RS Group PLC (RS1) AI Stock Analysis

• Market Cap: £2.63B
• Dividend Yield: 3.98%
• Average Volume (3M): 622.94K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 1.37
• Revenue Growth: -1.32%
• EPS Growth: -16.36%
• Country: UK
• Employees: 9,000
• Sector: Industrials
• Sector Strength: 73
• Industry: Industrial - Distribution
• EPS (TTM): 0.16
• Shares Outstanding: 474,049,470
• 10 Day Avg. Volume: 542,635
• 30 Day Avg. Volume: 622,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £714.17
• Price Target Upside: 26.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: 618.00p ▲(9.67% Upside)

The overall stock score reflects a stable financial position with operational efficiencies and a solid balance sheet. However, challenges in revenue growth and rising debt levels are concerns. Technical indicators suggest moderate momentum, while valuation metrics indicate a fair investment opportunity with an attractive dividend yield.

Positive Factors

Cost Savings

The group remains on track to deliver annualised cost savings in excess of £30m this year.

Stock Valuation

The stock is trading on a one-year forward EV/EBITDA of c.8.8x, a 20% discount to 10-year averages.

Strategic Action Plan

RS continued to deliver its strategic action plan including two significant projects of upgrading its digital platform in Americas and consolidating a Distrelec.

Negative Factors

Business Confidence

The softer-than-expected Q3 revenues and weak business confidence in EMEA will likely result in FY25E adj. PBT being around the bottom-end of the consensus range (£247m to £274m, consensus £261m).

Revenue Performance

Revenue in 3Q was -3%, with LFL's improving sequentially to -1% in the quarter (vs -3% in 1H). Regionally, the Americas and Asia Pacific delivered positive LFLs with EMEA -3% impacted by a material slowdown in the UK.

RS Group PLC Business Overview & Revenue Model

Company Description

RS Group PLC (RS1) is a leading global distributor of industrial and electronic products, serving a diverse range of sectors including automation, electrical, and maintenance sectors. The company offers a comprehensive portfolio of over 500,000 products, including electronic components, tools, and industrial supplies, catering to engineers and procurement professionals. RS Group operates across multiple geographies, providing customers with innovative solutions and exceptional service through both online and offline channels.

How the Company Makes Money

RS Group PLC generates revenue primarily through the sale of its extensive range of industrial and electronic products. The company operates on a business-to-business (B2B) model, where it sells directly to engineers, manufacturers, and businesses in need of components and supplies. Key revenue streams include direct product sales, which are facilitated through their e-commerce platform and physical distribution centers. Additionally, RS Group benefits from a subscription-based model for value-added services and product support, which further enhances customer loyalty and recurring revenue. Strategic partnerships with leading manufacturers and suppliers also contribute to the company's earnings, allowing RS Group to offer competitive pricing and exclusive products, thereby driving sales growth.

RS Group PLC Financial Statement Overview

Summary

RS Group PLC shows operational efficiencies with stable EBIT and EBITDA margins. However, challenges in revenue growth and declining net profit margins highlight the need for strategic initiatives. The balance sheet is strong with a solid equity base, but rising debt levels could pose risks. Cash flow generation is satisfactory, though more consistency is needed.

Income Statement

The income statement reflects a mixed performance. Gross profit margins have been relatively stable, with a slight decline in recent years. Net profit margins have also decreased, indicating some challenges in maintaining profitability. Revenue growth has been inconsistent, with a recent period of decline, impacting overall income stability. The EBIT and EBITDA margins show a positive trend, suggesting operational efficiencies. However, the overall trajectory suggests the need for better revenue growth strategies.

Balance Sheet

The balance sheet demonstrates moderate financial health. The debt-to-equity ratio has been increasing, indicating rising leverage, which could pose a risk if revenue growth does not improve. Return on equity has been declining, reflecting challenges in generating returns from shareholder investments. The equity ratio remains solid, indicating a strong asset base relative to liabilities. Overall, the company maintains a stable balance sheet but should monitor leverage levels closely.

Cash Flow

Cash flow analysis shows a healthy operating cash flow relative to net income, indicating efficient cash generation from operations. However, free cash flow growth has been volatile, reflecting challenges in maintaining consistent cash flow. The free cash flow to net income ratio is positive, but the company must focus on improving cash flow stability to support long-term growth and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.90B	2.90B	2.94B	2.98B	2.55B	2.00B
Gross Profit	1.24B	1.24B	1.26B	1.32B	1.10B	832.00M
EBITDA	301.00M	320.20M	367.30M	462.90M	379.80M	240.30M
Net Income	152.60M	152.60M	183.70M	284.80M	230.00M	125.50M
Balance Sheet
Total Assets	2.62B	2.62B	2.90B	2.54B	2.10B	1.85B
Cash, Cash Equivalents and Short-Term Investments	147.70M	147.70M	258.70M	260.30M	257.90M	197.90M
Total Debt	511.90M	511.90M	676.90M	373.30M	299.90M	321.00M
Total Liabilities	1.27B	1.27B	1.47B	1.20B	990.20M	943.80M
Stockholders Equity	1.35B	1.35B	1.43B	1.34B	1.11B	899.40M
Cash Flow
Free Cash Flow	242.90M	209.80M	145.00M	260.40M	160.50M	132.90M
Operating Cash Flow	259.10M	259.10M	196.60M	306.50M	203.00M	187.60M
Investing Cash Flow	-57.70M	-57.70M	-355.70M	-270.50M	-40.30M	-190.20M
Financing Cash Flow	-185.40M	-185.40M	138.90M	-79.60M	-94.60M	66.00M

