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Rentokil Initial plcLSE:RTO Stock Report

Market Cap UK£10.9b
Share Price
UK£4.34
UK£4.54
4.4% undervalued intrinsic discount
1Y23.6%
7D-6.1%
1D
Portfolio Value
View

Rentokil Initial plc

LSE:RTO Stock Report

Market Cap: UK£10.9b

Rentokil Initial (RTO) Stock Overview

Provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific. More details

RTO fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends2/6

RTO Community Fair Values

Create Narrative

See what 34 others think this stock is worth. Follow their fair value or set your own to get alerts.

Rentokil Initial plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Rentokil Initial
Historical stock prices
Current Share PriceUK£4.34
52 Week HighUK£5.07
52 Week LowUK£3.35
Beta0.42
1 Month Change-12.63%
3 Month Change-7.92%
1 Year Change23.58%
3 Year Change-33.78%
5 Year Change-9.02%
Change since IPO398.74%

Recent News & Updates

Narrative Update May 16

RTO: Bolt On M&A And Progressive Dividend Will Likely Sustain High P/E

Analysts have adjusted their price target on Rentokil Initial to £4.54. The change reflects refreshed assumptions around discount rate, revenue growth, profit margins and future P/E rather than a shift in fair value.
Narrative Update Apr 28

RTO: Future Dividend Policy And M&A Pipeline Will Support Further Upside

Analysts have revised their fair value estimate for Rentokil Initial from £5.70 to £6.24, based on updated assumptions around revenue growth, profit margins, discount rate and future P/E expectations. What's in the News Board recommends a final dividend of 8.24 cents per share for the year ended 31 December 2025, subject to approval at the AGM on 7 May 2026.
Narrative Update Apr 13

RTO: Bolt On M&A And New CEO Will Likely Sustain High P/E

Analysts have adjusted their price target for Rentokil Initial to £4.54 from £4.06. This reflects updated assumptions around revenue growth, profit margins, the discount rate and the stock's future P/E multiple.

Recent updates

Narrative Update May 16

RTO: Bolt On M&A And Progressive Dividend Will Likely Sustain High P/E

Analysts have adjusted their price target on Rentokil Initial to £4.54. The change reflects refreshed assumptions around discount rate, revenue growth, profit margins and future P/E rather than a shift in fair value.
Narrative Update Apr 28

RTO: Future Dividend Policy And M&A Pipeline Will Support Further Upside

Analysts have revised their fair value estimate for Rentokil Initial from £5.70 to £6.24, based on updated assumptions around revenue growth, profit margins, discount rate and future P/E expectations. What's in the News Board recommends a final dividend of 8.24 cents per share for the year ended 31 December 2025, subject to approval at the AGM on 7 May 2026.
Narrative Update Apr 13

RTO: Bolt On M&A And New CEO Will Likely Sustain High P/E

Analysts have adjusted their price target for Rentokil Initial to £4.54 from £4.06. This reflects updated assumptions around revenue growth, profit margins, the discount rate and the stock's future P/E multiple.
Analysis Article Apr 01

There May Be Some Bright Spots In Rentokil Initial's (LON:RTO) Earnings

Rentokil Initial plc's ( LON:RTO ) stock was strong despite it releasing a soft earnings report last week. We think...
Narrative Update Mar 30

RTO: Ongoing M&A Plans Will Likely Keep P/E Excessively High

Analysts have trimmed their price target on Rentokil Initial to £4.06 from £4.07, reflecting updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E that are only slightly different from prior estimates. What's in the News Board recommends a final dividend of 8.24 cents per share in respect of the year ended 31 December 2025, taking the full year dividend to 12.39 cents per share.
Narrative Update Mar 16

