Taking everything into account, RGS scores 4 out of 10 in our fundamental rating. RGS was compared to 76 industry peers in the Diversified Consumer Services industry. There are concerns on the financial health of RGS while its profitability can be described as average. 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

In the past year RGS was profitable.
In the past year RGS had a positive cash flow from operations.
In multiple years RGS reported negative net income over the last 5 years.
RGS had negative operating cash flow in 4 of the past 5 years.

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.
The Return On Invested Capital of RGS (3.81%) is comparable to the rest of the industry.
RGS had an Average Return On Invested Capital over the past 3 years of 2.90%. This is significantly below the industry average of 10.17%.
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's Operating Margin of 10.64% is fine compared to the rest of the industry. RGS outperforms 68.42% of its industry peers.
RGS has a Gross Margin of 94.22%. This is amongst the best in the industry. RGS outperforms 100.00% of its industry peers.
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
The number of shares outstanding for RGS has been reduced compared to 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 0.74, we must say that RGS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.74, RGS perfoms like the industry average, outperforming 44.74% of the companies in the same 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.
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.
RGS has a Debt to Equity ratio of 0.58. This is comparable to the rest of the industry: RGS outperforms 40.79% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.58
Debt/FCF	7.09
Altman-Z	0.74

ROIC/WACC0.37

WACC10.21%

2.3 Liquidity

A Current Ratio of 0.51 indicates that RGS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, RGS is doing worse than 84.21% of the companies in the same industry.
A Quick Ratio of 0.49 indicates that RGS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, RGS is doing worse than 81.58% of the companies in the same industry.

		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

RGS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.07%.
RGS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.98%.
RGS shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -20.69% yearly.

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

With a Price/Earnings ratio of 0.64, the valuation of RGS can be described as very cheap.
Based on the Price/Earnings ratio, RGS is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
RGS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.32.

		Industry Rank	Sector Rank
PE	0.64
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RGS is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
100.00% of the companies in the same industry are more expensive than RGS, based on the Price/Free Cash Flow ratio.