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RS Group PLC
(LSE:RS1)
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Rating:64Neutral
Price Target:
777.00 p
▲(3.39% Upside)
Action:Reiterated
Date:06/19/26
The score is driven primarily by stable but moderating financial performance (flat recent revenues, lower margins/returns, and weaker free-cash-flow trend) offset by a manageable balance sheet. Technical indicators are mixed with neutral momentum, while valuation is supported by a reasonable P/E and a solid dividend yield.
Positive Factors
Omnichannel distribution model
The combination of digital commerce, account management and branch service gives RS Group multiple routes to customers and supports recurring MRO demand. Its broad reach and procurement convenience can reinforce customer relationships and make the distribution model durable across industrial and public-sector markets.
Negative Factors
Stalled recent revenue growth
The recent pause in revenue growth indicates that the earlier expansion has lost momentum, which may limit operating leverage and reduce the benefits of the group’s distribution scale. If flat demand persists, growth in earnings and internal investment capacity could remain constrained over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel distribution model
The combination of digital commerce, account management and branch service gives RS Group multiple routes to customers and supports recurring MRO demand. Its broad reach and procurement convenience can reinforce customer relationships and make the distribution model durable across industrial and public-sector markets.
Read all positive factors
RS Group PLC (RS1) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£3.38B
Dividend Yield3.15%
Average Volume (3M)884.65K
Price to Earnings (P/E)20.7
Beta (1Y)1.10
Revenue Growth-0.77%
EPS Growth6.65%
CountryUK
Employees8,500
SectorIndustrials
Sector Strength72
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)0.35
Shares Outstanding469,383,030
10 Day Avg. Volume806,757
30 Day Avg. Volume884,648
Financial Highlights & Ratios
PEG Ratio1.71
Price to Book (P/B)1.85
Price to Sales (P/S)0.91
P/FCF Ratio10.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£740.00Price Target Upside-1.53% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.42
Revenue Forecast (FY)£3.02B
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 internationa...
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: ...
RS Group PLC Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Strong Cash Flow Conversion
Cash flow conversion was very strong at 107%, with continued good working capital management and ROCE stable at 15%.
Negative Updates
Revenue Decline and Market Challenges
Revenue decreased by 3% on a reported basis, and like-for-like revenue fell 1% due to a weaker dollar and reduced trading days. The industrial environment in EMEA remains weak.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Cash Flow Conversion
Cash flow conversion was very strong at 107%, with continued good working capital management and ROCE stable at 15%.
Read all positive 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
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
57
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.88B | 2.90B | 2.94B | 2.98B | 2.55B |
| Gross Profit | 1.25B | 1.24B | 1.26B | 1.32B | 1.10B |
| EBITDA | 318.70M | 320.20M | 364.80M | 447.60M | 379.80M |
| Net Income | 162.00M | 152.60M | 183.70M | 284.80M | 230.00M |
Balance Sheet | |||||
| Total Assets | 2.67B | 2.62B | 2.90B | 2.54B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 166.50M | 147.70M | 258.70M | 260.30M | 257.90M |
| Total Debt | 495.40M | 511.90M | 676.90M | 373.30M | 299.90M |
| Total Liabilities | 1.26B | 1.27B | 1.47B | 1.20B | 990.20M |
| Stockholders Equity | 1.41B | 1.35B | 1.43B | 1.34B | 1.11B |
Cash Flow | |||||
| Free Cash Flow | 244.90M | 209.80M | 145.00M | 260.40M | 160.50M |
| Operating Cash Flow | 263.80M | 259.10M | 196.60M | 306.50M | 203.00M |
| Investing Cash Flow | -72.80M | -57.70M | -355.70M | -270.50M | -40.30M |
| Financing Cash Flow | -184.20M | -185.40M | 138.90M | -79.60M | -94.60M |
RS Group PLC Technical Analysis
Positive
751.50
Price Trends
701.14
Positive
658.03
Positive
639.79
Positive
Market Momentum
9.73
Positive
48.47
Neutral
18.98
Positive
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 751.5 is above the 20-day moving average (MA) of 738.73, above the 50-day MA of 701.14, and above the 200-day MA of 639.79, indicating a neutral trend. The MACD of 9.73 indicates Positive momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 18.98 is Positive, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £9.50B | 49.82 | 18.55% | 0.90% | 13.31% | 13.05% | |
73 Outperform | £1.78B | 13.88 | 7.94% | 4.03% | 8.57% | 0.74% | |
71 Outperform | £210.84M | 1.33 | 8.13% | 6.53% | ― | ― | |
64 Neutral | £3.38B | 20.74 | 11.55% | 3.15% | -0.77% | 6.65% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | £52.67M | -15.12 | -5.87% | 2.02% | 20.26% | 89.85% | |
48 Neutral | £110.41M | -2.21 | -46.37% | 3.17% | -0.75% | 25.17% |
* Industrials Sector Average
GB:RS1
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RS Group PLC Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Tightens Share Base as Buyback Programme Progresses
Positive
Sep 7, 2026
RS 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 ...
