RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
Europe - FRA:3RB - GB00B24CGK77 - Common Stock
65.84 EUR
-0.2 (-0.3%)
3RB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 9 industry peers in the Household Products industry. 3RB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 3RB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
3RB had positive earnings in the past year.
3RB had a positive operating cash flow in the past year.
Of the past 5 years 3RB 4 years were profitable.
In the past 5 years 3RB always reported a positive cash flow from operatings.
1.2 Ratios
3RB has a Return On Assets (5.05%) which is comparable to the rest of the industry.
The Return On Equity of 3RB (19.68%) is better than 66.67% of its industry peers.
With a decent Return On Invested Capital value of 12.84%, 3RB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 3RB is below the industry average of 16.40%.
The last Return On Invested Capital (12.84%) for 3RB is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.68% | ||
| ROIC | 12.84% |
ROA(3y)6.6%
ROA(5y)4.69%
ROE(3y)21.8%
ROE(5y)15.6%
ROIC(3y)11.89%
ROIC(5y)10.92%
1.3 Margins
3RB has a Profit Margin (8.88%) which is comparable to the rest of the industry.
3RB has a Operating Margin of 23.41%. This is amongst the best in the industry. 3RB outperforms 88.89% of its industry peers.
In the last couple of years the Operating Margin of 3RB has remained more or less at the same level.
Looking at the Gross Margin, with a value of 60.89%, 3RB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 3RB has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.41% | ||
| PM (TTM) | 8.88% | ||
| GM | 60.89% |
OM growth 3Y4.8%
OM growth 5Y-0.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 3RB is creating some value.
3RB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 3RB has less shares outstanding
The debt/assets ratio for 3RB is higher compared to a year ago.
2.2 Solvency
3RB has an Altman-Z score of 2.42. This is not the best score and indicates that 3RB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.42, 3RB is in line with its industry, outperforming 44.44% of the companies in the same industry.
The Debt to FCF ratio of 3RB is 4.60, which is a neutral value as it means it would take 3RB, 4.60 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.60, 3RB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.26 is on the high side and indicates that 3RB has dependencies on debt financing.
3RB has a Debt to Equity ratio (1.26) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.57
WACC8.19%
2.3 Liquidity
A Current Ratio of 0.56 indicates that 3RB may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, 3RB is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.37 indicates that 3RB may have some problems paying its short term obligations.
3RB has a Quick ratio of 0.37. This is in the lower half of the industry: 3RB underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
3RB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.24%, which is quite good.
Measured over the past 5 years, 3RB shows a small growth in Earnings Per Share. The EPS has been growing by 6.55% on average per year.
3RB shows a decrease in Revenue. In the last year, the revenue decreased by -2.41%.
Measured over the past years, 3RB shows a small growth in Revenue. The Revenue has been growing by 1.98% on average per year.
EPS 1Y (TTM)14.24%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%4.4%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
3.2 Future
Based on estimates for the next years, 3RB will show a small growth in Earnings Per Share. The EPS will grow by 3.80% on average per year.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y2.85%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
EPS Next 5Y3.8%
Revenue Next Year-0.33%
Revenue Next 2Y0.98%
Revenue Next 3Y1.75%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.02, the valuation of 3RB can be described as correct.
3RB's Price/Earnings ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 66.67% of the companies in the same industry.
3RB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 15.03, the valuation of 3RB can be described as correct.
Based on the Price/Forward Earnings ratio, 3RB is valued a bit cheaper than 77.78% of the companies in the same industry.
3RB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 3RB is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3RB indicates a somewhat cheap valuation: 3RB is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.12 | ||
| EV/EBITDA | 9.9 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 3RB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 3RB may justify a higher PE ratio.
PEG (NY)5.61
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y4.86%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.58%.
3RB's Dividend Yield is a higher than the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.38, 3RB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of 3RB has a limited annual growth rate of 2.63%.
Dividend Growth(5Y)2.63%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
112.00% of the earnings are spent on dividend by 3RB. This is not a sustainable payout ratio.
The dividend of 3RB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP112%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
FRA:3RB (9/16/2025, 7:00:00 PM)
65.84
-0.2 (-0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners64.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap44.56B
Analysts77.78
Price Target70.39 (6.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Yearly Dividend2.28
Dividend Growth(5Y)2.63%
DP112%
Div Incr Years2
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)1.31%
PT rev (3m)2.6%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.02 | ||
| Fwd PE | 15.03 | ||
| P/S | 2.76 | ||
| P/FCF | 19.12 | ||
| P/OCF | 15.35 | ||
| P/B | 6.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.9 |
EPS(TTM)4.11
EY6.24%
EPS(NY)4.38
Fwd EY6.65%
FCF(TTM)3.44
FCFY5.23%
OCF(TTM)4.29
OCFY6.51%
SpS23.87
BVpS10.77
TBVpS-17.75
PEG (NY)5.61
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.68% | ||
| ROCE | 20.63% | ||
| ROIC | 12.84% | ||
| ROICexc | 13.59% | ||
| ROICexgc | N/A | ||
| OM | 23.41% | ||
| PM (TTM) | 8.88% | ||
| GM | 60.89% | ||
| FCFM | 14.42% |
ROA(3y)6.6%
ROA(5y)4.69%
ROE(3y)21.8%
ROE(5y)15.6%
ROIC(3y)11.89%
ROIC(5y)10.92%
ROICexc(3y)12.61%
ROICexc(5y)11.8%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.99%
ROCE(5y)16.41%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y4.53%
ROICexc growth 5Y6.53%
OM growth 3Y4.8%
OM growth 5Y-0.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.04%
F-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 37.9% | ||
| Cap/Sales | 3.54% | ||
| Interest Coverage | 8.8 | ||
| Cash Conversion | 54.86% | ||
| Profit Quality | 162.4% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.42 |
F-Score7
WACC8.19%
ROIC/WACC1.57
Cap/Depr(3y)47.78%
Cap/Depr(5y)67.97%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.26%
Profit Quality(3y)124.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.24%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%4.4%
EPS Next Y2.85%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
EPS Next 5Y3.8%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
Revenue Next Year-0.33%
Revenue Next 2Y0.98%
Revenue Next 3Y1.75%
Revenue Next 5Y2.66%
EBIT growth 1Y1.08%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
EBIT Next 5Y6.2%
FCF growth 1Y-1.03%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y0.68%
OCF growth 3Y16.48%
OCF growth 5Y13.71%