Restore (RST) AI Stock Analysis

• Market Cap: £382.02M
• Dividend Yield: 2.72%
• Average Volume (3M): 194.94K
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.29
• Revenue Growth: -0.65%
• EPS Growth: N/A
• Country: UK
• Employees: 2,400
• Sector: Industrials
• Sector Strength: 90
• Industry: Specialty Business Services
• EPS (TTM): 0.10
• Shares Outstanding: 136,924,070
• 10 Day Avg. Volume: 189,373
• 30 Day Avg. Volume: 194,939
• PEG Ratio: 0.69
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.26
• 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: £392.00
• Price Target Upside: 40.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: 303.00p ▲(8.60%Upside)

The overall stock score for Restore reflects strong financial performance and positive corporate events, which bolster its investment appeal. However, the high valuation and overbought technical indicators suggest caution. The company's operational improvements and strategic acquisitions contrast with valuation concerns, creating a balanced but cautious outlook.

Positive Factors

Financial Performance

New management has made significant steps to improve margins, with early progress showing positive results, and a credible target of achieving a 20%+ operating margin.

Management Strength

A highly experienced management team, with CEO Charles Skinner having led the group from 2009 to 2019, provides confidence in financial and strategic progress.

Revenue Growth

Trading continued to be positive with increased revenues, underpinned by the group's core storage and highly contracted and recurring income streams.

Negative Factors

Competitive Landscape

The shares are trading on a one-year forward P/E ratio of approximately 11x, which is seen as compelling for a business with market-leading positions and strong recurring revenues.

Market Valuation

The current valuation is seen as undemanding for a business with strong revenue visibility and internal levers to improve margins and drive earnings.

Restore Business Overview & Revenue Model

Company Description

Restore (RST) is a company that operates within the document management and data storage sector. It provides services including document storage, digital information management, and secure shredding to help businesses manage their information lifecycle. Restore offers solutions tailored to various industries, ensuring compliance and enhancing efficiency in their document management processes.

How the Company Makes Money

Restore makes money through a diverse revenue model centered around its core services: document storage, digital information management, and secure shredding. The company charges clients for physical storage space, digital archiving solutions, and secure destruction of sensitive information. Key revenue streams include subscription-based services for ongoing storage and management, as well as one-time fees for specific projects or services. Strategic partnerships with technology providers and compliance organizations enhance Restore's service offerings and expand its market reach, contributing significantly to its earnings.

Restore Financial Statement Overview

Summary

Restore demonstrates a solid financial foundation with strong cash flow metrics and improved operational efficiencies. While revenue growth is slightly negative, profitability margins and cash flow generation are on an upward trajectory. The balance sheet maintains stability with manageable leverage, though slight decreases in equity warrant attention.

Income Statement

The income statement shows a mixed performance with positive gross profit and net profit margins of 44.5% and 4.5% respectively in 2024. However, the revenue has declined by 0.65% from 2023 to 2024, indicating a slight downturn in growth. The EBIT and EBITDA margins improved significantly to 11.8% and 28.2% respectively, showcasing operational efficiency gains.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.01, indicating moderate leverage. Equity ratio stands at 42.2%, showing a reasonable proportion of equity financing. However, there is a slight decrease in stockholders' equity compared to previous periods, which could be a concern if not addressed.

Cash Flow

Cash flow analysis is robust with a strong operating cash flow to net income ratio of 4.72, indicating effective cash generation from operations. Free cash flow has grown by 14.13% from 2023 to 2024, suggesting improved cash management. The free cash flow to net income ratio of 3.45 further underscores strong cash performance relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.30M	277.10M	279.00M	234.30M	182.70M
Gross Profit	122.50M	116.40M	81.90M	68.50M	42.80M
EBITDA	77.70M	30.00M	80.60M	74.20M	57.30M
Net Income	12.40M	-30.70M	16.80M	11.50M	200.00K
Balance Sheet
Total Assets	553.70M	549.40M	615.20M	605.60M	497.30M
Cash, Cash Equivalents and Short-Term Investments	8.00M	22.70M	30.20M	32.90M	26.40M
Total Debt	237.00M	224.00M	243.20M	250.70M	213.20M
Total Liabilities	319.90M	317.30M	342.00M	340.40M	278.70M
Stockholders Equity	233.80M	232.10M	273.20M	265.20M	218.60M
Cash Flow
Free Cash Flow	42.80M	37.50M	36.80M	38.90M	44.40M
Operating Cash Flow	58.50M	47.80M	47.80M	47.70M	51.70M
Investing Cash Flow	-15.60M	-12.00M	-22.50M	-95.50M	-11.00M
Financing Cash Flow	-60.80M	-43.30M	-28.00M	54.30M	-30.90M

