RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - Deutsche Boerse Ag - GB00B24CGK77 - Common Stock - Currency: EUR
3RB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 7 industry peers in the Household Products industry. While 3RB is still in line with the averages on profitability rating, there are concerns on its financial health. 3RB has a valuation in line with the averages, but on the other hand it scores bad on growth. 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.
In the past 5 years 3RB always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 5.64%, 3RB perfoms like the industry average, 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.
The Return On Invested Capital of 3RB (12.36%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 21.29% | ||
| ROIC | 12.36% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
3RB has a Profit Margin (10.06%) which is in line with its industry peers.
3RB has a better Operating Margin (23.10%) than 85.71% of its industry peers.
3RB's Operating Margin has declined in the last couple of years.
3RB has a Gross Margin of 60.66%. This is amongst the best in the industry. 3RB outperforms 100.00% of its industry peers.
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 3Y2.95%
OM growth 5Y-2.02%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
3RB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
3RB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.22 indicates that 3RB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.22, 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 of 1.19. This is comparable to the rest of the industry: 3RB outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.22 |
ROIC/WACC1.4
WACC8.85%
2.3 Liquidity
3RB has a Current 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.
With a Current ratio value of 0.58, 3RB is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
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.
With a Quick ratio value of 0.39, 3RB is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
3RB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.92%.
3RB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.55% yearly.
The Revenue has decreased by -3.00% in the past year.
3RB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.98% yearly.
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
3RB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, 3RB will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y4.3%
Revenue Next Year3.58%
Revenue Next 2Y3.78%
Revenue Next 3Y3.78%
Revenue Next 5Y4.81%
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 decreasing.
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 13.33, 3RB is valued correctly.
3RB's Price/Earnings ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 71.43% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. 3RB is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.03, which indicates a correct valuation of 3RB.
Based on the Price/Forward Earnings ratio, 3RB is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of 3RB to the average of the S&P500 Index (21.38), we can say 3RB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 3RB indicates a rather cheap valuation: 3RB is cheaper than 85.71% of the companies listed 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 | 14.3 | ||
| EV/EBITDA | 8.59 |
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)6.01
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 4.32%, which is a nice return.
3RB's Dividend Yield is rather good when compared to the industry average which is at 3.15. 3RB pays more dividend than 100.00% of the companies in the same industry.
3RB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
3RB pays out 96.84% of its income as dividend. This is not a sustainable payout ratio.
3RB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.84%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
FRA:3RB (4/25/2025, 7:00:00 PM)
54.38
-1.02 (-1.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners64.56%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap37.07B
Analysts75
Price Target69.27 (27.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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)1.5%
PT rev (3m)4.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.69%
EPS NY rev (3m)2.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 13.03 | ||
| P/S | 2.24 | ||
| P/FCF | 14.3 | ||
| P/OCF | 11.82 | ||
| P/B | 4.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)4.08
EY7.5%
EPS(NY)4.17
Fwd EY7.67%
FCF(TTM)3.8
FCFY6.99%
OCF(TTM)4.6
OCFY8.46%
SpS24.31
BVpS11.49
TBVpS-18.64
PEG (NY)6.01
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)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y2.95%
OM growth 5Y-2.02%
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 | 2.22 |
F-Score6
WACC8.85%
ROIC/WACC1.4
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 5Y4.3%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
Revenue Next Year3.58%
Revenue Next 2Y3.78%
Revenue Next 3Y3.78%
Revenue Next 5Y4.81%
EBIT growth 1Y-1%
EBIT growth 3Y5.32%
EBIT growth 5Y-0.08%
EBIT Next Year19.19%
EBIT Next 3Y9.58%
EBIT Next 5Y5.19%
FCF growth 1Y1.37%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y1.75%
OCF growth 3Y16.48%
OCF growth 5Y13.71%