# RS Group (RS1.LSE)

Canonical: https://gigainvestors.com/s/RS1.LSE

Analysis as of: 2026-10-16T07:37:41.374Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 785.00 per share; close as of 2026-10-15.

Estimated value: low GBX 552.73 per share, central GBX 626.68 per share, high GBX 725.20 per share. Buy at or below the central value GBX 626.68 per share. Valuation as of 2026-10-16T07:37:41.374Z; scenarios are not confidence intervals.

Expected annual return: 8.5% at the stated quote. About 8.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.10×

- FY2019: 0.11×

- FY2020: 0.11×

- FY2021: 0.09×

- FY2022: 0.12×

- FY2023: 0.13×

- FY2024: 0.10×

- FY2025: 0.08×

- FY2026: 0.08×

### moat: pass

- ROIC, median of available years: 26.9%

- ROIC, second-lowest year: 15.9%

- Typical minus recent gross margin: 0.2 pp

- Typical gross margin (annual median): 43.2%

- Recent gross margin (lower of latest and 3-year median): 43.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 16.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 32.4%

- FY2018: 42.4%

- FY2019: 31.6%

- FY2020: 24.4%

- FY2021: 20.4%

- FY2022: 29.3%

- FY2023: 30.7%

- FY2024: 17.2%

- FY2025: 15.6%

- FY2026: 15.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.11×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 1.1B

- Net income, five-year total: GBP 1.0B

- Return on incremental invested capital: 59.3%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 2.6 pp

- Working capital / revenue, final three-year average: 28.9%

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

- FY2022: 1.05×

- FY2023: 1.03×

- FY2024: 1.09×

- FY2025: 1.16×

- FY2026: 1.31×

### management: pass

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 32.4% vs 15.9%

- Per-share earnings: 0.21 to 0.34 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.7%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: GBP 542M

- Cumulative retained earnings: GBP 909M

- Diluted shares, 10-year annual growth: 0.7%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 6.5%

- Per-share value change: GBP 0.14

- Per-share value, starting three-year median: GBP 0.21

- Per-share value, ending three-year median: GBP 0.34

- Buybacks concentrated in cheaper years (correlation): 0.18

- Average buyback yield: 0.4%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 968M

- Cumulative net income, 10 years: GBP 1.7B

- ROIC, first three-year median: 32.4%

- ROIC, last three-year median: 15.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.21

- FY2018: GBP 0.34

- FY2019: GBP 0.33

- FY2020: GBP 0.35

- FY2021: GBP 0.27

- FY2022: GBP 0.49

- FY2023: GBP 0.60

- FY2024: GBP 0.39

- FY2025: GBP 0.33

- FY2026: GBP 0.34

### accounting: pass

- Sloan accruals: -3.8%

- Receivables to sales index (DSRI): 1.18×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.63×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.65×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -3.3%

- FY2018: 2.0%

- FY2019: 1.5%

- FY2020: 0.5%

- FY2021: -3.4%

- FY2022: 1.3%

- FY2023: -0.9%

- FY2024: -0.4%

- FY2025: -4.1%

- FY2026: -3.8%

## Holders

## Price story

Down 35% since Nov 2021 · sales -0.8%

Story as of 2026-10-16T10:00:09.397Z; price observation 2026-10-15.

Price needs cash profits to grow 4.3% a year for ten years

### Sales · FY2025–2026

sales -0.8%; source https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml; observed 2026-06-11.

- FY2017: GBP 1.5B 

- FY2018: GBP 1.7B 

- FY2019: GBP 1.9B 

- FY2020: GBP 2.0B 

- FY2021: GBP 2.0B 

- FY2022: GBP 2.6B 

- FY2023: GBP 3.0B 

- FY2024: GBP 2.9B 

- FY2025: GBP 2.9B 

- FY2026: GBP 2.9B 

### Gross margin · FY2026

gross margin 43.4%; source https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml; observed 2026-06-11.

- FY2017: 43.4% 

- FY2018: 44.0% 

- FY2019: 44.5% 

- FY2020: 42.6% 

- FY2021: 41.5% 

- FY2022: 43.0% 

- FY2023: 44.4% 

- FY2024: 43.0% 

- FY2025: 42.8% 

- FY2026: 43.4% 

## Owner memo

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

### How it makes money

Operates in industrial distribution; annual sales are GBP 2.9 billion.

