Added to YB: 2024-08-21
Pitch date: 2024-08-18
RS1.L [neutral]
RS Group plc
-9.21%
current return
Author Info
Roland Head is a private investor focusing on UK dividend stocks. Sign up for the newsletter.
Company Info
RS Group plc, together with its subsidiaries, engages in the distribution of maintenance, repair, and operations products and service solutions in the United Kingdom, the United States, France, Germany, Italy, Mexico, and internationally.
Market Cap
GBP 3.7B
Pitch Price
GBP 7.20
Price Target
N/A
Dividend
2.82%
EV/EBITDA
11.80
P/E
20.16
EV/Sales
1.40
Sector
Trading Companies and Distributors
Category
turnaround
Is multibagger RS Group a quality dividend buy?
RS1.L: Former multibagger down 40% from 2022 highs. Strong 10yr performance (14% ann. return) under ex-CEO Ruth. New CEO Pryce dealing with destocking, but confident in return to growth. LFL revenue -3% Q1 FY25. FY25 forecasts: EPS 42.4p (-3%), P/E 18, yield 2.9%. Long dividend history, covered by FCF. High ROCE (15-20%). Potential value below 800p if growth resumes.
Read full article (12 min)