Rentokil Initial
Market Cap
UK£8.7b
Last Updated
2021/05/16 19:17 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
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 is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: RTO's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-3.9%
RTO
-1.9%
GB Commercial Services
-1.3%
GB Market
1 Year Return
0.4%
RTO
23.0%
GB Commercial Services
23.3%
GB Market
Return vs Industry: RTO underperformed the UK Commercial Services industry which returned 24.3% over the past year.
Return vs Market: RTO underperformed the UK Market which returned 27.6% over the past year.
Shareholder returns
| RTO | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.9% | -1.9% | -1.3% |
| 30 Day | -9.5% | -5.1% | 0.4% |
| 90 Day | -10.8% | -0.5% | 4.7% |
| 1 Year | 1.5%0.4% | 27.3%23.0% | 28.8%23.3% |
| 3 Year | 47.6%43.7% | 17.0%5.1% | 10.1%-2.5% |
| 5 Year | 181.6%166.6% | 56.9%26.8% | 48.9%20.9% |
Long-Term 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
Shareholders Will Most Likely Find Rentokil Initial plc's (LON:RTO) CEO Compensation Acceptable1 month ago | Simply Wall St
Here's What We Like About Rentokil Initial's (LON:RTO) Upcoming Dividend1 month ago | Simply Wall St
Is Rentokil Initial plc's (LON:RTO) ROE Of 16% Impressive?Valuation
Is Rentokil Initial undervalued compared to its fair value and its price relative to the market?
46.85x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RTO (£4.71) is trading above our estimate of fair value (£4.22)
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 (46.9x) compared to the UK Commercial Services industry average (36.3x).
PE vs Market: RTO is poor value based on its PE Ratio (46.9x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: RTO is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: RTO is overvalued based on its PB Ratio (7.7x) compared to the GB Commercial Services industry average (2.4x).
Future Growth
How is Rentokil Initial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTO's forecast earnings growth (13.7% per year) is above the savings rate (0.9%).
Earnings vs Market: RTO's earnings (13.7% per year) are forecast to grow slower than the UK market (17.6% per year).
High Growth Earnings: RTO's earnings are forecast to grow, but not significantly.
Revenue vs Market: RTO's revenue (5.5% per year) is forecast to grow faster than the UK market (5.3% per year).
High Growth Revenue: RTO's revenue (5.5% 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 (20.8%)
Past Performance
How has Rentokil Initial performed over the past 5 years?
-10.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTO has high quality earnings.
Growing Profit Margin: RTO's current net profit margins (6.6%) are lower than last year (10.4%).
Past Earnings Growth Analysis
Earnings Trend: RTO's earnings have declined by 10.7% per year over the past 5 years.
Accelerating Growth: RTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RTO had negative earnings growth (-34.3%) over the past year, making it difficult to compare to the Commercial Services industry average (-4.5%).
Return on Equity
High ROE: RTO's Return on Equity (16.5%) is considered low.
Financial Health
How is Rentokil Initial's financial position?
Financial Position Analysis
Short Term Liabilities: RTO's short term assets (£3.1B) exceed its short term liabilities (£3.0B).
Long Term Liabilities: RTO's short term assets (£3.1B) exceed its long term liabilities (£1.7B).
Debt to Equity History and Analysis
Debt Level: RTO's debt to equity ratio (281.6%) is considered high.
Reducing Debt: RTO's debt to equity ratio has reduced from 565.2% to 281.6% over the past 5 years.
Debt Coverage: RTO's debt is not well covered by operating cash flow (17.1%).
Interest Coverage: RTO's interest payments on its debt are well covered by EBIT (8.4x coverage).
Balance Sheet
Dividend
What is Rentokil Initial current dividend yield, its reliability and sustainability?
1.15%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RTO's dividend (1.15%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: RTO's dividend (1.15%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
Stability and Growth of Payments
Stable Dividend: RTO has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: RTO's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (53.8%), RTO's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RTO's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Andy Ransom (57 yo)
7.58yrs
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 ($USD5.71M) is above average for companies of similar size in the UK market ($USD3.64M).
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 (5.3 years average tenure).
Board Members
Experienced Board: RTO's board of directors are not considered experienced ( 2.8 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
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£8.721b
- 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
Biography
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 c...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/16 19:17 |
| End of Day Share Price | 2021/05/14 00:00 |
| Earnings | 2020/12/31 |
| 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.