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£5.42|
|52 Week High||UK£6.62|
|52 Week Low||UK£4.41|
|1 Month Change||8.91%|
|3 Month Change||3.12%|
|1 Year Change||-2.34%|
|3 Year Change||20.41%|
|5 Year Change||89.97%|
|Change since IPO||522.53%|
Recent News & Updates
Should You Be Adding Rentokil Initial (LON:RTO) To Your Watchlist Today?
Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
|RTO||GB Commercial Services||GB Market|
Return vs Industry: RTO underperformed the UK Commercial Services industry which returned 2.3% over the past year.
Return vs Market: RTO exceeded the UK Market which returned -5.8% over the past year.
|RTO Average Weekly Movement||3.9%|
|Commercial Services Industry Average Movement||5.0%|
|Market Average Movement||5.4%|
|10% most volatile stocks in GB Market||10.7%|
|10% least volatile stocks in GB Market||2.7%|
Stable Share Price: RTO is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RTO's weekly volatility (4%) has been stable over the past year.
About the Company
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 for rodents, and flying and crawling insects, as well as 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 soap and hand sanitizer dispensers, hand dryers, air care and purification, cubicle and surface sanitizers, feminine hygiene units, toilet paper dispensers, and floor protection mats.
Rentokil Initial Fundamentals Summary
|RTO fundamental statistics|
Is RTO overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|RTO income statement (TTM)|
|Cost of Revenue||UK£684.50m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Mar 16, 2023
|Earnings per share (EPS)||0.14|
|Net Profit Margin||8.72%|
How did RTO perform over the long term?See historical performance and comparison
0.9%Current Dividend Yield
Is RTO undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 1/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for RTO?
Other financial metrics that can be useful for relative valuation.
|What is RTO's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does RTO's PE Ratio compare to its peers?
|RTO PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
SRP Serco Group
MTO Mitie Group
RPS RPS Group
RTO Rentokil Initial
Price-To-Earnings vs Peers: RTO is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the peer average (27.4x).
Price to Earnings Ratio vs Industry
How does RTO's PE Ratio compare vs other companies in the GB Commercial Services Industry?
Price-To-Earnings vs Industry: RTO is expensive based on its Price-To-Earnings Ratio (37.4x) compared to the UK Commercial Services industry average (30.2x)
Price to Earnings Ratio vs Fair Ratio
What is RTO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||37.4x|
|Fair PE Ratio||39.5x|
Price-To-Earnings vs Fair Ratio: RTO is good value based on its Price-To-Earnings Ratio (37.4x) compared to the estimated Fair Price-To-Earnings Ratio (39.5x).
Share Price vs Fair Value
What is the Fair Price of RTO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: RTO (£5.42) is trading above our estimate of fair value (£2.87)
Significantly Below Fair Value: RTO is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Rentokil Initial forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTO's forecast earnings growth (11.6% per year) is above the savings rate (0.9%).
Earnings vs Market: RTO's earnings (11.6% per year) are forecast to grow faster than the UK market (9.9% per year).
High Growth Earnings: RTO's earnings are forecast to grow, but not significantly.
Revenue vs Market: RTO's revenue (4.8% per year) is forecast to grow faster than the UK market (4% per year).
High Growth Revenue: RTO's revenue (4.8% 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 (22.2%)
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How has Rentokil Initial performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTO has high quality earnings.
Growing Profit Margin: RTO's current net profit margins (8.7%) are higher than last year (8.7%).
Past Earnings Growth Analysis
Earnings Trend: RTO's earnings have declined by 15.4% per year over the past 5 years.
Accelerating Growth: RTO's earnings growth over the past year (3.8%) exceeds its 5-year average (-15.4% per year).
Earnings vs Industry: RTO earnings growth over the past year (3.8%) underperformed the Commercial Services industry 139.1%.
Return on Equity
High ROE: RTO's Return on Equity (18.6%) is considered low.
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How is Rentokil Initial's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: RTO's short term assets (£3.2B) exceed its short term liabilities (£1.7B).
Long Term Liabilities: RTO's short term assets (£3.2B) do not cover its long term liabilities (£3.4B).
Debt to Equity History and Analysis
Debt Level: RTO's net debt to equity ratio (83%) is considered high.
Reducing Debt: RTO's debt to equity ratio has increased from 176.8% to 248.1% over the past 5 years.
Debt Coverage: RTO's debt is not well covered by operating cash flow (13.8%).
Interest Coverage: RTO's interest payments on its debt are well covered by EBIT (14.6x coverage).
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What is Rentokil Initial current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RTO's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.87%).
High Dividend: RTO's dividend (0.89%) is low compared to the top 25% of dividend payers in the UK market (5.15%).
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.
Earnings Payout to Shareholders
Earnings Coverage: RTO is not paying a notable dividend for the UK market.
Cash Payout to Shareholders
Cash Flow Coverage: RTO is not paying a notable dividend for the UK market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andy Ransom (59 yo)
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 ($USD7.23M) is above average for companies of similar size in the UK market ($USD5.14M).
Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.
Experienced Management: RTO's management team is seasoned and experienced (6.6 years average tenure).
Experienced Board: RTO's board of directors are considered experienced (4.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Rentokil Initial plc's employee growth, exchange listings and data sources
- Name: Rentokil Initial plc
- Ticker: RTO
- Exchange: LSE
- Founded: 1903
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Implied Market Cap: UK£10.044b
- Shares outstanding: 1.85b
- Website: https://www.rentokil-initial.com
Number of Employees
- Rentokil Initial plc
- Compass House
- Manor Royal
- West Sussex
- RH10 9PY
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/08/06 00:00|
|End of Day Share Price||2022/08/05 00:00|
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.