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Reckitt Benckiser Group

LSE:RB.
Snowflake Description

Second-rate dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RB.
LSE
£44B
Market Cap
  1. Home
  2. GB
  3. Household
Company description

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and home products. The last earnings update was 47 days ago. More info.


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RB. Share Price and Events
7 Day Returns
1.8%
LSE:RB.
1.8%
GB Household Products
1.3%
GB Market
1 Year Returns
5.1%
LSE:RB.
4.4%
GB Household Products
-5%
GB Market
RB. Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Reckitt Benckiser Group (RB.) 1.8% 7.6% -0.7% 5.1% -8.3% 25.1%
GB Household Products 1.8% 7.3% 3% 4.4% -12.6% 12.9%
GB Market 1.3% -1.6% 1.9% -5% 15.8% 2.5%
1 Year Return vs Industry and Market
  • RB. outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5% over the past year.
Price Volatility
RB.
Industry
5yr Volatility vs Market

Value

 Is Reckitt Benckiser Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Reckitt Benckiser Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Reckitt Benckiser Group.

LSE:RB. Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RB.
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Household Products Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.333 (1 + (1- 19%) (26.88%))
0.602
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:RB. using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Reckitt Benckiser Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:RB. DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 2,290.74 Analyst x11 2,149.98
2020 2,496.62 Analyst x12 2,199.22
2021 2,687.48 Analyst x12 2,221.89
2022 2,864.00 Analyst x2 2,222.33
2023 3,002.12 Est @ 4.82% 2,186.36
2024 3,114.51 Est @ 3.74% 2,128.84
2025 3,207.60 Est @ 2.99% 2,057.75
2026 3,286.52 Est @ 2.46% 1,978.82
2027 3,355.22 Est @ 2.09% 1,896.05
2028 3,416.66 Est @ 1.83% 1,812.13
Present value of next 10 years cash flows £20,853.36
LSE:RB. DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £3,416.66 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£65,010.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £65,010.97 ÷ (1 + 6.55%)10
£34,480.57
LSE:RB. Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £20,853.36 + £34,480.57
£55,333.93
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £55,333.93 / 707.94
£78.16
LSE:RB. Discount to Share Price
Calculation Result
Value per share (GBP) From above. £78.16
Current discount Discount to share price of £62.55
= -1 x (£62.55 - £78.16) / £78.16
20%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Reckitt Benckiser Group is available for.
Intrinsic value
20%
Share price is £62.55 vs Future cash flow value of £78.16
Current Discount Checks
For Reckitt Benckiser Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Reckitt Benckiser Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Reckitt Benckiser Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Reckitt Benckiser Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Reckitt Benckiser Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RB. PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £3.07
LSE:RB. Share Price ** LSE (2019-05-17) in GBP £62.55
Europe Household Products Industry PE Ratio Median Figure of 5 Publicly-Listed Household Products Companies 17.85x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 788 Publicly-Listed Companies 16.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Reckitt Benckiser Group.

LSE:RB. PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RB. Share Price ÷ EPS (both in GBP)

= 62.55 ÷ 3.07

20.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reckitt Benckiser Group is overvalued based on earnings compared to the Europe Household Products industry average.
  • Reckitt Benckiser Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Reckitt Benckiser Group's expected growth come at a high price?
Raw Data
LSE:RB. PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
7.5%per year
Europe Household Products Industry PEG Ratio Median Figure of 5 Publicly-Listed Household Products Companies 2.06x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 574 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

LSE:RB. PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.39x ÷ 7.5%

2.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reckitt Benckiser Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Reckitt Benckiser Group's assets?
Raw Data
LSE:RB. PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £20.84
LSE:RB. Share Price * LSE (2019-05-17) in GBP £62.55
Europe Household Products Industry PB Ratio Median Figure of 8 Publicly-Listed Household Products Companies 2.2x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,368 Publicly-Listed Companies 1.51x
LSE:RB. PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RB. Share Price ÷ Book Value per Share (both in GBP)

