Rentokil Initial
Market Cap
UK£9.9b
Last Updated
2020/10/28 20:50 UTC
Data Sources
Company Financials +
Executive Summary
Rentokil Initial plc, through its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with limited growth.
Similar Companies
Share Price & News
How has Rentokil Initial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RTO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.9%
RTO
-0.7%
GB Commercial Services
-3.4%
GB Market
1 Year Return
18.2%
RTO
-13.6%
GB Commercial Services
-19.7%
GB Market
Return vs Industry: RTO exceeded the UK Commercial Services industry which returned -11.9% over the past year.
Return vs Market: RTO exceeded the UK Market which returned -17.2% over the past year.
Shareholder returns
| RTO | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | -0.7% | -3.4% |
| 30 Day | -1.3% | -1.9% | -4.5% |
| 90 Day | -3.6% | -3.6% | -5.1% |
| 1 Year | 18.2%18.2% | -10.3%-13.6% | -16.6%-19.7% |
| 3 Year | 64.9%60.7% | -12.3%-21.5% | -12.8%-23.6% |
| 5 Year | 266.2%246.5% | 17.3%-5.1% | 9.9%-14.9% |
Price Volatility Vs. Market
How volatile is Rentokil Initial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
We're Not Counting On Rentokil Initial (LON:RTO) To Sustain Its Statutory Profitability3 weeks ago | Simply Wall St
Is Rentokil Initial (LON:RTO) A Risky Investment?1 month ago | Simply Wall St
Rentokil Initial (LON:RTO) Has Gifted Shareholders With A Fantastic 294% Total Return On Their InvestmentValuation
Is Rentokil Initial undervalued compared to its fair value and its price relative to the market?
40.96x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RTO (£5.37) is trading above our estimate of fair value (£2.52)
Significantly Below Fair Value: RTO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RTO is poor value based on its PE Ratio (41x) compared to the GB Commercial Services industry average (32.3x).
PE vs Market: RTO is poor value based on its PE Ratio (41x) compared to the UK market (18x).
Price to Earnings Growth Ratio
PEG Ratio: RTO is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: RTO is overvalued based on its PB Ratio (9.3x) compared to the GB Commercial Services industry average (1.7x).
Next Steps
Future Growth
How is Rentokil Initial forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
18.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTO's forecast earnings growth (18.1% per year) is above the savings rate (1.2%).
Earnings vs Market: RTO's earnings (18.1% per year) are forecast to grow slower than the UK market (23.6% per year).
High Growth Earnings: RTO's earnings are forecast to grow, but not significantly.
Revenue vs Market: RTO's revenue (5.4% per year) is forecast to grow slower than the UK market (5.8% per year).
High Growth Revenue: RTO's revenue (5.4% 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 (21.8%)
Next Steps
Past Performance
How has Rentokil Initial performed over the past 5 years?
-5.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTO has a large one-off gain of £69.3M impacting its June 30 2020 financial results.
Growing Profit Margin: RTO became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: RTO's earnings have declined by 5.5% per year over the past 5 years.
Accelerating Growth: RTO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: RTO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (0.2%).
Return on Equity
High ROE: Whilst RTO's Return on Equity (22.63%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Rentokil Initial's financial position?
Financial Position Analysis
Short Term Liabilities: RTO's short term assets (£1.7B) exceed its short term liabilities (£1.6B).
Long Term Liabilities: RTO's short term assets (£1.7B) exceed its long term liabilities (£1.6B).
Debt to Equity History and Analysis
Debt Level: RTO's debt to equity ratio (167.5%) is considered high.
Reducing Debt: RTO's debt to equity ratio has reduced from 673.9% to 167.5% over the past 5 years.
Debt Coverage: RTO's debt is well covered by operating cash flow (28.5%).
Interest Coverage: RTO's interest payments on its debt are well covered by EBIT (7.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Rentokil Initial current dividend yield, its reliability and sustainability?
0.95%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RTO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RTO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RTO's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RTO's dividend payments have been 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?
4.8yrs
Average management tenure
CEO
Andy Ransom (57 yo)
7yrs
Tenure
UK£4,557,700
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 ($USD5.96M) is about average for companies of similar size in the UK market ($USD4.91M).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 7yrs | UK£4.56m | 0.085% £ 8.4m | |
| CFO & Director | 0.17yr | no data | no data | |
| Chief Information Officer | 1.5yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Group General Counsel & Company Secretary | 7.08yrs | no data | no data | |
| Director of Corporate Communications | 14.75yrs | no data | no data | |
| Chief Marketing | 2.75yrs | no data | no data | |
| Group Human Resources Director | 4.75yrs | no data | no data | |
| Managing Director of North America | 7yrs | no data | no data | |
| Managing Director of UK & Rest of World | 7yrs | no data | no data | |
| Managing Director of Asia | 4.58yrs | no data | no data | |
| Managing Director of Europe | 4.58yrs | no data | no data |
4.8yrs
Average Tenure
54yo
Average Age
Experienced Management: RTO's management team is considered experienced (4.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 7yrs | UK£4.56m | 0.085% £ 8.4m | |
| CFO & Director | 0.17yr | no data | no data | |
| Chairman of Rentokil Initial Pension Trustee Limited | 13.25yrs | UK£30.00k | no data | |
| Non-Executive Director | 0.50yr | no data | 0.00083% £ 82.4k | |
| Non Executive Chairman | 1.42yrs | UK£254.30k | 0.0014% £ 134.0k | |
| Non-Executive Independent Director | 6.25yrs | UK£75.00k | 0.00054% £ 53.6k | |
| Non-Executive Independent Director | 2.92yrs | UK£60.00k | 0.000090% £ 8.9k | |
| Non-Executive Independent Director | 8.58yrs | UK£69.70k | 0.00057% £ 56.6k | |
| Senior Independent Director | 1.42yrs | UK£66.90k | 0.00054% £ 53.6k |
2.9yrs
Average Tenure
57yo
Average Age
Experienced Board: RTO's board of directors are not considered experienced ( 2.9 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.
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 company bio, 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
- Market Cap: UK£9.924b
- Shares outstanding: 1.85b
- Website: https://www.rentokil-initial.com
Number of Employees
Location
- Rentokil Initial plc
- Riverbank
- Meadows Business Park
- Camberley
- Surrey
- GU17 9AB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RTO | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | May 1992 |
| RKLI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | May 1992 |
| RTO1 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | May 1992 |
| RTOL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | May 1992 |
| RTOK.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Sep 1995 |
Biography
Rentokil Initial plc, through 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 20:50 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.