DB:3RBB

Stock Analysis Report

Reckitt Benckiser Group

Executive Summary

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


Snowflake Analysis

Established dividend payer and good 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

Stable Share Price: 3RBB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

3RBB

-4.6%

DE Household Products

-5.7%

DE Market


1 Year Return

9.6%

3RBB

4.1%

DE Household Products

6.1%

DE Market

Return vs Industry: 3RBB exceeded the German Household Products industry which returned 4.1% over the past year.

Return vs Market: 3RBB exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

3RBBIndustryMarket
7 Day-3.3%-4.6%-5.7%
30 Day1.4%-3.9%-5.7%
90 Day7.2%-2.7%-3.6%
1 Year12.7%9.6%6.7%4.1%9.3%6.1%
3 Year-7.3%-13.8%-15.7%-21.1%8.9%-0.7%
5 Year6.0%-5.4%4.1%-5.8%13.6%-2.0%

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?

20.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3RBB (€14.8) is trading below our estimate of fair value (€18.7)

Significantly Below Fair Value: 3RBB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3RBB is good value based on its PE Ratio (18.8x) compared to the Household Products industry average (19.7x).

PE vs Market: 3RBB is good value based on its PE Ratio (18.8x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3RBB is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: 3RBB is overvalued based on its PB Ratio (3x) compared to the XE Household Products industry average (1.9x).


Next Steps

Future Growth

How is Reckitt Benckiser Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3RBB's forecast earnings growth (3.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: 3RBB's earnings (3.6% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: 3RBB's revenue (3% per year) is forecast to grow slower than the German market (5.1% per year).

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3RBB's Return on Equity is forecast to be low in 3 years time (13.2%).


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

Quality Earnings: 3RBB has high quality earnings.

Growing Profit Margin: 3RBB's current net profit margins (17.9%) are lower than last year (27.5%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: 3RBB had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Household Products industry average (-11.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reckitt Benckiser Group's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: 3RBB'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?

2.82%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.8%industryaverage2.5%forecastin3Years2.9%

Current dividend yield vs market & industry

Notable Dividend: 3RBB's dividend (2.82%) is higher than the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: 3RBB's dividend (2.82%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: 3RBB's dividends in 3 years are forecast to be covered by earnings (52.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Laxman Narasimhan (51yo)

0.4yrs

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Adrian Hennah
CFO & Executive Director7yrsUK£4.63m0.021% £10.7m
Laxman Narasimhan
Group CEO & Executive Director0.4yrsno datano data
Richard Joyce
Senior Vice President of Investor Relations0yrsno datano data
Rupert Bondy
Senior VP3.1yrsno datano data
Gurveen Singh
Chief Human Resources Officer2.1yrsno datano data
Aditya Sehgal
Chief Operating Officer of Health3yrsno data0.0089% £4.6m
Kris Licht
Chief Transformation Officer0.3yrsno datano data
Harold van Broek
COO & CFO of Hygiene Home0.2yrsno datano data
Steve Troote
Regional Senior Vice-President of Northern Europe0yrsno datano data
Christine Logan
Deputy Company Secretary0yrsno datano data

2.1yrs

Average Tenure

57yo

Average Age

Experienced Management: 3RBB's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Adrian Hennah
CFO & Executive Director7yrsUK£4.63m0.021% £10.7m
Laxman Narasimhan
Group CEO & Executive Director0.4yrsno datano data
Andrew R. Bonfield
Non-Executive Director1.6yrsno data0.000030% £15.4k
Christopher Sinclair
Independent Chairman of the Board1.8yrsUK£105.00k0.00072% £369.9k
Pamela Kirby
Non-Executive Director5yrsUK£135.00k0.00051% £262.0k
Nicandro Durante
Senior Independent Director1.1yrsUK£120.00k0.00010% £51.4k
Warren Tucker
Non-Executive Director10yrsUK£105.00k0.00051% £262.0k
Mehmood Khan
Non-Executive Director1.6yrsno data0.000030% £15.4k
Mary Harris
Non-Executive Director5yrsUK£107.50k0.00033% £169.5k
Elane Stock
Non-Executive Director1.4yrsno data0.00029% £149.0k

1.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 3RBB's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Reckitt Benckiser Group plc
  • Ticker: 3RBB
  • Exchange: DB
  • Founded: 1823
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£42.961b
  • Listing Market Cap: UK£51.376b
  • Shares outstanding: 709.75m
  • 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 first aid products; condoms, sex toys, and lubricants; heartburn and indigestion solutions; and cough and chest congestion, multi-symptom, and sinus remedies for adults and children under the Clearasil, Dettol, Durex, Gaviscon, and Mucinex brands. It also provides analgesics; footcare and footwear products; sore throat medications; and women's beauty products under the Nurofen, Scholl, Strepsils, and Veet brand. In addition, the company offers fragrances and devices; water softeners; home cleaning products; dish washes; toilet bowl cleaners; disinfectants; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing products under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands, as well as infant and child nutrition products under the Enfamil and Nutramigen brands. It operates in the United States, Canada, Europe, Russia/CIS, Turkey, Israel, Australia, New Zealand, and internationally. The company was founded in 1823 and is headquartered in Slough, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:11
End of Day Share Price2020/02/25 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.