= 62.55 ÷ 20.84

3x

* Primary Listing of Reckitt Benckiser Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Reckitt Benckiser Group is overvalued based on assets compared to the Europe Household Products industry average.
X
Value checks
We assess Reckitt Benckiser Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Household Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Household Products industry average (and greater than 0)? (1 check)
  5. Reckitt Benckiser Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Reckitt Benckiser Group expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Reckitt Benckiser Group expected to grow at an attractive rate?
  • Reckitt Benckiser Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Reckitt Benckiser Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Reckitt Benckiser Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RB. Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RB. Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 7.5%
LSE:RB. Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 3.5%
Europe Household Products Industry Earnings Growth Rate Market Cap Weighted Average 7.6%
Europe Household Products Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:RB. Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RB. Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 14,878 2
2022-12-31 14,644 3,723 3,144 6
2021-12-31 13,988 3,070 2,680 17
2020-12-31 13,475 2,918 2,542 19
2019-12-31 12,994 2,708 2,348 19
LSE:RB. Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 12,597 2,454 2,166
2018-06-30 12,666 2,188 3,468
2018-03-31 12,089 2,340 3,422
2017-12-31 11,449 2,491 3,376
2017-09-30 10,764 2,699
2017-06-30 10,078 2,611 2,022
2017-03-31 9,779 2,517 1,876
2016-12-31 9,480 2,422 1,729
2016-09-30 9,192 2,307 1,624
2016-06-30 8,904 2,191 1,518
2016-03-31 8,889 1,988 1,631

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Reckitt Benckiser Group's earnings are expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
  • Reckitt Benckiser Group's revenue is expected to grow by 3.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:RB. Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Reckitt Benckiser Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RB. Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 4.46 4.50 4.41 2.00
2021-12-31 3.77 4.20 3.30 9.00
2020-12-31 3.61 3.93 3.40 11.00
2019-12-31 3.36 3.74 3.14 10.00
LSE:RB. Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 3.07
2018-06-30 4.92
2018-03-31 4.87
2017-12-31 4.81
2017-09-30 3.84
2017-06-30 2.88
2017-03-31 2.67
2016-12-31 2.46
2016-09-30 2.30
2016-06-30 2.14
2016-03-31 2.29

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Reckitt Benckiser Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Reckitt Benckiser Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Reckitt Benckiser Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Reckitt Benckiser Group's growth in the last year to its industry (Household Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Reckitt Benckiser Group's year on year earnings growth rate has been positive over the past 5 years.
  • Reckitt Benckiser Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Reckitt Benckiser Group's 1-year earnings growth is negative, it can't be compared to the Europe Household Products industry average.
Earnings and Revenue History
Reckitt Benckiser Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Reckitt Benckiser Group Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RB. Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 12,597.00 2,166.00 4,060.00 223.00
2018-06-30 12,666.00 3,468.00 4,216.00 187.00
2018-03-31 12,089.00 3,422.00 3,974.00 187.00
2017-12-31 11,449.00 3,376.00 3,685.00 187.00
2017-09-30 10,763.50 2,699.00 3,358.00 168.00
2017-06-30 10,078.00 2,022.00 3,031.00 149.00
2017-03-31 9,779.00 1,875.50 3,029.00 149.00
2016-12-31 9,480.00 1,729.00 3,027.00 149.00
2016-09-30 9,192.00 1,623.50 3,076.50 144.50
2016-06-30 8,904.00 1,518.00 3,126.00 140.00
2016-03-31 8,889.00 1,630.50 2,937.00 140.00
2015-12-31 8,874.00 1,743.00 2,748.00 140.00
2015-09-30 8,871.50 1,729.00 2,759.50 143.00
2015-06-30 8,869.00 1,715.00 2,771.00 146.00
2015-03-31 8,852.50 1,689.00 2,779.00 146.00
2014-12-31 8,836.00 1,663.00 2,787.00 146.00
2014-06-30 8,595.00 1,399.00 2,784.00 152.00
2014-03-31 8,930.50 1,400.50 2,880.00 152.00
2013-12-31 9,266.00 1,402.00 2,976.00 152.00
2013-09-30 9,967.50 1,722.50 3,011.50 185.00
2013-06-30 9,892.00 1,706.00 3,081.00 171.00
2013-03-31 9,729.50 1,763.50 2,951.50 171.00
2012-12-31 9,567.00 1,821.00 2,822.00 171.00
2012-09-30 9,534.00 1,819.00 2,698.50 238.50
2012-06-30 9,533.00 1,761.00 2,857.00 153.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Reckitt Benckiser Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Reckitt Benckiser Group used its assets more efficiently than the Europe Household Products industry average last year based on Return on Assets.
  • Reckitt Benckiser Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Reckitt Benckiser Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Household Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Reckitt Benckiser Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Reckitt Benckiser Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Reckitt Benckiser Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Reckitt Benckiser Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Reckitt Benckiser Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Reckitt Benckiser Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Reckitt Benckiser Group Company Filings, last reported 4 months ago.

