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Regis Corp (RGS)
NASDAQ:RGS
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Regis
(NASDAQ:RGS)
Rating:64Neutral
Price Target:
$23.50
▲(1.38%Upside)
Regis (RGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.45M
Dividend YieldN/A
Average Volume (3M)9.16K
Price to Earnings (P/E)0.6
Beta (1Y)0.62
Revenue Growth-4.88%
EPS GrowthN/A
CountryUS
Employees1,945
SectorConsumer Cyclical
Sector Strength61
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.43
Shares Outstanding2,435,981
10 Day Avg. Volume9,296
30 Day Avg. Volume9,159
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)-1.40
Price to Sales (P/S)0.00
P/FCF Ratio-6.13
Enterprise Value/Market Cap13.45
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit9.69
Enterprise Value/Ebitda2.49
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Regis Business Overview & Revenue Model
Company DescriptionRegis Corporation (RGS) is a prominent leader in the hair salon industry, operating a wide network of company-owned and franchised salons across North America. The company offers a broad spectrum of hair care services and products through various well-known brands including Supercuts, SmartStyle, and Cost Cutters. Regis is committed to delivering high-quality and cost-effective hair care solutions to its diverse clientele.
How the Company Makes MoneyRegis Corporation generates revenue primarily through the operation of its network of salons, which offer a variety of hair care services such as haircuts, styling, coloring, and treatments. A significant portion of its revenue also comes from franchise royalties and fees paid by franchisees operating under Regis's brand names. Additionally, the company earns money through the sale of professional hair care products in its salons. Strategic partnerships, such as those with product suppliers, and the company's focus on expanding its franchise operations further contribute to its earnings.
Regis Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2025)
| % Change Since: 21.17%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call reflects significant progress in the company's transformation strategy, with notable achievements in profitability and cash flow generation. However, challenges remain in reversing traffic declines and improving same-store sales, particularly in the SmartStyle brand.Q3-2025 Updates
Positive Updates
Significant EBITDA and Operating Income Growth
Adjusted EBITDA grew 33% and operating income grew by 23% compared to the fiscal third quarter of the previous year. Both reported and adjusted earnings per share shifted from negative to positive.
Positive Cash Flow Generation
Generated more than $6 million in cash from operations, marking the second consecutive quarter of positive cash flow for the first time since the first fiscal quarter in 2018.
Successful Acquisition of Alline Salon Group
The acquisition of Alline Salon Group expanded growth and cash generation levers, contributing positively to results immediately upon closing.
Improvement in Same-Store Sales
Same-store sales in the Alline portfolio improved from a 7.5% decline in January to a 2.7% decline in March, turning positive in April.
Supercuts Brand Performance
Supercuts saw a same-store sales increase of 1.1% for the third quarter, with April showing a further increase of 4.5%.
Negative Updates
Modest Decline in Consolidated Same-Store Sales
Consolidated same-store sales saw a decline of 1.1%, driven by timing of Easter, continued softness in overall salon traffic, and new guest visits.
SmartStyle Brand Decline
SmartStyle experienced a 7.4% same-store sales decline for the quarter.
Salon Closures
49 net closures of underperforming stores, with a performance gap of $350,000 between closed stores and top-performing units.
