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RS Group PLC
(LSE:RS1)
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Rating:64Neutral
Price Target:
666.00 p
▲(9.45% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by stable but moderating financial performance (flat recent revenues, lower margins/returns, and weaker free-cash-flow trend) offset by a manageable balance sheet. Technical indicators are mixed with neutral momentum, while valuation is supported by a reasonable P/E and a solid dividend yield.
Positive Factors
Digital conversion improvements
Sustained improvements in online conversion metrics reflect durable investments in digital commerce and pricing. Better add-to-cart and basket-to-order rates raise revenue per visit, reduce customer acquisition payback and support margin expansion through higher operational efficiency across channels over the medium term.
Negative Factors
Stagnant revenue trend
Two consecutive years of flat-to-declining top line suggest constrained end-market demand and limited pricing power. Persistently low revenue growth reduces operating leverage, making it harder to re-expand margins and returns without structural market recovery or further product/service mix shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital conversion improvements
Sustained improvements in online conversion metrics reflect durable investments in digital commerce and pricing. Better add-to-cart and basket-to-order rates raise revenue per visit, reduce customer acquisition payback and support margin expansion through higher operational efficiency across channels over the medium term.
Read all positive factors
RS Group PLC (RS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.71B
Dividend Yield3.58%
Average Volume (3M)997.46K
Price to Earnings (P/E)16.6
Beta (1Y)1.12
Revenue Growth-0.77%
EPS Growth6.65%
CountryUK
Employees8,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.35
Shares Outstanding472,347,380
10 Day Avg. Volume861,254
30 Day Avg. Volume997,455
Financial Highlights & Ratios
PEG Ratio1.71
Price to Book (P/B)1.85
Price to Sales (P/S)0.91
P/FCF Ratio10.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£723.13Price Target Upside18.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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, engages in the distribution of maintenance, repair, and operations products and service solutions in the United Kingdom, the United States, France, Mexico, Germany, Italy, Switzerland, and internationa...
How the Company Makes Money
RS Group primarily makes money by purchasing industrial and electronic products from manufacturers and selling them to business customers at a margin through its distribution channels (notably e-commerce platforms, supported by catalogue and accou...
RS Group PLC Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 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
66
Positive
Balance Sheet
72
Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.88B | 2.90B | 2.94B | 2.98B | 2.55B |
| Gross Profit | 1.25B | 1.24B | 1.26B | 1.32B | 1.10B |
| EBITDA | 318.70M | 320.20M | 364.80M | 447.60M | 379.80M |
| Net Income | 162.00M | 152.60M | 183.70M | 284.80M | 230.00M |
Balance Sheet | |||||
| Total Assets | 2.67B | 2.62B | 2.90B | 2.54B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 166.50M | 147.70M | 258.70M | 260.30M | 257.90M |
| Total Debt | 495.40M | 511.90M | 676.90M | 373.30M | 299.90M |
| Total Liabilities | 1.26B | 1.27B | 1.47B | 1.20B | 990.20M |
| Stockholders Equity | 1.41B | 1.35B | 1.43B | 1.34B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 244.90M | 209.80M | 145.00M | 260.40M | 160.50M |
| Operating Cash Flow | 263.80M | 259.10M | 196.60M | 306.50M | 203.00M |
| Investing Cash Flow | -72.80M | -57.70M | -355.70M | -270.50M | -40.30M |
| Financing Cash Flow | -184.20M | -185.40M | 138.90M | -79.60M | -94.60M |
RS Group PLC Technical Analysis
Negative
608.50
Price Trends
614.66
Negative
618.82
Negative
599.94
Negative
Market Momentum
-4.35
Positive
40.07
Neutral
15.16
Positive
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 608.5 is below the 20-day moving average (MA) of 616.50, below the 50-day MA of 614.66, and above the 200-day MA of 599.94, indicating a bearish trend. The MACD of -4.35 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | £9.56B | 50.57 | 18.55% | 1.13% | 13.31% | 13.05% | |