LSE:RB. Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 14,789.00 11,904.00 1,483.00
2018-06-30 13,794.00 12,311.00 1,542.00
2018-03-31 13,794.00 12,311.00 1,542.00
2017-12-31 13,573.00 12,876.00 2,125.00
2017-09-30 13,573.00 12,876.00 2,125.00
2017-06-30 8,269.00 17,227.00 2,463.00
2017-03-31 8,269.00 17,227.00 2,463.00
2016-12-31 8,426.00 2,389.00 885.00
2016-09-30 8,426.00 2,389.00 885.00
2016-06-30 7,202.00 2,786.00 1,020.00
2016-03-31 7,202.00 2,786.00 1,020.00
2015-12-31 6,906.00 2,420.00 740.00
2015-09-30 6,906.00 2,420.00 740.00
2015-06-30 6,243.00 2,448.00 679.00
2015-03-31 6,243.00 2,448.00 679.00
2014-12-31 6,834.00 2,572.00 918.00
2014-06-30 6,290.00 2,904.00 726.00
2014-03-31 6,290.00 2,904.00 726.00
2013-12-31 6,336.00 2,767.00 810.00
2013-09-30 6,336.00 2,767.00 810.00
2013-06-30 6,037.00 3,600.00 811.00
2013-03-31 6,037.00 3,600.00 811.00
2012-12-31 5,922.00 3,274.00 891.00
2012-09-30 5,922.00 3,274.00 891.00
2012-06-30 5,469.00 2,951.00 1,070.00
  • Reckitt Benckiser Group's level of debt (80.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (43.7% vs 80.5% today).
  • Debt is well covered by operating cash flow (20.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).
X
Financial health checks
We assess Reckitt Benckiser Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Reckitt Benckiser Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.73%
Current annual income from Reckitt Benckiser Group dividends. Estimated to be 2.98% next year.
If you bought £2,000 of Reckitt Benckiser Group shares you are expected to receive £55 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Reckitt Benckiser Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.99%).
  • Reckitt Benckiser Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.21%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:RB. Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
Europe Household Products Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RB. Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 2.21 4.00
2021-12-31 1.95 18.00
2020-12-31 1.85 20.00
2019-12-31 1.74 20.00
LSE:RB. Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-09 1.707 2.755
2018-03-28 1.643 2.635
2018-02-19 1.643 2.843
2017-03-31 1.532 2.164
2017-02-10 1.532 2.112
2016-04-04 1.390 1.977
2016-02-15 1.390 2.111
2015-03-31 1.390 2.327
2014-05-07 1.370 2.592
2013-03-27 1.340 2.851
2012-07-30 1.260 3.219
2012-03-30 1.250 3.584
2012-02-08 1.250 3.542
2011-07-25 1.200 3.660
2011-05-05 1.150 3.357
2010-03-01 1.000 2.982
2010-02-10 1.000 2.956

