RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:RTO • US7601251041

31.88 USD
+0.37 (+1.17%)
At close: Feb 2, 2026
31.91 USD
+0.03 (+0.09%)
After Hours: 2/2/2026, 8:04:00 PM
Fundamental Rating

5

Overall RTO gets a fundamental rating of 5 out of 10. We evaluated RTO against 80 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of RTO while its profitability can be described as average. RTO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year RTO was profitable.
  • RTO had a positive operating cash flow in the past year.
  • RTO had positive earnings in each of the past 5 years.
  • RTO had a positive operating cash flow in each of the past 5 years.
RTO Yearly Net Income VS EBIT VS OCF VS FCFRTO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

1.2 Ratios

  • RTO has a Return On Assets of 2.35%. This is comparable to the rest of the industry: RTO outperforms 58.75% of its industry peers.
  • RTO's Return On Equity of 6.35% is in line compared to the rest of the industry. RTO outperforms 58.75% of its industry peers.
  • The Return On Invested Capital of RTO (4.66%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RTO is significantly below the industry average of 10.57%.
Industry RankSector Rank
ROA 2.35%
ROE 6.35%
ROIC 4.66%
ROA(3y)2.76%
ROA(5y)3.54%
ROE(3y)7.41%
ROE(5y)11.9%
ROIC(3y)5.49%
ROIC(5y)6.1%
RTO Yearly ROA, ROE, ROICRTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1.3 Margins

  • RTO has a better Profit Margin (4.80%) than 65.00% of its industry peers.
  • In the last couple of years the Profit Margin of RTO has declined.
  • RTO's Operating Margin of 10.17% is fine compared to the rest of the industry. RTO outperforms 68.75% of its industry peers.
  • In the last couple of years the Operating Margin of RTO has grown nicely.
  • RTO has a better Gross Margin (86.40%) than 98.75% of its industry peers.
  • RTO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.17%
PM (TTM) 4.8%
GM 86.4%
OM growth 3Y2.06%
OM growth 5Y4.21%
PM growth 3Y-14.07%
PM growth 5Y-11.59%
GM growth 3Y1.51%
GM growth 5Y1.16%
RTO Yearly Profit, Operating, Gross MarginsRTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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3

2. Health

2.1 Basic Checks

  • RTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • RTO has about the same amout of shares outstanding than it did 1 year ago.
  • RTO has more shares outstanding than it did 5 years ago.
  • RTO has a better debt/assets ratio than last year.
RTO Yearly Shares OutstandingRTO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RTO Yearly Total Debt VS Total AssetsRTO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • RTO has an Altman-Z score of 2.26. This is not the best score and indicates that RTO is in the grey zone with still only limited risk for bankruptcy at the moment.
  • RTO's Altman-Z score of 2.26 is in line compared to the rest of the industry. RTO outperforms 52.50% of its industry peers.
  • The Debt to FCF ratio of RTO is 8.79, which is on the high side as it means it would take RTO, 8.79 years of fcf income to pay off all of its debts.
  • RTO has a better Debt to FCF ratio (8.79) than 63.75% of its industry peers.
  • RTO has a Debt/Equity ratio of 1.00. This is a neutral value indicating RTO is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 1.00, RTO is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 8.79
Altman-Z 2.26
ROIC/WACC0.61
WACC7.69%
RTO Yearly LT Debt VS Equity VS FCFRTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

  • RTO has a Current Ratio of 1.12. This is a normal value and indicates that RTO is financially healthy and should not expect problems in meeting its short term obligations.
  • RTO has a worse Current ratio (1.12) than 70.00% of its industry peers.
  • A Quick Ratio of 1.03 indicates that RTO should not have too much problems paying its short term obligations.
  • The Quick ratio of RTO (1.03) is worse than 66.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.03
RTO Yearly Current Assets VS Current LiabilitesRTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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5

3. Growth

3.1 Past

  • RTO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.45%.
  • The Earnings Per Share has been growing by 8.17% on average over the past years. This is quite good.
  • Looking at the last year, RTO shows a quite strong growth in Revenue. The Revenue has grown by 16.75% in the last year.
  • The Revenue has been growing by 21.48% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-15.45%
EPS 3Y3.04%
EPS 5Y8.17%
EPS Q2Q%-15.51%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y34.42%
Revenue growth 5Y21.48%
Sales Q2Q%24.28%

3.2 Future

  • Based on estimates for the next years, RTO will show a small growth in Earnings Per Share. The EPS will grow by 3.43% on average per year.
  • RTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y11.5%
EPS Next 2Y10.86%
EPS Next 3Y10.96%
EPS Next 5Y3.43%
Revenue Next Year13.41%
Revenue Next 2Y8.21%
Revenue Next 3Y6.99%
Revenue Next 5Y5.57%

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 decreasing.
RTO Yearly Revenue VS EstimatesRTO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
RTO Yearly EPS VS EstimatesRTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5

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4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 25.50, which means the current valuation is very expensive for RTO.
  • Compared to the rest of the industry, the Price/Earnings ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 63.75% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.41. RTO is around the same levels.
  • With a Price/Forward Earnings ratio of 19.06, RTO is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 76.25% of the companies in the same industry.
  • RTO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.64.
Industry RankSector Rank
PE 25.5
Fwd PE 19.06
RTO Price Earnings VS Forward Price EarningsRTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • RTO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 70.00% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.39
EV/EBITDA 14.71
RTO Per share dataRTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RTO does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of RTO may justify a higher PE ratio.
PEG (NY)2.22
PEG (5Y)3.12
EPS Next 2Y10.86%
EPS Next 3Y10.96%

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4

5. Dividend

5.1 Amount

  • RTO has a Yearly Dividend Yield of 1.96%.
  • RTO's Dividend Yield is rather good when compared to the industry average which is at 0.83. RTO pays more dividend than 86.25% of the companies in the same industry.
  • RTO's Dividend Yield is comparable with the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 1.96%

5.2 History

  • The dividend of RTO is nicely growing with an annual growth rate of 20.86%!
  • RTO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.86%
Div Incr Years0
Div Non Decr Years0
RTO Yearly Dividends per shareRTO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 93.98% of the earnings are spent on dividend by RTO. This is not a sustainable payout ratio.
  • RTO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP93.98%
EPS Next 2Y10.86%
EPS Next 3Y10.96%
RTO Yearly Income VS Free CF VS DividendRTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M
RTO Dividend Payout.RTO Dividend Payout, showing the Payout Ratio.RTO Dividend Payout.PayoutRetained Earnings

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RENTOKIL INITIAL PLC-SP ADR / RTO FAQ

Can you provide the ChartMill fundamental rating for RENTOKIL INITIAL PLC-SP ADR?

ChartMill assigns a fundamental rating of 5 / 10 to RTO.


Can you provide the valuation status for RENTOKIL INITIAL PLC-SP ADR?

ChartMill assigns a valuation rating of 4 / 10 to RENTOKIL INITIAL PLC-SP ADR (RTO). This can be considered as Fairly Valued.


Can you provide the profitability details for RENTOKIL INITIAL PLC-SP ADR?

RENTOKIL INITIAL PLC-SP ADR (RTO) has a profitability rating of 6 / 10.


What are the PE and PB ratios of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?

The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 25.5 and the Price/Book (PB) ratio is 3.04.


What is the financial health of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?

The financial health rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 3 / 10.