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

NYSE:RTO • US7601251041

Current stock price

33.54 USD
-0.52 (-1.53%)
At close:
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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.
  • In the past 5 years RTO has always been profitable.
  • RTO had a positive operating cash flow in each of the past 5 years.
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 2025 0 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of RTO (3.26%) is better than 68.35% of its industry peers.
  • With a decent Return On Equity value of 8.55%, RTO is doing good in the industry, outperforming 68.35% of the companies in the same industry.
  • RTO has a Return On Invested Capital (4.14%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for RTO is significantly below the industry average of 9.77%.
Industry RankSector Rank
ROA 3.26%
ROE 8.55%
ROIC 4.14%
ROA(3y)3.13%
ROA(5y)3.48%
ROE(3y)8.18%
ROE(5y)10.2%
ROIC(3y)4.68%
ROIC(5y)5.16%
RTO Yearly ROA, ROE, ROICRTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

1.3 Margins

  • RTO's Profit Margin of 6.80% is fine compared to the rest of the industry. RTO outperforms 75.95% of its industry peers.
  • In the last couple of years the Profit Margin of RTO has remained more or less at the same level.
  • RTO has a better Operating Margin (9.53%) than 69.62% of its industry peers.
  • RTO's Operating Margin has declined in the last couple of years.
  • RTO has a better Gross Margin (83.12%) than 97.47% of its industry peers.
  • RTO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 9.53%
PM (TTM) 6.8%
GM 83.12%
OM growth 3Y-10.83%
OM growth 5Y-3.24%
PM growth 3Y2.89%
PM growth 5Y0.51%
GM growth 3Y0.85%
GM growth 5Y0.97%
RTO Yearly Profit, Operating, Gross MarginsRTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

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3

2. RTO Health Analysis

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.
  • The number of shares outstanding for RTO remains at a similar level compared to 1 year ago.
  • The number of shares outstanding for RTO has been increased compared to 5 years ago.
  • RTO has a worse debt/assets ratio than last year.
RTO Yearly Shares OutstandingRTO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B

2.2 Solvency

  • RTO has an Altman-Z score of 2.46. 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's Altman-Z score of 2.46 is in line compared to the rest of the industry. RTO outperforms 56.96% of its industry peers.
  • The Debt to FCF ratio of RTO is 8.63, which is on the high side as it means it would take RTO, 8.63 years of fcf income to pay off all of its debts.
  • RTO's Debt to FCF ratio of 8.63 is fine compared to the rest of the industry. RTO outperforms 60.76% of its industry peers.
  • A Debt/Equity ratio of 0.96 indicates that RTO is somewhat dependend on debt financing.
  • RTO's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. RTO is outperformed by 63.29% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 8.63
Altman-Z 2.46
ROIC/WACC0.53
WACC7.86%
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 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • RTO has a Current Ratio of 1.16. 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 Current ratio (1.16) than 65.82% of its industry peers.
  • A Quick Ratio of 1.07 indicates that RTO should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.07, RTO is doing worse than 64.56% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.07
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 2025 1B 2B 3B 4B

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4

3. RTO Growth Analysis

3.1 Past

  • RTO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.63%.
  • RTO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
  • The Revenue has been growing slightly by 4.40% in the past year.
  • RTO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.77% yearly.
EPS 1Y (TTM)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y11.32%
Revenue growth 5Y19.77%
Sales Q2Q%29.82%

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 5.47% on average per year.
  • RTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y23.76%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
EPS Next 5Y5.47%
Revenue Next Year3.22%
Revenue Next 2Y3.78%
Revenue Next 3Y3.13%
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.
  • 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.
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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5

4. RTO Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 25.80, the valuation of RTO can be described as expensive.
  • RTO's Price/Earnings ratio is a bit cheaper when compared to the industry. RTO is cheaper than 65.82% of the companies in the same industry.
  • RTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.71, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 20.81, the valuation of RTO can be described as rather expensive.
  • 67.09% of the companies in the same industry are more expensive than RTO, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of RTO to the average of the S&P500 Index (38.09), we can say RTO is valued slightly cheaper.
Industry RankSector Rank
PE 25.8
Fwd PE 20.81
RTO Price Earnings VS Forward Price EarningsRTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • RTO's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 64.56% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 23.99
EV/EBITDA 16.5
RTO Per share dataRTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of RTO may justify a higher PE ratio.
  • A more expensive valuation may be justified as RTO's earnings are expected to grow with 13.93% in the coming years.
PEG (NY)1.09
PEG (5Y)4.68
EPS Next 2Y17.64%
EPS Next 3Y13.93%