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Reckitt Benckiser Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Reckitt Benckiser Group only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Reckitt Benckiser Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (2x coverage).
X
Income/ dividend checks
We assess Reckitt Benckiser Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Reckitt Benckiser Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Reckitt Benckiser Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Reckitt Benckiser Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Rakesh Kapoor
COMPENSATION £15,207,462
AGE 59
TENURE AS CEO 7.7 years
CEO Bio

Mr. Rakesh Kapoor has been Chief Executive Officer and Executive Director of Reckitt Benckiser Group Plc since September 1, 2011. Mr. Kapoor served as the Chief Executive Officer of Reckitt Benckiser (Bangladesh) Limited. He served as an Executive Vice President of Category Development at Reckitt Benckiser Plc. from July 1, 2006 to 2011. Mr. Kapoor was responsible for global category management, research & development, media and market research. Mr. Kapoor Joined Reckitt & Colman in 1987 and served in various roles including, Regional Sales Manager, North India, General Manager, Indian Southern Region and Regional Marketing Director, South Asia. In 1999, he was appointed Global Category Director, Pest Control. Following the merger, he assumed the role of, Senior Vice President, Home Care. Mr. Kapoor was appointed Senior Vice President, Regional Director, Northern Europe in 2001, where he was responsible for UK Household and Healthcare, Ireland and Scandinavia. He served as Global Marketing director of Reckitt & Colman plc from 1997 to 1999. He served as Vice President Marketing India and Regional Marketing Director - South Asia of Reckitt & Colman from 1996 to 1997. From 1994 to 1996, he served as - General Manager - Southern India and General manager of Reckitt & Colman Southern India, with P&L accountability. He served as Marketing Manager Personal Care, India at Reckitt & Colman from 1991 to 1994 and Regional Sales Manager - Northern Indiafrom 1987 to 1991. He served as Director of Reckitt Benckiser (Bangladesh) Limited since 2015. He holds Masters in Business Management (MBA) from XLRI, Jamshedpur, India and BSc, Chemical Engineering from the Business Institute of Technical Studies (BITS), Pilani India.

CEO Compensation
  • Rakesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Rakesh's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Reckitt Benckiser Group management team in years:

2.3
Average Tenure
56
Average Age
  • The tenure for the Reckitt Benckiser Group management team is about average.
Management Team

Rakesh Kapoor

TITLE
CEO & Executive Director
COMPENSATION
£15M
AGE
59
TENURE
7.7 yrs

Adrian Hennah

TITLE
CFO & Executive Director
COMPENSATION
£5M
AGE
61
TENURE
6.3 yrs

Seth Cohen

TITLE
Chief Information Officer
TENURE
1.7 yrs

Richard Joyce

TITLE
Senior Vice President of Investor Relations

Rupert Bondy

TITLE
Senior VP
AGE
56
TENURE
2.3 yrs

Gurveen Singh

TITLE
Chief Human Resources Officer
TENURE
1.3 yrs

Amedeo Fasano

TITLE
Chief Supply Officer
AGE
56
TENURE
10.2 yrs

Adi Sehgal

TITLE
Chief Operating Officer of Health
TENURE
2.3 yrs

Mike Duijser

TITLE
Chief Supply Officer
TENURE
0.5 yrs

Rob de Groot

TITLE
President of Hygiene Home
AGE
51
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Reckitt Benckiser Group board of directors in years:

2.6
Average Tenure
59
Average Age
  • The average tenure for the Reckitt Benckiser Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

