RS Group plc

LSE:RS1 Stock Report

Market Cap: UK£3.2b

RS Group Valuation

Is RS1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RS1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RS1 (£6.82) is trading below our estimate of fair value (£8.31)

Significantly Below Fair Value: RS1 is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RS1?

Key metric: As RS1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RS1. This is calculated by dividing RS1's market cap by their current earnings.
What is RS1's PE Ratio?
PE Ratio19x
EarningsUK£169.70m
Market CapUK£3.23b

Price to Earnings Ratio vs Peers

How does RS1's PE Ratio compare to its peers?

The above table shows the PE ratio for RS1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.6x
HWDN Howden Joinery Group
17x6.0%UK£4.3b
GFTU Grafton Group
14.4x5.5%UK£1.9b
DPLM Diploma
44.5x13.9%UK£5.8b
BNZL Bunzl
22.4x7.1%UK£10.9b
RS1 RS Group
19x16.5%UK£3.2b

Price-To-Earnings vs Peers: RS1 is good value based on its Price-To-Earnings Ratio (19x) compared to the peer average (24.6x).

Price to Earnings Ratio vs Industry

How does RS1's PE Ratio compare vs other companies in the European Trade Distributors Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RS1 19.0xIndustry Avg. 14.1xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RS1 is expensive based on its Price-To-Earnings Ratio (19x) compared to the European Trade Distributors industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is RS1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RS1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: RS1 is good value based on its Price-To-Earnings Ratio (19x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RS1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£6.82
UK£8.38
+22.8%
7.9%UK£10.00UK£7.50n/a15
Dec ’25UK£7.15
UK£8.39
+17.4%
8.1%UK£10.00UK£7.50n/a15
Nov ’25UK£6.99
UK£8.43
+20.6%
7.9%UK£10.00UK£7.50n/a14
Oct ’25UK£7.95
UK£8.50
+7.0%
8.6%UK£10.00UK£7.30n/a14
Sep ’25UK£7.83
UK£8.33
+6.3%
7.5%UK£9.80UK£7.30n/a14
Aug ’25UK£7.89
UK£8.33
+5.5%
7.5%UK£9.80UK£7.30n/a14
Jul ’25UK£6.87
UK£8.42
+22.6%
8.7%UK£9.80UK£7.30n/a14
Jun ’25UK£7.04
UK£8.58
+22.0%
8.5%UK£9.80UK£7.30n/a13
May ’25UK£7.39
UK£8.66
+17.2%
10.6%UK£10.50UK£6.70n/a13
Apr ’25UK£7.27
UK£8.86
+21.9%
11.0%UK£10.75UK£6.70n/a13
Mar ’25UK£7.68
UK£8.92
+16.2%
11.3%UK£10.75UK£6.70n/a13
Feb ’25UK£7.74
UK£8.82
+13.9%
11.7%UK£10.75UK£6.70n/a14
Jan ’25UK£8.20
UK£8.90
+8.5%
11.5%UK£11.75UK£7.70n/a13
Dec ’24UK£7.56
UK£8.90
+17.6%
11.5%UK£11.75UK£7.70UK£7.1513
Nov ’24UK£6.73
UK£9.63
+43.1%
18.2%UK£14.60UK£7.70UK£6.9913
Oct ’24UK£7.35
UK£9.75
+32.6%
18.8%UK£14.60UK£7.70UK£7.9513
Sep ’24UK£7.64
UK£9.91
+29.7%
18.0%UK£14.60UK£7.70UK£7.8313
Aug ’24UK£7.86
UK£10.19
+29.7%
17.5%UK£14.60UK£7.70UK£7.8915
Jul ’24UK£7.60
UK£10.58
+39.2%
15.9%UK£14.60UK£8.10UK£6.8715
Jun ’24UK£7.96
UK£10.81
+35.7%
15.6%UK£14.60UK£8.10UK£7.0415
May ’24UK£9.21
UK£11.21
+21.6%
17.5%UK£14.81UK£8.20UK£7.3914
Apr ’24UK£9.14
UK£11.40
+24.7%
16.4%UK£14.70UK£8.20UK£7.2713
Mar ’24UK£9.93
UK£11.42
+15.1%
16.4%UK£14.70UK£8.20UK£7.6813
Feb ’24UK£9.58
UK£11.55
+20.6%
16.3%UK£14.70UK£8.20UK£7.7412
Jan ’24UK£8.96
UK£11.76
+31.3%
15.7%UK£14.70UK£8.20UK£8.2012
Dec ’23UK£9.47
UK£11.68
+23.4%
16.0%UK£14.70UK£8.20UK£7.5612

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/25 20:51
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

RS Group plc is covered by 35 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James RosenthalBarclays
Jane SparrowBarclays
Calum BattersbyBerenberg