Regis (RGS) AI Stock Analysis

• Market Cap: $69.60M
• Dividend Yield: N/A
• Average Volume (3M): 8.88K
• Price to Earnings (P/E): 0.6
• Beta (1Y): 0.78
• Revenue Growth: 13.98%
• EPS Growth: 34.14%
• Country: US
• Employees: 1,945
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.49
• Shares Outstanding: 2,480,493
• 10 Day Avg. Volume: 6,324
• 30 Day Avg. Volume: 8,881
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.23
• Enterprise Value/Market Cap: 5.61
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 13.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 19.2
• Revenue Forecast (FY): $484.58M

• Rating: 59 Neutral
• Price Target: $28.00 ▲(3.59% Upside)

Regis Corporation's overall stock score is driven by its financial recovery and low valuation, suggesting potential undervaluation. However, technical indicators show bearish momentum, and financial risks due to high leverage remain a concern. The positive sentiment from the earnings call provides some optimism, but operational challenges persist.

Positive Factors

Revenue Growth

The significant revenue growth reflects successful strategic initiatives and operational improvements, indicating a strong market position and potential for sustained expansion.

Cash Flow Improvement

Improved cash flow generation enhances financial stability and provides flexibility for future investments and debt management, supporting long-term growth.

Digital and AI Initiatives

Investments in digital and AI technologies are likely to drive operational efficiency and customer engagement, positioning the company well for future competitive advantages.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Decrease in Franchise Locations

A reduction in franchise locations may impact revenue streams and market presence, challenging the company's ability to maintain its growth trajectory.

Challenges with SmartStyle Brand

Ongoing challenges with the SmartStyle brand could hinder overall brand performance and require additional resources to resolve, affecting profitability.

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 shows signs of recovery with improved revenue growth and profitability margins. However, high leverage and low equity ratios pose financial risks. Cash flow generation is improving, but the conversion of income to cash remains a concern.

Income Statement

Regis has shown a positive revenue growth rate of 6.14% in the TTM period, indicating a recovery from previous declines. The gross profit margin has improved to 51.24%, reflecting better cost management. However, the net profit margin is exceptionally high at 53.46%, which may be due to non-operational factors. EBIT and EBITDA margins have improved, suggesting operational efficiency gains.

Balance Sheet

The debt-to-equity ratio has decreased to 1.84, showing improved leverage management, but it remains high, indicating potential financial risk. Return on equity is strong at 93.79%, driven by high net income. The equity ratio is low, suggesting a reliance on debt financing.

Cash Flow

Free cash flow has grown by 26.09%, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.17, suggesting that net income may not fully translate into cash flow. The free cash flow to net income ratio is high at 0.90, indicating efficient cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	223.03M	210.13M	202.98M	233.33M	275.97M	411.65M
Gross Profit	114.28M	80.51M	76.55M	76.54M	65.62M	77.28M
EBITDA	29.43M	24.75M	119.27M	17.86M	-25.02M	-73.72M
Net Income	119.24M	123.54M	91.06M	-7.38M	-85.86M	-113.33M
Balance Sheet
Total Assets	592.12M	692.62M	530.50M	607.38M	769.30M	996.38M
Cash, Cash Equivalents and Short-Term Investments	35.77M	35.20M	10.07M	9.51M	17.04M	19.19M
Total Debt	345.14M	350.76M	399.28M	550.65M	691.63M	820.88M
Total Liabilities	404.56M	507.00M	473.71M	644.11M	800.25M	979.34M
Stockholders Equity	187.55M	185.62M	56.79M	-36.73M	-30.95M	17.05M
Cash Flow
Free Cash Flow	15.70M	12.45M	-2.42M	-8.37M	-43.95M	-111.36M
Operating Cash Flow	17.37M	13.74M	-2.04M	-7.89M	-38.64M	-99.88M
Investing Cash Flow	-12.79M	-11.45M	1.62M	4.02M	7.68M	-2.10M
Financing Cash Flow	8.81M	3.59M	8.36M	-2.15M	29.42M	7.78M

Regis Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.03
• 50DMA: Negative
• 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 Negative. The current price of 27.03 is below the 20-day moving average (MA) of 28.33, below the 50-day MA of 28.54, and above the 200-day MA of 23.49, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 47.60 is Neutral, neither overbought nor oversold. The STOCH value of 24.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RGS.

Regis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTDR	72 Outperform	$4.17B	16.47	91.16%	―	11.88%	18.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RGS	59 Neutral	$69.60M	0.64	98.54%	―	13.98%	34.14%
MRM	58 Neutral	$16.83M	5.82	48.22%	―	13.71%	―
CSV	54 Neutral	$666.49M	13.60	21.96%	1.06%	0.99%	37.55%
WW	46 Neutral	$300.81M	0.27	―	―	-9.32%	―
MED	44 Neutral	$123.98M	539.71	0.12%	―	-36.29%	-96.65%

Regis Corporate Events

Regis Holds Annual Shareholder Meeting, Approves Key Proposals

On October 28, 2025, Regis Corporation held its Annual Meeting of Shareholders, where several key proposals were voted on. The shareholders elected five director nominees for a one-year term, approved the advisory proposal on executive compensation, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm, approved the Amended and Restated 1991 Contributory Stock Purchase Plan, and ratified the extension of the Tax Benefits Preservation Plan.