RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
29.75 USD
-0.21 (-0.7%)
29.75 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. There are concerns on the financial health of RTO while its profitability can be described as average. RTO has a correct valuation and a medium growth rate.
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.
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
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.
RTO has a Return On Invested Capital of 4.66%. This is comparable to the rest of the industry: RTO outperforms 53.66% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RTO is below the industry average of 10.13%.
| 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's Profit Margin of 4.80% is fine compared to the rest of the industry. RTO outperforms 63.41% of its industry peers.
RTO's Profit Margin has declined in the last couple of years.
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.
RTO has a Gross Margin of 86.40%. 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 | 86.4% |
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
An Altman-Z score of 2.21 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
RTO has a Altman-Z score of 2.21. This is comparable to the rest of the industry: RTO outperforms 51.22% of 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.
The Debt to FCF ratio of RTO (8.79) is better than 63.41% 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 has a Debt to Equity ratio of 1.00. This is in the lower half of the industry: RTO underperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.79 | ||
| Altman-Z | 2.21 |
ROIC/WACC0.61
WACC7.6%
2.3 Liquidity
A Current Ratio of 1.12 indicates that RTO should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, RTO is doing worse than 71.95% of the companies in the same industry.
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.
With a Quick ratio value of 1.03, RTO is not doing good in the industry: 65.85% 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
The Earnings Per Share has been growing slightly by 6.45% over the past year.
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.
The Revenue has been growing by 21.48% on average over the past years. This is a very strong growth!
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
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
RTO is valuated rather expensively with a Price/Earnings ratio of 23.80.
63.41% of the companies in the same industry are more expensive than RTO, based on the Price/Earnings ratio.
RTO's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.38.
A Price/Forward Earnings ratio of 17.65 indicates a rather expensive valuation of RTO.
Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than the industry average as 74.39% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RTO to the average of the S&P500 Index (23.83), we can say RTO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.8 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
RTO's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.82 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
The 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.
A more expensive valuation may be justified as RTO's earnings are expected to grow with 15.76% in the coming years.
PEG (NY)0.9
PEG (5Y)2.2
EPS Next 2Y18.19%
EPS Next 3Y15.76%
5. Dividend
5.1 Amount
RTO has a Yearly Dividend Yield of 2.08%.
Compared to an average industry Dividend Yield of 0.93, 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 1.87, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
5.2 History
The dividend of RTO is nicely growing with an annual growth rate of 20.86%!
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 2Y18.19%
EPS Next 3Y15.76%
29.75
-0.21 (-0.7%)
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 Cap14.96B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts76.92
Price Target30.84 (3.66%)
Short Float %0.62%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.08% |
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)2.48%
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 | 23.8 | ||
| Fwd PE | 17.65 | ||
| P/S | 2.15 | ||
| P/FCF | 21.82 | ||
| P/OCF | 15.38 | ||
| P/B | 2.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.12 |
EPS(TTM)1.25
EY4.2%
EPS(NY)1.69
Fwd EY5.67%
FCF(TTM)1.36
FCFY4.58%
OCF(TTM)1.93
OCFY6.5%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)0.9
PEG (5Y)2.2
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 | 2.21 |
F-Score5
WACC7.6%
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 23.8 and the Price/Book (PB) ratio is 2.84.
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%.