a change in director Carmel Anne Monaghan’s interests, with the director acquiring 2,200 ordinary shares in the company. The on-market purchase, completed on 25 February 2026 for a total consideration of $15,164.46, marks Monaghan’s first recorded shareholding in Regis, aligning her financial interests more closely with those of shareholders and signalling confidence in the company’s prospects.

The company reported that there were no associated disposals or changes to interests in contracts, and the trade did not occur during a closed period that would have required prior written clearance. This straightforward increase in director share ownership is likely to be viewed positively by investors as it strengthens governance alignment and indicates board-level commitment to Regis Healthcare’s future performance.

The most recent analyst rating on (AU:REG) stock is a Buy 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 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.