LSE:RB.

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Reckitt Benckiser Group

Executive Summary

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products.


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Reckitt Benckiser Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RB.'s share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

RB.

-0.2%

GB Household Products

1.8%

GB Market


1 Year Return

8.9%

RB.

4.2%

GB Household Products

-12.2%

GB Market

Return vs Industry: RB. exceeded the UK Household Products industry which returned 5.4% over the past year.

Return vs Market: RB. exceeded the UK Market which returned -14.4% over the past year.


Shareholder returns

RB.IndustryMarket
7 Day-0.8%-0.2%1.8%
30 Day5.7%2.3%6.5%
90 Day19.0%6.6%-9.9%
1 Year12.0%8.9%5.6%4.2%-8.0%-12.2%
3 Year-5.1%-12.4%-19.3%-24.1%-5.6%-17.2%
5 Year35.2%19.6%4.8%-4.7%11.2%-13.7%

Price Volatility Vs. Market

How volatile is Reckitt Benckiser Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Reckitt Benckiser Group undervalued compared to its fair value and its price relative to the market?

5.27x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RB. (£69.52) is trading above our estimate of fair value (£56.93)

Significantly Below Fair Value: RB. is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RB. is unprofitable, so we can't compare its PE Ratio to the Household Products industry average.

PE vs Market: RB. 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 RB.'s PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RB. is overvalued based on its PB Ratio (5.3x) compared to the XE Household Products industry average (1.8x).


Next Steps

Future Growth

How is Reckitt Benckiser Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

56.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RB. is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: RB. is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RB.'s is expected to become profitable in the next 3 years.

Revenue vs Market: RB.'s revenue (2.9% per year) is forecast to grow slower than the UK market (3.7% per year).

High Growth Revenue: RB.'s revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RB.'s Return on Equity is forecast to be high in 3 years time (20.1%)


Next Steps

Past Performance

How has Reckitt Benckiser Group performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RB. is currently unprofitable.

Growing Profit Margin: RB. is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RB. is unprofitable, and losses have increased over the past 5 years at a rate of -3.9% per year.

Accelerating Growth: Unable to compare RB.'s earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RB. is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (11.6%).


Return on Equity

High ROE: RB. has a negative Return on Equity (-29.47%), as it is currently unprofitable.


Next Steps

Financial Health

How is Reckitt Benckiser Group's financial position?


Financial Position Analysis

Short Term Liabilities: RB.'s short term assets (£5.0B) do not cover its short term liabilities (£8.9B).

Long Term Liabilities: RB.'s short term assets (£5.0B) do not cover its long term liabilities (£13.8B).


Debt to Equity History and Analysis

Debt Level: RB.'s debt to equity ratio (127.3%) is considered high.

Reducing Debt: RB.'s debt to equity ratio has increased from 37.6% to 127.3% over the past 5 years.

Debt Coverage: RB.'s debt is not well covered by operating cash flow (11.8%).

Interest Coverage: RB. is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Reckitt Benckiser Group's current dividend yield, its reliability and sustainability?

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RB.'s dividend (2.51%) is higher than the bottom 25% of dividend payers in the UK market (2.04%).

High Dividend: RB.'s dividend (2.51%) is low compared to the top 25% of dividend payers in the UK market (5.86%).


Stability and Growth of Payments

Stable Dividend: RB.'s dividends per share have been stable in the past 10 years.

Growing Dividend: RB.'s dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: RB. is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: RB.'s dividends in 3 years are forecast to be covered by earnings (52.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Laxman Narasimhan (51yo)

0.67

Tenure

UK£5,118,809

Compensation

Mr. Laxman Narasimhan has been an Executive Director of Reckitt Benckiser Group plc since July 16, 2019 and has been its Group Chief Executive Officer since September 1, 2019. Mr. Narasimhan served as Glob ...


CEO Compensation Analysis

Compensation vs Market: Laxman's total compensation ($USD6.32M) is above average for companies of similar size in the UK market ($USD4.52M).

Compensation vs Earnings: Insufficient data to compare Laxman's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Laxman Narasimhan
Group CEO & Executive Director0.67yrUK£5.12m0.0047% £2.3m
Adrian Hennah
Executive Officer0.083yrUK£1.23m0.021% £10.3m
Jeffrey Carr
Group CFO & Executive Director0.083yrno datano data
Richard Joyce
Senior Vice President of Investor Relationsno datano datano data
Rupert Bondy
Senior VP3.33yrsno datano data
Zephanie Jordan
Chief Safety2.5yrsno datano data
Ranjay Radhakrishnan
Chief Human Resources Officer0.17yrno datano data
Aditya Sehgal
Chief Operating Officer of Health3.25yrsno data0.011% £5.4m
Gurveen Singh
Executive Officer0.17yrno datano data
Kris Licht
Chief Transformation Officer0.50yrno datano data

0.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: RB.'s management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Laxman Narasimhan
Group CEO & Executive Director0.67yrUK£5.12m0.0047% £2.3m
Jeffrey Carr
Group CFO & Executive Director0.083yrno datano data
Andrew R. Bonfield
Independent Non-Executive Director1.83yrsUK£122.00k0.000030% £14.8k
Christopher Sinclair
Independent Chairman of the Board2yrsUK£500.00k0.00072% £355.6k
Pamela Kirby
Independent Non-Executive Director5.25yrsUK£137.00k0.00051% £251.9k
Sara Mathew
Independent Non-Executive Director0.83yrUK£53.50k0.00027% £133.3k
Nicandro Durante
Senior Independent Director1.33yrsUK£142.00k0.00010% £49.4k
Mehmood Khan
Independent Non-Executive Director1.83yrsUK£107.00k0.000030% £14.8k
Mary Harris
Designated Independent Non-Executive Director5.25yrsUK£128.47k0.00033% £163.0k
Elane Stock
Independent Non-Executive Director1.67yrsUK£107.00k0.00029% £143.2k

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: RB.'s board of directors are not considered experienced ( 1.8 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: RB. 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

Reckitt Benckiser Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reckitt Benckiser Group plc
  • Ticker: RB.
  • Exchange: LSE
  • Founded: 1823
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£49.388b
  • Shares outstanding: 710.41m
  • Website: https://www.rb.com

Number of Employees


Location

  • Reckitt Benckiser Group plc
  • Turner House
  • 103-105 Bath Road
  • Slough
  • Berkshire
  • SL1 3UH
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RB.LSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
3RBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RBGP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
3RBXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1992
RBLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
RBSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
RB NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1992
RBGL.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008
3RBBDB (Deutsche Boerse AG)SPONSORED ADRDEEUROct 2008

Biography

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products. The company offers acne treatment creams, facial washes, and cleansing pads; disinfection, hygiene, and first aid products; condoms, sex toys, and lubricants; heartburn and indigestion solutions; and cough and chest congestion, multi-symptom, and sinus remedies for adults and children under the Clearasil, Dettol, Durex, Gaviscon, and Mucinex brands. It also provides analgesics; footcare and footwear products; sore throat medications; and women's beauty products under the Nurofen, Scholl, Strepsils, and Veet brand. In addition, the company offers fragrances and devices; water softeners; home cleaning products; dish washes; toilet bowl cleaners; disinfectants; sprays, baits, and plug-ins for pest control; stain removals; and fabric washing products under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands, as well as infant and child nutrition products under the Enfamil and Nutramigen brands. It operates in the United States, Canada, Europe, Russia/CIS, Turkey, Israel, Australia, New Zealand, and internationally. The company was founded in 1823 and is headquartered in Slough, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 22:12
End of Day Share Price2020/05/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.