- Source: https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: revenue 2881100000; grossProfit 1250300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RS1.LSE: RS Group plc, together with its subsidiaries, engages in the distribution of maintenance, repair, and operations products and service solutions in the United Kingdom, the United States, France, Mexico, Germany, Italy, Switzerland, and internationally. The company offers automation and control, and electrification products; cables and connectors; mechanical and fluid power products, such as transmission, pneumatics, and hydraulic components; semiconductors and passive components; test and measurements products; personal protective equipment (PPE), workwear, and janitorial products; and facilities and maintenance products for buildings. It also provides bundling, kitting, labelling, and assembly services; digital procurement platforms that enhance productivity, reduce spend, and streamline supplier management; inventory solutions that optimize inventory management to reduce waste, enhance supply chains, and lower costs; and DesignSpark, a software tool for design engineers. In addition, the company offers design, manufacturing, and prototyping; maintenance engineering and safety; and integrated supply chain and procurement solutions. The company provides its customers with product and service solutions for designing, building, maintaining, repairing, and operating industrial equipment. It serves design and discrete manufacturing, process manufacturing, facilities and intralogistics, and energy and utilities industries. The company was formerly known as Electrocomponents plc. RS Group plc was founded in 1937 and is headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 42.8% to 43.4% during 2024–26; it earns 26.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: grossProfit / revenue = 43%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: grossProfit / revenue = 42.8%.

- Source: https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: grossProfit / revenue = 43.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); 10-year return on capital observations [[2017,0.32398802517170805],[2018,0.4236493193478471],[2019,0.3161943029132946],[2020,0.2443890812221611],[2021,0.2036876527648109],[2022,0.29323649724730594],[2023,0.3070429457880775],[2024,0.17174071483996792],[2025,0.15644322126846555],[2026,0.1587322145897327]]; median 0.2688127892347335. 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 GBP 33.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2017: growth capex 0; upkeep 19000000; owner earnings 102300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2018: growth capex 0; upkeep 24200000; owner earnings 151200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2019: growth capex 12128271.765462741; upkeep 38671728.23453726; owner earnings 141328271.76546276. Growth capex / owner earnings = 0.08581631696161872.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2020: growth capex 5171058.640571982; upkeep 69528941.35942802; owner earnings 124811058.64057198. Growth capex / owner earnings = 0.04143109350160611.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2021: growth capex 0; upkeep 54700000; owner earnings 115000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2022: growth capex 0; upkeep 42500000; owner earnings 241460000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2023: growth capex 0; upkeep 46100000; owner earnings 293520000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2024: growth capex 0; upkeep 51600000; owner earnings 201020000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); FY2025: growth capex 0; upkeep 49300000; owner earnings 177360000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: growth capex 0; upkeep 18900000; owner earnings 212280000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Dividend observations: [[2017,51700000],[2018,55400000],[2019,58900000],[2020,68500000],[2021,71200000],[2022,76200000],[2023,88600000],[2024,104100000],[2025,104700000],[2026,105900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml (filed 2026-06-11); FY2026: cash repurchases 33700000 GBP.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); RS1.LSE SharesStats.PercentInsiders = 0.187 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.3% yearly over ten years; actual growth was 42.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-11); Ten-year compound average after fade. Initial solved rate 0.05661978950076181. Price 785; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.013351293306548502 → FY2026 0.44766865602395667. Closing-price date 2026-10-15.

