Regis Corporation RGSP/E (TTM),~0.58x,SHOCKINGLY CHEAP ✅. Extremely low due to one-time tax benefits and accounting gains.
Forward P/E,~14.5x,Reflects a more realistic 2026 earnings forecast. MODERATE ✅.
Free Cash Flow,~$13.7 million,VERY GOOD ✅. They have 4 consecutive quarters of positive cash flow.
ROE,~98%,"PHENOMENAL ✅. Although skewed by small capital base
Debt/Equity,~0.59 (59%),MODARE ⚠️. Debt has come down significantly (was over 1.7 in 2024).
Revenue Growth,~28% (Q1 2026),EXCELLENT ✅.
Cash on Hand,~$15.3m,"MODARE ⚠️. Not much, but operationally sound."
FCF Margin,~6.5%,Stable for a service sector.
Quick Ratio,~0.85,LOW ⚠️. Liquidity is slightly squeezed in the short term.
Inst. Ownership,~45% - 50%,"MODARE ⚠️. There is interest, but it is not dominated by funds."
Current Ratio,~1.10,"MODARE ⚠️. They cover their liabilities, but without much of a buffer."
Analyst DCF,~$77.00,OVER-UNDERVALUED ✅. InvestingPro models show huge potential at ~$25 price.
Wall St Target,$31.50,Potential upside of ~25% in the short term.
Gross Margin,~37.6%,LOW ❌. Far from your 90% (typical for a brick-and-mortar business).
Sales Growth,~28%,
Altman Z-Score,~1.49,RISK ❌. Still in the financial instability zone.
Why is RGS an interesting bet now?
Supercuts Transformation: The company is modernizing its brand and digitizing its processes, which is already driving footfall.
Alline Acquisition: The acquisition of over 280 salons in late 2024 began to bear serious fruit in fiscal 2026, which explains the 28% jump in revenue.
Tax assets: They have huge accumulated tax credits from past losses, which means they won't pay real taxes on their profits for a long time.
