RENTOKIL INITIAL PLC-SP ADR (RTO) Fundamental Analysis & Valuation

NYSE:RTO • US7601251041

Current stock price

31.36 USD
+0.54 (+1.75%)
At close:
31.36 USD
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This RTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. RTO Profitability Analysis

1.1 Basic Checks

  • In the past year RTO was profitable.
  • RTO had a positive operating cash flow in the past year.
  • Of the past 5 years RTO 4 years were profitable.
  • Of the past 5 years RTO 4 years had a positive operating cash flow.
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

  • With a decent Return On Assets value of 2.35%, RTO is doing good in the industry, outperforming 62.20% of the companies in the same industry.
  • RTO's Return On Equity of 6.35% is fine compared to the rest of the industry. RTO outperforms 63.41% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 4.66%, RTO is in line with its industry, outperforming 57.32% of the companies in the same industry.
  • RTO had an Average Return On Invested Capital over the past 3 years of 5.49%. This is below the industry average of 10.18%.
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

  • The Profit Margin of RTO (4.80%) is better than 68.29% 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 69.51% of its industry peers.
  • In the last couple of years the Operating Margin of RTO has grown nicely.
  • RTO has a better Gross Margin (88.18%) than 97.56% 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 88.18%
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. RTO Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTO is destroying value.
  • RTO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 2.24. 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.
  • The Altman-Z score of RTO (2.24) 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.
  • With a Debt to FCF ratio value of 8.79, RTO perfoms like the industry average, outperforming 59.76% of the companies in the same industry.
  • A Debt/Equity ratio of 1.00 indicates that 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: 62.20% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 8.79
Altman-Z 2.24
ROIC/WACC0.61
WACC7.64%
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.
  • The Current ratio of RTO (1.12) is worse than 68.29% of its industry peers.
  • RTO has a Quick Ratio of 1.03. This is a normal value and indicates that RTO is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.03, RTO is doing worse than 64.63% of the companies in the same industry.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. RTO Growth Analysis

3.1 Past

  • The earnings per share for RTO have decreased by -4.63% in the last year.
  • RTO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
EPS 1Y (TTM)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%29.82%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.55% on average over the next years.
  • RTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y26.48%
EPS Next 2Y19.93%
EPS Next 3Y5.21%
EPS Next 5Y5.55%
Revenue Next Year3.5%
Revenue Next 2Y4.87%
Revenue Next 3Y3.92%
Revenue Next 5Y4.8%

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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. RTO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.12, the valuation of RTO can be described as rather expensive.
  • RTO's Price/Earnings ratio is a bit cheaper when compared to the industry. RTO is cheaper than 65.85% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.54. RTO is around the same levels.
  • RTO is valuated rather expensively with a Price/Forward Earnings ratio of 19.10.
  • Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, RTO is valued at the same level.
Industry RankSector Rank
PE 24.12
Fwd PE 19.1
RTO Price Earnings VS Forward Price EarningsRTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • RTO's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than 64.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.01
EV/EBITDA 14.45
RTO Per share dataRTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • RTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • RTO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.91
PEG (5Y)4.38
EPS Next 2Y19.93%
EPS Next 3Y5.21%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. RTO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.98%, RTO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.84, RTO pays a better dividend. On top of this RTO pays more dividend than 87.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, RTO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.98%

5.2 History

  • The dividend of RTO is nicely growing with an annual growth rate of 21.34%!
  • RTO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.34%
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 2026 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.
  • The dividend of RTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP93.98%
EPS Next 2Y19.93%
EPS Next 3Y5.21%
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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RTO Fundamentals: All Metrics, Ratios and Statistics

RENTOKIL INITIAL PLC-SP ADR

NYSE:RTO (3/23/2026, 7:00:00 PM)

After market: 31.36 0 (0%)

31.36

+0.54 (+1.75%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)03-05
Earnings (Next)04-16
Inst Owners98.5%
Inst Owner ChangeN/A
Ins Owners2.66%
Ins Owner ChangeN/A
Market Cap15.77B
Revenue(TTM)N/A
Net Income(TTM)334.62M
Analysts77.86
Price Target32.49 (3.6%)
Short Float %0.85%
Short Ratio2.54
Dividend
Industry RankSector Rank
Dividend Yield 1.98%
Yearly Dividend0.12
Dividend Growth(5Y)21.34%
DP93.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-10
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)-1.75%
PT rev (3m)5.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-3.03%
Valuation
Industry RankSector Rank
PE 24.12
Fwd PE 19.1
P/S 2.26
P/FCF 23.01
P/OCF 16.22
P/B 2.99
P/tB N/A
EV/EBITDA 14.45
EPS(TTM)1.3
EY4.15%
EPS(NY)1.64
Fwd EY5.24%
FCF(TTM)1.36
FCFY4.35%
OCF(TTM)1.93
OCFY6.17%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)0.91
PEG (5Y)4.38
Graham Number17.51
Profitability
Industry RankSector 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 88.18%
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)6.27%
ROICexc(5y)8.1%
ROICexgc(3y)56.33%
ROICexgc(5y)65.04%
ROCE(3y)7.83%
ROCE(5y)9.4%
ROICexgc growth 3Y13.51%
ROICexgc growth 5Y13.16%
ROICexc growth 3Y-12.36%
ROICexc growth 5Y-7.04%
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 RankSector 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 2.24
F-Score5
WACC7.64%
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)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
EPS Next Y26.48%
EPS Next 2Y19.93%
EPS Next 3Y5.21%
EPS Next 5Y5.55%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%29.82%
Revenue Next Year3.5%
Revenue Next 2Y4.87%
Revenue Next 3Y3.92%
Revenue Next 5Y4.8%
EBIT growth 1Y1.85%
EBIT growth 3Y38.12%
EBIT growth 5Y27.11%
EBIT Next Year51.35%
EBIT Next 3Y20.57%
EBIT Next 5Y15.5%
FCF growth 1Y48.39%
FCF growth 3Y15.67%
FCF growth 5Y16.41%
OCF growth 1Y44.96%
OCF growth 3Y17.52%
OCF growth 5Y14.58%

RENTOKIL INITIAL PLC-SP ADR / RTO Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 4 / 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 24.12 and the Price/Book (PB) ratio is 2.99.


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.