68 Neutral | £1.70B | 12.87 | 8.38% | 3.99% | 10.40% | 15.42% | |
64 Neutral | £2.71B | 16.61 | 11.55% | 3.58% | -0.77% | 6.65% | |
64 Neutral | £202.88M | 1.39 | 7.92% | 6.53% | ― | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | £48.54M | -11.43 | -8.17% | ― | 8.98% | 87.44% | |
47 Neutral | £91.71M | -1.43 | -47.73% | ― | -0.80% | -31.98% |
* Industrials Sector Average
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RS Group PLC Corporate Events
Business Operations and StrategyStock Buyback
RS Group Advances £100m Share Buyback, Cuts Share Count to 473m
Positive
Jun 15, 2026
RS Group plc has continued executing its £100 million share repurchase programme, buying 278,598 ordinary shares for cancellation on the London Stock Exchange between 8 and 12 June 2026 through Barclays Bank. The purchases, made at volume-wei...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
RS Group Publishes 2026 Annual Report and Sets July AGM
Neutral
Jun 8, 2026
RS Group PLC has published its Annual Report and Accounts for the year ended 31 March 2026, together with the formal notice of its 2026 Annual General Meeting. The documents are available on the company’s website and have been submitted to t...
Business Operations and StrategyStock Buyback
RS Group cancels more shares as £100m buyback gathers pace
Positive
Jun 8, 2026
RS Group plc has continued executing its previously announced £100 million share repurchase programme, buying 290,000 ordinary shares for cancellation between 1 and 5 June 2026 via Barclays Bank on the London Stock Exchange. Since the start o...
Executive/Board Changes
RS Group Grants New Share-Based Awards to CEO and CFO
Positive
Jun 3, 2026
RS Group plc has granted conditional share awards in the form of 10 pence ordinary shares to its chief executive officer, Simon Pryce, and chief financial officer, Kate Ringrose, under its established incentive frameworks. The awards, made on 2 Ju...
Executive/Board Changes
RS Group Director Bessie Lee Joins Board of Fidelity China Special Situations
Positive
Jun 2, 2026
RS Group plc has announced that non-executive director Bessie Lee has taken on an additional role as an independent non-executive director at Fidelity China Special Situations PLC, a London-listed investment company, effective 2 June 2026. She wil...
Business Operations and StrategyRegulatory Filings and Compliance
RS Group Confirms Total Voting Rights After Share Capital Update
Positive
Jun 1, 2026
RS Group PLC has confirmed that, as of 29 May 2026, its issued share capital comprises 473,638,968 ordinary shares of 10 pence each, all carrying voting rights, with no shares held in treasury. This updated total voting rights figure provides shar...
Business Operations and StrategyStock Buyback
RS Group Shrinks Share Count as £100m Buyback Progresses
Positive
Jun 1, 2026
RS Group plc has continued to execute its £100 million share repurchase programme, buying 232,000 ordinary shares for cancellation between 26 and 29 May 2026 through Barclays on the London Stock Exchange. These latest purchases were made at v...
Business Operations and StrategyStock Buyback
RS Group Cancels 178,500 Shares as £100m Buyback Programme Starts
Positive
May 26, 2026
RS Group plc has begun executing its previously announced £100 million share repurchase programme, buying back 178,500 ordinary shares for cancellation between 20 and 22 May 2026 through Barclays Bank on the London Stock Exchange. Following t...
Business Operations and StrategyStock Buyback
RS Group launches £100m share buyback to cut share capital
Positive
May 20, 2026
RS Group PLC has launched a share buyback programme of up to £100 million, authorising the repurchase of ordinary shares over a 12‑month period ending no later than 19 May 2027. The move aligns with its capital allocation policy, sits a...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
RS Group Holds Revenue Steady, Boosts Margins and Launches £100m Buyback
Positive
May 20, 2026
RS Group reported broadly flat like-for-like revenue of £2.88 billion for the year to 31 March 2026 in what it described as challenging markets, with improving momentum in the second half across EMEA, Asia Pacific and North America. While adj...
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...
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.