24.92 USD
-0.08 (-0.32%)
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.
1. Profitability
1.1 Basic Checks
- In the past year RGS was profitable.
- RGS had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: RGS reported negative net income in multiple years.
- In the past 5 years RGS reported 4 times negative operating cash flow.
1.2 Ratios
- RGS has a Return On Assets of 21.24%. This is amongst the best in the industry. RGS outperforms 94.74% of its industry peers.
- Looking at the Return On Equity, with a value of 67.05%, RGS belongs to the top of the industry, outperforming 97.37% of the companies in the same industry.
- RGS's Return On Invested Capital of 3.81% is in line compared to the rest of the industry. RGS outperforms 56.58% of 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.
- The Operating Margin of RGS (10.64%) is better than 68.42% of its industry peers.
- The Gross Margin of RGS (94.22%) is better than 100.00% of its industry peers.
- RGS's Gross Margin has improved in the last couple of years.
| 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%
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.
- RGS has more shares outstanding than it did 1 year ago.
- RGS has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for RGS has been reduced compared to a year ago.
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 in line with its industry peers.
- The Debt to FCF ratio of RGS is 7.09, which is on the high side as it means it would take RGS, 7.09 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of RGS (7.09) is better than 69.74% of its industry peers.
- A Debt/Equity ratio of 0.58 indicates that RGS is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.58, RGS is in line with its industry, outperforming 40.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 7.09 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.38
WACC10.11%
2.3 Liquidity
- A Current Ratio of 0.51 indicates that RGS may have some problems paying its short term obligations.
- The Current ratio of RGS (0.51) is worse than 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 |
3. Growth
3.1 Past
- The earnings per share for RGS have decreased by -2.07% in the last year.
- RGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.98%.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 0.71, the valuation of RGS can be described as very cheap.
- Based on the Price/Earnings ratio, RGS is valued cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of RGS to the average of the S&P500 Index (28.82), we can say RGS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.71 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- 82.89% of the companies in the same industry are more expensive than RGS, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, RGS is valued cheaper than 98.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
- The decent profitability rating of RGS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- RGS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
REGIS CORP / RGS FAQ
Can you provide the ChartMill fundamental rating for REGIS CORP?
ChartMill assigns a fundamental rating of 4 / 10 to RGS.
What is the valuation status of REGIS CORP (RGS) stock?
ChartMill assigns a valuation rating of 5 / 10 to REGIS CORP (RGS). This can be considered as Fairly Valued.
What is the profitability of RGS stock?
REGIS CORP (RGS) has a profitability rating of 6 / 10.
What are the PE and PB ratios of REGIS CORP (RGS) stock?
The Price/Earnings (PE) ratio for REGIS CORP (RGS) is 0.71 and the Price/Book (PB) ratio is 0.33.