RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RTO - US7601251041 - ADR
31.61 USD
+0.15 (+0.48%)
31.61 USD
0 (0%)
RTO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 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.
RTO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RTO's Return On Assets of 2.35% is in line compared to the rest of the industry. RTO outperforms 58.75% of its industry peers.
The Return On Equity of RTO (6.35%) is comparable to the rest of the industry.
RTO has a Return On Invested Capital (4.66%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RTO is significantly below the industry average of 10.55%.
| 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 65.00% of its industry peers.
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.
In the last couple of years the Operating Margin of RTO has grown nicely.
Looking at the Gross Margin, with a value of 86.40%, RTO belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
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.
RTO has about the same amout of shares outstanding than it did 1 year ago.
RTO has more shares outstanding than it did 5 years ago.
RTO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 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 2.26, RTO is in line with its industry, outperforming 52.50% of the companies in the same industry.
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.
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.
RTO has a worse Debt to Equity ratio (1.00) than 61.25% of its industry peers.
| 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.
RTO's Current ratio of 1.12 is on the low side compared to the rest of the industry. RTO is outperformed by 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.
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)-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
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.29, RTO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 63.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, RTO is valued at the same level.
With a Price/Forward Earnings ratio of 18.85, RTO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 75.00% of the companies in the same industry.
RTO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 18.85 |
4.2 Price Multiples
RTO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.19 | ||
| EV/EBITDA | 14.75 |
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)2.2
PEG (5Y)3.09
EPS Next 2Y10.98%
EPS Next 3Y11.17%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.94%, RTO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.88, RTO pays a better dividend. On top of this RTO pays more dividend than 85.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
On average, the dividend of RTO grows each year by 20.86%, which is quite nice.
RTO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)20.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
93.98% of the earnings are spent on dividend by RTO. 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%
31.61
+0.15 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners74.77%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap15.90B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts79.26
Price Target31.49 (-0.38%)
Short Float %0.78%
Short Ratio4.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
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)2.12%
PT rev (3m)12.37%
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 | 25.29 | ||
| Fwd PE | 18.85 | ||
| P/S | 2.28 | ||
| P/FCF | 23.19 | ||
| P/OCF | 16.35 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.75 |
EPS(TTM)1.25
EY3.95%
EPS(NY)1.68
Fwd EY5.3%
FCF(TTM)1.36
FCFY4.31%
OCF(TTM)1.93
OCFY6.12%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)2.2
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 25.29 and the Price/Book (PB) ratio is 3.02.
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.