RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
31.54 USD
+0.31 (+0.99%)
28.37 USD
-3.17 (-10.05%)
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 has a decent growth rate and is not valued too expensively.
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.
- In the past 5 years RTO always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.35%, RTO perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
- RTO has a Return On Equity (6.35%) which is comparable to the rest of the industry.
- RTO has a Return On Invested Capital (4.66%) which is in line with 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 10.58%.
| 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.
- RTO has a Operating Margin of 10.17%. This is in the better half of the industry: RTO outperforms 68.75% of its industry peers.
- RTO's Operating Margin has improved in the last couple of years.
- RTO has a better Gross Margin (86.40%) 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.
- Compared to 1 year ago, RTO has about the same amount of shares outstanding.
- Compared to 5 years ago, RTO has more shares outstanding
- Compared to 1 year ago, RTO has an improved debt to assets ratio.
2.2 Solvency
- RTO has an Altman-Z score of 2.26. 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 (2.26) which is comparable to the rest of the industry.
- RTO has a debt to FCF ratio of 8.79. This is a slightly negative value and a sign of low solvency as RTO would need 8.79 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 8.79, RTO is in the better half of the industry, outperforming 63.75% of the companies in the same industry.
- 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 62.50% 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.
- The Current ratio of RTO (1.12) is worse than 70.00% 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: 66.25% 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 strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.45%.
- RTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.17% yearly.
- RTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.75%.
- 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 5.57% 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 5Y5.57%
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
- With a Price/Earnings ratio of 25.23, RTO can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, RTO is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
- RTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.81, the valuation of RTO can be described as rather expensive.
- RTO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RTO is cheaper than 76.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. RTO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
- RTO's Enterprise Value to EBITDA is on the same level as the industry average.
- 70.00% 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 | 23.14 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of RTO may justify a higher PE ratio.
PEG (NY)2.19
PEG (5Y)3.09
EPS Next 2Y10.98%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
- RTO has a Yearly Dividend Yield of 1.95%.
- RTO's Dividend Yield is rather good when compared to the industry average which is at 0.83. RTO pays more dividend than 86.25% of the companies in the same industry.
- RTO's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
- On average, the dividend of RTO grows each year by 20.86%, which is quite nice.
- RTO has paid a dividend for at least 10 years, which is 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.
- The dividend of RTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP93.98%
EPS Next 2Y10.98%
EPS Next 3Y11.17%
31.54
+0.31 (+0.99%)
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 Cap15.86B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts79.26
Price Target31.64 (0.32%)
Short Float %0.78%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)2.61%
PT rev (3m)12.91%
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 | 25.23 | ||
| Fwd PE | 18.81 | ||
| P/S | 2.28 | ||
| P/FCF | 23.14 | ||
| P/OCF | 16.31 | ||
| P/B | 3.01 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)1.25
EY3.96%
EPS(NY)1.68
Fwd EY5.32%
FCF(TTM)1.36
FCFY4.32%
OCF(TTM)1.93
OCFY6.13%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)2.19
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 5Y5.57%
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 25.23 and the Price/Book (PB) ratio is 3.01.
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.