olivLaw · European equity research
RS Group plc RS1.L
United Kingdom · London Stock Exchange · ISIN GB0003096442 · Vertical: Listed companies from United Kingdom
RS Group plc is a global distributor of industrial products, maintenance consumables and technical solutions for industrial customers, with a digitally enabled model and a very broad product range. The company is now focused on gaining market share and operating efficiency, with an adjusted operating margin of 9.2% in fiscal 2026.
At the close of 04 Nov 2026, RS Group plc (RS1.L) stock was 7.60 GBP (−3.61% on the day), with market capitalisation 3.6 bn GBP, P/E 22.0 on diluted EPS of 0.35 GBP over the last 12 months, dividend yield 2.98%, beta 1.01, 52-week range 5.53–7.98 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 44.1
- weak (30–45)
- Bollinger (20, 2)
- 7.55 – 8.07
- in the lower half of the band · %B 0.10 · band width 6.7%
- SMA 50 / 200
- 7.62 / 6.77
- mixed trend
- MACD (12, 26, 9)
- 0.05 / 0.08
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.5% | −1.5% | +2.0 pp | — |
| 3 months | +2.5% | −5.3% | +7.8 pp | — |
| 6 months | +22.1% | +4.7% | +17.4 pp | — |
| Year to date | +21.8% | +6.0% | +15.8 pp | — |
| 1 year | +38.9% | +8.2% | +30.7 pp | +7.3% |
| 3 years | +9.7% | +47.2% | −37.5 pp | +29.3% |
| 5 years | −36.9% | +41.8% | −78.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 16.2, median 17.3, max 19.2; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|
| Revenue | unavailable | 2.9 bn | 2.9 bn | 2.9 bn |
| Revenue YoY | unavailable | unavailable | −1.3% | −0.8% |
| Net income | unavailable | 179.4 m | 152.7 m | 162.0 m |
| Net income YoY | unavailable | unavailable | −14.9% | +6.1% |
| Diluted EPS | unavailable | 0.38 | 0.33 | 0.35 |
| Diluted EPS YoY | unavailable | unavailable | −14.0% | +6.2% |
| net % | unavailable | 6.1% | 5.3% | 5.6% |
| Free cash flow | unavailable | 180.7 m | 242.9 m | 244.9 m |
Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 116.3 m GBP
- Financial debt
- 390.6 m GBP
- Net debt
- 274.3 m GBP
- Equity
- 1.4 bn GBP
- Total assets
- 2.7 bn GBP
- Debt / equity
- 0.28x
- Current ratio
- 1.79x
- ROE
- 11.7%
- ROA
- 6.1%
- FCF margin
- 8.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | — | 2.9 bn | 2.9 bn | 2.9 bn | esef· 11 Jun 2026verified |
| Cost of revenue | — | 1.7 bn | 1.7 bn | 1.6 bn | esef· 11 Jun 2026verified |
| Gross profit | — | 1.3 bn | 1.2 bn | 1.3 bn | esef· 11 Jun 2026verified |
| Operating income | — | 274.5 m | 232.8 m | 238.6 m | esef· 11 Jun 2026verified |
| Interest expense | — | 36.7 m | 32.0 m | 22.4 m | esef· 11 Jun 2026verified |
| Pre-tax income | — | 243.2 m | 206.1 m | 219.7 m | esef· 11 Jun 2026verified |
| Income tax | — | 63.8 m | 53.5 m | 57.8 m | esef· 11 Jun 2026verified |
| Net income | — | 179.4 m | 152.7 m | 162.0 m | esef· 11 Jun 2026verified |
| Diluted EPS | — | 0.38 | 0.33 | 0.35 | esef· 11 Jun 2026verified |
| Dividend per share | 0.14 | 0.14 | 0.14 | 0.23 | esef· 11 Jun 2026derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | 120.5 m | 96.0 m | 106.0 m | 116.3 m | esef· 11 Jun 2026verified |
| Receivables | 692.0 m | 701.4 m | 688.5 m | 729.2 m | esef· 11 Jun 2026verified |
| Inventories | 603.1 m | 637.4 m | 617.3 m | 595.0 m | esef· 11 Jun 2026verified |
| Current assets | 1.6 bn | 1.6 bn | 1.5 bn | 1.5 bn | esef· 11 Jun 2026verified |
| Property, plant & equipment, net | 186.3 m | 180.9 m | 176.7 m | 181.2 m | esef· 11 Jun 2026verified |
| Total assets | 2.5 bn | 2.9 bn | 2.6 bn | 2.7 bn | esef· 11 Jun 2026verified |
| Short-term debt | 0 | 0 | 23.5 m | 120.6 m | esef· 11 Jun 2026verified |
| Long-term debt | 184.6 m | 440.3 m | 390.0 m | 270.0 m | esef· 11 Jun 2026verified |
| Current liabilities | 838.9 m | 815.3 m | 716.4 m | 842.2 m | esef· 11 Jun 2026verified |
| Total liabilities | 1.2 bn | 1.5 bn | 1.3 bn | 1.3 bn | esef· 11 Jun 2026verified |
| Equity | 1.3 bn | 1.4 bn | 1.4 bn | 1.4 bn | esef· 11 Jun 2026verified |
| Shares outstanding at year end | — | 473.4 m | 469.8 m | 468.2 m | esef· 11 Jun 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | — | 196.6 m | 259.1 m | 263.8 m | esef· 11 Jun 2026verified |
| Capex | — | 15.9 m | 16.2 m | 18.9 m | esef· 11 Jun 2026verified |
| Free cash flow | — | 180.7 m ≈ | 242.9 m ≈ | 244.9 m ≈ | esef· 11 Jun 2026derived |
| Investing cash flow | — | -355.7 m | -57.7 m | -72.8 m | esef· 11 Jun 2026verified |
| Financing cash flow | — | 138.9 m | -185.4 m | -184.2 m | esef· 11 Jun 2026verified |
| Dividends paid | — | 104.1 m | 104.7 m | 105.9 m | esef· 11 Jun 2026verified |
