NYSE:RGS

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.

Snowflake

Fundamentals

Mediocre balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

3.8%

RGS

-0.4%

US Consumer Services

0.4%

US Market


1 Year Return

6.7%

RGS

23.5%

US Consumer Services

6.9%

US Market

Return vs Industry: RGS underperformed the US Consumer Services industry which returned 23.5% over the past year.

Return vs Market: RGS matched the US Market which returned 6.9% over the past year.


Shareholder returns

RGSIndustryMarket
7 Day3.8%-0.4%0.4%
30 Day4.4%-1.9%-1.1%
90 Day13.5%-1.6%-0.5%
1 Year6.7%6.7%24.0%23.5%9.3%6.9%
3 Year77.6%77.6%107.4%96.1%45.8%36.4%
5 Year31.4%31.4%140.9%115.9%62.9%45.1%

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

Valuation

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

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: RGS ($20.87) is trading below our estimate of fair value ($29.73)

Significantly Undervalued: RGS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RGS is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

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

32.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

High Growth Earnings: RGS's loss is forecast to worsen by 0% next year.

Revenue vs Market: RGS's revenue is expected to decline over the next 3 years (-35.1% per year).

High Growth Revenue: RGS's revenue is forecast to decline over the next 3 years (-35.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if RGS'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?

71.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RGS is unprofitable, but has reduced losses over the past 5 years at a rate of 71.3% per year.

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

Earnings vs Industry: RGS is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Services industry (5.5%).


Return on Equity

High ROE: RGS has a negative Return on Equity (-6.21%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RGS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RGS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Regis's financial position?


Financial Position Analysis

Short Term Liabilities: RGS's short term assets ($210.8M) exceeds its short term liabilities ($128.3M)

Long Term Liabilities: RGS's short term assets (210.8M) do not cover its long term liabilities (230.3M)


Debt to Equity History and Analysis

Debt Level: RGS's debt to equity ratio (27.8%) is considered satisfactory

Reducing Debt: RGS's debt to equity ratio has reduced from 40.5% to 27.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: RGS's debt is covered by short term assets (assets are 2.342460x 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 RGS has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RGS 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%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: RGS is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Regis's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Hugh Sawyer (64yo)

2.5yrs

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. Mr. Sawyer has been a Director of Huron Consulting Group, Inc. since February 12,  ...


CEO Compensation Analysis

Compensation vs. Market: Hugh's total compensation ($USD8.43M) is about average for companies of similar size in the US market ($USD2.69M).

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


Management Age and Tenure

2.5yrs

Average Tenure

50.5yo

Average Age

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


Board Age and Tenure

6.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RGS's board of directors are considered experienced (6 years average tenure).


Insider Trading

Insider Buying: RGS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,91904 Sep 19
Kathryn Moren
EntityIndividual
Shares1,525
Max PriceUS$16.34
BuyUS$104,58529 Aug 19
Andrew Lacko
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares6,500
Max PriceUS$16.09
SellUS$164,08513 Nov 18
Jim Lain
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares9,177
Max PriceUS$17.88

Ownership Breakdown


Management Team

  • Hugh Sawyer (64yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$8.43m
  • Eric Bakken (52yo)

    Executive VP & President of Franchise

    • Tenure: 2.5yrs
    • Compensation: US$2.39m
  • Mark Fosland

    Senior Vice President of Finance & Investor Relations

    • Tenure: 8.8yrs
  • Jen Reise

    Assistant VP of Corporate Compliance & Assistant Secretary

    • Tenure: 0yrs
  • Andrew Lacko (49yo)

    Executive VP & CFO

    • Tenure: 2.3yrs
    • Compensation: US$2.00m
  • Jim Lain (55yo)

    Executive VP & COO

    • Tenure: 5.9yrs
    • Compensation: US$1.62m
  • Kersten Zupfer

    Senior VP

    • Tenure: 4.8yrs
  • Chad Kapadia (49yo)

    Executive VP

    • Tenure: 1.3yrs
    • Compensation: US$2.02m
  • James Townsend

    Executive VP & Chief Marketing Officer

    • Tenure: 0.5yrs
  • Amanda Rusin (37yo)

    Senior VP

    • Tenure: 1.8yrs

Board Members

  • Virginia Gambale (59yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$195.00k
  • Hugh Sawyer (64yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$8.43m
  • Mike Merriman (63yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$198.75k
  • Margaret Rhoades (74yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$180.00k
  • David Williams (58yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: US$284.99k
  • Dave Grissen (62yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$191.25k
  • Mark Light (57yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$180.00k
  • Daniel Beltzman (44yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$188.75k

Company Information

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


Key Information

  • Name: Regis Corporation
  • Ticker: RGS
  • Exchange: NYSE
  • Founded: 1922
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$752.549m
  • Shares outstanding: 36.06m
  • 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, Com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:43
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.