| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
RTO Stock Overview
Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally.
Rentokil Initial Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£5.26 |
| 52 Week High | UK£6.62 |
| 52 Week Low | UK£4.58 |
| Beta | 0.31 |
| 1 Month Change | -7.69% |
| 3 Month Change | -12.10% |
| 1 Year Change | 0% |
| 3 Year Change | 57.58% |
| 5 Year Change | 133.05% |
| Change since IPO | 504.60% |
Recent News & Updates
A Look At The Fair Value Of Rentokil Initial plc (LON:RTO)
How far off is Rentokil Initial plc ( LON:RTO ) from its intrinsic value? Using the most recent financial data, we'll...
Here's Why I Think Rentokil Initial (LON:RTO) Is An Interesting Stock
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
These 4 Measures Indicate That Rentokil Initial (LON:RTO) Is Using Debt Safely
Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Shareholder Returns
| RTO | GB Commercial Services | GB Market | |
|---|---|---|---|
| 7D | 1.4% | -0.7% | -0.5% |
| 1Y | 0% | 5.7% | 8.7% |
Return vs Industry: RTO underperformed the UK Commercial Services industry which returned 5.7% over the past year.
Return vs Market: RTO underperformed the UK Market which returned 8.7% over the past year.
Price Volatility
| RTO volatility | |
|---|---|
| RTO Average Weekly Movement | 5.0% |
| Commercial Services Industry Average Movement | 4.5% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: RTO is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: RTO's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1903 | 44,500 | Andy Ransom | https://www.rentokil-initial.com |
Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services from rodents to flying and crawling insects, as well as to other forms of wildlife management for commercial and residential customers. The company also provides hygiene services, including the provision and maintenance of products, such as air fresheners, sanitizers, feminine hygiene units, hand dryers, paper and linen towel dispensers, soap and hand sanitizer dispensers, toilet paper dispensers, and floor protection mats.
Rentokil Initial Fundamentals Summary
| RTO fundamental statistics | |
|---|---|
| Market Cap | UK£9.74b |
| Earnings (TTM) | UK£258.40m |
| Revenue (TTM) | UK£3.00b |
37.7x
P/E Ratio3.3x
P/S RatioIs RTO overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| RTO income statement (TTM) | |
|---|---|
| Revenue | UK£3.00b |
| Cost of Revenue | UK£703.90m |
| Gross Profit | UK£2.29b |
| Expenses | UK£2.03b |
| Earnings | UK£258.40m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Mar 03, 2022
| Earnings per share (EPS) | 0.14 |
| Gross Margin | 76.50% |
| Net Profit Margin | 8.63% |
| Debt/Equity Ratio | 234.1% |
How did RTO perform over the long term?
See historical performance and comparisonDividends
0.8%
Current Dividend Yield54%
Payout RatioValuation
Is Rentokil Initial undervalued compared to its fair value and its price relative to the market?
21.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RTO (£5.26) is trading below our estimate of fair value (£6.68)
Significantly Below Fair Value: RTO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RTO's PE Ratio (37.7x) is in line with the UK Commercial Services industry average.
PE vs Market: RTO is poor value based on its PE Ratio (37.7x) compared to the UK market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: RTO is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: RTO is overvalued based on its PB Ratio (8.6x) compared to the GB Commercial Services industry average (2.6x).
Future Growth
How is Rentokil Initial forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
15.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTO's forecast earnings growth (15.1% per year) is above the savings rate (0.9%).
Earnings vs Market: RTO's earnings (15.1% per year) are forecast to grow faster than the UK market (12.1% per year).
High Growth Earnings: RTO's earnings are forecast to grow, but not significantly.
Revenue vs Market: RTO's revenue (7% per year) is forecast to grow faster than the UK market (4.9% per year).
High Growth Revenue: RTO's revenue (7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RTO's Return on Equity is forecast to be high in 3 years time (22.4%)
Past Performance
How has Rentokil Initial performed over the past 5 years?
-14.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTO has high quality earnings.
Growing Profit Margin: RTO's current net profit margins (8.6%) are lower than last year (9%).
Past Earnings Growth Analysis
Earnings Trend: RTO's earnings have declined by 14.5% per year over the past 5 years.
Accelerating Growth: RTO's earnings growth over the past year (6.4%) exceeds its 5-year average (-14.5% per year).
Earnings vs Industry: RTO earnings growth over the past year (6.4%) underperformed the Commercial Services industry 35.3%.
Return on Equity
High ROE: Whilst RTO's Return on Equity (22.76%) is high, this metric is skewed due to their high level of debt.
Financial Health
How is Rentokil Initial's financial position?
Financial Position Analysis
Short Term Liabilities: RTO's short term assets (£2.4B) exceed its short term liabilities (£2.3B).
Long Term Liabilities: RTO's short term assets (£2.4B) exceed its long term liabilities (£1.7B).
Debt to Equity History and Analysis
Debt Level: RTO's net debt to equity ratio (81.4%) is considered high.
Reducing Debt: RTO's debt to equity ratio has reduced from 385.2% to 234.1% over the past 5 years.
Debt Coverage: RTO's debt is well covered by operating cash flow (23.9%).
Interest Coverage: RTO's interest payments on its debt are well covered by EBIT (10.6x coverage).
Balance Sheet
Dividend
What is Rentokil Initial current dividend yield, its reliability and sustainability?
0.79%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RTO's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: RTO's dividend (0.79%) is low compared to the top 25% of dividend payers in the UK market (4.04%).
Stability and Growth of Payments
Stable Dividend: RTO is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.
Growing Dividend: RTO is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: RTO is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RTO's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.3yrs
Average management tenure
CEO
Andy Ransom (58 yo)
8.25yrs
Tenure
UK£4,055,200
Compensation
Mr. Andrew M. Ransom, also known as Andy, has been the Chief Executive Officer of Rentokil Initial plc since October 1, 2013. Mr. Ransom serves as Non-Executive Director and Senior Independent Director of...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD5.50M) is above average for companies of similar size in the UK market ($USD3.96M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: RTO's management team is seasoned and experienced (7.3 years average tenure).
Board Members
Experienced Board: RTO's board of directors are considered experienced (4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RTO insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Rentokil Initial plc's employee growth, exchange listings and data sources
Key Information
- Name: Rentokil Initial plc
- Ticker: RTO
- Exchange: LSE
- Founded: 1903
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Implied Market Cap: UK£9.740b
- Shares outstanding: 1.85b
- Website: https://www.rentokil-initial.com
Number of Employees
Location
- Rentokil Initial plc
- Meadows Business Park
- Riverbank
- Camberley
- Surrey
- GU17 9AB
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 21:15 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.