Restore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 279.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RST, the sentiment is Positive. The current price of 279 is above the 20-day moving average (MA) of 263.75, above the 50-day MA of 258.26, and above the 200-day MA of 239.65, indicating a bullish trend. The MACD of 4.02 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 81.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RST.

Restore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RWS	74 Outperform	£316.56M	12.57	2.82%	5.72%	-0.78%	―
MTO	73 Outperform	£1.67B	16.70	23.48%	4.38%	14.34%	-16.43%
RTO	69 Neutral	£8.98B	29.33	7.38%	2.45%	1.13%	-19.48%
CPI	69 Neutral	£391.87M	5.06	49.03%	―	-10.33%	―
Sector *	67 Neutral	£2.87B	10.55	4.69%	3.48%	2.40%	-24.48%
RST	67 Neutral	£382.02M	30.53	5.32%	2.72%	-0.65%	―

Restore Corporate Events

Restore plc Schedules Investor Presentation for Half-Year Results

Restore plc announced an upcoming Investor Presentation to discuss its half-year results for the period ending 30 June 2025. The event, hosted by CEO Charles Skinner and CFO Dan Baker, will be held online on 1 August, allowing stakeholders to engage directly with the company’s leadership and gain insights into its financial performance and strategic direction.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.

Restore PLC Announces Change in Major Holdings

Restore PLC, a UK-based company, has announced a change in its major holdings as Harwood Capital LLP has acquired additional voting rights, increasing its total to 12.071%. This acquisition reflects a slight increase from the previous 11.9898% and involves several entities including Oryx International Growth Fund Limited and Rockwood Strategic Plc. The change in holdings could potentially impact Restore PLC’s strategic decisions and influence its market positioning.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.

Restore PLC Announces Change in Major Holdings

Restore PLC, a UK-based company, has announced a change in its major holdings. Harwood Capital LLP has adjusted its voting rights in Restore PLC, reducing its stake from 12.014680% to 11.989800%. This change was officially notified on June 16, 2025, following the crossing of the threshold on June 13, 2025. The adjustment in holdings may impact Restore PLC’s shareholder dynamics and could influence its strategic decisions moving forward.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.

Restore PLC Launches 2025 Employee Savings Scheme

Restore PLC has announced the launch of its 2025 Save As You Earn Scheme, offering a three-year savings plan to eligible employees. With a 20% discount on share options, 311 employees participated, receiving 869,270 options, representing 0.635% of the company’s issued share capital. This initiative underscores Restore’s commitment to employee engagement and could enhance its market position by aligning employee interests with company performance.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.

Restore plc Successfully Passes All Resolutions at AGM

Restore plc announced the successful passing of all resolutions at its Annual General Meeting held on 13 May 2025, reinforcing its operational stability and strategic direction. This outcome supports the company’s position in the industry and provides assurance to stakeholders regarding its governance and future plans.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.

Restore plc Reports Positive Trading and Strategic Acquisitions

Restore plc reported positive trading for the first four months of 2025, with increased revenues supported by its core storage and recurring income streams. The company completed three acquisitions, including Synertec, a document management business, and two bolt-on acquisitions within its Datashred division, enhancing its growth strategy. The board remains confident in meeting full-year expectations, with all divisions anticipated to increase adjusted operating profit.

The most recent analyst rating on (GB:RST) stock is a Buy with a £290.00 price target. To see the full list of analyst forecasts on Restore stock, see the GB:RST Stock Forecast page.