RS Group Plc (ECM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Diploma Plc

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RS Group Plc

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Midwich Group Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is RS Group Plc ?

High Management Efficiency with a high ROE of 16.23%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.28

With a growth in Net Profit of 11.56%, the company declared Very Positive results in Sep 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at GBP 532.3 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,488.07
RAW MATERIAL COST(Y) Fallen by 1.5% (YoY)

With ROE of 11.32%, it has a fair valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of -1.35%, its profits have fallen by -7.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.35% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to RS Group Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is RS Group Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

RS Group Plc

-1.18%

-1.10

29.24%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.75%

EBIT Growth (5y)

4.27%

EBIT to Interest (avg)

20.28

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

1.63

Tax Ratio

26.03%

Dividend Payout Ratio

68.99%

Pledged Shares

Institutional Holding

ROCE (avg)

20.52%

ROE (avg)

16.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.25

EV to EBIT

14.58

EV to EBITDA

10.77

EV to Capital Employed

2.03

EV to Sales

1.20

PEG Ratio

Dividend Yield

132.48%

ROCE (Latest)

13.93%

ROE (Latest)

11.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 532.3 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,488.07

RAW MATERIAL COST(Y)

Fallen by 1.5% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 23.98 %

DIVIDEND PER SHARE(HY)

Highest at GBP 4.25

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.25 times

NET SALES(Q)

Lowest at GBP 1,402.8 MM

Here's what is working for RS Group Plc

Operating Cash Flow

Highest at GBP 532.3 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 1,488.07

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 23.98 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at GBP 4.25

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by 1.5% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for RS Group Plc

Net Sales

Lowest at GBP 1,402.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Debtors Turnover Ratio

Lowest at 4.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio