RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
31.09 USD
-0.34 (-1.08%)
31.01 USD
-0.08 (-0.26%)
We assign a fundamental rating of 5 out of 10 to RTO. RTO was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- RTO had positive earnings in the past year.
- RTO had a positive operating cash flow in the past year.
- Each year in the past 5 years RTO has been profitable.
- RTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.35%, RTO is in line with its industry, outperforming 58.75% of the companies in the same industry.
- RTO has a Return On Equity of 6.35%. This is comparable to the rest of the industry: RTO outperforms 58.75% of its industry peers.
- RTO has a Return On Invested Capital (4.66%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for RTO is significantly below the industry average of 10.54%.
| 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
- RTO has a Profit Margin of 4.80%. This is in the better half of the industry: RTO outperforms 65.00% of its industry peers.
- In the last couple of years the Profit Margin of RTO has declined.
- RTO has a better Operating Margin (10.17%) than 68.75% of its industry peers.
- RTO's Operating Margin has improved in the last couple of years.
- 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.
- In the last couple of years the Gross Margin of RTO has remained more or less at the same level.
| 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
- RTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, RTO has about the same amount of shares outstanding.
- Compared to 5 years ago, RTO has more shares outstanding
- The debt/assets ratio for RTO has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.24 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
- RTO has a Altman-Z score (2.24) which is in line with 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.
- A Debt/Equity ratio of 1.00 indicates that RTO is somewhat dependend on debt financing.
- RTO has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: RTO underperforms 61.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.79 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.61
WACC7.66%
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's Current ratio of 1.12 is on the low side compared to the rest of the industry. RTO is outperformed by 70.00% 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.
- RTO has a Quick ratio of 1.03. This is in the lower half of the industry: RTO underperforms 66.25% of its industry peers.
| 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.
- Measured over the past years, RTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.17% on average per year.
- RTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.75%.
- Measured over the past years, RTO shows a very strong growth in Revenue. The Revenue has been growing by 21.48% on average per year.
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 Y11.51%
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 5Y5.57%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 24.87, RTO is valued on the expensive side.
- 63.75% of the companies in the same industry are more expensive than RTO, based on the Price/Earnings ratio.
- RTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- RTO is valuated rather expensively with a Price/Forward Earnings ratio of 18.54.
- Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 76.25% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, RTO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.87 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RTO is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.81 | ||
| EV/EBITDA | 14.55 |
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)2.16
PEG (5Y)3.04
EPS Next 2Y10.98%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
- RTO has a Yearly Dividend Yield of 1.94%.
- RTO's Dividend Yield is rather good when compared to the industry average which is at 0.88. RTO pays more dividend than 85.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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
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 2Y10.98%
EPS Next 3Y11.17%
31.09
-0.34 (-1.08%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-23 2025-10-23
Earnings (Next)03-05 2026-03-05/amc
Inst Owners74.77%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap15.64B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts79.26
Price Target31.49 (1.29%)
Short Float %0.78%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)2.12%
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 | 24.87 | ||
| Fwd PE | 18.54 | ||
| P/S | 2.24 | ||
| P/FCF | 22.81 | ||
| P/OCF | 16.08 | ||
| P/B | 2.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.55 |
EPS(TTM)1.25
EY4.02%
EPS(NY)1.68
Fwd EY5.39%
FCF(TTM)1.36
FCFY4.38%
OCF(TTM)1.93
OCFY6.22%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)2.16
PEG (5Y)3.04
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 | 2.24 |
F-Score5
WACC7.66%
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 5Y5.57%
EBIT growth 1Y1.85%
EBIT growth 3Y37.18%
EBIT growth 5Y26.6%
EBIT Next Year55.07%
EBIT Next 3Y20.61%
EBIT Next 5Y14.94%
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 24.87 and the Price/Book (PB) ratio is 2.97.
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.