Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
RS Group plc is a public limited company specializing in the global distribution of industrial and electronic products. It serves as a key supplier of components, tools, and maintenance solutions to engineers, businesses, and industries worldwide, facilitating innovation and operational efficiency. The company offers an extensive catalog including electronic components, automation products, test and measurement equipment, and production supplies, catering to sectors such as manufacturing, aerospace, telecommunications, and healthcare. With a focus on digital commerce through its robust online platform, RS Group plc enables seamless procurement for over a million customers across more than 30 countries. Originally incorporated in 1960 as Electrocomponents Public Limited Company and rebranded in 2022, it operates from its registered office in London, United Kingdom. As a prominent player in the technology and industrial distribution market, RS Group plc supports the supply chain needs of maintenance, repair, operations, and production environments, emphasizing technical expertise and customer-centric service.
£6.27
+£0.14 (+2.29%)
EOD Jul 3, 2026
Operating margin is thin at 8.56%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.8% YoY. The question is whether this is cyclical or a structural shift.
Even for strong businesses, today's 18x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
18.2x earnings, 13.9x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£2.88B
▼ -0.8% YoY
Net Income (TTM)
£162M
▲ +6.1% YoY
Op. Margin
8.56%
▼ -0.4pp YoY
ROIC
9.63%
Cash Flow & Balance Sheet
FCF (TTM)
£211M
▲ +0.5% YoY
Op. Cash Flow (TTM)
£274M
▲ +10.0% YoY
Net Debt
£329M
Cash & Equiv.
£167M
3Y CAGR: -1.1%
3Y CAGR: -6.8%
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At a P/E of 18.2 and a price-to-free-cash-flow of 13.9, RS Group (RS1.XLON) trades below a two-stage DCF intrinsic value of about £9.01 per share, so at £6.27 the stock looks undervalued (43.9% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, RS Group scores 39/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.6%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £9.01 per share for RS1.XLON, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £6.76. At today's £6.27, that puts the stock about 43.9% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
RS Group scores 39 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 8.6% operating margin and a 9.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, RS Group pays a regular dividend of about £0.23 per share per year (typically in quarterly installments), a yield of roughly 3.6% at the current price. That is a payout ratio of about 65.4% of earnings, so the dividend is covered, with less cushion. RS Group has grown the dividend at roughly 8.6% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For RS1.XLON's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. RS1.XLON currently trades below its estimated intrinsic value and scores 39/100 on quality (lower-quality). It also yields about 3.6%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.