We assign a fundamental rating of 4 out of 10 to RGS. RGS was compared to 76 industry peers in the Diversified Consumer Services industry. While RGS is still in line with the averages on profitability rating, there are concerns on its financial health. RGS has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

RGS had positive earnings in the past year.
RGS had a positive operating cash flow in the past year.
In multiple years RGS reported negative net income over the last 5 years.
In the past 5 years RGS reported 4 times negative operating cash flow.

1.2 Ratios

RGS's Return On Assets of 21.24% is amongst the best of the industry. RGS outperforms 94.74% of its industry peers.
With an excellent Return On Equity value of 67.05%, RGS belongs to the best of the industry, outperforming 97.37% of the companies in the same industry.
RGS has a Return On Invested Capital (3.81%) which is in line with its industry peers.
RGS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 10.15%.
The last Return On Invested Capital (3.81%) for RGS is above the 3 year average (2.90%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	21.24%
ROE	67.05%
ROIC	3.81%

ROA(3y)12.19%

ROA(5y)2.81%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)2.9%

ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 56.38%, RGS belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
RGS has a Operating Margin of 10.64%. This is in the better half of the industry: RGS outperforms 68.42% of its industry peers.
Looking at the Gross Margin, with a value of 94.22%, RGS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of RGS has grown nicely.

		Industry Rank	Sector Rank
OM	10.64%
PM (TTM)	56.38%
GM	94.22%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y2.19%

GM growth 5Y13.04%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RGS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RGS has more shares outstanding
Compared to 5 years ago, RGS has less shares outstanding
RGS has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.75, we must say that RGS is in the distress zone and has some risk of bankruptcy.
RGS has a Altman-Z score (0.75) which is comparable to the rest of the industry.
RGS has a debt to FCF ratio of 7.09. This is a slightly negative value and a sign of low solvency as RGS would need 7.09 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.09, RGS is doing good in the industry, outperforming 69.74% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that RGS is somewhat dependend on debt financing.
The Debt to Equity ratio of RGS (0.58) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.58
Debt/FCF	7.09
Altman-Z	0.75

ROIC/WACC0.37

WACC10.25%

2.3 Liquidity

RGS has a Current Ratio of 0.51. This is a bad value and indicates that RGS is not financially healthy enough and could expect problems in meeting its short term obligations.
RGS has a Current ratio of 0.51. This is amonst the worse of the industry: RGS underperforms 84.21% of its industry peers.
A Quick Ratio of 0.49 indicates that RGS may have some problems paying its short term obligations.
RGS has a worse Quick ratio (0.49) than 81.58% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.51
Quick Ratio	0.49

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for RGS have decreased by -2.07% in the last year.
The Revenue has grown by 13.98% in the past year. This is quite good.
Measured over the past years, RGS shows a very negative growth in Revenue. The Revenue has been decreasing by -20.69% on average per year.

EPS 1Y (TTM)-2.07%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%235.44%

Revenue 1Y (TTM)13.98%

Revenue growth 3Y-8.68%

Revenue growth 5Y-20.69%

Sales Q2Q%28%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 0.71, the valuation of RGS can be described as very cheap.
100.00% of the companies in the same industry are more expensive than RGS, based on the Price/Earnings ratio.
RGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.

		Industry Rank	Sector Rank
PE	0.71
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RGS is valued cheaper than 81.58% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGS indicates a rather cheap valuation: RGS is cheaper than 98.68% of the companies listed in the same industry.