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4

5. RTO Dividend Analysis

5.1 Amount

  • RTO has a Yearly Dividend Yield of 1.84%.
  • Compared to an average industry Dividend Yield of 0.84, RTO pays a better dividend. On top of this RTO pays more dividend than 87.34% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, RTO has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.84%

5.2 History

  • RTO has paid a dividend for at least 10 years, which is a reliable track record.
  • RTO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
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

  • RTO pays out 64.68% of its income as dividend. This is not a sustainable payout ratio.
DP64.68%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
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 2025 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 (4/21/2026, 8:04:00 PM)

After market: 33.54 0 (0%)

33.54

-0.52 (-1.53%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)04-16
Earnings (Next)07-30
Inst Owners97.1%
Inst Owner Change0.2%
Ins Owners2.65%
Ins Owner ChangeN/A
Market Cap16.87B
Revenue(TTM)6.91B
Net Income(TTM)470.00M
Analysts79.29
Price Target34.23 (2.06%)
Short Float %0.56%
Short Ratio1.72
Dividend
Industry RankSector Rank
Dividend Yield 1.84%
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP64.68%
Div Incr Years3
Div Non Decr Years3
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)5.36%
PT rev (3m)8.18%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-2.32%
Valuation
Industry RankSector Rank
PE 25.8
Fwd PE 20.81
P/S 2.44
P/FCF 23.99
P/OCF 17.35
P/B 3.07
P/tB N/A
EV/EBITDA 16.5
EPS(TTM)1.3
EY3.88%
EPS(NY)1.61
Fwd EY4.81%
FCF(TTM)1.4
FCFY4.17%
OCF(TTM)1.93
OCFY5.76%
SpS13.74
BVpS10.93
TBVpS-6.8
PEG (NY)1.09
PEG (5Y)4.68
Graham Number17.8786 (-46.69%)
Profitability
Industry RankSector Rank
ROA 3.26%
ROE 8.55%
ROCE 5.92%
ROIC 4.14%
ROICexc 5.15%
ROICexgc 80.37%
OM 9.53%
PM (TTM) 6.8%
GM 83.12%
FCFM 10.18%
ROA(3y)3.13%
ROA(5y)3.48%
ROE(3y)8.18%
ROE(5y)10.2%
ROIC(3y)4.68%
ROIC(5y)5.16%
ROICexc(3y)5.44%
ROICexc(5y)6.17%
ROICexgc(3y)64.65%
ROICexgc(5y)54.84%
ROCE(3y)6.73%
ROCE(5y)7.65%
ROICexgc growth 3Y42.3%
ROICexgc growth 5Y-4.26%
ROICexc growth 3Y6.37%
ROICexc growth 5Y-13.9%
OM growth 3Y-10.83%
OM growth 5Y-3.24%
PM growth 3Y2.89%
PM growth 5Y0.51%
GM growth 3Y0.85%
GM growth 5Y0.97%
F-Score5
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 8.63
Debt/EBITDA 4.32
Cap/Depr 47.78%
Cap/Sales 3.89%
Interest Coverage 2.58
Cash Conversion 79.61%
Profit Quality 149.57%
Current Ratio 1.16
Quick Ratio 1.07
Altman-Z 2.46
F-Score5
WACC7.86%
ROIC/WACC0.53
Cap/Depr(3y)44.88%
Cap/Depr(5y)47.37%
Cap/Sales(3y)4.18%
Cap/Sales(5y)4.61%
Profit Quality(3y)150.44%
Profit Quality(5y)156.25%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
EPS Next Y23.76%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
EPS Next 5Y5.47%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y11.32%
Revenue growth 5Y19.77%
Sales Q2Q%29.82%
Revenue Next Year3.22%
Revenue Next 2Y3.78%
Revenue Next 3Y3.13%
Revenue Next 5Y4.8%
EBIT growth 1Y-7.97%
EBIT growth 3Y-0.74%
EBIT growth 5Y15.88%
EBIT Next Year54.35%
EBIT Next 3Y20.74%
EBIT Next 5Y16.01%
FCF growth 1Y18.55%
FCF growth 3Y8.34%
FCF growth 5Y12.22%
OCF growth 1Y11.98%
OCF growth 3Y6.31%
OCF growth 5Y12.14%

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 5 / 10 to RENTOKIL INITIAL PLC-SP ADR (RTO). This can be considered as Fairly Valued.


What is the profitability of RTO stock?

RENTOKIL INITIAL PLC-SP ADR (RTO) has a profitability rating of 6 / 10.


What is the valuation of RENTOKIL INITIAL PLC-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 25.8 and the Price/Book (PB) ratio is 3.07.


Is the dividend of RENTOKIL INITIAL PLC-SP ADR sustainable?

The dividend rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 4 / 10 and the dividend payout ratio is 64.68%.