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Rs Group Plc (GB:RS1)
:RS1
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RS Group PLC (RS1) AI Stock Analysis

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GB:RS1

RS Group PLC

(LSE:RS1)

Rating:65Neutral
Price Target:
626.00p
▲(7.47%Upside)
The overall stock score reflects a stable financial position with positive technical indicators and strong corporate confidence. However, valuation concerns and revenue growth challenges weigh negatively, necessitating strategic focus on growth and leverage management.
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 (RS1) vs. iShares MSCI United Kingdom ETF (EWC)

RS Group PLC Business Overview & Revenue Model

Company DescriptionRS 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 MoneyRS Group PLC generates revenue through a multi-faceted business model focused on the distribution and sale of industrial and electronic products. The company operates an extensive catalog offering a wide variety of components and solutions, which customers can access through their e-commerce platform, direct sales, or distribution channels. Key revenue streams include the sale of products and services to a diverse range of industries such as manufacturing, infrastructure, and technology. The company also leverages strategic partnerships with leading suppliers and manufacturers to expand its product offerings and enhance its supply chain efficiency. Additionally, RS Group PLC invests in digital solutions to streamline operations and improve customer experience, further driving sales and revenue growth.

RS Group PLC Financial Statement Overview

Summary
RS Group PLC shows operational efficiency with stable EBIT and EBITDA margins. However, challenges in revenue growth and decreasing net profit margins indicate the need for growth strategies. The balance sheet is stable with a strong equity base, but rising debt levels could be a risk. Cash flow generation is satisfactory, though more consistency is needed.
Income Statement
65
Positive
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
72
Positive
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
68
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.90B2.94B2.98B2.55B2.00B
Gross Profit1.24B1.26B1.32B1.10B832.00M
EBITDA320.20M367.30M462.90M379.80M240.30M
Net Income152.60M183.70M284.80M230.00M125.50M
Balance Sheet
Total Assets2.62B2.90B2.54B2.10B1.85B
Cash, Cash Equivalents and Short-Term Investments147.70M258.70M260.30M257.90M197.90M
Total Debt511.90M676.90M373.30M299.90M321.00M
Total Liabilities1.27B1.47B1.20B990.20M943.80M
Stockholders Equity1.35B1.43B1.34B1.11B899.40M
Cash Flow
Free Cash Flow209.80M145.00M260.40M160.50M132.90M
Operating Cash Flow259.10M196.60M306.50M203.00M187.60M
Investing Cash Flow-57.70M-355.70M-270.50M-40.30M-190.20M
Financing Cash Flow-185.40M138.90M-79.60M-94.60M66.00M

RS Group PLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price582.50
Price Trends
50DMA
570.22
Positive
100DMA
555.77
Positive
200DMA
612.94
Negative
Market Momentum
MACD
2.48
Positive
RSI
54.46
Neutral
STOCH
60.27
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 582.5 is above the 20-day moving average (MA) of 581.35, above the 50-day MA of 570.22, and below the 200-day MA of 612.94, indicating a neutral trend. The MACD of 2.48 indicates Positive momentum. The RSI at 54.46 is Neutral, neither overbought nor oversold. The STOCH value of 60.27 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

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£1.76B14.887.50%402.04%-1.59%-12.46%
71
Outperform
£232.72M
653.06%
70
Outperform
£209.39M31.473.43%523.08%-8.13%-71.44%
70
Neutral
£78.95M-4.13%176.84%-5.60%-238.37%
67
Neutral
£2.85B10.424.69%215.06%2.73%-20.56%
65
Neutral
£2.76B17.6610.95%384.55%-1.32%-16.36%
50
Neutral
£170.14M-23.81%-5.41%-11.73%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RS1
RS Group PLC
582.50
-197.75
-25.34%
GB:SHI
SIG plc
14.40
-12.00
-45.45%
GB:GFTU
Grafton
920.30
-90.26
-8.93%
GB:LTHP
James Latham
122.50
7.87
6.87%
GB:BRCK
Brickability Group PLC
64.60
-4.11
-5.98%
GB:LORD
Lords Group Trading PLC
47.00
7.39
18.66%

RS Group PLC Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
RS Group PLC Announces Share Awards to CEO and CFO
Neutral
Jul 21, 2025

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.

Business Operations and StrategyFinancial Disclosures
RS Group PLC Maintains Full-Year Outlook Amid Strategic Advancements
Neutral
Jul 17, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
RS Group PLC Announces New Chair for Audit Committee
Neutral
Jul 4, 2025

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.

Regulatory Filings and Compliance
RS Group PLC Discloses CFO Share Transactions
Neutral
Jul 2, 2025

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.

Regulatory Filings and Compliance
RS Group PLC Discloses Managerial Share Acquisition
Neutral
Jun 23, 2025

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.

Other
RS Group PLC Executives Acquire Shares, Signaling Confidence in Future Prospects
Positive
Jun 18, 2025

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.

Regulatory Filings and Compliance
Mawer Investment Management Adjusts Voting Rights in RS Group PLC
Neutral
Jun 10, 2025

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.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
RS Group PLC Publishes 2025 Annual Report and Announces AGM
Neutral
Jun 9, 2025

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.

Executive/Board ChangesRegulatory Filings and Compliance
RS Group PLC Executives Receive Share Awards
Neutral
Jun 6, 2025

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.

Regulatory Filings and Compliance
RS Group PLC Announces Director Share Acquisition
Neutral
May 29, 2025

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.

Business Operations and StrategyFinancial Disclosures
RS Group PLC Reports Resilient Performance Amid Challenging Market Conditions
Neutral
May 21, 2025

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.

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.Date of analysis: Jul 25, 2025