# Region Group (RGN.AU)

Canonical: https://gigainvestors.com/s/RGN.AU

Analysis as of: 2026-10-16T07:41:31.345Z. Financial observations: FY2013–FY2026.

Listing currency: AUD. Reporting currency: AUD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: AUD 2.22 per share; close as of 2026-10-15.

Estimated value: low AUD 0.34 per share, central AUD 0.39 per share, high AUD 0.46 per share. Buy at or below the central value AUD 0.39 per share. Valuation as of 2026-10-16T07:41:31.345Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; AU 10-year bond 5.2% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 1

- Operating margin variation: 0.15×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.64×

- FY2018: 0.64×

- FY2019: 0.63×

- FY2020: 0.74×

- FY2021: 0.44×

- FY2022: 0.56×

- FY2023: 0.60×

- FY2024: 0.58×

- FY2025: 0.56×

- FY2026: 0.45×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.8%

- ROIC, second-lowest year: 3.9%

- Typical minus recent gross margin: 2.1 pp

- Typical gross margin (annual median): 66.2%

- Recent gross margin (lower of latest and 3-year median): 64.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 0.0%

- ROIC including acquisitions, ten-year median: 3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.4%

- FY2018: 5.4%

- FY2019: 5.2%

- FY2020: 6.4%

- FY2021: 3.6%

- FY2022: 3.9%

- FY2023: 3.9%

- FY2024: 4.9%

- FY2025: 4.8%

- FY2026: 4.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.53×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: AUD 457M

- Net income, five-year total: AUD 862M

- Return on incremental invested capital: 4.1%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 18.9 pp

- Working capital / revenue, final three-year average: 1.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.05×

- FY2023: 0.80×

- FY2024: -5.08×

- FY2025: 0.44×

- FY2026: 0.13×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 5.4% vs 4.8%

- Per-share earnings: 0.25 to 0.18 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.6%

- Ordinary dilution, 5-year annual growth: 0.9%

- Market cap gain: AUD 1.1B

- Cumulative retained earnings: AUD 376M

- Diluted shares, 10-year annual growth: 4.6%

- Diluted shares, 5-year annual growth: 0.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -3.9%

- Per-share value change: AUD -0.07

- Per-share value, starting three-year median: AUD 0.25

- Per-share value, ending three-year median: AUD 0.18

- Buybacks concentrated in cheaper years (correlation): -0.21

- Average buyback yield: 0.2%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: AUD 0

- Cumulative net income, 10 years: AUD 2.0B

- ROIC, first three-year median: 5.4%

- ROIC, last three-year median: 4.8%

Chart: Earnings per share; fiscal year observations.

- FY2017: AUD 0.43

- FY2018: AUD 0.21

- FY2019: AUD 0.12

- FY2020: AUD 0.08

- FY2021: AUD 0.42

- FY2022: AUD 0.43

- FY2023: AUD -0.11

- FY2024: AUD 0.01

- FY2025: AUD 0.18

- FY2026: AUD 0.23

### accounting: pass

- Sloan accruals: 1.8%

- Receivables to sales index (DSRI): 0.62×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.68×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 8.1%

- FY2018: 2.0%

- FY2019: -0.3%

- FY2020: -1.7%

- FY2021: 7.6%

- FY2022: 6.6%

- FY2023: -6.5%

- FY2024: -3.6%

- FY2025: 1.3%

- FY2026: 1.8%

## Holders

## Price story

Down 28% since Apr 2022 · sales +28%

Story as of 2026-10-16T10:00:11.946Z; price observation 2026-10-15.

Price needs cash profits to grow 23.2% a year for ten years

### Sales · FY2025–2026

sales +28%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: AUD 206M 

- FY2018: AUD 218M 

- FY2019: AUD 271M 

- FY2020: AUD 284M 

- FY2021: AUD 330M 

- FY2022: AUD 312M 

- FY2023: AUD 364M 

- FY2024: AUD 372M 

- FY2025: AUD 382M 

- FY2026: AUD 489M 

### Gross margin · FY2026

gross margin 72%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 70.0% 

- FY2018: 69.8% 

- FY2019: 67.6% 

- FY2020: 61.8% 

- FY2021: 69.6% 

- FY2022: 62.3% 

- FY2023: 64.8% 

- FY2024: 62.3% 

- FY2025: 64.1% 

- FY2026: 72.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are AUD 488.8 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2026: revenue 488800000; grossProfit 352100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RGN.AU: Region Group is an internally managed real estate investment trust (REIT) with 87 convenience-based retail properties, valued at 4,374 million dollar. We remain the largest owner of convenience-based retail centres with 7 percent share of the market, which is dominated by private owners. This asset class has proven to be resilient due to its exposure to nondiscretionary retail categories, including long leases with grocery-based anchor tenants. Woolworths Group Limited (Woolworths) and Coles Group Limited (Coles) are our anchor retail partners at more than 97 percent of our properties. Region (originally SCA Property Group was created out of Woolworths in late 2012, when ownership in a number of retail properties was transferred. Since November 2022, we have been operating under our new name, Region Group. Region Group was incorporated in 2012 in Australia.

