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. 3RB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 3RB has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In multiple years 3RB reported negative net income over the last 5 years.
Each year in the past 5 years 3RB had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 5.85%, 3RB perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
3RB has a Return On Equity (19.14%) which is in line with its industry peers.
The Return On Invested Capital of 3RB (11.57%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 3RB is significantly below the industry average of 17.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 19.14% | ||
| ROIC | 11.57% |
ROA(3y)4.68%
ROA(5y)1.28%
ROE(3y)14.56%
ROE(5y)3.48%
ROIC(3y)11.62%
ROIC(5y)10.67%
1.3 Margins
With a Profit Margin value of 10.78%, 3RB perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
3RB's Profit Margin has declined in the last couple of years.
3RB's Operating Margin of 22.60% is fine compared to the rest of the industry. 3RB outperforms 77.78% of its industry peers.
3RB's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 60.56%, 3RB belongs to the best 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 | 22.6% | ||
| PM (TTM) | 10.78% | ||
| GM | 60.56% |
OM growth 3Y-0.57%
OM growth 5Y-2.77%
PM growth 3Y9.86%
PM growth 5Y-8.1%
GM growth 3Y-0.17%
GM growth 5Y-0.21%
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.
3RB has more shares outstanding than it did 5 years ago.
3RB has a worse debt/assets ratio than last year.
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.
The Altman-Z score of 3RB (2.46) is worse than 66.67% of its industry peers.
3RB has a debt to FCF ratio of 3.95. This is a good value and a sign of high solvency as 3RB would need 3.95 years to pay back of all of its debts.
The Debt to FCF ratio of 3RB (3.95) is worse than 66.67% of its industry peers.
3RB has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
3RB has a Debt to Equity ratio of 1.09. This is comparable to the rest of the industry: 3RB outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.95 | ||
| Altman-Z | 2.46 |
ROIC/WACC1.45
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.69 indicates that 3RB may have some problems paying its short term obligations.
With a Current ratio value of 0.69, 3RB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.47 indicates that 3RB may have some problems paying its short term obligations.
The Quick ratio of 3RB (0.47) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
3RB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.29%.
3RB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.73% yearly.
The Revenue has decreased by -4.55% in the past year.
The Revenue has been growing slightly by 3.01% on average over the past years.
EPS 1Y (TTM)-7.29%
EPS 3Y-0.37%
EPS 5Y-5.73%
EPS Q2Q%-6.76%
Revenue 1Y (TTM)-4.55%
Revenue growth 3Y1.44%
Revenue growth 5Y3.01%
Sales Q2Q%-3.75%
3.2 Future
3RB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.92% yearly.
3RB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y0.68%
EPS Next 2Y4.15%
EPS Next 3Y5.37%
EPS Next 5Y4.92%
Revenue Next Year-3.76%
Revenue Next 2Y-0.15%
Revenue Next 3Y1.21%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.22, which indicates a rather expensive current valuation of 3RB.
77.78% of the companies in the same industry are more expensive than 3RB, based on the Price/Earnings ratio.
3RB is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.32, the valuation of 3RB can be described as correct.
100.00% of the companies in the same industry are more expensive than 3RB, based on the Price/Forward Earnings ratio.
3RB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 15.32 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than 3RB, based on the Enterprise Value to EBITDA ratio.
77.78% of the companies in the same industry are more expensive than 3RB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.3 | ||
| EV/EBITDA | 9.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)25.15
PEG (5Y)N/A
EPS Next 2Y4.15%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.82%.
Compared to an average industry Dividend Yield of 2.77, 3RB pays a better dividend. On top of this 3RB pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 3RB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
5.2 History
The dividend of 3RB has a limited annual growth rate of 1.63%.
Dividend Growth(5Y)1.63%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
3RB pays out 88.67% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 3RB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP88.67%
EPS Next 2Y4.15%
EPS Next 3Y5.37%
FRA:3RB (3/7/2025, 7:00:00 PM)
63.9
+0.54 (+0.85%)
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 Cap43.70B
Analysts76.43
Price Target70.18 (9.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.82% |
Yearly Dividend2.23
Dividend Growth(5Y)1.63%
DP88.67%
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)1.96%
PT rev (3m)3.04%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.22 | ||
| Fwd PE | 15.32 | ||
| P/S | 2.56 | ||
| P/FCF | 16.3 | ||
| P/OCF | 13.69 | ||
| P/B | 4.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.64 |
EPS(TTM)3.71
EY5.81%
EPS(NY)4.17
Fwd EY6.53%
FCF(TTM)3.92
FCFY6.13%
OCF(TTM)4.67
OCFY7.3%
SpS24.92
BVpS14.03
TBVpS-18
PEG (NY)25.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.85% | ||
| ROE | 19.14% | ||
| ROCE | 16.72% | ||
| ROIC | 11.57% | ||
| ROICexc | 12.16% | ||
| ROICexgc | 247.89% | ||
| OM | 22.6% | ||
| PM (TTM) | 10.78% | ||
| GM | 60.56% | ||
| FCFM | 15.73% |
ROA(3y)4.68%
ROA(5y)1.28%
ROE(3y)14.56%
ROE(5y)3.48%
ROIC(3y)11.62%
ROIC(5y)10.67%
ROICexc(3y)12.83%
ROICexc(5y)11.79%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)16.31%
ROCE(5y)15.26%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y10.4%
ROICexc growth 5Y9.27%
OM growth 3Y-0.57%
OM growth 5Y-2.77%
PM growth 3Y9.86%
PM growth 5Y-8.1%
GM growth 3Y-0.17%
GM growth 5Y-0.21%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.95 | ||
| Debt/EBITDA | 1.95 | ||
| Cap/Depr | 33.18% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 11.13 | ||
| Cash Conversion | 59.21% | ||
| Profit Quality | 145.98% | ||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 2.46 |
F-Score6
WACC7.99%
ROIC/WACC1.45
Cap/Depr(3y)67.11%
Cap/Depr(5y)81.09%
Cap/Sales(3y)3.18%
Cap/Sales(5y)3.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.29%
EPS 3Y-0.37%
EPS 5Y-5.73%
EPS Q2Q%-6.76%
EPS Next Y0.68%
EPS Next 2Y4.15%
EPS Next 3Y5.37%
EPS Next 5Y4.92%
Revenue 1Y (TTM)-4.55%
Revenue growth 3Y1.44%
Revenue growth 5Y3.01%
Sales Q2Q%-3.75%
Revenue Next Year-3.76%
Revenue Next 2Y-0.15%
Revenue Next 3Y1.21%
Revenue Next 5Y2.69%
EBIT growth 1Y-1.07%
EBIT growth 3Y0.86%
EBIT growth 5Y0.15%
EBIT Next Year9.45%
EBIT Next 3Y6.04%
EBIT Next 5Y5.51%
FCF growth 1Y62.86%
FCF growth 3Y-10.32%
FCF growth 5Y0.94%
OCF growth 1Y47.26%
OCF growth 3Y-9.17%
OCF growth 5Y0.87%