Company Guidance
During the Regis Third Quarter 2025 Earnings Conference Call, the company provided various metrics and updates on its transformation strategy aimed at achieving long-term growth and profitability. Key highlights included a 33% increase in adjusted EBITDA and a 23% rise in operating income compared to the same quarter last year. Regis reported positive operating cash flow of over $6 million, marking the second consecutive quarter of positive cash flow for the first time since the first fiscal quarter of 2018. Same-store sales showed a modest decline of 1.1%, influenced by factors such as the timing of Easter and softness in salon traffic. Despite this, the Supercuts brand saw a 1.1% increase in same-store sales, contributing significantly to overall results. The company-owned salon segment benefited from the recent acquisition of the Alline Salon Group, which, although its contribution was modest this quarter, is expected to drive future growth and cash generation. Additionally, Regis has implemented strategic initiatives, including a new pay plan for stylists and revised pricing structures, to align incentives and improve profitability, with early positive results observed in April. Looking ahead, Regis plans to focus on optimizing and growing sales and profitability in its company-owned salon portfolio and advancing the holistic Supercuts brand transformation agenda, ultimately aiming to enhance stakeholder value.Regis Financial Statement Overview
Summary
Regis exhibits improved profitability and cash flow, but faces challenges with declining revenue and high leverage. Strong net income margins are driven by cost control, yet high Debt-to-Equity and low Equity Ratios indicate financial instability. Addressing revenue trends and leverage is crucial for 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.60
Neutral
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.55
Neutral
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.65
Positive
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 199.11M | 202.98M | 233.33M | 275.97M | 415.11M | 669.73M |
| Gross Profit | 78.36M | 76.55M | 76.54M | 65.62M | 129.41M | 235.55M |
| EBITDA | 76.08M | 119.27M | 17.30M | -22.67M | -81.44M | -108.39M |
| Net Income | 98.24M | 91.06M | -7.38M | -46.46M | -113.33M | -172.19M |
Balance Sheet | ||||||
| Total Assets | 511.25M | 530.50M | 607.38M | 769.30M | 996.38M | 1.34B |
| Cash, Cash Equivalents and Short-Term Investments | 13.29M | 10.07M | 9.51M | 17.04M | 19.19M | 113.67M |
| Total Debt | 367.90M | 399.28M | 550.65M | 691.63M | 822.25M | 1.02B |
| Total Liabilities | 442.60M | 473.71M | 644.11M | 800.25M | 979.34M | 1.22B |
| Stockholders Equity | 68.64M | 56.79M | -36.73M | -30.95M | 17.05M | 125.70M |
Cash Flow | ||||||
| Free Cash Flow | 11.30M | -2.42M | -8.37M | -43.95M | -111.36M | -123.90M |
| Operating Cash Flow | 12.08M | -2.04M | -7.89M | -38.64M | -99.88M | -86.41M |
| Investing Cash Flow | -10.94M | 1.62M | 4.02M | 7.68M | -2.10M | 61.03M |
| Financing Cash Flow | 16.67M | 8.36M | -2.15M | 29.42M | 7.78M | 56.16M |
Regis Technical Analysis
Positive
23.18
Price Trends
21.13
Positive
20.24
Positive
22.05
Positive
Market Momentum
0.27
Negative
60.41
Neutral
81.66
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 23.18 is above the 20-day moving average (MA) of 22.11, above the 50-day MA of 21.13, and above the 200-day MA of 22.05, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 81.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGS.
Regis Risk Analysis
Regis disclosed 31 risk factors in its most recent earnings report. Regis reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regis Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $56.45M | 0.62 | 548.07% | ― | -4.88% | ― | |
58 Neutral | $160.25M | 66.49 | -3.32% | ― | -39.47% | -110.28% | |
56 Neutral | HK$23.37B | 3.96 | -1.56% | 6.69% | 0.06% | -64.88% | |
53 Neutral | $11.14M | 8.02 | 23.48% | ― | 12.93% | 66.81% | |
53 Neutral | $11.14M | 8.02 | 23.48% | ― | 12.93% | 66.81% | |
49 Neutral | $7.59M | ― | -446.50% | ― | 445.72% | 84.92% | |
43 Neutral | $5.05M | ― | -797.66% | ― | 1.33% | 35.82% |
* Consumer Cyclical Sector Average
Performance Comparison
RGS
Regis
23.18
1.22
5.56%
MED
Medifast
14.58
-3.93
-21.23%
XWEL
XWELL
0.96
-0.82
-46.07%
MRM
MEDIROM Healthcare Technologies
1.41
-2.70
-65.69%
MRM
MEDIROM Healthcare Technologies
1.41
-2.70
-65.69%
TRNR
Interactive Strength Inc
5.42
-1,274.58
-99.58%
Regis Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Regis CEO Matthew Doctor Resigns Effective June 30
Positive
Jun 23, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.