Added to YB: 2024-06-27
Pitch date: 2024-06-26
RGS [bullish]
Regis Corporation
+48.72%
current return
Author Info
@smantel is an ex-sell side analyst with a focus on fundamental research. Follow him on Twitter.
Company Info
Regis Corporation owns and franchises hair care salons primarily in North America. The company operates in two segments, Franchise Salons and Company-Owned Salons.
Market Cap
$54.8M
Pitch Price
$19.50
Price Target
46.60 (+61%)
Dividend
N/A
EV/EBITDA
12.45
P/E
0.60
EV/Sales
2.06
Sector
Diversified Consumer Services
Category
turnaround
Asset-Light Model and Debt Refinancing: Regis Corporation's Growth Catalysts
RGS: Debt refi saves $7M/yr interest, 15% dilution. EV/EBITDA drops 8.1x to 5.3x. $46.60 PT based on pre-refi multiple. $650M NOLs, $15M Zenoti payment not included. Asset-light model could generate strong FCF if franchise count stabilizes.
Read full article (2 min)