RTO: Higher P/E And Aggressive M&A Strategy Will Likely Keep Shares Expensive

Analysts have raised their price target on Rentokil Initial from £3.68 to £4.07, citing updated assumptions around revenue growth, profit margins, the discount rate and future P/E as key drivers of the change. What's in the News Rentokil Initial is actively seeking acquisitions, with management highlighting bolt-on M&A as a core part of its growth plans and pointing to a strong pipeline of potential deals into 2026.
Narrative Update Mar 02

RTO: Higher P/E And CEO Transition Will Likely Keep Shares Expensive

Analysts have lifted their fair value estimate for Rentokil Initial from £3.35 to £3.68. The updated assumptions reflect a higher discount rate, a lower revenue growth outlook, slightly stronger profit margins and a higher future P/E multiple.
Analysis Article Feb 16

Calculating The Intrinsic Value Of Rentokil Initial plc (LON:RTO)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Rentokil Initial fair value estimate is UK£4.27 With UK£4.42...
Narrative Update Feb 16

RTO: Incoming CEO And Revised Assumptions Will Support Fair Value Steadiness

Analysts have nudged their price target for Rentokil Initial higher to reflect updated fair value assumptions around £4.82 per share, based on slightly revised inputs for discount rate, revenue growth, profit margin, and future P/E expectations. What's in the News Rentokil Initial has appointed Mike Duffy as Chief Executive Officer, effective March 16, 2026, with a handover period starting February 16, 2026, as CEO Designate (Key Developments).
Narrative Update Feb 02

RTO: Future CEO Transition Will Likely Leave Shares Looking Expensive

Analysts have lifted their fair value estimate for Rentokil Initial from £3.13 to about £3.35, citing updated views on revenue growth, profit margins, a lower assumed discount rate and a revised future P/E multiple. What's in the News Rentokil Initial has appointed Mike Duffy as Chief Executive Officer, with the role becoming effective on March 16, 2026, following a period as CEO Designate from February 16, 2026 (company announcement).
Narrative Update Jan 19

RTO: CEO Transition And Refined Assumptions Will Support Fair Value Steadiness

Analysts have slightly increased their price target for Rentokil Initial, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E, although specific currency figures were not provided. What's in the News Rentokil Initial plc appointed Mike Duffy as Chief Executive Officer, with effect from March 16, 2026, following a period as CEO Designate starting February 16, 2026.
Analysis Article Jan 12

Why Investors Shouldn't Be Surprised By Rentokil Initial plc's (LON:RTO) P/E

Rentokil Initial plc's ( LON:RTO ) price-to-earnings (or "P/E") ratio of 44.7x might make it look like a strong sell...
Narrative Update Jan 04

RTO: Lower Discount Rate And Margin Outlook Will Support Fair Value Steadiness

Analysts have raised their price target for Rentokil Initial by approximately 2 percent. They cited a modestly lower discount rate and an improved profit margin outlook, which more than offset slightly reduced revenue growth expectations and a marginally lower future earnings multiple.
Narrative Update Dec 14

RTO: Rising Margins And Lower Risk Are Expected To Drive Upside

Analysts have raised their price target for Rentokil Initial from approximately $5.39 to $5.70, citing expectations of stronger profit margins and a slightly lower discount rate. These factors more than offset trimmed revenue growth forecasts and a modestly lower future P/E multiple.
Narrative Update Nov 28

RTO: Fair Value And Margins Suggest Steady Outlook Amid Modest Profit Gains

Analysts have raised their price target for Rentokil Initial slightly, from $4.55 to $4.56, based on modest improvements in forecasted revenue growth and profit margins. Valuation Changes The Fair Value Estimate has increased slightly from £4.55 to £4.56 per share.
Analysis Article Nov 15

Calculating The Fair Value Of Rentokil Initial plc (LON:RTO)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Rentokil Initial fair value estimate is UK£3.71 Rentokil...
Narrative Update Nov 14

RTO: Rising Revenue Expectations Will Drive Continued Share Price Momentum

Analysts have raised their price target for Rentokil Initial slightly, increasing it from $4.49 to $4.55. They cite expectations for stronger revenue growth despite only modest changes in profitability and valuation metrics.
Narrative Update Oct 31

