Restore (RST) AI Stock Analysis

• Market Cap: £367.64M
• Dividend Yield: 2.23%
• Average Volume (3M): 286.12K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 0.39
• Revenue Growth: 6.90%
• EPS Growth: 145.00%
• Country: UK
• Employees: 2,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.10
• Shares Outstanding: 136,924,070
• 10 Day Avg. Volume: 450,461
• 30 Day Avg. Volume: 286,115
• PEG Ratio: -0.19
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 7.67
• 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: £343.50
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 282.00p ▲(5.03% Upside)

Restore's overall stock score reflects a solid financial performance with strong cash flow and operational efficiencies. However, the technical analysis indicates potential overbought conditions, and the high P/E ratio suggests overvaluation concerns. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates effective management and provides financial flexibility for reinvestment and growth initiatives.

Operational Efficiency

Improved margins reflect enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Business Model Diversification

Diversified revenue streams reduce dependency on a single source, enhancing resilience against market fluctuations and supporting steady growth.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting long-term expansion.

Decreasing Equity

Decreasing equity may indicate financial strain or inadequate reinvestment, which could affect future growth and stability.

Leverage Concerns

Moderate leverage can limit financial flexibility and increase risk, especially if revenue growth does not improve to support debt servicing.

Restore Business Overview & Revenue Model

Company Description

Restore plc, together with its subsidiaries, provides offices and workplaces services to the public and private sectors primarily in the United Kingdom. The company operates through two segments, Digital & Information Management, and Secure Lifecycle Services. The Digital & Information Management segment offers storage and retrieval solutions for hard copy documents, magnetic data storage tapes, and heritage assets; digital workflow services, including document scanning, workflow automation, cloud-based document management systems, robotic process automation, and artificial intelligence. The Secure Lifecycle Services segment provides lifecycle management of technology assets; relocation services; and hardware and software upgrades; and paper shredding and recycling services. The company was incorporated in 2004 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Restore generates revenue through multiple streams, primarily by charging customers for individual wellness services and membership plans that provide discounted rates for regular users. The company also sells retail products related to health and recovery, such as supplements and recovery gear. Significant partnerships with health and wellness brands help bolster its product offerings and attract a wider customer base. Additionally, Restore may benefit from franchising its business model, allowing it to expand its presence while earning franchise fees and royalties from franchisees.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	296.00M	275.30M	277.10M	279.00M	234.30M	182.70M
Gross Profit	103.00M	122.50M	116.40M	81.90M	68.50M	42.80M
EBITDA	77.20M	77.70M	30.00M	75.90M	69.50M	46.50M
Net Income	9.30M	12.40M	-30.70M	16.80M	11.50M	200.00K
Balance Sheet
Total Assets	627.00M	553.70M	549.40M	615.20M	605.60M	497.30M
Cash, Cash Equivalents and Short-Term Investments	12.80M	8.00M	22.70M	30.20M	32.90M	26.40M
Total Debt	283.00M	237.00M	224.00M	248.60M	250.70M	213.20M
Total Liabilities	394.90M	319.90M	317.30M	342.00M	340.40M	278.70M
Stockholders Equity	232.10M	233.80M	232.10M	273.20M	265.20M	218.60M
Cash Flow
Free Cash Flow	49.80M	42.80M	37.50M	36.80M	38.90M	44.40M
Operating Cash Flow	65.00M	58.50M	47.80M	47.80M	47.70M	51.70M
Investing Cash Flow	-44.50M	-15.60M	-12.00M	-22.50M	-95.50M	-11.00M
Financing Cash Flow	-17.70M	-60.80M	-43.30M	-28.00M	54.30M	-30.90M

Restore Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 268.5 is above the 20-day moving average (MA) of 251.83, above the 50-day MA of 244.17, and above the 200-day MA of 248.12, indicating a bullish trend. The MACD of 9.49 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 64.05 is Neutral, 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
MTO	76 Outperform	£2.14B	21.56	20.62%	2.55%	11.42%	-17.18%
RTO	74 Outperform	£11.16B	43.66	5.93%	1.68%	-1.58%	-34.64%
RST	66 Neutral	£367.64M	39.14	4.01%	2.23%	6.90%	145.00%
CPI	64 Neutral	£482.46M	28.11	9.00%	―	-4.87%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RWS	60 Neutral	£322.47M	-3.23	-12.00%	15.28%	-3.91%	-310.36%

Restore Corporate Events

Restore PLC Hosts Investor Site Visit to Showcase Operations

Restore PLC is hosting a site visit for analysts and investors at its Technology business in Cardington and the newly acquired Synertec Information Management business in Milton Keynes. The event aims to provide insights into the company’s operations, although no new material information will be disclosed, reflecting Restore’s commitment to transparency and stakeholder engagement.