RS Group PLC (GB:RS1)
LSE:RS1
Top Page
RS Group PLC
(LSE:RS1)
Select Model
Select Model
Rating:74Outperform
Price Target:
627.00 p
▲(11.96% Upside)
Action:ReiteratedDate:12/07/25
RS Group PLC's overall stock score is driven by strong technical indicators and a solid financial foundation. The company demonstrates operational efficiencies and a stable balance sheet, though it faces challenges in revenue growth and regional market conditions. The valuation is reasonable, and the dividend yield adds to its attractiveness. Earnings call insights highlight both strengths and challenges, with a focus on cost management and strategic growth initiatives.
Positive Factors
Cash flow conversion
Consistently converting net income into cash (107%) demonstrates durable working-capital discipline in distribution. Strong cash conversion and a stable 15% ROCE support reinvestment in digital platforms, dividend funding and debt reduction, improving long-term financial flexibility.
Negative Factors
Revenue decline
Repeated top-line declines and negative like‑for‑like growth undermine scale benefits in distribution. Persistent revenue weakness limits operating leverage, constrains margin expansion and slows deleveraging or investment plans, pressuring returns over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash flow conversion
Consistently converting net income into cash (107%) demonstrates durable working-capital discipline in distribution. Strong cash conversion and a stable 15% ROCE support reinvestment in digital platforms, dividend funding and debt reduction, improving long-term financial flexibility.
Read all positive factors
RS Group PLC (RS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.65B
Dividend Yield3.58%
Average Volume (3M)997.46K
Price to Earnings (P/E)8.0
Beta (1Y)1.23
Revenue Growth-2.44%
EPS Growth-6.43%
CountryUK
Employees9,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.18
Shares Outstanding474,049,470
10 Day Avg. Volume861,254
30 Day Avg. Volume997,455
Financial Highlights & Ratios
PEG Ratio-0.52
Price to Book (P/B)2.35
Price to Sales (P/S)1.14
P/FCF Ratio23.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£706.67Price Target Upside26.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.42
Revenue Forecast (FY)£3.01B
RS Group PLC Business Overview & Revenue Model
Company Description
RS Group plc, together with its subsidiaries, distributes various electronics and industrial products in the United Kingdom, the United States, France, Germany, Italy, and internationally. The company provides industrial interconnect and test, ind...
How the Company Makes Money
RS Group primarily makes money by selling products sourced from manufacturers and suppliers to business customers at a margin through a distribution model. Key revenue streams include (1) product sales of industrial and electronic items (e.g., ele...
RS Group PLC Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a balanced performance with significant strengths in cash flow conversion, growth in key segments like RS PRO, and efficient cost management. However, these are offset by challenges such as revenue declines, weak demand in semiconductors, and regional difficulties, particularly in EMEA and Germany.Positive Updates
Strong Cash Flow Conversion
Cash flow conversion was very strong at 107%, with continued good working capital management and ROCE stable at 15%.
Negative Updates
Revenue Decline and Market Challenges
Revenue decreased by 3% on a reported basis, and like-for-like revenue fell 1% due to a weaker dollar and reduced trading days. The industrial environment in EMEA remains weak.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Flow Conversion
Cash flow conversion was very strong at 107%, with continued good working capital management and ROCE stable at 15%.