RS Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 563.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 563.5 is below the 20-day moving average (MA) of 565.57, below the 50-day MA of 571.21, and below the 200-day MA of 593.43, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFTU	72 Outperform	£1.66B	14.01	8.33%	4.29%	5.75%	5.86%
RS1	69 Neutral	£2.63B	17.11	10.95%	3.98%	-1.32%	-16.36%
LTHP	64 Neutral	£222.77M	―		6.53%	―	―
Sector *	64 Neutral	$10.73B	15.65	7.61%	2.01%	2.80%	-14.92%
LORD	63 Neutral	£63.99M	―	-4.13%	2.18%	-5.60%	-238.37%
BRCK	56 Neutral	£175.89M	28.04	3.43%	6.43%	7.23%	-59.68%
SHI	50 Neutral	£115.20M	―	-37.89%	―	-2.08%	-9.83%

RS Group PLC Corporate Events

RS Group PLC Announces Share Awards to CEO and CFO

RS Group PLC has announced the conditional annual award of shares to its Chief Executive Officer, Simon Pryce, and Chief Financial Officer, Kate Ringrose, as part of their Long Term Incentive Plan 2022 and Restricted Share Incentive Plan 2025. This move reflects the company’s commitment to aligning management incentives with shareholder interests, potentially impacting the company’s operational focus and market positioning.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Maintains Full-Year Outlook Amid Strategic Advancements

RS Group PLC announced that its full-year outlook remains unchanged, despite a 2% decrease in like-for-like revenue in the first quarter of 2025. The company is executing strategic projects, including digital upgrades in the Americas and distribution center consolidation in EMEA, to improve operational efficiency and market share. These efforts are expected to generate sustainable value and stronger returns as markets recover.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Announces New Chair for Audit Committee

RS Group PLC has announced a change in the leadership of its Audit Committee. Louisa Burdett will step down as Chair but remain a member, while Carole Cran, a chartered accountant and CFO of Halma plc, will take over as Chair effective 15 July 2025. This change is part of RS Group’s ongoing board management and governance strategy, potentially impacting its audit processes and stakeholder confidence.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Discloses CFO Share Transactions

RS Group PLC has announced a notification regarding transactions by its Chief Financial Officer, Kate Ringrose, under the UK Market Abuse Regulation. The transactions involve the vesting of conditional buy-out awards of shares and the sale of shares to cover tax liabilities and costs associated with these awards. This disclosure highlights the company’s adherence to regulatory requirements and transparency in its financial operations, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:RS1) stock is a Hold with a £7.70 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Discloses Managerial Share Acquisition

RS Group PLC has announced a transaction involving the acquisition of 10 pence ordinary shares by Evelyn Ringrose, a person closely associated with the company’s Chief Financial Officer, Kate Ringrose. The transaction, conducted on the London Stock Exchange, involved 1,606 shares at a price of GBP 5.5666 each, totaling GBP 8,939.96. This notification is made in compliance with the UK Market Abuse Regulation, highlighting transparency in managerial transactions.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Executives Acquire Shares, Signaling Confidence in Future Prospects

RS Group PLC has announced transactions involving the acquisition of shares by key personnel and their closely associated persons. The Chief Financial Officer, Kate Ringrose, along with Christopher and Nicholas Ringrose, have acquired shares on the London Stock Exchange, reflecting internal confidence in the company’s future prospects. These transactions are significant as they indicate a strong endorsement from the company’s leadership, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

Mawer Investment Management Adjusts Voting Rights in RS Group PLC

RS Group PLC, a UK-based company, has announced a change in the voting rights held by Mawer Investment Management Ltd., a Canadian investment management firm. Mawer has reduced its voting rights in RS Group PLC from 5.100416% to 4.999407%, crossing a significant threshold. This change in holdings may impact the company’s shareholder dynamics and influence future decision-making processes.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Publishes 2025 Annual Report and Announces AGM

RS Group PLC has released its Annual Report and Accounts for the year ending March 31, 2025, and announced the Notice of its Annual General Meeting (AGM) scheduled for July 17, 2025, in London. The documents have been submitted to the Financial Services Authority National Storage Mechanism for public access. This announcement marks a significant step in RS Group’s corporate governance and transparency efforts, providing shareholders with essential information ahead of the AGM.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Executives Receive Share Awards

RS Group PLC has announced a notification regarding transactions by its Chief Executive Officer, Simon Pryce, and Chief Financial Officer, Kate Ringrose, under the UK Market Abuse Regulation. Both executives received conditional awards of shares under the company’s Deferred Share Bonus Plan, with Pryce receiving 36,811 shares and Ringrose receiving 23,833 shares. These transactions, conducted outside a trading venue, reflect the company’s ongoing commitment to aligning executive incentives with shareholder interests.

The most recent analyst rating on (GB:RS1) stock is a Hold with a £800.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Announces Director Share Acquisition

RS Group PLC has announced a transaction involving David Sleath, a Non-Executive Director of the company. The transaction involves the acquisition of 4,883 ordinary shares at a price of GBP 5.70499 per share, totaling GBP 27,857.47, conducted on the London Stock Exchange. This notification is made in compliance with the UK Market Abuse Regulation, reflecting the company’s commitment to transparency in its managerial dealings.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.

RS Group PLC Reports Resilient Performance Amid Challenging Market Conditions

RS Group PLC reported its financial results for the year ending March 31, 2025, highlighting significant underlying progress despite a challenging macro-economic environment. The company achieved a resilient performance by improving execution, managing costs, and making strategic investments, although revenue and profits saw slight declines. RS Group remains focused on strategic growth, with a strong balance sheet supporting potential acquisitions. The company is confident in meeting medium-term financial targets through improved operating leverage and strategic investments, positioning itself for accelerated growth once market conditions improve.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £900.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.