| Share repurchases | — | 1.5 m | 46.5 m | 33.7 m | esef· 11 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 66 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.6 bn GBP
Key indicators
Coverage and freshness
Score by group
- Balance sheet93
- Valuation54
- Returns74
- Quality59
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Unattractive profile · Score 66/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 10.5% | 46 (vs peers) | 17% |
| Net margin · Quality | 5.6% | 40 (vs peers) | 10% |
| FCF conversion · Quality | 151.2% | 100 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 10.7x | 100 (on a fixed band) | 10% |
| Current ratio · Balance sheet | 1.8x | 83 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 22.0x | 28 (vs peers) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.9% | 86 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 3.9% | 56 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 43.2% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet93/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality59/100 · 3/3 factors with a value
- Returns74/100 · 2/2 factors with a value
- Valuation54/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
RS GROUP PLC (RS1.L). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 2.9 bn GBP in 2026; YoY growth -0.8%; net margin 5.6%; ROE 11.7%.
The estimated value range is 3.93–5.97 GBP per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 5.26 GBP, the price of 7.60 GBP leaves a potential of -30.8% (value / price − 1) and a margin of safety of -44.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 66/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 151.2%
- Interest coverage: 10.7x
- Current ratio: 1.8x
- FCF yield: 6.9%
- Payout ratio (FCF): 43.2%
What contradicts it
- P/E (TTM): 22.0x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 102.7 bn | 13.3 | 16.5% | 30.3% | −1.0% | +5% / +85% |
| ABF.LAssociated British Foods PLC | 14.6 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.8 bn | 4.3 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.2 bn | 25.2 | 34.7% | 4.1% | +7.2% | −8% / +163% |
| AUTO.LAutotrader Group PLC | 4.9 bn | 16.8 | 60.2% | 47.1% | +3.9% | −11% / −21% |
| BBY.LBalfour Beatty PLC | 4.3 bn | 16.6 | 23.2% | 2.8% | +15.2% | +22% / +165% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.9 | 8.0% | 28.9% | −2.1% | +11% / +42% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.4 | 8.8% | 13.4% | −4.2% | +0% / −22% |
| RS1.LRs Group PLC | 3.6 bn | 22.0 | 11.7% | 5.6% | −0.8% | +30% / +2% |
| BME.LB&M European Value Retail PLC | 2.8 bn | 17.3 | 21.2% | 2.8% | +3.7% | +67% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 23.4 | 49.9% | 33.1% | +18.0% | +11% / +134% |
| ASHM.LAshmore Group PLC | 1.5 bn | 15.2 | 13.1% | 71.6% | −0.1% | +41% / +29% |
| BCG.LBaltic Classifieds Group PLC | 1.1 bn | 22.6 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 766.1 m | 36.3 | 41.2% | 19.7% | +24.2% | +72% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 503.5 m | — | -81.3% | -12.0% | −14.7% | +74% / +10% |
| ALFA.LAlfa Financial Software Holdings PLC | 496.3 m | 16.6 | 61.5% | 23.8% | +15.3% | −26% / +12% |
| AML.LAston Martin Lagonda Global Holdings PLC | 348.0 m | — | -93.4% | -39.2% | −20.6% | −44% / −84% |
| APTD.LAptitude Software Group PLC | 111.9 m | 28.6 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 10.7 m | — | — | — | −81.9% | +360% / +922% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 269.5 k | 0.2 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −10% / +154% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +33% / +81% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +59% / +62% |
1- and 3-year price returns: for RS1.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.27 Total return -42% · Per year -42% | 7.56 Total return 2% · Per year 2% | 11.42 Total return 54% · Per year 54% |
| 3 years | 3.71 Total return -45% · Per year -18% | 7.45 Total return 7% · Per year 2% | 12.41 Total return 74% · Per year 20% |
| 5 years | 3.23 Total return -48% · Per year -12% | 7.33 Total return 11% · Per year 2% | 13.48 Total return 97% · Per year 15% |
- Exit P/E± 1.86
- Net margin± 1.30
- Annual revenue growth± 1.13
- Annual dilution± 0.11
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
RS Group plc is a global distributor of industrial products, maintenance consumables and technical solutions for industrial customers, with a digitally enabled model and a very broad product range 1. The company is now focused on gaining market share and operating efficiency, with an adjusted operating margin of 9.2% in fiscal 2026 1.
