Restore (RST) AI Stock Analysis

• Market Cap: £351.21M
• Dividend Yield: 2.34%
• Average Volume (3M): 276.86K
• Price to Earnings (P/E): 37.4
• Beta (1Y): 0.46
• 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: 398,164
• 30 Day Avg. Volume: 276,861
• 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: £336.50
• Price Target Upside: 35.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 61 Neutral
• Price Target: 275.00p ▲(10.89% Upside)

Restore's overall stock score is driven by its strong financial performance, particularly in cash flow and operational efficiency. However, technical indicators suggest mixed signals with potential short-term weakness, and the high P/E ratio indicates valuation concerns. The absence of significant earnings call insights or corporate events leaves the financial and technical analyses as the primary factors.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates effective management and operational efficiency, providing the company with flexibility to invest in growth opportunities and weather economic fluctuations.

Operational Efficiency

Improved operational efficiency, as reflected in higher EBIT and EBITDA margins, suggests the company is effectively managing costs and enhancing profitability, which is crucial for long-term sustainability.

Balance Sheet Stability

A stable balance sheet with moderate leverage ensures financial resilience, allowing the company to maintain operations and pursue strategic initiatives without excessive financial risk.

Negative Factors

Revenue Decline

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future profitability and market position if not addressed.

Decreasing Equity

Decreasing equity levels could indicate financial strain or insufficient reinvestment in the business, which may affect long-term growth prospects and investor confidence.

High Valuation Concerns

A high valuation relative to peers may limit stock price appreciation potential and reflect market expectations that could be challenging to meet, impacting investor sentiment and capital raising ability.

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 from service fees charged for the various wellness treatments offered at its centers. Customers pay for individual sessions or can purchase membership plans that provide discounted rates for regular visits. Additionally, Restore sells wellness products, including supplements and recovery tools, both in-store and through its online platform. The company also explores partnerships with fitness centers, sports teams, and corporate wellness programs to expand its customer base and increase brand visibility. These collaborations often include referral agreements and promotions that drive traffic to Restore's facilities, further contributing 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	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: Negative
• Last Price: 248.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RST, the sentiment is Negative. The current price of 248 is below the 20-day moving average (MA) of 264.06, below the 50-day MA of 261.87, and above the 200-day MA of 241.96, indicating a neutral trend. The MACD of -1.46 indicates Positive momentum. The RSI at 32.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RST.

Restore Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RWS	72 Outperform	£326.54M	12.97	2.82%	13.91%	-0.78%	―
RTO	66 Neutral	£10.22B	39.97	5.93%	1.83%	-1.58%	-34.64%
MTO	65 Neutral	£1.79B	16.70	23.48%	3.14%	14.34%	-16.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RST	61 Neutral	£351.21M	37.39	4.01%	2.34%	6.90%	145.00%
CPI	59 Neutral	£398.69M	23.17	9.00%	―	-4.87%	―

Restore Corporate Events

Restore PLC Reports Strong Half-Year Results with Strategic Growth

Restore PLC reported a 15% increase in revenue to £160.1 million for the first half of 2025, driven largely by recent acquisitions. The company improved its adjusted operating margin to 17.7% and increased its adjusted profit before tax by 10% to £18.0 million. Despite a rise in net debt due to acquisitions, the company maintained strong cash generation and increased its interim dividend by 10%. Strategic highlights include a significant medical record scanning contract with Oxford University Hospitals and progress in its Information Management property consolidation program. The company remains confident in achieving its medium-term target of a 20% adjusted operating margin.

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 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.