RTO: Future Performance Will Balance Modest Revenue Tailwinds And Discount Rate Reductions

Analysts have raised their price target for Rentokil Initial from £4.36 to £4.49 per share, citing upgraded estimates for revenue growth and a modest reduction in the discount rate as key supporting factors. Valuation Changes The Fair Value Estimate has increased from £4.36 to £4.49 per share, reflecting a modest upward revision.
Analysis Article Oct 28

Does Rentokil Initial (LON:RTO) Have A Healthy Balance Sheet?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Narrative Update Oct 17

Urbanization And Digital Shifts Will Reposition Pest And Hygiene Services

Analysts have raised their price target for Rentokil Initial from £4.16 to £4.36, citing slightly improved profit margin forecasts and a modest decrease in the discount rate as the primary factors behind the adjustment. What's in the News Rentokil Initial plc has declared an interim dividend payment of 4.15 pence per share.
Narrative Update Oct 03

Urbanization And Digital Shifts Will Reposition Pest And Hygiene Services

Analysts have slightly lowered their price target for Rentokil Initial to £4.16 from £4.25. They cited more moderate expectations for revenue growth and profit margins.
Analysis Article Aug 26

Rentokil Initial plc (LON:RTO) Not Flying Under The Radar

When close to half the companies in the United Kingdom have price-to-earnings ratios (or "P/E's") below 16x, you may...
Analysis Article Jul 20

Estimating The Intrinsic Value Of Rentokil Initial plc (LON:RTO)

Key Insights The projected fair value for Rentokil Initial is UK£3.34 based on 2 Stage Free Cash Flow to Equity...
Analysis Article Jun 23

Is Rentokil Initial (LON:RTO) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
User avatar
New Narrative Mar 09

Terminix Integration And Network Expansion Will Improve North American Operations

Expanding North American operations with new branches and improved marketing boosts revenue potential and operational reach.

Shareholder Returns

RTOGB Commercial ServicesGB Market
7D-6.1%-5.4%-0.9%
1Y23.6%20.2%18.0%

Return vs Industry: RTO exceeded the UK Commercial Services industry which returned 20.2% over the past year.

Return vs Market: RTO exceeded the UK Market which returned 18% over the past year.

Price Volatility

Is RTO's price volatile compared to industry and market?
RTO volatility
RTO Average Weekly Movement4.4%
Commercial Services Industry Average Movement4.9%
Market Average Movement5.7%
10% most volatile stocks in GB Market12.0%
10% least volatile stocks in GB Market3.2%

Stable Share Price: RTO has not had significant price volatility in the past 3 months compared to the UK market.

Volatility Over Time: RTO's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190363,388Mike Duffywww.rentokil-initial.com

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific. The company offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management. It provides hygiene services, including the provision and maintenance of products, such as soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats.

Rentokil Initial plc Fundamentals Summary

How do Rentokil Initial's earnings and revenue compare to its market cap?
RTO fundamental statistics
Market capUK£10.92b
Earnings (TTM)UK£216.10m
Revenue (TTM)UK£5.15b
50.5x
P/E Ratio
2.1x
P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
RTO income statement (TTM)
RevenueUS$6.91b
Cost of RevenueUS$5.96b
Gross ProfitUS$951.00m
Other ExpensesUS$661.00m
EarningsUS$290.00m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

Jul 30, 2026

Earnings per share (EPS)0.12
Gross Margin13.77%
Net Profit Margin4.20%
Debt/Equity Ratio101.7%

How did RTO perform over the long term?

See historical performance and comparison

Dividends

2.1%
Current Dividend Yield
108%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/03 00:08
End of Day Share Price 2026/06/03 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Rentokil Initial plc is covered by 28 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul Daniel SullivanBarclays
James RosenthalBarclays
Jane SparrowBarclays