Read all positive updates
Company Guidance
The recent call provided significant guidance on RS Group's financial and operational progress for the first half of the fiscal year ending September 30, 2025. The company reported a 3% decrease in revenue on a reported basis, translating to a 1% decline when adjusted for currency fluctuations and trading days. Despite this, RS Group achieved strong cash flow conversion at 107% and maintained a stable ROCE of 15%. The interim dividend was increased by 2% to 8.7p per share. The Americas region showed modest growth of 1% on a like-for-like basis, while Asia Pacific saw a 4% rise, offsetting a 2% decline in EMEA. The company's digital revenue decreased by 2%, but e-procurement solutions grew by 9%. RS PRO's sales increased by 4%, now comprising 14% of group revenues. The group maintained an ongoing cost base of GBP 482 million, with efforts to achieve GBP 15 million in restructuring and integration benefits by year-end. The guidance for the second half includes expectations of a gross margin slightly above 43% and disciplined cost management amid uncertain market conditions.RS Group PLC Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
72
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2020 | Mar 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.87B | 2.90B | 2.98B | 2.55B | 2.00B | 1.95B |
| Gross Profit | 1.23B | 1.24B | 1.32B | 1.10B | 832.00M | 831.40M |
| EBITDA | 301.10M | 320.20M | 447.60M | 379.80M | 240.30M | 262.10M |
| Net Income | 157.40M | 152.60M | 284.80M | 230.00M | 125.50M | 154.70M |
Balance Sheet | ||||||
| Total Assets | 2.66B | 2.62B | 2.54B | 2.10B | 1.85B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 219.20M | 147.70M | 260.30M | 257.90M | 197.90M | 200.80M |
| Total Debt | 552.60M | 511.90M | 373.30M | 299.90M | 321.00M | 391.60M |
| Total Liabilities | 1.27B | 1.27B | 1.20B | 990.20M | 943.80M | 894.80M |
| Stockholders Equity | 1.39B | 1.35B | 1.34B | 1.11B | 899.40M | 719.90M |
Cash Flow | ||||||
| Free Cash Flow | 246.00M | 209.80M | 260.40M | 160.50M | 132.90M | 72.40M |
| Operating Cash Flow | 266.70M | 259.10M | 306.50M | 203.00M | 187.60M | 147.10M |
| Investing Cash Flow | -46.30M | -57.70M | -270.50M | -40.30M | -190.20M | -74.90M |
| Financing Cash Flow | -254.00M | -185.40M | -79.60M | -94.60M | 66.00M | -95.50M |
RS Group PLC Technical Analysis
Negative
560.00
Price Trends
651.73
Negative
633.39
Negative
596.25
Negative
Market Momentum
-28.10
Positive
29.37
Positive
30.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RS1, the sentiment is Negative. The current price of 560 is below the 20-day moving average (MA) of 597.95, below the 50-day MA of 651.73, and below the 200-day MA of 596.25, indicating a bearish trend. The MACD of -28.10 indicates Positive momentum. The RSI at 29.37 is Positive, neither overbought nor oversold. The STOCH value of 30.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RS1.
RS Group PLC Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £2.65B | 8.02 | 11.47% | 3.58% | -2.44% | -6.43% | |
73 Outperform | £8.35B | 38.47 | 14.17% | 1.13% | 11.82% | 42.93% | |
68 Neutral | £1.71B | 13.32 | 8.38% | 3.99% | 5.75% | 5.86% | |
64 Neutral | £191.94M | 0.64 | 7.92% | 6.53% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
50 Neutral | £34.60M | -10.98 | -64.09% | ― | -0.25% | -84.33% | |
47 Neutral | £98.10M | -1.82 | -47.73% | ― | -2.08% | -9.83% |
* Industrials Sector Average
GB:RS1
RS Group PLC
560.00
69.35
14.13%
GB:DPLM
Diploma
6,225.00
2,548.85
69.33%
GB:FLO
Flowtech Fluidpower
42.70
-12.30
-22.36%
GB:SHI
SIG plc
8.45
-3.65
-30.17%
GB:GFTU
Grafton
897.40
93.14
11.58%
GB:LTHP
James Latham
122.50
7.87
6.87%
RS Group PLC Corporate Events
Business Operations and StrategyFinancial Disclosures
RS Group Expects Profit to Beat Forecasts Despite Modest Revenue Decline
Positive
Mar 25, 2026
RS Group plc, the London-listed industrial distribution and service specialist, operates across 36 markets supplying an extensive range of more than 830,000 stocked and additional listed products to support industrial customers’ design, buil...
Business Operations and StrategyM&A Transactions
RS Group buys BPX to deepen automation and control reach
Positive
Mar 3, 2026
RS Group has strengthened its position in the industrial automation and control market with the acquisition of BPX Group, a UK and Ireland-based specialist distributor, for an enterprise value of £27 million plus a potential £3 million e...
Other
RS Group CFO and Family Reinvest Dividends in Company Shares via DRIP
Neutral
Jan 6, 2026
RS Group plc has disclosed a series of small share acquisitions by its chief financial officer, Kate Ringrose, and her closely associated persons, Christopher and Evelyn Ringrose, through the company’s Dividend Reinvestment Plan in July 2025...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.