RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
30 USD
+0.11 (+0.37%)
30 USD
0 (0%)
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. While RTO is still in line with the averages on profitability rating, there are concerns on its financial health. RTO has a correct valuation and a medium 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.
RTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of RTO (2.35%) is comparable to the rest of the industry.
The Return On Equity of RTO (6.35%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.66%, RTO perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for RTO is below the industry average of 10.33%.
| 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.
RTO's Profit Margin has declined in the last couple of years.
RTO has a better Operating Margin (10.17%) than 71.25% of its industry peers.
RTO's Operating Margin has improved in the last couple of years.
The Gross Margin of RTO (86.40%) is better than 98.75% of its industry peers.
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
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.
The number of shares outstanding for RTO has been increased compared to 5 years ago.
The debt/assets ratio for RTO has been reduced compared to a year ago.
2.2 Solvency
RTO has an Altman-Z score of 2.20. 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 has a Altman-Z score (2.20) 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 Debt to FCF ratio of 8.79. This is in the better half of the industry: RTO outperforms 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.
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 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.79 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.61
WACC7.61%
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 worse Quick ratio (1.03) than 65.00% of its industry peers.
| 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.
The Revenue has grown by 16.75% in the past year. This is quite good.
RTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.48% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y10.05%
EPS 5Y10.83%
EPS Q2Q%6.87%
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 5.96% yearly.
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 24.00, which indicates a rather expensive current valuation of 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.
When comparing the Price/Earnings ratio of RTO to the average of the S&P500 Index (26.57), we can say RTO is valued inline with the index average.
A Price/Forward Earnings ratio of 17.80 indicates a rather expensive valuation of RTO.
75.00% of the companies in the same industry are more expensive than RTO, based on the Price/Forward Earnings ratio.
RTO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 17.8 |
4.2 Price Multiples
RTO's Enterprise Value to EBITDA ratio is in line with the industry average.
72.50% 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 | 22.01 | ||
| EV/EBITDA | 14.09 |
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.
RTO's earnings are expected to grow with 15.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)2.22
EPS Next 2Y18.19%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, RTO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.89, 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 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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
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 2Y18.19%
EPS Next 3Y15.76%
30
+0.11 (+0.37%)
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 Cap15.09B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts76.92
Price Target31.49 (4.97%)
Short Float %0.62%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend0.12
Dividend Growth(5Y)20.86%
DP93.98%
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)2.6%
PT rev (3m)4.55%
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)31.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24 | ||
| Fwd PE | 17.8 | ||
| P/S | 2.16 | ||
| P/FCF | 22.01 | ||
| P/OCF | 15.51 | ||
| P/B | 2.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.09 |
EPS(TTM)1.25
EY4.17%
EPS(NY)1.69
Fwd EY5.62%
FCF(TTM)1.36
FCFY4.54%
OCF(TTM)1.93
OCFY6.45%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)0.91
PEG (5Y)2.22
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 | 2.2 |
F-Score5
WACC7.61%
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)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)16.75%
Revenue growth 3Y34.42%
Revenue growth 5Y21.48%
Sales Q2Q%24.28%
Revenue Next Year14.3%
Revenue Next 2Y8.62%
Revenue Next 3Y7.27%
Revenue Next 5Y5.94%
EBIT growth 1Y1.85%
EBIT growth 3Y37.18%
EBIT growth 5Y26.6%
EBIT Next Year53.86%
EBIT Next 3Y20.84%
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.
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 24 and the Price/Book (PB) ratio is 2.86.
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 93.98%.