SWOT
Strengths
Weaknesses
- The transactional NPS declined early in the year because of delivery problems in EMEA and Asia Pacific 1.
- The adjusted operating margin remains below the medium-term target, which points to room for efficiency gains 1.
- Integrating several acquisitions at the same time can demand management and technology resources 1.
Opportunities
Risks
- Cyber and information securityhigh
A successful attack on systems, data or third parties could lead to loss of confidential information and unavailability of business critical systems 1.
- Geopolitical and macroeconomic instabilityhigh
Sanctions, tariffs and supply chain delays could raise operating costs and slow deliveries between sites 1.
- Legal and regulatory compliancemedium
Breaches of health and safety, trade or anti-bribery rules could bring sanctions and harm the company's reputation 1.
- Change programme deliverymedium
Difficulty delivering change programmes could delay the strategy and reduce the benefits of digitalisation 1.
- Talent and capabilitylow
Difficulty attracting and retaining high-performing employees could affect the service level offered to customers 1.
Investment thesis
What would need to be true (bull case)
- Growth in industrial markets, combined with digital investment and disciplined acquisitions, could lead to market share gains and better margins if efficiency keeps improving 1.
- High cash conversion and a solid balance sheet provide flexibility for buybacks, dividends and acquisitions 1.
- The Distrelec integration, ahead of expectations, and the BPX acquisition could accelerate synergies and service expansion 1.
What would break the thesis
- The adjusted operating margin is still well short of the medium-term target, and if efficiency does not improve, returns could stay limited 1.
- The recent decline in customer satisfaction and delivery problems could affect loyalty if they are not fixed quickly 1.
- Geopolitical tensions and cyber risks could raise costs or disrupt operations, with effects on results 1.
What to watch
- Evolution of the transactional NPS after the fix of delivery problemsQ1 2027
- Progress of the BPX integration and synergies achieved2027
- Evolution of the adjusted operating margin against the mid-teen targetnext 10-K
- Execution of the GBP 100 million share buyback programme2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
RS Group plc distributes a broad range of industrial and specialist products in small volumes for MRO and small batch production needs, through 6 global and regional distribution sites 1. The company connects more than 2,500 suppliers with around 1 million customers, offering technical support and a digital purchasing channel 1. Its model rests on stock availability and an integrated digital service 1.
The strategy aims to become first choice for customers and suppliers, and acquisitions serve as a complementary tool under strict criteria for integration and cost of capital 1. In March 2026 the company completed the acquisition of BPX Group, a specialist distributor of A&C products in the UK and Ireland 1.
The company measures performance through six financial key performance indicators, including like-for-like revenue growth, operating profit conversion and ROCE, and eight non-financial indicators linked to customers, people and safety 1.
Segments
Global industrial distribution
The main segment covers MRO products, electrical components, automation, measurement equipment and safety products, delivered through the EMEA, Americas and Asia Pacific regions 1. The Distrelec acquisition extended the company's pan-European footprint, and its integration is ahead of the original synergy expectations 1.
Market context
The company operates in a large global industrial MRO market, which it describes as growing at GDP-plus through the cycle 1. Management says most major markets are back to low single digit growth 1.
Factors affecting demand include industrial production, customer behaviour and the evolution of supply chains, including tensions in the Middle East and Ukraine 1. The company's goal is to grow revenue at twice the market rate 1.
Trends
- Recovery in industrial marketstailwind
Management believes major markets have returned to low single digit growth, which could support sales volumes if the trend continues 1.
- Digitalisation of purchasingtailwind
Investment in digital platforms, AI-driven search and procurement integrated into customer systems could strengthen loyalty if the customer experience improves 1.
- Geopolitical tensions and supply chainsheadwind
Conflicts and macroeconomic uncertainty could raise transport and purchasing costs and delay deliveries between distribution sites 1.
- Consolidation through acquisitionsmixed
Acquisitions such as Distrelec and BPX can accelerate growth and widen the portfolio, but they carry integration and capital risks 1.
Competitive position
The company competes with other global and regional industrial and MRO distributors, mainly on stock availability, product range and technical service 1. The sources provided do not name direct competitors.
The company's differentiation rests on its global distribution network, technical expertise and integrated digital experience 1. Competitive pressure could rise if other distributors expand their digital or service offerings 1.
- Global industrial product distributors
General competitors in the MRO segment, not named in the sources provided.
- Regional distributors of electrical components and automation
Competition especially in the EMEA and Americas regions, without names in the source.
- Digital industrial procurement platforms
Competitors that may attract customers through online search and ordering, without names in the source.
- Specialist automation and control distributors
Segment in which BPX operated before the acquisition, without names in the source.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202611 Jun 2026
- Annual report 202611 Jun 2026
- Annual report 202510 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-31 (ESEF) · SEC / RS Group plc · 31 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.