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RS Group PLC (RS1) AI Stock Analysis
RS Group PLC
(LSE:RS1)
Overall score reflects stable fundamentals with near-term headwinds: profitability and free-cash-flow trends have weakened versus the 2023 peak, though leverage remains manageable. Technicals are mildly supportive with price holding above key longer-term moving averages and neutral momentum. Valuation is reasonable but not compelling given the 21.1 P/E, partially balanced by a ~3.1% dividend yield.
RS Group PLC (RS1) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 3.59B
- Dividend Yield
- 2.92%
- Average Volume (3M)
- 892.66K
- Price to Earnings (P/E)
- 22.4
- Beta (1Y)
- 1.01
- Revenue Growth
- -0.77%
- EPS Growth
- 6.65%
- Country
- UK
- Employees
- 8,500
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Distribution
RS Group PLC Business Overview & Revenue Model
Company Description
RS Group plc, together with its subsidiaries, engages in the distribution of maintenance, repair, and operations products and service solutions in the United Kingdom, the United States, France, Mexico, Germany, Italy, Switzerland, and internationally...
How the Company Makes Money
RS Group makes money primarily by distributing third-party industrial and electronic products to business customers at a margin (the spread between its purchase cost from suppliers and the selling price to customers). Its key revenue streams are: (1)...
RS Group PLC Earnings Call Summary
The earnings call reflects a balanced performance with significant strengths in cash flow conversion, growth in key segments like RS PRO, and efficient cost management. However, these are offset by challenges such as revenue declines, weak demand in semiconductors, and regional difficulties, particularly in EMEA and Germany.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The recent call provided significant guidance on RS Group's financial and operational progress for the first half of the fiscal year ending September 30, 2025. The company reported a 3% decrease in revenue on a reported basis, translating to a 1% decline when adjusted for currency fluctuations and trading days. Despite this, RS Group achieved strong cash flow conversion at 107% and maintained a stable ROCE of 15%. The interim dividend was increased by 2% to 8.7p per share. The Americas region showed modest growth of 1% on a like-for-like basis, while Asia Pacific saw a 4% rise, offsetting a 2% decline in EMEA. The company's digital revenue decreased by 2%, but e-procurement solutions grew by 9%. RS PRO's sales increased by 4%, now comprising 14% of group revenues. The group maintained an ongoing cost base of GBP 482 million, with efforts to achieve GBP 15 million in restructuring and integration benefits by year-end. The guidance for the second half includes expectations of a gross margin slightly above 43% and disciplined cost management amid uncertain market conditions.
RS Group PLC Financial Statement Overview
Summary
Financials indicate a stable but cooling profile: revenue scaled over 2021–2026 but flattened in 2025–2026, and operating/net margins stepped down meaningfully from the 2023 peak. Balance sheet leverage remains manageable with improved debt-to-equity in 2026, but free cash flow has declined sharply versus 2023 and latest-period cash conversion metrics appear weak/inconsistent.
