Regis (RGS) AI Stock Analysis

• Market Cap: $72.81M
• Dividend Yield: N/A
• Average Volume (3M): 17.57K
• Price to Earnings (P/E): 0.7
• Beta (1Y): 0.42
• Revenue Growth: 3.52%
• EPS Growth: 26.12%
• Country: US
• Employees: 1,945
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 43.27
• Shares Outstanding: 2,435,979
• 10 Day Avg. Volume: 11,694
• 30 Day Avg. Volume: 17,567
• 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: 5.17
• Enterprise Value/Revenue: 1.89
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 4.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $34.00 ▲(11.51% Upside)

Regis's stock is rated positively due to its strong technical indicators and undervaluation, despite concerns about leverage and operational efficiency. The earnings call further supports a positive outlook, although it was not weighted in the final score.

Regis Business Overview & Revenue Model

Company Description

Regis Corporation (RGS) is a leading provider of hair care services and products in North America, operating a diverse portfolio of salon brands. The company operates through multiple segments, including company-owned salons and franchised locations, offering a variety of services such as haircuts, color treatments, and styling, alongside the sale of hair care products. Regis is committed to delivering exceptional customer experiences in the beauty industry through its widespread network of salons and professional stylists.

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: Neutral
• Last Price: 30.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGS, the sentiment is Neutral. The current price of 30.49 is above the 20-day moving average (MA) of 29.88, above the 50-day MA of 26.50, and above the 200-day MA of 22.31, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 54.24 is Neutral, neither overbought nor oversold. The STOCH value of 44.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGS.

Regis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RGS	72 Outperform	$72.81M	0.69	96.56%	―	3.52%	26.12%
MRM	64 Neutral	$19.20M	13.81	48.22%	―	12.93%	66.81%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MED	46 Neutral	$138.93M	37.86	1.73%	―	-37.62%	-87.69%
TRNR	41 Neutral	$5.76M	―	-259.91%	―	373.32%	98.46%
XWEL	41 Neutral	$5.64M	―	-1069.01%	―	-6.93%	22.70%

Regis Corporate Events

Regis Corporation’s Earnings Call Highlights Growth and Challenges

Regis Corporation’s latest earnings call conveyed an overall positive sentiment, highlighting significant improvements in key financial metrics. The company reported notable growth in operating income, adjusted EBITDA, and same-store sales, alongside successful brand transformation efforts. Despite facing challenges such as a reduction in franchise locations and high debt levels, the positive developments were the focal point of the discussion.

Regis Corporation Reports Strong Fiscal Year 2025 Results

Regis Corporation is a prominent player in the haircare industry, operating a mix of franchised and company-owned salons under well-known brands such as Supercuts and SmartStyle. The company recently reported its financial results for the fourth fiscal quarter and full fiscal year 2025, highlighting a positive trajectory in its financial performance.