RS Group PLC (RS1) AI Stock Analysis

• Market Cap: £3.11B
• Dividend Yield: 3.58%
• Average Volume (3M): 997.46K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.32
• Revenue Growth: -2.44%
• EPS Growth: -6.43%
• Country: UK
• Employees: 9,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): 0.18
• Shares Outstanding: 474,049,470
• 10 Day Avg. Volume: 861,254
• 30 Day Avg. Volume: 997,455
• PEG Ratio: -0.52
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 23.19
• 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: £756.17
• Price Target Upside: 16.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 698.00p ▲(7.63% Upside)

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

Strong Cash Flow Conversion

High cash flow conversion indicates efficient operations and strong liquidity, supporting long-term investments and reducing reliance on external financing.

Growth in Key Segments

Growth in RS PRO and e-procurement solutions highlights successful product strategies and diversification, enhancing revenue stability and market presence.

Cost Management and Efficiency

Effective cost management and restructuring benefits improve profitability and competitiveness, allowing RS Group to better navigate economic fluctuations.

Negative Factors

Revenue Decline and Market Challenges

Declining revenue reflects market challenges and may hinder growth prospects, necessitating strategic adjustments to regain momentum.

Weak Performance in EMEA

Weak performance in EMEA, a significant market, indicates regional challenges that could impact overall company performance if not addressed.

Challenges in Germany

Ongoing difficulties in Germany's manufacturing and automotive sectors pose risks to RS Group's growth in a key European market.

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, industrial automation and control, board-level electronics, and single-board computing products; and tools, consumables, and facilities maintenance products, such as personal protective equipment, site safety products, and 3D printing products. It operates DesignSpark, an online design community and resource center for makers, students, and design engineers. The company offers its products under the Needlers and Liscombe, RS Components, Allied Electronics & Automation, RS PRO, OKdo, DesignSpark, Synovos, and IESA brands to designers, builders, and maintainers of industrial equipment and operations. It serves manufacturing, services, and infrastructure industries. The company was formerly known as Electrocomponents plc. RS Group plc was founded in 1928 and is headquartered in London, the United Kingdom.

How the Company Makes Money

RS Group PLC generates revenue primarily through the sale of industrial and electronic products. The company operates a multi-channel distribution model, combining e-commerce with a network of physical branches to reach customers effectively. Key revenue streams include direct sales of products, subscription services for specialized software and tools, and value-added services such as technical support and training. Additionally, RS Group PLC benefits from strategic partnerships with leading manufacturers, which enhances its product offerings and enables competitive pricing. The company's focus on innovation and customer-centric solutions also contributes to recurring revenue through long-term contracts and repeat business.

RS Group PLC Financial Statement Overview

Summary

RS Group PLC shows strength in 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 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	2.87B	2.94B	2.90B	2.98B	2.55B	2.00B
Gross Profit	1.23B	1.26B	1.24B	1.32B	1.10B	832.00M
EBITDA	301.10M	364.80M	320.20M	447.60M	379.80M	240.30M
Net Income	157.40M	183.70M	152.60M	284.80M	230.00M	125.50M
Balance Sheet
Total Assets	2.66B	2.90B	2.62B	2.54B	2.10B	1.85B
Cash, Cash Equivalents and Short-Term Investments	219.20M	258.70M	147.70M	260.30M	257.90M	197.90M
Total Debt	552.60M	676.90M	511.90M	373.30M	299.90M	321.00M
Total Liabilities	1.27B	1.47B	1.27B	1.20B	990.20M	943.80M
Stockholders Equity	1.39B	1.43B	1.35B	1.34B	1.11B	899.40M
Cash Flow
Free Cash Flow	246.00M	145.00M	209.80M	260.40M	160.50M	132.90M
Operating Cash Flow	266.70M	196.60M	259.10M	306.50M	203.00M	187.60M
Investing Cash Flow	-46.30M	-355.70M	-57.70M	-270.50M	-40.30M	-190.20M
Financing Cash Flow	-254.00M	138.90M	-185.40M	-79.60M	-94.60M	66.00M

RS Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 648.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 648.5 is above the 20-day moving average (MA) of 640.60, above the 50-day MA of 609.46, and above the 200-day MA of 562.77, indicating a bullish trend. The MACD of 10.56 indicates Positive momentum. The RSI at 57.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	80 Outperform	£1.82B	14.08	8.33%	3.99%	5.75%	5.86%
RS1	74 Outperform	£3.11B	19.51	11.65%	3.58%	-2.44%	-6.43%
DPLM	66 Neutral	£7.60B	41.08	19.69%	1.13%	11.82%	42.93%
LTHP	64 Neutral	£191.94M	―	―	6.53%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SHI	56 Neutral	£116.62M	-1.66	-37.89%	―	-2.08%	-9.83%
FLO	51 Neutral	£38.35M	-1.43	-48.14%	―	-0.25%	-84.33%

RS Group PLC Corporate Events

RS Group CFO and Family Reinvest Dividends in Company Shares via DRIP

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 and January 2026. The transactions, involving modest volumes of 10 pence ordinary shares purchased on the London Stock Exchange, indicate continued reinvestment of dividend income by a key board member and her associates, aligning their interests with shareholders but representing routine governance-related dealing rather than a material change in ownership or strategy.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £790.00 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 Retirement

RS Group PLC has announced the retirement of Louisa Burdett from its Board of Directors, effective January 31, 2026. Burdett, who joined the company in 2017, has served as Chair of the Audit Committee and a member of the Nomination and Remuneration Committees. Her departure is part of a planned succession, with Carole Cran having already succeeded her as Chair of the Audit Committee. The company expressed gratitude for Burdett’s contributions over her nine-year tenure.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £747.00 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 Executive Share Option Grants

RS Group PLC has announced transactions involving its Chief Executive Officer, Simon Pryce, and Chief Financial Officer, Kate Ringrose, under the UK Market Abuse Regulation. Both executives have been granted a three-year option over shares at an exercise price of £4.52 per share under the company’s Save as You Earn Scheme, with the exercisable period set between February 1, 2029, and July 31, 2029. This move reflects the company’s commitment to aligning management interests with shareholder value, potentially impacting the company’s stock performance and stakeholder confidence.

The most recent analyst rating on (GB:RS1) stock is a Buy with a £645.00 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 Steady Half-Year Performance Amid Market Challenges

RS Group PLC reported its half-year results for 2025, showing performance in line with expectations and maintaining an unchanged full-year outlook. Despite a 3% decline in group revenue, the company saw marginal growth in the second quarter, driven by improvements in Americas and APAC regions, which offset declines in EMEA. The company’s strategic initiatives, including restructuring efforts and cost management, have begun to yield positive results, enhancing operational metrics and providing financial resilience amid uncertain market conditions. RS Group remains confident in achieving its medium-term financial targets as market conditions stabilize.

The most recent analyst rating on (GB:RS1) stock is a Hold with a £604.00 price target. To see the full list of analyst forecasts on RS Group PLC stock, see the GB:RS1 Stock Forecast page.