Rentokil Initial
Market Cap
UK£8.0b
Last Updated
2019/12/08 20:35 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.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with imperfect balance sheet.
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
-1.0%
RTO
-0.2%
GB Commercial Services
-0.8%
GB Market
1 Year Return
38.1%
RTO
25.9%
GB Commercial Services
8.5%
GB Market
Return vs Industry: RTO exceeded the UK Commercial Services industry which returned 25.9% over the past year.
Return vs Market: RTO exceeded the UK Market which returned 8.5% over the past year.
Shareholder returns
| RTO | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | -0.2% | -0.8% |
| 30 Day | 0.6% | 2.6% | -0.9% |
| 90 Day | -1.8% | 4.0% | 1.5% |
| 1 Year | 39.7%38.1% | 29.7%25.9% | 14.1%8.5% |
| 3 Year | 118.1%109.7% | 27.9%17.0% | 19.2%4.0% |
| 5 Year | 316.1%286.3% | 40.5%17.7% | 41.8%9.5% |
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
3 days ago | Simply Wall St
Should You Be Pleased About The CEO Pay At Rentokil Initial plc's (LON:RTO)2 months ago | Simply Wall St
Does Rentokil Initial (LON:RTO) Have A Healthy Balance Sheet?3 months ago | Simply Wall St
Is Rentokil Initial's (LON:RTO) Share Price Gain Of 254% Well Earned?Valuation
Is Rentokil Initial undervalued compared to its fair value and its price relative to the market?
9.48x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: RTO (£4.4) is trading above our estimate of fair value (£3.17)
Significantly Below Fair Value: RTO is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RTO is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.
PE vs Market: RTO is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate RTO's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: RTO is overvalued based on its PB Ratio (9.5x) compared to the GB Commercial Services industry average (2.3x).
Next Steps
Future Growth
How is Rentokil Initial forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RTO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).
Earnings vs Market: RTO is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: RTO's is expected to become profitable in the next 3 years.
Revenue vs Market: RTO's revenue (5.1% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: RTO's revenue (5.1% 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 (21.1%)
Next Steps
Past Performance
How has Rentokil Initial performed over the past 5 years?
2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RTO is currently unprofitable.
Growing Profit Margin: RTO is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: RTO is unprofitable, but has reduced losses over the past 5 years at a rate of 2.2% per year.
Accelerating Growth: Unable to compare RTO's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: RTO is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (16.1%).
Return on Equity
High ROE: RTO has a negative Return on Equity (-11.25%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Rentokil Initial's financial position?
Financial Position Analysis
Short Term Liabilities: RTO's short term assets (£1.1B) do not cover its short term liabilities (£1.4B).
Long Term Liabilities: RTO's short term assets (£1.1B) do not cover its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: RTO's debt to equity ratio (192.7%) is considered high.
Reducing Debt: RTO had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: RTO's debt is well covered by operating cash flow (24%).
Interest Coverage: RTO is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Inventory Level: RTO has a low level of unsold assets or inventory.
Debt Coverage by Assets: RTO's debt is not covered by short term assets (assets are 0.7x debt).
Next Steps
Dividend
What is Rentokil Initial's current dividend yield, its reliability and sustainability?
1.02%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: RTO's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.96%).
High Dividend: RTO's dividend (1.02%) is low compared to the top 25% of dividend payers in the UK market (5.25%).
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
What is the CEO of Rentokil Initial's salary, the management and board of directors tenure and is there insider trading?
6.2yrs
Average management tenure
CEO
Andy Ransom (56yo)
6.2yrs
Tenure
UK£4,406,700
Compensation
Mr. Andrew M. Ransom, also known as Andy, has been the Chief Executive Officer of Rentokil Initial plc since October 1, 2013. Mr. Andy serves as Non-Executive Director and Senior Independent Director of Se ...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD5.77M) is about average for companies of similar size in the UK market ($USD4.73M).
Compensation vs Earnings: Andy's compensation has increased whilst the company is unprofitable.
Management Age and Tenure
6.2yrs
Average Tenure
54yo
Average Age
Experienced Management: RTO's management team is seasoned and experienced (6.2 years average tenure).
Board Age and Tenure
6.6yrs
Average Tenure
56yo
Average Age
Experienced Board: RTO's board of directors are considered experienced (6.6 years average tenure).
Insider Trading
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.
Management Team
Andy Ransom (56yo)
CEO & Executive Director
- Tenure: 6.2yrs
- Compensation: UK£4.41m
Daragh P. Fagan (49yo)
Group General Counsel & Company Secretary
- Tenure: 6.3yrs
Jeremy Townsend (55yo)
CFO & Executive Director
- Tenure: 9.3yrs
- Compensation: UK£2.71m
Malcolm Padley
Director of Corporate Communications
- Tenure: 13.9yrs
Katharine Rycroft
Head of Investor Relations
- Tenure: 0yrs
Vanessa Evans (50yo)
Group Human Resources Director
- Tenure: 3.9yrs
Stuart Ingall-Tombs
Chief Financial Officer of Europe
- Tenure: 5.2yrs
John Myers (61yo)
Managing Director of North America
- Tenure: 6.2yrs
Phill Wood (53yo)
Managing Director of UK & Rest of World
- Tenure: 6.2yrs
Gary Booker
Chief Marketing
- Tenure: 1.9yrs
Board Members
Ian Harley (68yo)
Chairman of Rentokil Initial Pension Trustee Limited
- Tenure: 12.4yrs
- Compensation: UK£30.00k
Andy Ransom (56yo)
CEO & Executive Director
- Tenure: 6.2yrs
- Compensation: UK£4.41m
Richard Solomons (58yo)
Independent Chairman
- Tenure: 0.6yrs
Jeremy Townsend (55yo)
CFO & Executive Director
- Tenure: 9.3yrs
- Compensation: UK£2.71m
Julie Southern (60yo)
Non-Executive Director
- Tenure: 5.4yrs
- Compensation: UK£75.00k
Linda Yueh
Non-Executive Director
- Tenure: 2.1yrs
- Compensation: UK£60.00k
Angela Seymour-Jackson (53yo)
Non-Executive Director
- Tenure: 7.8yrs
- Compensation: UK£60.00k
John Pettigrew (50yo)
- Tenure: 0.6yrs
- Compensation: UK£60.00k
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£8.002b
- Shares outstanding: 1.84b
- 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 | 2019/12/08 20:35 |
| End of Day Share Price | 2019/12/06 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.