DB:RGI

Stock Analysis Report

Executive Summary

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico.

Rewards

Trading at 2.8% below its fair value

Earnings are forecast to grow 42.12% per year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Regis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RGI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.8%

RGI

0.4%

DE Consumer Services

2.0%

DE Market


1 Year Return

-23.7%

RGI

17.7%

DE Consumer Services

15.1%

DE Market

Return vs Industry: RGI underperformed the German Consumer Services industry which returned 18.1% over the past year.

Return vs Market: RGI underperformed the German Market which returned 15% over the past year.


Shareholder returns

RGIIndustryMarket
7 Day0.8%0.4%2.0%
30 Day-23.8%5.9%1.0%
90 Day-15.3%10.2%3.8%
1 Year-23.7%-23.7%19.7%17.7%18.6%15.1%
3 Year4.4%4.4%7.4%1.6%16.8%6.6%
5 Year-14.7%-14.7%-38.3%-53.8%23.7%6.7%

Price Volatility Vs. Market

How volatile is Regis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Regis undervalued compared to its fair value and its price relative to the market?

2.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGI (€12.5) is trading below our estimate of fair value (€12.86)

Significantly Below Fair Value: RGI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RGI is unprofitable, so we can't compare its PE Ratio to the Consumer Services industry average.

PE vs Market: RGI is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RGI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RGI is good value based on its PB Ratio (1.7x) compared to the XE Consumer Services industry average (2.5x).


Next Steps

Future Growth

How is Regis forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

42.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: RGI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RGI's is expected to become profitable in the next 3 years.

Revenue vs Market: RGI's revenue is expected to decline over the next 3 years (-24% per year).

High Growth Revenue: RGI's revenue is forecast to decline over the next 3 years (-24% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Regis performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGI is currently unprofitable.

Growing Profit Margin: RGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RGI is unprofitable, but has reduced losses over the past 5 years at a rate of 30.2% per year.

Accelerating Growth: Unable to compare RGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RGI is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (43.5%).


Return on Equity

High ROE: RGI has a negative Return on Equity (-15.9%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Regis's financial position?


Financial Position Analysis

Short Term Liabilities: RGI's short term assets ($178.4M) do not cover its short term liabilities ($271.4M).

Long Term Liabilities: RGI's short term assets ($178.4M) do not cover its long term liabilities ($952.1M).


Debt to Equity History and Analysis

Debt Level: RGI's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: RGI's debt to equity ratio has increased from 16.6% to 21.8% over the past 5 years.


Balance Sheet

Inventory Level: RGI has a high level of physical assets or inventory.

Debt Coverage by Assets: RGI's debt is covered by short term assets (assets are 3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if RGI has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Regis's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RGI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RGI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RGI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RGI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: RGI is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RGI's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Hugh Sawyer (64yo)

2.8yrs

Tenure

US$8,427,057

Compensation

Mr. Hugh E. Sawyer III has been Chief Executive Officer, President and Director at Regis Corporation since April 17, 2017 and is Chairman of the Board at Regis Corporation since 2020. Mr. Sawyer has been a ...


CEO Compensation Analysis

Compensation vs Market: Hugh's total compensation ($USD8.43M) is above average for companies of similar size in the German market ($USD801.26K).

Compensation vs Earnings: Hugh's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Hugh Sawyer
Chairman of the Board2.8yrsUS$8.43m0.28% $1.2m
Jim Lain
Executive VP & COO6.3yrsUS$1.62m0.19% $822.7k
Chad Kapadia
Executive VP1.7yrsUS$2.02m0.020% $87.4k
Eric Bakken
Executive VP & President of Franchise2.8yrsUS$2.39m0.27% $1.2m
Kersten Zupfer
Executive VP & CFO0.3yrsno data0.040% $177.0k
Mark Fosland
Senior Vice President of Finance & Investor Relations9.1yrsno datano data
Jennifer Reise
Assistant VP of Corporate Compliance & Assistant Secretary0yrsno datano data
Amanda Rusin
Senior VP2.1yrsno data0.033% $143.0k
James Townsend
Executive VP & Chief Marketing Officer0.8yrsno data0.19% $834.8k
Jackie Lang
Senior VP & International MD of UK0yrsno datano data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: RGI's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hugh Sawyer
Chairman of the Board2.8yrsUS$8.43m0.28% $1.2m
Virginia Gambale
Independent Director1.9yrsUS$195.00k0.040% $176.8k
Michael Merriman
Independent Director8.5yrsUS$198.75k0.18% $774.7k
Margaret Rhoades
Independent Director5.1yrsUS$180.00k0.087% $380.9k
David Williams
Lead Independent Director0.08yrsUS$284.99k0.33% $1.4m
David Grissen
Independent Director6.3yrsUS$191.25k0.12% $522.9k
Mark Light
Independent Director6.3yrsUS$180.00k0.12% $522.9k
Daniel Beltzman
Independent Director7.5yrsUS$188.75kno data

5.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RGI's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RGI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regis Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regis Corporation
  • Ticker: RGI
  • Exchange: DB
  • Founded: 1922
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$475.151m
  • Listing Market Cap: US$439.230m
  • Shares outstanding: 35.57m
  • Website: https://www.regiscorp.com

Number of Employees


Location

  • Regis Corporation
  • 7201 Metro Boulevard
  • Minneapolis
  • Minnesota
  • 55439
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGSNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 1991
RGIDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1991

Biography

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, the United Kingdom, Canada, and Puerto Rico. The company operates through two operating segments, Company-owned Salons and Franchise Salons. Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products. The company operates its salons primarily under the of SmartStyle, Supercuts, and Cost Cutters names. As of June 30, 2019, it operated 7,145 salons, such as 3,951 franchised salons, 3,108 company-owned salons, and 86 non-controlling ownership salons. The company also operates accredited cosmetology schools. Regis Corporation was founded in 1922 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 21:13
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.