DB:3RB

Stock Analysis Report

Reckitt Benckiser Group

Executive Summary

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products.

Snowflake

Fundamentals

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Reckitt Benckiser Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.1%

3RB

-0.01%

DE Household Products

1.4%

DE Market


1 Year Return

-7.9%

3RB

-2.2%

DE Household Products

3.7%

DE Market

Return vs Industry: 3RB underperformed the German Household Products industry which returned -2.2% over the past year.

Return vs Market: 3RB underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

3RBIndustryMarket
7 Day-0.1%-0.01%1.4%
30 Day-1.7%-1.7%1.3%
90 Day-5.2%-2.3%3.4%
1 Year-5.2%-7.9%0.3%-2.2%7.0%3.7%
3 Year-9.9%-16.6%-14.2%-19.6%18.5%8.3%
5 Year23.4%9.6%35.1%20.5%42.2%22.9%

Price Volatility Vs. Market

How volatile is Reckitt Benckiser Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Reckitt Benckiser Group undervalued compared to its fair value and its price relative to the market?

28.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 3RB (€69.92) is trading below our estimate of fair value (€97.57)

Significantly Undervalued: 3RB is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3RB is good value based on its PE Ratio (18.7x) compared to the Household Products industry average (18.7x).

PE vs Market: 3RB is good value based on its PE Ratio (18.7x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 3RB is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 3RB is overvalued based on its PB Ratio (3x) compared to the XE Household Products industry average (2.1x).


Next Steps

Future Growth

How is Reckitt Benckiser Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3RB's forecast earnings growth (6.9% per year) is above the savings rate (0.2%).

Earnings vs Market: 3RB's earnings (6.9% per year) are forecast to grow slower than the German market (12.7% per year).

High Growth Earnings: 3RB's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3RB's revenue (3.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 3RB's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 3RB's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Reckitt Benckiser Group performed over the past 5 years?

13.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3RB's earnings have grown by 13.9% per year over the past 5 years.

Accelerating Growth: 3RB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3RB had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Household Products industry average (-34.3%).


Return on Equity

High ROE: 3RB's Return on Equity (15.9%) is considered low.


Return on Assets

ROA vs Industry: 3RB has a higher Return on Assets than the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: 3RB's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Reckitt Benckiser Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3RB's short term assets (£5.3B) do not cover its short term liabilities (£9.0B)

Long Term Liabilities: 3RB's short term assets (5.3B) do not cover its long term liabilities (15.1B)


Debt to Equity History and Analysis

Debt Level: 3RB's debt to equity ratio (85.1%) is considered high

Reducing Debt: 3RB's debt to equity ratio has increased from 46% to 85.1% over the past 5 years.

Debt Coverage: 3RB's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: 3RB's interest payments on its debt are well covered by EBIT (12.8x coverage).


Balance Sheet

Inventory Level: 3RB has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3RB's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is Reckitt Benckiser Group's current dividend yield, its reliability and sustainability?

2.84%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 3RB's dividend (2.84%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: 3RB's dividend (2.84%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: 3RB's dividends per share have been stable in the past 10 years.

Growing Dividend: 3RB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), 3RB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3RB's dividends in 3 years are forecast to be covered by earnings (50.7% payout ratio).


Next Steps

Management

What is the CEO of Reckitt Benckiser Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Laxman Narasimhan (51yo)

0.08yrs

Tenure

0

Mr. Laxman Narasimhan has been an Executive Director of Reckitt Benckiser Group plc since July 16, 2019 and has been its Group Chief Executive Officer since September 1, 2019. Mr. Narasimhan served as Glob ...


Management Age and Tenure

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: 3RB's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 3RB's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£77,80923 May 19
Christopher Sinclair
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares1,076
Max PriceUK£72.31
BuyUK£10,49422 May 19
Andrew R. Bonfield
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares146
Max PriceUK£71.88
BuyUK£10,85322 May 19
Elane Stock
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares151
Max PriceUK£71.88
BuyUK£10,85322 May 19
Mary Harris
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares151
Max PriceUK£71.88
BuyUK£10,27822 May 19
Warren Tucker
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares143
Max PriceUK£71.88
BuyUK£9,99122 May 19
Nicandro Durante
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares139
Max PriceUK£71.88
BuyUK£10,35022 May 19
Pamela Kirby
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares144
Max PriceUK£71.88
BuyUK£5,39128 Feb 19
Andrew R. Bonfield
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares80
Max PriceUK£67.39
BuyUK£136,99020 Feb 19
Elane Stock
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,910
Max PriceUK£71.72

Ownership Breakdown


Management Team

  • Adrian Hennah (62yo)

    CFO & Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£4.63m
  • Rupert Bondy (57yo)

    Senior VP

    • Tenure: 2.8yrs
  • Rakesh Kapoor (60yo)

    Executive Officer

    • Tenure: 0.08yrs
    • Compensation: UK£15.21m
  • Rob de Groot (52yo)

    President of Hygiene Home

    • Tenure: 1.8yrs
  • Richard Joyce

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Laxman Narasimhan (51yo)

    Group CEO & Executive Director

    • Tenure: 0.08yrs
  • Adi Sehgal

    Chief Operating Officer of Health

    • Tenure: 2.7yrs
  • Seth Cohen

    Chief Information Officer

    • Tenure: 2.1yrs
  • Gurveen Singh

    Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Mike Duijser

    Chief Supply Officer

    • Tenure: 0.9yrs

Board Members

  • Andrew R. Bonfield (56yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Chris Sinclair (68yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: UK£105.00k
  • Adrian Hennah (62yo)

    CFO & Executive Director

    • Tenure: 6.7yrs
    • Compensation: UK£4.63m
  • Pam Kirby (66yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£135.00k
  • Nicandro Durante (63yo)

    Senior Independent Director

    • Tenure: 0.8yrs
    • Compensation: UK£120.00k
  • Warren Tucker (57yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: UK£105.00k
  • Mehmood Khan (60yo)

    Non-Executive Director

    • Tenure: 1.3yrs
  • Mary Harris (53yo)

    Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£107.50k
  • Elane Stock (54yo)

    Non-Executive Director

    • Tenure: 1.1yrs
  • Laxman Narasimhan (51yo)

    Group CEO & Executive Director

    • Tenure: 0.08yrs

Company Information

Reckitt Benckiser Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reckitt Benckiser Group plc
  • Ticker: 3RB
  • Exchange: DB
  • Founded: 1823
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£42.600b
  • Listing Market Cap: UK£49.226b
  • Shares outstanding: 709.41m
  • Website: https://www.rb.com

Number of Employees


Location

  • Reckitt Benckiser Group plc
  • Turner House
  • 103-105 Bath Road
  • Slough
  • Berkshire
  • SL1 3UH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RB.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
3RBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RBGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
3RBXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
RBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
RBSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
RB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
RBGL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008
3RBBDB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 2008

Biography

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products. The company offers acne treatment creams, facial washes, and cleansing pads; disinfection, hygiene, and firs ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:56
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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 here.