Regis (RGS) AI Stock Analysis

• Market Cap: $66.67M
• Dividend Yield: N/A
• Average Volume (3M): 14.80K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 0.63
• Revenue Growth: 3.52%
• EPS Growth: 26.12%
• Country: US
• Employees: 1,945
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Personal Products & Services
• EPS (TTM): 43.27
• Shares Outstanding: 2,435,981
• 10 Day Avg. Volume: 27,972
• 30 Day Avg. Volume: 14,805
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.65
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 4.95
• 1Y Price Target: $29.00
• Price Target Upside: 5.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $29.00 ▲(5.96% Upside)

Regis's stock score is driven by strong technical indicators and an attractive valuation, despite financial leverage concerns and leadership changes. The company's strategic initiatives and positive earnings sentiment further support the score.

Positive Factors

Revenue Growth

The significant revenue growth in the fourth quarter indicates strong demand for Regis's services and successful strategic initiatives, suggesting a positive long-term trajectory for the company's market position and financial performance.

Supercuts Brand Transformation

The successful transformation of the Supercuts brand, as evidenced by increased loyalty program engagement, enhances customer retention and brand strength, supporting long-term revenue stability and growth.

Positive Cash Flow

Consistent positive cash flow generation improves Regis's liquidity and financial flexibility, enabling reinvestment in growth initiatives and debt management, which are crucial for sustainable long-term operations.

Negative Factors

High Debt Levels

High debt levels can strain Regis's financial resources, limiting its ability to invest in growth opportunities and increasing vulnerability to economic downturns, potentially impacting long-term financial health.

Decrease in Franchise Locations

The reduction in franchise locations may weaken Regis's market presence and reduce franchise fee income, challenging its ability to maintain revenue growth and operational scale over the long term.

Leadership Changes

The resignation of the CEO introduces uncertainty in leadership, potentially disrupting strategic continuity and execution, which could affect Regis's long-term strategic initiatives and market confidence.

Regis Business Overview & Revenue Model

Company Description

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, Canada, Puerto Rico, and the United Kingdom. The company operates in two segments, Franchise Salons and Company-Owned Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company also offers mobile applications; and operates accredited cosmetology schools. Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts concepts names. As of June 30, 2022, the company operated 5,576 salons, such as 5,395 franchised salons, 105 company-owned salons, and 76 non-controlling ownership salons. Regis Corporation was founded in 1922 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Regis generates revenue primarily through the provision of salon services and the sale of related hair care products. Its revenue streams include fees from haircuts, styling, and color treatments performed at both company-owned and franchised salons. Additionally, the sale of branded and third-party hair care products in salons contributes significantly to its earnings. The company also benefits from franchise fees and royalties from franchised locations, creating a steady income stream. Strategic partnerships with product manufacturers and suppliers enhance its product offerings, while promotional campaigns and loyalty programs drive customer retention and repeat business.

Regis Financial Statement Overview

Summary

Regis has shown improved profitability and cash flow in the TTM, with strong net income margins driven by cost control. However, declining revenue and high leverage, indicated by a Debt-to-Equity Ratio of 5.36, pose significant financial risks and challenges to sustainable growth.

Income Statement

The income statement shows a decline in revenue and gross profit over the TTM compared to the previous year, though net income has improved significantly due to cost management. Gross Profit Margin is 39.36%, and Net Profit Margin is 49.34% for TTM, indicating strong profitability on a net basis. However, the declining revenue trend poses a risk to future growth.

Balance Sheet

The balance sheet reflects high leverage, with a Debt-to-Equity Ratio of 5.36, indicating significant financial risk. The Equity Ratio is only 13.42%, suggesting low equity compared to total assets. Return on Equity is high at 143.16% due to low equity, which may not be sustainable.

Cash Flow

Cash flow analysis reveals positive Free Cash Flow of $11.3M TTM with a Free Cash Flow to Net Income Ratio of 0.115, indicating a moderate conversion of net income to free cash flow. Operating Cash Flow has improved significantly from negative figures in prior years, but sustainability remains a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	199.11M	210.13M	202.98M	233.33M	275.97M	415.11M
Gross Profit	78.36M	64.74M	76.55M	76.54M	65.62M	129.41M
EBITDA	76.08M	21.79M	119.27M	17.30M	-22.67M	-81.44M
Net Income	98.24M	117.03M	91.06M	-7.38M	-46.46M	-113.33M
Balance Sheet
Total Assets	511.25M	598.96M	530.50M	607.38M	769.30M	996.38M
Cash, Cash Equivalents and Short-Term Investments	13.29M	16.96M	10.07M	9.51M	17.04M	19.19M
Total Debt	367.90M	241.06M	399.28M	550.65M	691.63M	822.25M
Total Liabilities	442.60M	413.34M	473.71M	644.11M	800.25M	979.34M
Stockholders Equity	68.64M	185.62M	56.79M	-36.73M	-30.95M	17.05M
Cash Flow
Free Cash Flow	11.30M	12.45M	-2.42M	-8.37M	-43.95M	-111.36M
Operating Cash Flow	12.08M	13.74M	-2.04M	-7.89M	-38.64M	-99.88M
Investing Cash Flow	-10.94M	-11.45M	1.62M	4.02M	7.68M	-2.10M
Financing Cash Flow	16.67M	3.59M	8.36M	-2.15M	29.42M	7.78M

Regis Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.37
• 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 RGS, the sentiment is Positive. The current price of 27.37 is above the 20-day moving average (MA) of 21.82, above the 50-day MA of 21.46, and above the 200-day MA of 21.45, indicating a bullish trend. The MACD of 1.52 indicates Negative momentum. The RSI at 73.38 is Negative, neither overbought nor oversold. The STOCH value of 95.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGS.

Regis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGS	70 Outperform	$66.67M	0.64	96.56%	―	3.52%	26.12%
Sector *	61 Neutral	$17.83B	12.89	-1.60%	3.03%	1.39%	-14.45%
MRM	60 Neutral	$14.70M	10.57	23.48%	―	12.93%	66.81%
MED	49 Neutral	$151.79M	41.90	1.73%	―	-37.62%	-87.69%
TRNR	41 Neutral	$5.50M	―	-259.91%	―	373.32%	98.46%
XWEL	41 Neutral	$5.99M	―	-1069.01%	―	-6.93%	22.70%

Regis Corporate Events

Regis CEO Matthew Doctor Resigns Effective June 30

On June 20, 2025, Regis Corporation announced the resignation of Matthew Doctor as President, CEO, and Director, effective June 30, 2025. Jim Lain, the Executive Vice President of Brand Operations for Supercuts and Cost Cutters, will serve as Interim President and CEO starting July 1, 2025, while the company searches for a permanent successor. Under Doctor’s leadership, Regis stabilized operations and improved financial standing, positioning the company for long-term growth. The company reported positive same-store sales growth for Supercuts and Regis Consolidated in the fourth quarter of fiscal 2025, indicating continued momentum.