RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
Europe - FRA:3RB - GB00B24CGK77 - Common Stock
67.76 EUR
+0.2 (+0.3%)
We assign a fundamental rating of 4 out of 10 to 3RB. 3RB was compared to 9 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 correct valuation and a medium growth rate.
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.
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
Looking at the Return On Assets, with a value of 5.05%, 3RB is doing worse than 77.78% of the companies in the same industry.
3RB has a Return On Equity (19.68%) which is comparable to the rest of the industry.
3RB's Return On Invested Capital of 12.84% is in line compared to the rest of the industry. 3RB outperforms 44.44% of its industry peers.
3RB had an Average Return On Invested Capital over the past 3 years of 11.89%. This is significantly below the industry average of 19.59%.
The 3 year average ROIC (11.89%) for 3RB is below the current ROIC(12.84%), indicating increased profibility in the last year.
| 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 worse Profit Margin (8.88%) than 77.78% of its industry peers.
The Operating Margin of 3RB (23.41%) is better than 77.78% of its industry peers.
3RB's Operating Margin has been stable in the last couple of years.
3RB's Gross Margin of 60.89% is amongst the best of the industry. 3RB outperforms 100.00% of its industry peers.
3RB's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for 3RB has been reduced compared to 1 year ago.
The number of shares outstanding for 3RB has been reduced compared to 5 years ago.
Compared to 1 year ago, 3RB has a worse debt to assets ratio.
2.2 Solvency
3RB has an Altman-Z score of 2.46. 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.
3RB has a Altman-Z score (2.46) which is in line with its industry peers.
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.
3RB has a worse Debt to FCF ratio (4.60) than 77.78% of its industry peers.
3RB has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
3RB has a Debt to Equity ratio of 1.26. This is comparable to the rest of the industry: 3RB outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.55
WACC8.29%
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 77.78% 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.
With a Quick ratio value of 0.37, 3RB is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.24% over the past year.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
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
The Earnings Per Share is expected to grow by 5.77% on average over the next years.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y3.23%
EPS Next 2Y4.42%
EPS Next 3Y4.91%
EPS Next 5Y5.77%
Revenue Next Year-0.23%
Revenue Next 2Y1.08%
Revenue Next 3Y1.81%
Revenue Next 5Y2.99%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
With a Price/Earnings ratio of 16.53, 3RB is valued correctly.
Based on the Price/Earnings ratio, 3RB is valued a bit cheaper than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of 3RB to the average of the S&P500 Index (27.77), we can say 3RB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.45, the valuation of 3RB can be described as correct.
Based on the Price/Forward Earnings ratio, 3RB is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.23. 3RB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
3RB's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 77.78% of the companies in the same industry.
3RB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.69 | ||
| EV/EBITDA | 10.15 |
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.
PEG (NY)5.11
PEG (5Y)N/A
EPS Next 2Y4.42%
EPS Next 3Y4.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, 3RB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.12, 3RB pays a bit more dividend than its industry peers.
3RB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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 2Y4.42%
EPS Next 3Y4.91%
FRA:3RB (10/21/2025, 7:00:00 PM)
67.76
+0.2 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners69.79%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap45.76B
Revenue(TTM)13.98B
Net Income(TTM)1.24B
Analysts77.78
Price Target69.96 (3.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend2.27
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)-0.6%
PT rev (3m)1.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 15.45 | ||
| P/S | 2.84 | ||
| P/FCF | 19.69 | ||
| P/OCF | 15.81 | ||
| P/B | 6.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)4.1
EY6.05%
EPS(NY)4.39
Fwd EY6.47%
FCF(TTM)3.44
FCFY5.08%
OCF(TTM)4.29
OCFY6.33%
SpS23.86
BVpS10.77
TBVpS-17.75
PEG (NY)5.11
PEG (5Y)N/A
Graham Number31.52
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%
ROICexgc growth 3YN/A
ROICexgc 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 | 2.46 |
F-Score7
WACC8.29%
ROIC/WACC1.55
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 Y3.23%
EPS Next 2Y4.42%
EPS Next 3Y4.91%
EPS Next 5Y5.77%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
Revenue Next Year-0.23%
Revenue Next 2Y1.08%
Revenue Next 3Y1.81%
Revenue Next 5Y2.99%
EBIT growth 1Y1.08%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year18.55%
EBIT Next 3Y9%
EBIT Next 5Y7.4%
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%