RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis
USA - NYSE:RTO - US7601251041 - ADR
26.44 USD
-0.11 (-0.41%)
26.44 USD
0 (0%)
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. 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.
In the past year RTO had a positive cash flow from operations.
Each year in the past 5 years RTO has been profitable.
In the past 5 years RTO always reported a positive cash flow from operatings.
1.2 Ratios
RTO has a Return On Assets of 2.36%. This is comparable to the rest of the industry: RTO outperforms 54.88% of its industry peers.
RTO has a Return On Equity (6.38%) which is in line with its industry peers.
With a Return On Invested Capital value of 4.69%, RTO perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RTO is significantly below the industry average of 10.52%.
| 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's Profit Margin of 4.80% is fine compared to the rest of the industry. RTO outperforms 63.41% of its industry peers.
In the last couple of years the Profit Margin of RTO has declined.
The Operating Margin of RTO (10.17%) is better than 70.73% of its industry peers.
In the last couple of years the Operating Margin of RTO has grown nicely.
RTO's Gross Margin of 86.86% is amongst the best of 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.
RTO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, RTO has more shares outstanding
The debt/assets ratio for RTO has been reduced compared to a year ago.
2.2 Solvency
RTO has an Altman-Z score of 2.10. 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.
The Altman-Z score of RTO (2.10) is comparable to the rest of the 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.
The Debt to FCF ratio of RTO (8.70) is comparable to the rest of the industry.
RTO has a Debt/Equity ratio of 1.00. This is a neutral value indicating RTO is somewhat dependend on debt financing.
The Debt to Equity ratio of RTO (1.00) is worse than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1 | ||
| Debt/FCF | 8.7 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.63
WACC7.44%
2.3 Liquidity
A Current Ratio of 1.12 indicates that RTO should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 1.03, RTO is doing worse than 64.63% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing by 10.83% on average over the past years. This is quite good.
RTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.42%.
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.
The Revenue is expected to grow by 4.66% on average over the next years.
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 5Y4.66%
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
A Price/Earnings ratio of 21.15 indicates a rather expensive valuation of RTO.
RTO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. RTO is around the same levels.
A Price/Forward Earnings ratio of 15.67 indicates a correct valuation of RTO.
Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 74.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. RTO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
RTO's Enterprise Value to EBITDA is on the same level as the industry average.
RTO's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RTO is cheaper than 73.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 12.72 |
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.
The decent profitability rating of RTO may justify a higher PE ratio.
RTO's earnings are expected to grow with 15.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.79
PEG (5Y)1.95
EPS Next 2Y18.25%
EPS Next 3Y15.78%
5. Dividend
5.1 Amount
RTO has a Yearly Dividend Yield of 2.24%.
RTO's Dividend Yield is rather good when compared to the industry average which is at 2.55. RTO pays more dividend than 84.15% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, RTO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
5.2 History
On average, the dividend of RTO grows each year by 21.12%, 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)21.12%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
94.52% 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.
DP94.52%
EPS Next 2Y18.25%
EPS Next 3Y15.78%
26.44
-0.11 (-0.41%)
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 Cap13.30B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts76.8
Price Target30.06 (13.69%)
Short Float %0.71%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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)7.37%
PT rev (3m)8.93%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)36.23%
EPS NY rev (3m)36.03%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)32.66%
Revenue NY rev (3m)24.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.15 | ||
| Fwd PE | 15.67 | ||
| P/S | 1.9 | ||
| P/FCF | 19.21 | ||
| P/OCF | 13.53 | ||
| P/B | 2.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.72 |
EPS(TTM)1.25
EY4.73%
EPS(NY)1.69
Fwd EY6.38%
FCF(TTM)1.38
FCFY5.21%
OCF(TTM)1.95
OCFY7.39%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)0.79
PEG (5Y)1.95
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 | 2.1 |
F-Score5
WACC7.44%
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 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 5Y4.66%
EBIT growth 1Y2.43%
EBIT growth 3Y37.69%
EBIT growth 5Y26.87%
EBIT Next Year45.65%
EBIT Next 3Y18.76%
EBIT Next 5Y16.7%
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 21.15 and the Price/Book (PB) ratio is 2.52.
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%.