### Why customers stay

Margins ranged from 62.3% to 72% during 2024–26; it earns 4.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2024: grossProfit / revenue = 62.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2025: grossProfit / revenue = 64.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2026: grossProfit / revenue = 72%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); 10-year return on capital observations [[2017,0.05379774492014741],[2018,0.05403002241456557],[2019,0.052311048312407606],[2020,0.0641605791313455],[2021,0.036020468395188424],[2022,0.03877584063754277],[2023,0.03867008192096771],[2024,0.04869498175450747],[2025,0.04827655636967678],[2026,0.048163722409200554]]; median 0.04848576906209212. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back AUD 29.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2017: growth capex 215700000; upkeep -131900000; owner earnings 319600000. Growth capex / owner earnings = 0.6749061326658323.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2018: growth capex 132253765.61844006; upkeep -132253765.61844006; owner earnings 167653765.61844006. Growth capex / owner earnings = 0.7888505523904177.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2019: growth capex 0; upkeep 0; owner earnings 121020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2020: growth capex 0; upkeep 0; owner earnings 89580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2021: growth capex 0; upkeep 0; owner earnings 508560000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2022: growth capex 0; upkeep 0; owner earnings 513100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2025: growth capex 24261277.57404685; upkeep 146438722.42595315; owner earnings 94061277.57404685. Growth capex / owner earnings = 0.2579305554822802.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2026: growth capex 0; upkeep 146100000; owner earnings 36000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); Dividend observations: [[2017,92500000],[2018,100500000],[2019,119600000],[2020,138900000],[2021,115000000],[2022,152300000],[2023,174300000],[2024,166300000],[2025,159100000],[2026,160900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); FY2026: cash repurchases 29200000 AUD.

### Are managers owners

Insiders own 1.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RGN.AU SharesStats.PercentInsiders = 1.546 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.2% yearly over ten years; actual decline was 18.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:31.345Z); Ten-year compound average after fade. Initial solved rate 0.3258078848396099. Price 2.22; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.2508383119600169 → FY2026 0.031188354268516134. Closing-price date 2026-10-15.