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

- 2016-10: GBX 372.60 per share

- 2016-11: GBX 447.60 per share

- 2016-12: GBX 476.70 per share

- 2017-01: GBX 484.80 per share

- 2017-02: GBX 475.20 per share

- 2017-03: GBX 473.40 per share

- 2017-04: GBX 519.00 per share

- 2017-05: GBX 586.50 per share

- 2017-06: GBX 577.00 per share

- 2017-07: GBX 620.00 per share

- 2017-08: GBX 632.50 per share

- 2017-09: GBX 621.00 per share

- 2017-10: GBX 694.50 per share

- 2017-11: GBX 631.00 per share

- 2017-12: GBX 626.50 per share

- 2018-01: GBX 612.60 per share

- 2018-02: GBX 628.60 per share

- 2018-03: GBX 600.20 per share

- 2018-04: GBX 609.00 per share

- 2018-05: GBX 703.80 per share

- 2018-06: GBX 758.00 per share

- 2018-07: GBX 717.60 per share

- 2018-08: GBX 741.80 per share

- 2018-09: GBX 718.20 per share

- 2018-10: GBX 619.80 per share

- 2018-11: GBX 514.80 per share

- 2018-12: GBX 506.60 per share

- 2019-01: GBX 542.80 per share

- 2019-02: GBX 553.80 per share

- 2019-03: GBX 561.80 per share

- 2019-04: GBX 645.60 per share

- 2019-05: GBX 607.80 per share

- 2019-06: GBX 632.80 per share

- 2019-07: GBX 608.60 per share

- 2019-08: GBX 581.00 per share

- 2019-09: GBX 643.80 per share

- 2019-10: GBX 680.20 per share

- 2019-11: GBX 653.60 per share

- 2019-12: GBX 677.60 per share

- 2020-01: GBX 662.80 per share

- 2020-02: GBX 606.20 per share

- 2020-03: GBX 516.20 per share

- 2020-04: GBX 578.00 per share

- 2020-05: GBX 635.50 per share

- 2020-06: GBX 671.00 per share

- 2020-07: GBX 656.00 per share

- 2020-08: GBX 679.00 per share

- 2020-09: GBX 712.50 per share

- 2020-10: GBX 679.50 per share

- 2020-11: GBX 809.50 per share

- 2020-12: GBX 870.50 per share

- 2021-01: GBX 877.50 per share

- 2021-02: GBX 970.00 per share

- 2021-03: GBX 993.00 per share

- 2021-04: GBX 1,066.00 per share

- 2021-05: GBX 990.00 per share

- 2021-06: GBX 1,029.00 per share

- 2021-07: GBX 1,017.00 per share

- 2021-08: GBX 1,064.00 per share

- 2021-09: GBX 1,078.00 per share

- 2021-10: GBX 1,125.00 per share

- 2021-11: GBX 1,208.00 per share

- 2021-12: GBX 1,206.00 per share

- 2022-01: GBX 1,111.00 per share

- 2022-02: GBX 989.50 per share

- 2022-03: GBX 1,084.00 per share

- 2022-04: GBX 1,055.00 per share

- 2022-05: GBX 968.50 per share

- 2022-06: GBX 869.00 per share

- 2022-07: GBX 1,033.00 per share

- 2022-08: GBX 1,086.00 per share

- 2022-09: GBX 969.00 per share

- 2022-10: GBX 958.50 per share

- 2022-11: GBX 918.00 per share

- 2022-12: GBX 895.50 per share

- 2023-01: GBX 940.00 per share

- 2023-02: GBX 977.50 per share

- 2023-03: GBX 914.00 per share

- 2023-04: GBX 921.40 per share

- 2023-05: GBX 796.60 per share

- 2023-06: GBX 760.20 per share

- 2023-07: GBX 784.60 per share

- 2023-08: GBX 760.20 per share

- 2023-09: GBX 735.40 per share

- 2023-10: GBX 677.20 per share

- 2023-11: GBX 747.40 per share

- 2023-12: GBX 819.60 per share

- 2024-01: GBX 785.60 per share

- 2024-02: GBX 753.60 per share

- 2024-03: GBX 726.80 per share

- 2024-04: GBX 737.00 per share

- 2024-05: GBX 703.50 per share

- 2024-06: GBX 701.00 per share

- 2024-07: GBX 818.00 per share

- 2024-08: GBX 783.00 per share

- 2024-09: GBX 810.00 per share

- 2024-10: GBX 695.00 per share

- 2024-11: GBX 714.50 per share

- 2024-12: GBX 681.50 per share

- 2025-01: GBX 650.50 per share

- 2025-02: GBX 610.00 per share

- 2025-03: GBX 561.50 per share

- 2025-04: GBX 515.50 per share

- 2025-05: GBX 569.50 per share

- 2025-06: GBX 574.50 per share

- 2025-07: GBX 559.00 per share

- 2025-08: GBX 565.00 per share

- 2025-09: GBX 568.50 per share

- 2025-10: GBX 556.50 per share

- 2025-11: GBX 586.00 per share

- 2025-12: GBX 624.00 per share

- 2026-01: GBX 670.00 per share

- 2026-02: GBX 696.50 per share

- 2026-03: GBX 560.00 per share

- 2026-04: GBX 602.00 per share

- 2026-05: GBX 667.00 per share

- 2026-06: GBX 581.50 per share

- 2026-07: GBX 701.50 per share

- 2026-08: GBX 756.50 per share

- 2026-09: GBX 780.00 per share

- 2026-10: GBX 785.00 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 216.64 per share, central GBX 274.76 per share, high GBX 318.76 per share

- FY2018: low GBX 293.12 per share, central GBX 378.02 per share, high GBX 438.85 per share

- FY2019: low GBX 382.98 per share, central GBX 502.34 per share, high GBX 584.59 per share

- FY2020: low GBX 399.99 per share, central GBX 506.20 per share, high GBX 585.68 per share

- FY2021: low GBX 367.29 per share, central GBX 439.81 per share, high GBX 507.09 per share

- FY2022: low GBX 533.21 per share, central GBX 661.85 per share, high GBX 765.52 per share

- FY2023: low GBX 728.54 per share, central GBX 1,043.33 per share, high GBX 1,218.90 per share

- FY2024: low GBX 660.82 per share, central GBX 944.56 per share, high GBX 1,102.81 per share

- FY2025: low GBX 598.60 per share, central GBX 816.36 per share, high GBX 954.07 per share

- FY2026: low GBX 533.40 per share, central GBX 604.77 per share, high GBX 699.85 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

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300KVXDURRKVW7R37/2026-03-31/ESEF/GB/0/549300KVXDURRKVW7R37-2026-03-31/reports/549300KVXDURRKVW7R37-2026-03-31-T01.xhtml); period 2026-03-31, filed 2026-06-11.

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.