RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
28.43 USD
+0.16 (+0.57%)
28.43 USD
0 (0%)
Taking everything into account, RTO scores 5 out of 10 in our fundamental rating. RTO was compared to 82 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RTO was profitable.
RTO had a positive operating cash flow in the past year.
In the past 5 years RTO has always been profitable.
In the past 5 years RTO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.36%, RTO perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
RTO has a Return On Equity of 6.38%. This is comparable to the rest of the industry: RTO outperforms 56.10% of its industry peers.
With a Return On Invested Capital value of 4.69%, RTO perfoms like the industry average, outperforming 52.44% 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 significantly below the industry average of 10.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.38% | ||
| ROIC | 4.69% |
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's Profit Margin of 4.80% is fine compared to the rest of the industry. RTO outperforms 62.20% of its industry peers.
In the last couple of years the Profit Margin of RTO has declined.
With a decent Operating Margin value of 10.17%, RTO is doing good in the industry, outperforming 71.95% of the companies in the same industry.
RTO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 86.86%, RTO belongs to the best of the industry, outperforming 98.78% 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 | 86.86% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTO is destroying value.
Compared to 1 year ago, RTO has about the same amount of shares outstanding.
RTO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RTO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.16 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RTO has a Altman-Z score of 2.16. This is comparable to the rest of the industry: RTO outperforms 51.22% of its industry peers.
RTO has a debt to FCF ratio of 8.70. This is a slightly negative value and a sign of low solvency as RTO would need 8.70 years to pay back of all of its debts.
RTO has a better Debt to FCF ratio (8.70) than 60.98% of its industry peers.
A Debt/Equity ratio of 1.00 indicates that RTO is somewhat dependend on debt financing.
RTO's Debt to Equity ratio of 1.00 is on the low side compared to the rest of the industry. RTO is outperformed by 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.62
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.12 indicates that RTO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, RTO is doing worse than 71.95% of the companies in the same industry.
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.
With a Quick ratio value of 1.03, RTO is not doing good in the industry: 65.85% 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
RTO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
RTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.83% yearly.
RTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.42%.
RTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y10.05%
EPS 5Y10.83%
EPS Q2Q%6.87%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
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 5.96% on average per year.
RTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.94% yearly.
EPS Next Y26.44%
EPS Next 2Y18.19%
EPS Next 3Y15.76%
EPS Next 5Y5.96%
Revenue Next Year14.3%
Revenue Next 2Y8.62%
Revenue Next 3Y7.27%
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.
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
The Price/Earnings ratio is 22.74, which indicates a rather expensive current valuation of RTO.
RTO's Price/Earnings ratio is a bit cheaper when compared to the industry. RTO is cheaper than 63.41% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. RTO is around the same levels.
The Price/Forward Earnings ratio is 16.87, which indicates a correct valuation of RTO.
RTO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTO is cheaper than 74.39% of the companies in the same industry.
RTO is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 16.87 |
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.
70.73% of the companies in the same industry are more expensive than RTO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 13.43 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as RTO's earnings are expected to grow with 15.76% in the coming years.
PEG (NY)0.86
PEG (5Y)2.1
EPS Next 2Y18.19%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
RTO has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
RTO's Dividend Yield is rather good when compared to the industry average which is at 2.46. RTO pays more dividend than 84.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
On average, the dividend of RTO grows each year by 21.12%, 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)21.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RTO pays out 94.52% of its income as dividend. 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.
DP94.52%
EPS Next 2Y18.19%
EPS Next 3Y15.76%
28.43
+0.16 (+0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners74.38%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap14.30B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts76.92
Price Target30.84 (8.48%)
Short Float %0.65%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend0.12
Dividend Growth(5Y)21.12%
DP94.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)2.48%
PT rev (3m)7.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.17%
EPS NY rev (3m)32.84%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.32%
Revenue NY rev (3m)31.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 16.87 | ||
| P/S | 2.04 | ||
| P/FCF | 20.65 | ||
| P/OCF | 14.55 | ||
| P/B | 2.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.43 |
EPS(TTM)1.25
EY4.4%
EPS(NY)1.69
Fwd EY5.93%
FCF(TTM)1.38
FCFY4.84%
OCF(TTM)1.95
OCFY6.87%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)0.86
PEG (5Y)2.1
Graham Number17.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.36% | ||
| ROE | 6.38% | ||
| ROCE | 6.5% | ||
| ROIC | 4.69% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 54.84% | ||
| OM | 10.17% | ||
| PM (TTM) | 4.8% | ||
| GM | 86.86% | ||
| FCFM | 9.88% |
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)56.79%
ROICexgc(5y)65.31%
ROCE(3y)7.83%
ROCE(5y)9.4%
ROICexgc growth 3Y13.81%
ROICexgc growth 5Y13.34%
ROICexc growth 3Y-12.34%
ROICexc growth 5Y-7.02%
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 | 8.7 | ||
| Debt/EBITDA | 3.92 | ||
| Cap/Depr | 46.49% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 73.49% | ||
| Profit Quality | 205.91% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 2.16 |
F-Score5
WACC7.53%
ROIC/WACC0.62
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)6.45%
EPS 3Y10.05%
EPS 5Y10.83%
EPS Q2Q%6.87%
EPS Next Y26.44%
EPS Next 2Y18.19%
EPS Next 3Y15.76%
EPS Next 5Y5.96%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
Sales Q2Q%24.28%
Revenue Next Year14.3%
Revenue Next 2Y8.62%
Revenue Next 3Y7.27%
Revenue Next 5Y5.94%
EBIT growth 1Y2.43%
EBIT growth 3Y37.69%
EBIT growth 5Y26.87%
EBIT Next Year53.86%
EBIT Next 3Y20.84%
EBIT Next 5Y13.37%
FCF growth 1Y49.86%
FCF growth 3Y15.31%
FCF growth 5Y16.19%
OCF growth 1Y46.44%
OCF growth 3Y17.15%
OCF growth 5Y14.36%
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.
What is the valuation status of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?
ChartMill assigns a valuation rating of 5 / 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.
Can you provide the PE and PB ratios for RTO stock?
The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 22.74 and the Price/Book (PB) ratio is 2.71.
Can you provide the dividend sustainability for RTO stock?
The dividend rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 4 / 10 and the dividend payout ratio is 94.52%.