RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
27.7 USD
-0.17 (-0.61%)
27.87 USD
+0.17 (+0.61%)
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. RTO has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
RTO had positive earnings in each of the past 5 years.
In the past 5 years RTO always reported a positive cash flow from operatings.
1.2 Ratios
RTO has a Return On Assets (2.36%) which is in line with its industry peers.
RTO's Return On Equity of 6.38% is in line compared to the rest of the industry. RTO outperforms 56.10% of its industry peers.
RTO's Return On Invested Capital of 4.69% is in line compared to the rest of the industry. RTO outperforms 52.44% of 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 10.51%.
| 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
With a decent Profit Margin value of 4.80%, RTO is doing good in the industry, outperforming 60.98% of the companies in the same industry.
In the last couple of years the Profit Margin of RTO has declined.
The Operating Margin of RTO (10.17%) is better than 71.95% of its industry peers.
In the last couple of years the Operating Margin of RTO has grown nicely.
The Gross Margin of RTO (86.86%) is better than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTO 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.
The debt/assets ratio for RTO has been reduced compared to a year ago.
2.2 Solvency
RTO has an Altman-Z score of 2.13. 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 (2.13) which is in line with its industry peers.
The Debt to FCF ratio of RTO is 8.70, which is on the high side as it means it would take RTO, 8.70 years of fcf income to pay off 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.
RTO has a Debt/Equity ratio of 1.00. This is a neutral value indicating RTO is somewhat dependend on debt financing.
RTO has a worse Debt to Equity ratio (1.00) than 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.62
WACC7.5%
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 71.95% 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 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.45% over the past year.
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.
Looking at the last year, RTO shows a quite strong growth in Revenue. The Revenue has grown by 17.42% in the last year.
Measured over the past years, RTO shows a very strong growth in Revenue. The Revenue has been growing by 21.74% on average per year.
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.
Based on estimates for the next years, RTO will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y26.65%
EPS Next 2Y18.25%
EPS Next 3Y15.78%
EPS Next 5Y5.96%
Revenue Next Year11.71%
Revenue Next 2Y7.38%
Revenue Next 3Y6.47%
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
RTO is valuated rather expensively with a Price/Earnings ratio of 22.16.
Based on the Price/Earnings ratio, RTO is valued a bit cheaper than 64.63% of the companies in the same industry.
When comparing the Price/Earnings ratio of RTO to the average of the S&P500 Index (26.15), we can say RTO is valued inline with the index average.
The Price/Forward Earnings ratio is 16.42, which indicates a correct valuation of RTO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 73.17% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.22. RTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 16.42 |
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 74.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.12 | ||
| EV/EBITDA | 13.15 |
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.
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 15.78% in the coming years.
PEG (NY)0.83
PEG (5Y)2.05
EPS Next 2Y18.25%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
RTO has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 2.48, RTO pays a better dividend. On top of this RTO pays more dividend than 85.37% of the companies listed 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 | 2.18% |
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.
RTO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP94.52%
EPS Next 2Y18.25%
EPS Next 3Y15.78%
27.7
-0.17 (-0.61%)
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 Cap13.93B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts76.8
Price Target30.23 (9.13%)
Short Float %0.65%
Short Ratio4.05
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)0.48%
PT rev (3m)5.53%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)36.23%
EPS NY rev (3m)33.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)32.66%
Revenue NY rev (3m)28.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.16 | ||
| Fwd PE | 16.42 | ||
| P/S | 1.99 | ||
| P/FCF | 20.12 | ||
| P/OCF | 14.18 | ||
| P/B | 2.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.15 |
EPS(TTM)1.25
EY4.51%
EPS(NY)1.69
Fwd EY6.09%
FCF(TTM)1.38
FCFY4.97%
OCF(TTM)1.95
OCFY7.05%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)0.83
PEG (5Y)2.05
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 | 2.13 |
F-Score5
WACC7.5%
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 Y26.65%
EPS Next 2Y18.25%
EPS Next 3Y15.78%
EPS Next 5Y5.96%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
Sales Q2Q%24.28%
Revenue Next Year11.71%
Revenue Next 2Y7.38%
Revenue Next 3Y6.47%
Revenue Next 5Y5.94%
EBIT growth 1Y2.43%
EBIT growth 3Y37.69%
EBIT growth 5Y26.87%
EBIT Next Year45.65%
EBIT Next 3Y18.76%
EBIT Next 5Y18.78%
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 22.16 and the Price/Book (PB) ratio is 2.64.
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%.