Income Statement
66PositiveBalance Sheet
72PositiveCash Flow
57Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.88B | 2.88B | 2.90B | 2.94B | 2.98B | 2.55B |
| Gross Profit | 1.25B | 1.25B | 1.24B | 1.26B | 1.32B | 1.10B |
| EBITDA | 319.40M | 318.70M | 320.20M | 364.80M | 447.60M | 379.80M |
| Net Income | 162.00M | 162.00M | 152.60M | 183.70M | 284.80M | 230.00M |
Balance Sheet | ||||||
| Total Assets | 2.67B | 2.67B | 2.62B | 2.90B | 2.54B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 166.50M | 166.50M | 147.70M | 258.70M | 260.30M | 257.90M |
| Total Debt | 495.40M | 495.40M | 511.90M | 676.90M | 373.30M | 299.90M |
| Total Liabilities | 1.26B | 1.26B | 1.27B | 1.47B | 1.20B | 990.20M |
| Stockholders Equity | 1.41B | 1.41B | 1.35B | 1.43B | 1.34B | 1.11B |
Cash Flow | ||||||
| Free Cash Flow | 244.90M | 244.90M | 209.80M | 145.00M | 260.40M | 160.50M |
| Operating Cash Flow | 263.80M | 263.80M | 259.10M | 196.60M | 306.50M | 203.00M |
| Investing Cash Flow | -72.80M | -72.80M | -57.70M | -355.70M | -270.50M | -40.30M |
| Financing Cash Flow | -184.20M | -184.20M | -185.40M | 138.90M | -79.60M | -94.60M |
RS Group PLC Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RS1, the sentiment is Positive. The current price of 785.00 is above the 20-day moving average (MA) of 777.98, above the 50-day MA of 759.80, and above the 200-day MA of 667.30, indicating a bullish trend. The MACD of 8.00 indicates Positive momentum. The RSI at 55.37 is Neutral, neither overbought nor oversold. The STOCH value of 81.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RS1.
RS Group PLC Peers Comparison
Overall Rating
GB:DPLM79Outperform
GB:LTHP76Outperform
GB:GFTU70Outperform- GB:RS165Neutral
GB:FLO60Neutral
GB:SHI45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:DPLM | 79Outperform | GBP 9.65B | 51.03 | 18.55% | 0.88% | 13.31% | 13.05% |
| GB:LTHP | 76Outperform | GBP 206.86M | 1.33 | 8.13% | 6.53% | ― | ― |
| GB:GFTU | 70Outperform | GBP 1.84B | 14.56 | 7.94% | 3.84% | 8.57% | 0.74% |
| GB:RS1 | 65Neutral | GBP 3.59B | 22.43 | 11.55% | 2.92% | -0.77% | 6.65% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| GB:FLO | 60Neutral | GBP 50.73M | -14.56 | -5.87% | ― | 20.26% | 89.85% |
| GB:SHI | 45Neutral | GBP 104.48M | -2.03 | -46.37% | ― | -0.75% | 25.17% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:RS1 | Rs Group Plc | 785.00 | 247.93 | 46.16% | |
| GB:DPLM | Diploma plc | 7195.00 | 1654.71 | 29.87% | |
| GB:FLO | Flowtech Fluidpower | 62.60 | 4.60 | 7.93% | |
| GB:SHI | SIG plc | 9.00 | -0.28 | -3.02% | |
| GB:GFTU | Grafton Group plc | 990.00 | 79.24 | 8.70% | |
| GB:LTHP | James Latham (LTHP) | 122.50 | 7.87 | 6.87% |
RS Group PLC Corporate Events
RS Group Reduces Share Capital as £100m Buyback Programme Advances
PositiveRS Group plc has continued executing its £100 million share buyback, repurchasing and cancelling 183,990 ordinary shares between 5 and 9 October 2026 via Barclays Bank on the London Stock Exchange. Since the programme began in May, a total of 5,...
RS Group Reduces Share Count as Buyback Programme Advances
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, buying and cancelling 158,348 ordinary shares between 28 September and 2 October 2026 via Barclays Bank on the London Stock Exchange. These tr...
RS Group Confirms Share Capital and Voting Rights Total
PositiveRS Group PLC has confirmed that as of 30 September 2026 its issued share capital stands at 468,751,277 ordinary shares of 10 pence each, all carrying voting rights, with no shares held in treasury. This clarification of total voting rights provides s...
RS Group Advances £100m Buyback, Cuts Share Count to 468.8m
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, buying back and cancelling 165,391 ordinary shares between 21 and 25 September 2026 via Barclays Bank on the London Stock Exchange. The purcha...
RS Group Reduces Share Count as Buyback Programme Progresses
PositiveRS Group plc has continued to execute its £100 million share repurchase programme, buying back and cancelling 192,548 ordinary shares between 14 and 18 September 2026 through Barclays Bank on the London Stock Exchange. These transactions form pa...
