Regis Corporation Common Stock (RGS)

FairStock Score: 63/100 — STEADY

Key Financials

Strengths

• Generates $7 million in annual free cash flow (9.9% yield on market cap)
• High return on equity of 94.3% demonstrating efficient capital deployment
• Revenue growth of 22.3% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Regis Corporation Common Stock is a micro-cap consumer cyclical company valued at $68 million. The business generates $233 million in annual revenue with a 0.4% net margin and $7 million in free cash flow. From a quality standpoint, Regis shows distressed Altman Z-Score of 0.4 warrants caution and extraordinary 94% return on equity. On valuation, the stock is deeply undervalued on a P/E basis at 0.6x, with offers a 90% margin of safety vs Graham Number of $276. Growth dynamics show revenue growing at 22.3% and profit growth of -94.0%. Our composite FairStock Score of 63/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Regis's 22% revenue growth trajectory could accelerate as it captures additional market share in the consumer cyclical sector. With $7 million in annual free cash flow (9.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer cyclical space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer