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RS Group (RS1) Fair Value & Analysis

Industrials · GB · Market cap 3.1B GBX

RG RS Group RS1 · LSE
Price£6.71
Fair Value£7.39
Upside+10.2%
Quality67/100
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Mixed Growth
Thin margins · 5.6% net margin
Low debt · generates free cash flow
3.41% dividend yield
Ranks above peers (10/15)
Moderate moat 45/100
Evidence: High Range £5.15 – £9.24 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 18, 2026, revised from £7.18 to £7.39 (+2.9%) since Jun 24, 2026. Share price +23.4% over the past month.

A solid business, screening 10% undervalued on our models.

What matters now

  • Our model range runs from £5.15 (bear) to £9.24 (bull), base £7.39. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 67/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£9.76 £4.13 Fair Value £7.39 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range £4.13 – £9.76 · fair‑value band £5.15 – £9.24 · the £6.71 price screens below the £7.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

RS Group (RS1) currently trades at £6.71, while our model-based Fair Value estimate is £7.39, implying the stock looks roughly 10.2% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, RS Group generated revenue of £2.9B at a net margin of 5.6%. Revenue grew 1.1% year over year. It earns a return on equity of 11.7%. Net debt stands at £329M. Fundamentals as of Jul 18, 2026

Our scenario range runs from £5.15 (bear case) to £9.24 (bull case); at £6.71, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at 10%, RS1 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF £5.46 £7.84 £11.03 80
Residual Income £2.78 £3.14 £4.86 76
Rev-Margin DCF £4.65 £7.24 £10.14 74
All 26 models by family
DCF Models
FCF DCF £5.36 £8.00 £11.75 38
Owner Earnings £4.86 £7.27 £10.69 31
5Y Revenue Exit £4.65 £7.19 £10.36 39
5Y EBITDA Exit £5.59 £8.92 £12.71 41
5Y P/E Exit £4.92 £7.69 £10.51 38
10Y Revenue Exit £4.73 £7.05 £10.02 36
10Y EBITDA Exit £5.45 £8.21 £11.73 37
10Y P/E Exit £5.03 £7.39 £10.13 35
Earnings-Based
Graham-Dodd £2.39 £6.62 £8.69 54
Lynch FV £1.32 £1.89 £2.46 50
PEG = 1.0 £1.32 £1.89 £2.46 46
EPV £3.35 £3.91 £4.39 59
Dividend Discount
Gordon GGM £2.02 £4.03 £6.10 70
DDM Multi-Stage £2.02 £3.12 £4.25 61
Multiples
P/E Multiple £5.54 £7.39 £9.24 63
P/S Multiple £4.49 £5.98 £7.48 58
P/B Multiple £4.49 £5.98 £7.48 55
EV/EBIT £6.38 £8.58 £10.79 53
EV/EBITDA £6.52 £8.77 £11.02 54
EV/Revenue £4.49 £6.51 £8.53 43
Asset-Based
NCAV (Graham) £1.53 £2.06 £3.07 50
Growth DCF
Growth DCF £5.46 £7.84 £11.03 80
Rev-Margin DCF £4.65 £7.24 £10.14 74
Economic Profit
Residual Income £2.78 £3.14 £4.86 76
ROIC Compounder £3.40 £4.24 £5.24 72
Growth Earnings
Growth-Adj P/E £4.41 £6.29 £8.18 68

Widest divergence: DCF Models (£7.39) versus Earnings-Based (£1.89). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.9B GBX
Revenue growth (YoY) +1.1%
Net margin 5.6%
Return on equity 11.7%
Free cash flow 245M GBX FY2026
P/E ratio 19.7
More key figures
Operating margin 8.0%
EPS (TTM) £0.3400
Dividend yield 3.4%
EPS growth (YoY) +4.5%
Net debt 329M GBX FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 66 · Market factors (momentum, volatility) 71

Profitability 58
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 67
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 89
Distance to the 52-week high (market factor)
Net Issuance 84
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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. It 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. The company 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, it 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 based in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

RS Group reported revenue of £2.9B in FY2026 versus £2.6B in FY2022, a compound +3.1%/yr. Reported net income was £162M in FY2026, compounding −8.4%/yr from FY2022.

Growth Quality 69/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
£2.9B
Latest YoY
−0.8%
Avg. growth/yr (3Y)
−1.1%
Avg. growth/yr (5Y)
+7.5%
Avg. growth/yr (40Y)
+6.9%
Revenue +3.1%/yr
FY22 £2.6B
FY23 £3.0B
FY24 £2.9B
FY25 £2.9B
FY26 £2.9B
Net income −8.4%/yr
FY22 £230M
FY23 £285M
FY24 £184M
FY25 £153M
FY26 £162M

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Cite: Fair Value Calculator (2026). "RS Group Fair Value". https://www.fairvalue-calculator.com/stock/RS1

Peer Group

Industrial Distribution · 104 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +10% · Above median
Return on equity (TTM) 12% · Above median
Return on assets 5% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 1% · Below median
Dividend yield (TTM) 3.4% · Top 25%
Debt / equity 0.19× · Lower than median

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/E (TTM) 19.7× · Cheaper than median
P/B 2.95× · Pricier than median
P/S (TTM) 1.45× · Pricier than 75% of peers
P/FCF 17.0× · Pricier than 75% of peers
EV/EBITDA 15.9× · Pricier than median
PEG 0.02× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 47 · sector 19
FUTURE 6 · sector 19
PAST 47 · sector 35
HEALTH 90 · sector 90
DIVIDEND 68 · sector 30

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
W.W. Grainger, Inc GWW $1,376 $625.61 -55%
Fastenal Company FAST $45.49 $20.64 -55%
Ferguson Enterprises Inc FERG $232.02 $151.92 -35%
WESCO International, Inc WCC $326.71 $213.01 -35%
Watsco, Inc WSO $385.16 $268.10 -30%
Toromont Industries Ltd TIH C$232.22 C$127.90 -45%
Applied Industrial Technologies, Inc AIT $329.35 $191.65 -42%
Finning International Inc FTT C$102.50 C$76.38 -25%
Addtech AB ADDTB kr 329.20 kr 156.35 -53%
Core & Main, Inc CNM $44.66 $49.47 +11%

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Frequently asked questions

Is RS Group (RS1) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of £7.39 versus a price of £6.71, about +10% (undervalued).
What is the fair value of RS1?
Our model-based fair value for RS Group is £7.39 (as of Jul 18, 2026), built from audited fundamentals. The current price is £6.71.
What is the quality score of RS1?
RS Group has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of RS Group (RS1)?
RS Group reported trailing-twelve-month revenue of about £2.9B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of RS1?
The net profit margin of RS Group is about 5.6%, meaning it keeps roughly 5.6% of revenue as net income. Based on the latest reported figures.
Does RS Group pay a dividend?
RS Group currently shows a dividend yield of about 3.52% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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