RS Group Tightens Free Float as Share Buyback Cuts Shares in Issue
PositiveRS Group plc has continued its £100 million share repurchase programme, buying and cancelling 187,612 ordinary shares between 7 and 11 September 2026 via Barclays Bank on the London Stock Exchange. The purchases were executed as on-exchange tran...
RS Group Tightens Share Base as Buyback Programme Progresses
PositiveRS Group has continued executing its £100 million share buyback, repurchasing 150,351 ordinary shares between 1 and 4 September 2026 through Barclays on the London Stock Exchange for cancellation. The purchases, made at prices in the mid-740 pen...
RS Group Confirms Share Capital and Voting Rights Totals
NeutralRS Group PLC reported that as of 31 August 2026 its issued share capital comprised 469,533,391 ordinary shares of 10 pence each, all of which carry full voting rights and with no shares held in treasury. This confirmation sets the official total voti...
RS Group Advances £100m Buyback, Cuts Share Count to 469.5m
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, cancelling ordinary shares bought on the London Stock Exchange via Barclays Bank. During the week of 24 to 28 August 2026, the company acquire...
RS Group Cuts Share Count as Buyback Programme Progresses
PositiveRS Group plc has continued to execute its £100 million share repurchase programme, buying and cancelling 190,478 ordinary shares on the London Stock Exchange between 17 and 21 August 2026 through Barclays Bank. These latest purchases bring the t...
RS Group advances £100m buyback, cuts share count to 469.9m
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, buying and cancelling 208,?797 ordinary shares between 10 and 14 August 2026 through Barclays Bank on the London Stock Exchange. Prices during...
RS Group Continues £100m Buyback, Cuts Share Count to 470m
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, buying and cancelling 284,333 ordinary shares between 3 and 7 August 2026 through Barclays Bank on the London Stock Exchange. Since the start...
RS Group Confirms Total Voting Rights Following Share Capital Update
NeutralRS Group PLC reported that as of 31 July 2026 its issued share capital comprised 470,405,246 ordinary shares of 10 pence each, all carrying voting rights, with no shares held in treasury. This confirms that the total number of voting rights in the co...
RS Group advances £100m buyback as share count falls to 470.4m
PositiveRS Group plc has continued executing its previously announced £100 million share repurchase programme, buying back and cancelling 303,507 ordinary shares between 27 and 31 July 2026 via Barclays Bank on the London Stock Exchange. Since the start...
RS Group CFO and Family Add Shares via Dividend Reinvestment Plan
PositiveRS Group plc has disclosed a series of share acquisitions involving its chief financial officer, Kate Ringrose, and three persons closely associated with her, under the company’s Dividend Reinvestment Plan. The transactions, executed on 24 July...
RS Group Reduces Share Count as Buyback Programme Progresses
PositiveRS Group plc has continued its £100 million share repurchase programme, buying back and cancelling 308,247 ordinary shares on the London Stock Exchange between 20 and 24 July 2026 through Barclays Bank plc. These on-exchange purchases form part...
RS Group Continues Share Buyback, Cutting Voting Share Count to 471 Million
PositiveRS Group plc has been executing a £100 million share repurchase programme announced in May 2026, using on-exchange transactions through Barclays Bank on the London Stock Exchange to buy back and cancel its ordinary shares. The programme is desig...
RS Group Wins Strong Shareholder Backing at AGM
PositiveRS Group plc reported that all resolutions at its annual general meeting in London were passed by the required majorities following a poll on each item. Shareholders backed the receipt of the 2026 annual report and accounts, approval of the final div...
RS Group reports solid start to new financial year as momentum continues
PositiveRS Group plc said it has made a solid start to its 2026/27 financial year, with the positive trading momentum seen at the end of the previous year continuing into the first quarter and underpinning progress across all regions. Management highlighted...
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.
Date of analysis: Sep 19, 2026