RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - NYSE:RTO - US7601251041 - ADR
27.09 USD
+0.13 (+0.48%)
27.09 USD
0 (0%)
RTO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 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.
In the past year RTO had a positive cash flow from operations.
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
The Return On Assets of RTO (2.36%) is comparable to the rest of the industry.
RTO has a Return On Equity (6.38%) which is in line with its industry peers.
RTO has a Return On Invested Capital of 4.69%. This is comparable to the rest of the industry: RTO outperforms 51.22% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RTO is significantly below the industry average of 10.49%.
| 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 has a better Profit Margin (4.80%) than 63.41% 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 69.51% of its industry peers.
In the last couple of years the Operating Margin of RTO has grown nicely.
RTO has a Gross Margin of 86.86%. This is amongst the best in the industry. RTO outperforms 98.78% of its industry peers.
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 | 86.86% |
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
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.
The number of shares outstanding for RTO has been increased compared to 5 years ago.
RTO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.11 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.11, RTO is in line with its industry, outperforming 51.22% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 8.70, RTO is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
A Debt/Equity ratio of 1.00 indicates that RTO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 1.00, RTO is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.63
WACC7.47%
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 73.17% 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 65.85% 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%.
Measured over the past years, RTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.83% on average per year.
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 6.14% on average per year.
The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
EPS Next Y-7.04%
EPS Next 2Y0.92%
EPS Next 3Y4.18%
EPS Next 5Y6.14%
Revenue Next Year6.36%
Revenue Next 2Y4.7%
Revenue Next 3Y4.71%
Revenue Next 5Y9.48%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.67, RTO is valued on the expensive side.
RTO's Price/Earnings ratio is in line with the industry average.
RTO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.05, the valuation of RTO can be described as rather expensive.
Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.68, RTO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 22.05 |
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 69.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.68 | ||
| EV/EBITDA | 12.88 |
4.3 Compensation for Growth
The decent profitability rating of RTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2
EPS Next 2Y0.92%
EPS Next 3Y4.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, RTO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, RTO pays a better dividend. On top of this RTO pays more dividend than 84.15% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
On average, the dividend of RTO grows each year by 21.12%, which is quite nice.
RTO has paid a dividend for at least 10 years, which is 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 2Y0.92%
EPS Next 3Y4.18%
27.09
+0.13 (+0.48%)
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 Cap13.62B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts76.8
Price Target30.09 (11.07%)
Short Float %0.71%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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)2.01%
PT rev (3m)7.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.67 | ||
| Fwd PE | 22.05 | ||
| P/S | 1.94 | ||
| P/FCF | 19.68 | ||
| P/OCF | 13.87 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.88 |
EPS(TTM)1.25
EY4.61%
EPS(NY)1.23
Fwd EY4.54%
FCF(TTM)1.38
FCFY5.08%
OCF(TTM)1.95
OCFY7.21%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)N/A
PEG (5Y)2
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 | 2.11 |
F-Score5
WACC7.47%
ROIC/WACC0.63
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 Y-7.04%
EPS Next 2Y0.92%
EPS Next 3Y4.18%
EPS Next 5Y6.14%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
Sales Q2Q%24.28%
Revenue Next Year6.36%
Revenue Next 2Y4.7%
Revenue Next 3Y4.71%
Revenue Next 5Y9.48%
EBIT growth 1Y2.43%
EBIT growth 3Y37.69%
EBIT growth 5Y26.87%
EBIT Next Year45.65%
EBIT Next 3Y18.76%
EBIT Next 5Y16.89%
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 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.
Can you provide the PE and PB ratios for RTO stock?
The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 21.67 and the Price/Book (PB) ratio is 2.59.
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%.