RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
31.61 USD
+0.15 (+0.48%)
31.61 USD
0 (0%)
Overall RTO gets a fundamental rating of 5 out of 10. We evaluated RTO against 80 industry peers in the Commercial Services & Supplies industry. RTO has a medium profitability rating, but doesn't score so well on its financial health evaluation. RTO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
RTO had positive earnings in the past year.
In the past year RTO had a positive cash flow from operations.
Each year in the past 5 years RTO has been profitable.
Each year in the past 5 years RTO had a positive operating cash flow.
1.2 Ratios
RTO has a Return On Assets of 2.35%. This is comparable to the rest of the industry: RTO outperforms 60.00% of its industry peers.
Looking at the Return On Equity, with a value of 6.35%, RTO is in line with its industry, outperforming 60.00% of the companies in the same industry.
RTO has a Return On Invested Capital of 4.66%. This is comparable to the rest of the industry: RTO outperforms 56.25% of its industry peers.
RTO had an Average Return On Invested Capital over the past 3 years of 5.49%. This is significantly below the industry average of 10.60%.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 4.80%, RTO is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RTO has declined.
Looking at the Operating Margin, with a value of 10.17%, RTO is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of RTO has grown nicely.
With an excellent Gross Margin value of 86.40%, RTO belongs to the best of the industry, outperforming 98.75% of the companies in the same industry.
RTO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTO is destroying value.
The number of shares outstanding for RTO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, RTO has more shares outstanding
RTO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RTO has a Altman-Z score (2.26) which is comparable to the rest of the industry.
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's Debt to FCF ratio of 8.79 is fine compared to the rest of the industry. RTO outperforms 65.00% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that RTO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.00, RTO is doing worse than 61.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.79 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.61
WACC7.68%
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 68.75% of its industry peers.
A Quick Ratio of 1.03 indicates that RTO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.03, RTO is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The earnings per share for RTO have decreased strongly by -15.45% in the last year.
RTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.17% yearly.
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
RTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.43% yearly.
The Revenue is expected to grow by 5.94% on average over the next years.
EPS Next Y11.51%
EPS Next 2Y10.98%
EPS Next 3Y11.17%
EPS Next 5Y3.43%
Revenue Next Year13.41%
Revenue Next 2Y8.21%
Revenue Next 3Y6.99%
Revenue Next 5Y5.94%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.29, the valuation of RTO can be described as expensive.
Based on the Price/Earnings ratio, RTO is valued a bit cheaper than the industry average as 63.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.19, RTO is valued at the same level.
The Price/Forward Earnings ratio is 18.85, which indicates a rather expensive current valuation of RTO.
75.00% of the companies in the same industry are more expensive than RTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.88. RTO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
RTO's Enterprise Value to EBITDA is on the same level as 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 71.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.19 | ||
| EV/EBITDA | 14.69 |
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)2.2
PEG (5Y)3.09
EPS Next 2Y10.98%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.01%, RTO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.90, RTO pays a better dividend. On top of this RTO pays more dividend than 85.00% of the companies listed in the same industry.
RTO's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
5.2 History
On average, the dividend of RTO grows each year by 20.86%, which is quite nice.
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
5.3 Sustainability
RTO pays out 93.98% of its income as dividend. 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 2Y10.98%
EPS Next 3Y11.17%
31.61
+0.15 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners74.77%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap15.90B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts76.92
Price Target31.49 (-0.38%)
Short Float %0.78%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.01% |
Yearly Dividend0.12
Dividend Growth(5Y)20.86%
DP93.98%
Div Incr Years0
Div Non Decr Years0
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)4.15%
PT rev (3m)12.37%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.5%
EPS NY rev (3m)35.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.78%
Revenue NY rev (3m)34.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 18.85 | ||
| P/S | 2.28 | ||
| P/FCF | 23.19 | ||
| P/OCF | 16.35 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.69 |
EPS(TTM)1.25
EY3.95%
EPS(NY)1.68
Fwd EY5.3%
FCF(TTM)1.36
FCFY4.31%
OCF(TTM)1.93
OCFY6.12%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)2.2
PEG (5Y)3.09
Graham Number17.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.35% | ||
| ROE | 6.35% | ||
| ROCE | 6.46% | ||
| ROIC | 4.66% | ||
| ROICexc | 5.45% | ||
| ROICexgc | 54.53% | ||
| OM | 10.17% | ||
| PM (TTM) | 4.8% | ||
| GM | 86.4% | ||
| FCFM | 9.84% |
ROA(3y)2.76%
ROA(5y)3.54%
ROE(3y)7.41%
ROE(5y)11.9%
ROIC(3y)5.49%
ROIC(5y)6.1%
ROICexc(3y)6.28%
ROICexc(5y)8.1%
ROICexgc(3y)57.35%
ROICexgc(5y)65.65%
ROCE(3y)7.83%
ROCE(5y)9.4%
ROICexgc growth 3Y14.17%
ROICexgc growth 5Y13.56%
ROICexc growth 3Y-12.32%
ROICexc growth 5Y-7.01%
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%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.79 | ||
| Debt/EBITDA | 3.95 | ||
| Cap/Depr | 46.51% | ||
| Cap/Sales | 4.12% | ||
| Interest Coverage | 2.63 | ||
| Cash Conversion | 73.35% | ||
| Profit Quality | 204.88% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.26 |
F-Score5
WACC7.68%
ROIC/WACC0.61
Cap/Depr(3y)45.91%
Cap/Depr(5y)48.18%
Cap/Sales(3y)4.33%
Cap/Sales(5y)4.77%
Profit Quality(3y)155.2%
Profit Quality(5y)166.26%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.45%
EPS 3Y3.04%
EPS 5Y8.17%
EPS Q2Q%-15.51%
EPS Next Y11.51%
EPS Next 2Y10.98%
EPS Next 3Y11.17%
EPS Next 5Y3.43%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y34.42%
Revenue growth 5Y21.48%
Sales Q2Q%24.28%
Revenue Next Year13.41%
Revenue Next 2Y8.21%
Revenue Next 3Y6.99%
Revenue Next 5Y5.94%
EBIT growth 1Y1.85%
EBIT growth 3Y37.18%
EBIT growth 5Y26.6%
EBIT Next Year55.07%
EBIT Next 3Y20.61%
EBIT Next 5Y13.37%
FCF growth 1Y48.39%
FCF growth 3Y14.89%
FCF growth 5Y15.93%
OCF growth 1Y44.96%
OCF growth 3Y16.72%
OCF growth 5Y14.11%
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 25.29 and the Price/Book (PB) ratio is 3.02.
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.