Fact based stock research
RS Group (LSE:ECM)

GB0003096442

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

RS Group stock research in summary

rsgroup.com

ANALYSIS: With an Obermatt Combined Rank of 86 (better than 86% compared with investment alternatives), RS Group (Trading & Distribution, United Kingdom) shares have much better financial characteristics than comparable stocks. Shares of RS Group are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), are safely financed (Safety Rank of 82, which means low debt burdens), but show below-average growth (Growth Rank of 26). ...read more

RECOMMENDATION: A Combined Rank of 86, is a strong buy recommendation based on RS Group's financial characteristics. As the company RS Group's key financial metrics exhibit good value (Obermatt Value Rank of 74) but low growth (Obermatt Growth Rank of 26) while being safely financed (Obermatt Safety Rank of 82), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 74% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	74
Growth Rank	26
Safety Rank	82
Combined Rank	86

Country	United Kingdom
Industry	Trading & Distribution
Index	FTSE All Shares, FTSE 250, FTSE 350, Artificial Intelligence, Employee Focus EU
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: RS Group

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	57	67	74
GROWTH
GROWTH	65	37	11	26
SAFETY
SAFETY	66	92	96	82
SENTIMENT
SENTIMENT	n/a	99	90	^new
360° VIEW
360° VIEW	n/a	96	88	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better RS Group is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	57	67	74
GROWTH
GROWTH	65	37	11	26
SAFETY
SAFETY	66	92	96	82
COMBINED
COMBINED	58	88	79	86

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of RS Group the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 74 (better than 74% compared with alternatives), RS Group shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for RS Group. Expected dividend yields are higher than for 76% of comparable companies (a Dividend Yield rank of 76), making the stock attractive. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 55, which means that the stock price is lower compared with invested capital than for 55% of comparable investments. But in respect to sales and profits, the picture is reversed. Price-to-Sales is 47 which means that the stock price compared with what market professionals expect for future profits is higher than for 53% of comparable companies, indicating a low value concerning RS Group's sales levels. The Price-to-Profit ratio (also referred to as price-earnings (P/E) ratio) is also unfavorable for RS Group with a rank of 47. This means that the stock price, compared with what market professionals expect for future profits, is higher than for 53% of comparable companies, indicating a low value concerning RS Group's profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 74, is a buy recommendation based on RS Group's stock price compared with the company's operational size and dividend yields. The company seems confident that it can generate a reasonable return on invested capital, because it pays an above-average dividend while profits are below what you would expect for a company with this stock price. If you agree with this practice and believe that profits will return to higher levels, as the current dividend policy suggests, RS Group may be an attractive investment. If this is not the case, you may want to be careful with this stock as it is also expensive compared with its expected revenue levels. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	45	41	32	47
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	45	39	50	47
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	20	41	51	55
DIVIDEND YIELD
DIVIDEND YIELD	48	73	76	76
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	57	67	74

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of RS Group; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 26 (better than 26% compared with alternatives), RS Group shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for RS Group. Only Capital Growth has a good rank of 54, which means that currently professionals expect the company to grow its invested capital more than 40% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 31 which means that currently professionals expect the company to grow less than 69% of its competitors. Profit Growth with a rank of 40 and Stock Returns with a rank of 34 are also low (below 66% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 26, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for RS Group is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	71	25	44	31
PROFIT GROWTH
PROFIT GROWTH	33	71	17	40
CAPITAL GROWTH
CAPITAL GROWTH	n/a	56	44	54
STOCK RETURNS
STOCK RETURNS	70	47	21	34
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	65	37	11	26

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of RS Group.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 82 (better than 82% compared with alternatives) for 2024, the company RS Group has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of RS Group is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for RS Group. Leverage is at 61, meaning the company has a below-average debt-to-equity ratio. It has less debt than 61% of its competitors. Refinancing is at a rank of 65, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. Finally, Liquidity is also good at a rank of 64, which means that the company generates more profit to service its debt than 64% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 82 (better than 82% compared with alternatives), RS Group has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with RS Group but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	50	71	76	61
REFINANCING
REFINANCING	50	58	72	65
LIQUIDITY
LIQUIDITY	74	82	84	64
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	66	92	96	82

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of RS Group and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	50	55	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	87	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	85	73	^new
MARKET PULSE
MARKET PULSE	n/a	85	81	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	99	90	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for RS Group.
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