Regulatory Filings and Compliance
RS Group Confirms Share Capital and Voting Rights Totals
Neutral
Sep 1, 2026
RS 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 v...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Advances £100m Buyback, Cuts Share Count to 469.5m
Positive
Sep 1, 2026
RS 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 acqu...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Cuts Share Count as Buyback Programme Progresses
Positive
Aug 24, 2026
RS 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 th...
Business Operations and StrategyStock Buyback
RS Group advances £100m buyback, cuts share count to 469.9m
Positive
Aug 17, 2026
RS 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 dur...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Continues £100m Buyback, Cuts Share Count to 470m
Positive
Aug 10, 2026
RS 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 sta...
Regulatory Filings and Compliance
RS Group Confirms Total Voting Rights Following Share Capital Update
Neutral
Aug 3, 2026
RS 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...
Business Operations and StrategyStock BuybackFinancial Disclosures
RS Group advances £100m buyback as share count falls to 470.4m
Positive
Aug 3, 2026
RS 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 st...
DividendsRegulatory Filings and Compliance
RS Group CFO and Family Add Shares via Dividend Reinvestment Plan
Positive
Jul 27, 2026
RS 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 J...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Reduces Share Count as Buyback Programme Progresses
Positive
Jul 27, 2026
RS 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 pa...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Continues Share Buyback, Cutting Voting Share Count to 471 Million
Positive
Jul 20, 2026
RS 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 de...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
RS Group Wins Strong Shareholder Backing at AGM
Positive
Jul 16, 2026
RS 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 ...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
RS Group reports solid start to new financial year as momentum continues
Positive
Jul 16, 2026
RS 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 highlight...
Business Operations and StrategyStock Buyback
RS Group Cuts Share Count Further as £100m Buyback Advances
Positive
Jul 13, 2026
RS Group plc has continued executing its previously announced £100 million share repurchase programme, buying 511,216 ordinary shares for cancellation between 6 and 10 July 2026 through Barclays Bank on the London Stock Exchange. The purchase...
Business Operations and StrategyStock Buyback
RS Group Cuts Share Count as Buyback Programme Progresses
Positive
Jul 6, 2026
RS Group plc has continued executing its £100 million share repurchase programme, buying back and cancelling 522,962 ordinary shares between 29 June and 3 July 2026 through Barclays Bank on the London Stock Exchange. The trades, conducted as ...
Regulatory Filings and Compliance
RS Group Confirms Share Capital and Voting Rights Total
Neutral
Jul 1, 2026
RS Group PLC reported that as of 30 June 2026 its issued share capital comprised 472,136,658 ordinary shares of 10 pence each, all of which carry voting rights and none of which are held in treasury. This confirms the company’s full free flo...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
RS Group Advances £100m Buyback, Cuts Share Count to 472.3m
Positive
Jun 29, 2026
RS Group plc has continued executing its £100 million share repurchase programme, buying back ordinary shares for cancellation through Barclays Bank on the London Stock Exchange. The transactions, conducted between 22 and 26 June 2026, form p...
Business Operations and StrategyStock Buyback
RS Group Advances £100m Buyback as Share Count Falls Below 473m
Positive
Jun 22, 2026
RS Group plc has continued executing its previously announced £100 million share buyback, repurchasing and cancelling 294,383 ordinary shares between 15 and 19 June 2026 via Barclays Bank on the London Stock Exchange. The transactions, conduc...
Business Operations and StrategyStock Buyback
RS Group Advances £100m Share Buyback, Cuts Share Count to 473m
Positive
Jun 15, 2026
RS Group plc has continued executing its £100 million share repurchase programme, buying 278,598 ordinary shares for cancellation on the London Stock Exchange between 8 and 12 June 2026 through Barclays Bank. The purchases, made at volume-wei...
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.