## Monthly share-price history (AUD per share)

- 2016-10: AUD 2.19 per share

- 2016-11: AUD 2.12 per share

- 2016-12: AUD 2.21 per share

- 2017-01: AUD 2.17 per share

- 2017-02: AUD 2.23 per share

- 2017-03: AUD 2.24 per share

- 2017-04: AUD 2.31 per share

- 2017-05: AUD 2.31 per share

- 2017-06: AUD 2.19 per share

- 2017-07: AUD 2.17 per share

- 2017-08: AUD 2.23 per share

- 2017-09: AUD 2.29 per share

- 2017-10: AUD 2.35 per share

- 2017-11: AUD 2.41 per share

- 2017-12: AUD 2.33 per share

- 2018-01: AUD 2.25 per share

- 2018-02: AUD 2.24 per share

- 2018-03: AUD 2.33 per share

- 2018-04: AUD 2.38 per share

- 2018-05: AUD 2.46 per share

- 2018-06: AUD 2.45 per share

- 2018-07: AUD 2.40 per share

- 2018-08: AUD 2.41 per share

- 2018-09: AUD 2.40 per share

- 2018-10: AUD 2.57 per share

- 2018-11: AUD 2.64 per share

- 2018-12: AUD 2.55 per share

- 2019-01: AUD 2.49 per share

- 2019-02: AUD 2.41 per share

- 2019-03: AUD 2.64 per share

- 2019-04: AUD 2.56 per share

- 2019-05: AUD 2.53 per share

- 2019-06: AUD 2.39 per share

- 2019-07: AUD 2.44 per share

- 2019-08: AUD 2.63 per share

- 2019-09: AUD 2.61 per share

- 2019-10: AUD 2.69 per share

- 2019-11: AUD 2.72 per share

- 2019-12: AUD 2.67 per share

- 2020-01: AUD 2.89 per share

- 2020-02: AUD 3.01 per share

- 2020-03: AUD 2.27 per share

- 2020-04: AUD 2.23 per share

- 2020-05: AUD 2.34 per share

- 2020-06: AUD 2.18 per share

- 2020-07: AUD 2.16 per share

- 2020-08: AUD 2.25 per share

- 2020-09: AUD 2.14 per share

- 2020-10: AUD 2.32 per share

- 2020-11: AUD 2.56 per share

- 2020-12: AUD 2.52 per share

- 2021-01: AUD 2.33 per share

- 2021-02: AUD 2.34 per share

- 2021-03: AUD 2.51 per share

- 2021-04: AUD 2.49 per share

- 2021-05: AUD 2.49 per share

- 2021-06: AUD 2.52 per share

- 2021-07: AUD 2.46 per share

- 2021-08: AUD 2.68 per share

- 2021-09: AUD 2.70 per share

- 2021-10: AUD 2.78 per share

- 2021-11: AUD 2.78 per share

- 2021-12: AUD 2.97 per share

- 2022-01: AUD 2.81 per share

- 2022-02: AUD 2.90 per share

- 2022-03: AUD 2.92 per share

- 2022-04: AUD 3.07 per share

- 2022-05: AUD 2.97 per share

- 2022-06: AUD 2.75 per share

- 2022-07: AUD 2.96 per share

- 2022-08: AUD 2.73 per share

- 2022-09: AUD 2.35 per share

- 2022-10: AUD 2.72 per share

- 2022-11: AUD 2.76 per share

- 2022-12: AUD 2.71 per share

- 2023-01: AUD 2.70 per share

- 2023-02: AUD 2.55 per share

- 2023-03: AUD 2.35 per share

- 2023-04: AUD 2.46 per share

- 2023-05: AUD 2.51 per share

- 2023-06: AUD 2.27 per share

- 2023-07: AUD 2.42 per share

- 2023-08: AUD 2.16 per share

- 2023-09: AUD 2.02 per share

- 2023-10: AUD 1.97 per share

- 2023-11: AUD 2.07 per share

- 2023-12: AUD 2.26 per share

- 2024-01: AUD 2.27 per share

- 2024-02: AUD 2.21 per share

- 2024-03: AUD 2.39 per share

- 2024-04: AUD 2.20 per share

- 2024-05: AUD 2.13 per share

- 2024-06: AUD 2.10 per share

- 2024-07: AUD 2.27 per share

- 2024-08: AUD 2.26 per share

- 2024-09: AUD 2.29 per share

- 2024-10: AUD 2.20 per share

- 2024-11: AUD 2.19 per share

- 2024-12: AUD 2.07 per share

- 2025-01: AUD 2.19 per share

- 2025-02: AUD 2.05 per share

- 2025-03: AUD 2.07 per share

- 2025-04: AUD 2.32 per share

- 2025-05: AUD 2.37 per share

- 2025-06: AUD 2.20 per share

- 2025-07: AUD 2.34 per share

- 2025-08: AUD 2.44 per share

- 2025-09: AUD 2.39 per share

- 2025-10: AUD 2.44 per share

- 2025-11: AUD 2.39 per share

- 2025-12: AUD 2.35 per share

- 2026-01: AUD 2.31 per share

- 2026-02: AUD 2.31 per share

- 2026-03: AUD 2.27 per share

- 2026-04: AUD 2.31 per share

- 2026-05: AUD 2.27 per share

- 2026-06: AUD 2.33 per share

- 2026-07: AUD 2.38 per share

- 2026-08: AUD 2.24 per share

- 2026-09: AUD 2.23 per share

- 2026-10: AUD 2.20 per share

## Annual estimated value (AUD per share)

- FY2017: low AUD 2.12 per share, central AUD 2.41 per share, high AUD 2.80 per share

- FY2018: low AUD 2.25 per share, central AUD 2.56 per share, high AUD 2.97 per share

- FY2019: low AUD 2.45 per share, central AUD 2.79 per share, high AUD 3.24 per share

- FY2020: low AUD 2.38 per share, central AUD 2.69 per share, high AUD 3.10 per share

- FY2021: low AUD 2.52 per share, central AUD 2.86 per share, high AUD 3.33 per share

- FY2022: low AUD 2.33 per share, central AUD 2.65 per share, high AUD 3.08 per share

- FY2023: low AUD 1.77 per share, central AUD 2.33 per share, high AUD 2.72 per share

- FY2024: low AUD 1.19 per share, central AUD 1.46 per share, high AUD 1.70 per share

- FY2025: low AUD 0.93 per share, central AUD 1.11 per share, high AUD 1.29 per share

- FY2026: low AUD 0.34 per share, central AUD 0.39 per share, high AUD 0.45 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:47:16.401Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations