Rs Share Discussion Threads

[philanderer] 15/3/2023 10:03

Shore Capital lifts RS Group


Shore Capital has upgraded RS Group (RS1) after shares in the industrial and electronic products distributor slumped 10% this month.

Analyst Tom Fraine upgraded his recommendation to ‘hold’, meaning he sees ‘limited downside to our 820p fair value’. The shares lifted 1.7%, or 15.5p, to 920.5p on Tuesday.

Fraine said that Amazon Business is a long-term threat to potential future market share gains ‘due to its scale and ability to deliver products very quickly’, and the group also has ‘a fairly significant level of operational gearing, having continued to invest in its cost base’.

Forecasts for industrial production in 2023 have also ‘trended steadily downwards’, which may ‘increase the risk of downgrades, although financial guidance has previously been conservative and RS Group has a history of positive earnings forecast revisions’.

Despite the bad news, at ‘15 times… blended 12-month forward price/earnings is considerably below its 2021 peak of 25 times but at a significant premium to its ratings in 2008 and 2011, when it dipped into single digits’.

‘Its enterprise value/ebitda was also considerably lower in previous downturns – more than six times in 2008 and 2011 versus its current 10 times. We maintain our 820p fair value and now see limited downside,’ he said.

Duncan said the dividend yield is currently over 4% and ‘given the balance sheet strength, we see scope for further shareholder returns, following the recently announced £16m buyback, in the coming year’.


Citywire.com

[philanderer] 14/3/2023 15:01

Nice director buy

26,000 @ GBP 9.07 = GBP 235,820.00

[philanderer] 14/3/2023 11:22

RS Group names former Ultra Electronic CEO Simon Pryce as new chief executive officer, with effect from April 3.

[philanderer] 24/2/2023 11:26

RS Group wins ICAEW award for increasing shareholder value through corporate finance activity

[philanderer] 22/2/2023 15:18

Berenberg raises RS Group price target to 1,050 (1,010) pence - 'hold'

[philanderer] 16/2/2023 14:57

(Sharecast News) - Morgan Stanley initiated coverage of industrial and electric components distributor RS Group on Thursday with an 'equalweight' rating and 950p price target as is pointed to a strong track record of organic growth, improving margins and return on invested capital.

"While overall market growth is pegged to GDP growth, large players can outgrow the market by leveraging scale and pursuing M&A," MS said.

"We estimate RS Group's balance sheet could support £860-1100m of M&A spend over FY23-25e."

It said that own brand penetration, which carries higher gross margin, is 13% and has room to grow, with peers averaging around 20%, "and this along with digital growth and operational gearing could deliver a mid-teens margin in the medium term".

Still, MS also noted near-term risks from the cycle and pricing.

"RS Group supplies low value but critical industrial and electronic components, which are not tied directly to customers' own volumes (average order value is circa £250)," it said. Exposure to the more cyclical electronics end market is 15% lower than it was in 2008-09, but is still 22% of revenues, and there are signs of volume pressure, it added.

It also said the shares are unlikely to perform until a new chief executive is appointed.

"We like the long-term potential of the business and could become more positive if hard economic data continues to trend above the soft data, marking a change in the macro outlook," the bank said.

"Our bull case is 1,300p. Conversely, an industrial recession and price deflation could squeeze volumes and gross margin, driving the shares towards our 720p bear case."

[philanderer] 13/2/2023 19:27

RS announces significant expansion of test & measurement equipment from Keysight Technologies

[philanderer] 10/2/2023 14:32

FORT WORTH, Texas, Feb. 9, 2023 /PRNewswire/


-- RS (formerly Allied Electronics & Automation), a trading brand of RS Group plc (LSE: RS1), a global omni-channel provider of industrial product and service solutions, added three new suppliers to its industry-leading selection of industrial automation solutions: ILME, ABB Robotics, and Madison Company.

These latest additions to the RS line card further extend its portfolio of Industry 4.0 technologies, including industrial connectors, robotics, switches, and sensor products, and provide customers with even more tools to turn "what ifs" into "why nots."

[philanderer] 06/2/2023 23:59

RS Group continues global brand unification with rebranding of Allied Electronics & Automation in the Americas to RS

[philanderer] 25/1/2023 13:58

RS Group plc, a global omni-channel provider of product and service solutions, has announced the launch of the next phase of DesignSpark, RS’ fast-growing online community for engineers. It offers a suite of design tools including DesignSpark Mechanical and DesignSpark PCB, plus comprehensive 2D/3D and electronics part libraries, and a host of design resources such as technology articles, projects and community forums.

Unveiled today, this next phase in the DesignSpark engineering community has been designed to present an enhanced and increasingly personalised experience for members. The new DesignSpark will offer three subscription levels, respectively called: ‘DesignSpark Explorer’, ‘DesignSpark Creator’ and ‘DesignSpark Engineer’, which will enable members to select their own level of access according to their requirements for des

[philanderer] 13/1/2023 13:45

900p holding at the moment.

[philanderer] 12/1/2023 12:12

RBC cuts RS Group to 'sector perform' (outperform) - price target 1,000 (1,250) pence

[essentialinvestor] 11/1/2023 19:44

Matt and Dave, thanks.

Will keep it on a watch list, debt low and they more than doubled EPS over a decade.

Would guess there may be high operational gearing,
so small revenue changes perhaps have a significant impact on the P&L.

Agree the CEO situation not helping.

ESNT would be a nice add on acquisition, but their multiple may be too high atm.



* their .. journey to greatness.. tagline is cringy.

Corporate speak, eh.

[thorpematt] 11/1/2023 19:38

EI,
FWIW my notes following the TS read thus:

"..Quarterly comparisons shows this is growing but that rate of G is slowing down. So I guess that's partly why the market is cautious (judging by the chart). I also suspect the retalively high valuation coupled with the need for a new CEO is not helping."

-------
And then I did a Fair valuation calc and it came to almost precisely the current MCap.

I don't currently hold but that may change if the price lowers a bit more. Long term I like it.

[disc0dave45] 11/1/2023 17:35

Hi EISee philanderer's post 56

[essentialinvestor] 11/1/2023 17:01

Was there something in the statement the market did not like?. Press comment about slowing top line growth.

[philanderer] 11/1/2023 14:21

Electronics supplier RS Group needs to deliver

[disc0dave45] 11/1/2023 13:44

The SMA200 has been strong resistance for the past 3 months or so, it bounced off it once again on results yesterday despite positive outlook.Will keep watching.

[philanderer] 10/1/2023 14:27

Elmwood Partners with RS Group on Its Global Brand Transformation

[philanderer] 10/1/2023 12:01

"...Our performance leads us to expect full year profit to be towards the top end of consensus estimates"


so down we go.


RS Group drops 2% after the electronics distributor's 3Q like-for-like revenue increased by less than some analysts had expected

[philanderer] 09/1/2023 11:38

Trading update tomorrow.

[philanderer] 04/1/2023 10:16

RS Group was up 2.2% after it completed its $275 million acquisition of Mexican automation product distributor, Risoul.

RS originally announced the acquisition in August and said at the time that the deal would ‘significantly strengthen’ its position in Mexico.