RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - Deutsche Boerse Ag - GB00B24CGK77 - Common Stock - Currency: EUR
Taking everything into account, 3RB scores 4 out of 10 in our fundamental rating. 3RB was compared to 7 industry peers in the Household Products industry. There are concerns on the financial health of 3RB while its profitability can be described as average. 3RB has a valuation in line with the averages, but it does not seem to be growing. Finally 3RB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
3RB had positive earnings in the past year.
In the past year 3RB had a positive cash flow from operations.
3RB had positive earnings in 4 of the past 5 years.
3RB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.64%, 3RB is in line with its industry, outperforming 57.14% of the companies in the same industry.
3RB has a Return On Equity of 21.29%. This is comparable to the rest of the industry: 3RB outperforms 57.14% of its industry peers.
With a Return On Invested Capital value of 12.36%, 3RB perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 3RB is significantly below the industry average of 18.15%.
The 3 year average ROIC (11.89%) for 3RB is below the current ROIC(12.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 21.29% | ||
| ROIC | 12.36% |
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's Profit Margin of 10.06% is in line compared to the rest of the industry. 3RB outperforms 57.14% of its industry peers.
With an excellent Operating Margin value of 23.10%, 3RB belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
3RB's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 60.66%, 3RB belongs to the best of the industry, outperforming 85.71% 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 | 23.1% | ||
| PM (TTM) | 10.06% | ||
| GM | 60.66% |
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
Compared to 1 year ago, 3RB has a worse debt to assets ratio.
2.2 Solvency
3RB has an Altman-Z score of 2.39. 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 2.39, 3RB is doing worse than 71.43% of the companies in the same industry.
The Debt to FCF ratio of 3RB is 3.91, which is a good value as it means it would take 3RB, 3.91 years of fcf income to pay off all of its debts.
3RB has a worse Debt to FCF ratio (3.91) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that 3RB has dependencies on debt financing.
3RB has a Debt to Equity ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.52
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.58 indicates that 3RB may have some problems paying its short term obligations.
3RB has a worse Current ratio (0.58) than 71.43% of its industry peers.
3RB has a Quick Ratio of 0.58. This is a bad value and indicates that 3RB is not financially healthy enough and could expect problems in meeting its short term obligations.
3RB has a worse Quick ratio (0.39) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.92% over the past year.
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.
Looking at the last year, 3RB shows a decrease in Revenue. The Revenue has decreased by -3.00% in the last year.
The Revenue has been growing slightly by 1.98% on average over the past years.
EPS 1Y (TTM)7.92%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%24.8%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
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 3.54% on average per year.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue Next Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5Y2.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
3RB is valuated correctly with a Price/Earnings ratio of 14.43.
Compared to the rest of the industry, the Price/Earnings ratio of 3RB indicates a somewhat cheap valuation: 3RB is cheaper than 71.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. 3RB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.10, 3RB is valued correctly.
Based on the Price/Forward Earnings ratio, 3RB is valued cheaper than 85.71% of the companies in the same industry.
3RB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 3RB is valued a bit cheaper than 71.43% of the companies in the same industry.
3RB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.71 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
3RB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)6.51
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 4.07%, which is a nice return.
3RB's Dividend Yield is rather good when compared to the industry average which is at 3.23. 3RB pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 3RB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
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
96.84% 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.
DP96.84%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
FRA:3RB (7/4/2025, 7:00:00 PM)
58.3
-0.76 (-1.29%)
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 Cap42.94B
Analysts76.43
Price Target69.16 (18.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.07% |
Yearly Dividend2.31
Dividend Growth(5Y)2.63%
DP96.84%
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)-0.16%
PT rev (3m)-1.45%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 14.1 | ||
| P/S | 2.62 | ||
| P/FCF | 16.71 | ||
| P/OCF | 13.82 | ||
| P/B | 5.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.73 |
EPS(TTM)4.04
EY6.93%
EPS(NY)4.13
Fwd EY7.09%
FCF(TTM)3.49
FCFY5.98%
OCF(TTM)4.22
OCFY7.24%
SpS22.29
BVpS10.54
TBVpS-17.1
PEG (NY)6.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 21.29% | ||
| ROCE | 18.86% | ||
| ROIC | 12.36% | ||
| ROICexc | 12.99% | ||
| ROICexgc | N/A | ||
| OM | 23.1% | ||
| PM (TTM) | 10.06% | ||
| GM | 60.66% | ||
| FCFM | 15.65% |
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-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 35.55% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 9.35 | ||
| Cash Conversion | 58.55% | ||
| Profit Quality | 155.47% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 2.39 |
F-Score6
WACC8.16%
ROIC/WACC1.52
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)7.92%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%24.8%
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
Revenue Next Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5Y2.65%
EBIT growth 1Y-1%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
EBIT Next 5Y6.07%
FCF growth 1Y1.37%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y1.75%
OCF growth 3Y16.48%
OCF growth 5Y13.71%