RS Group (LSE: RS1) is one of those UK stocks I keep looking at, but can never make up my mind about. But after its share price stormed up 15% in just one day on Wednesday (20 May), I’m thinking my dithering might have lost me a buying opportunity.

Then again, the RS share price is still down 33% over the past five years. So might this just be the start of a long recovery?

Let’s find out what’s behind this apparent change of fortune.

What does it do?

RS is a multi-channel distributor, involved in things including industrial products and electronics components. Ageing electronics hobbyists like me might remember it as Radiospares — but it’s come a long way since its founding in 1937 in a lock-up in Maida Vale.

The problem is, all aspects of global supply chains have been hit by geopolitical storms in recent years — as so many UK stocks have experienced. Inflation, tariffs, trade wars, actual wars… they’ve all taken their toll.

As a result, RS saw its profits decline over the past few years. Between March 2023 and March 2025, earnings per share plunged 46%. And net debt more than trebled, to £364m.

A resilient performance this year, particularly given the challenging macro-economic backdrop.

— CEO Simon Pryce

Still, at the time, the CEO was upbeat, telling us: “We are delivering restructuring and integration benefits, improving efficiency and managing costs appropriately.“

What’s new?

Wind forward 12 months, and results for the year ended March 2026 include…

• Revenue of £2.88bn with £265m adjusted operating profit, both ahead of expectations.
• Net debt down 9.6% to £329m.
• A new £100m share buyback.
• A 2% increase in the full-year dividend.

In all, the results weren’t stunning — but impressively solid in the current climate, I thought.

And this time, the boss waxed enthusiastically about “another year of strong execution of our multi-year plan to improve the business and deliver on the significant value creation opportunity at RS.“

What should investors do?

We’re looking at some upbeat forecasts for the next couple of years. Analysts expect earnings per share to grow from the 34.6p just delivered, to 41.4p by 2028 — for a rise of 19.7%. And who knows, they might even upgrade their outlook after absorbing these latest figures.

I’m just not so sure about valuation. These results give us a trailing price-to-earnings (P/E) ratio of 20 — after the latest price jump. Forecasters see that falling, though only as far as 16.7 by 2028.

Value vs growth

If this marks the start of a sustainable long-term growth spell, that could still be an attractive valuation. And I do think RS warrants closer investigation for its growth and dividend prospects — the 2026 dividend just delivered a 3.8% yield.

But there still isn’t the kind of safety margin I like. So I’ll continue to prevaricate, and hold back for now and see how 2026-27 progresses. And maybe miss a buying opportunity again.

Should you invest £5,000 in Rs Group Plc right now?

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Alan Oscroft does not hold any positions in the companies mentioned.