Chris Sinclair

TITLE
Chairman of the Board
COMPENSATION
£105K
AGE
67
TENURE
1 yrs

Rakesh Kapoor

TITLE
CEO & Executive Director
COMPENSATION
£15M
AGE
59
TENURE
7.7 yrs

Adrian Hennah

TITLE
CFO & Executive Director
COMPENSATION
£5M
AGE
61
TENURE
6.3 yrs

Pam Kirby

TITLE
Non-Executive Director
COMPENSATION
£135K
AGE
65
TENURE
4.3 yrs

Mary Harris

TITLE
Non-Executive Director
COMPENSATION
£108K
AGE
52
TENURE
4.3 yrs

Andrew R. Bonfield

TITLE
Non-Executive Director
AGE
55
TENURE
0.8 yrs

Nicandro Durante

TITLE
Senior Independent Director
COMPENSATION
£120K
AGE
62
TENURE
0.3 yrs

Warren Tucker

TITLE
Non-Executive Director
COMPENSATION
£105K
AGE
56
TENURE
9.3 yrs

Mehmood Khan

TITLE
Non-Executive Director
AGE
59
TENURE
0.8 yrs

Elane Stock

TITLE
Non-Executive Director
AGE
53
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Reckitt Benckiser Group insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
28. Feb 19 Buy Andrew R. Bonfield Individual 27. Feb 19 27. Feb 19 80 £57.60 £4,608
20. Feb 19 Buy Elane Stock Individual 19. Feb 19 19. Feb 19 1,910 £62.33 £119,047
29. May 18 Buy Mary Harris Individual 25. May 18 25. May 18 160 £60.15 £9,624
29. May 18 Buy André Pierre Lacroix Individual 25. May 18 25. May 18 145 £60.15 £8,722
29. May 18 Buy Warren Tucker Individual 25. May 18 25. May 18 153 £60.15 £9,203
29. May 18 Buy Nicandro Durante Individual 25. May 18 25. May 18 145 £60.15 £8,722
29. May 18 Buy Pamela Kirby Individual 25. May 18 25. May 18 151 £60.15 £9,083
29. May 18 Buy Christopher Sinclair Individual 25. May 18 25. May 18 809 £60.30 £48,779
X
Management checks
We assess Reckitt Benckiser Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Reckitt Benckiser Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Should You Know About Reckitt Benckiser Group plc's (LON:RB.) Capital Returns?

and want a simplistic look at the return on Reckitt Benckiser Group plc (LON:RB.) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Reckitt Benckiser Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

How Reckitt Benckiser Group plc (LON:RB.) Delivered A Better ROE Than Its Industry

By way of learning-by-doing, we'll look at ROE to gain a better understanding Reckitt Benckiser Group plc (LON:RB.). … That means that for every £1 worth of shareholders' equity, it generated £0.25 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Only 2 Days Left To Reckitt Benckiser Group plc (LON:RB.)’s Ex-Dividend Date, Is It Worth Buying?

Have you been keeping an eye on Reckitt Benckiser Group plc's (LON:RB.) upcoming dividend of UK£0.70 per share payable on the 27 September 2018? … Below, I will explain how holding Reckitt Benckiser Group can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

Is Reckitt Benckiser Group plc's (LON:RB.) CEO Paid Enough To Stay Motivated?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Reckitt Benckiser Group plc (LON:RB.): Did It Outperform The Industry?

For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. … Investors may find my commentary, albeit very high-level and brief, on Reckitt Benckiser Group plc (LON:RB.) useful as an attempt to give more color around how Reckitt Benckiser Group is currently performing. … Check out our latest analysis for Reckitt Benckiser Group.

Simply Wall St -

Reckitt Benckiser Group plc (LON:RB.): What Are Investors Earning On Their Capital?

and want to better understand how you can grow your money by investing in Reckitt Benckiser Group plc (LON:RB.). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Thus, to understand how your money can grow by investing in Reckitt Benckiser Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

What Makes Reckitt Benckiser Group plc (LON:RB.) A Great Dividend Stock?

Reckitt Benckiser Group plc (LON:RB.) has pleased shareholders over the past 10 years, paying out an average dividend of 3.00% annually. … The company currently pays out a dividend yield of 2.58% to shareholders, making it a relatively attractive dividend stock. … Does Reckitt Benckiser Group tick all the boxes of a great dividend stock?

Simply Wall St -

Is Reckitt Benckiser Group plc (LON:RB.) A Financially Sound Company?

the key to their continued success lies in its financial health. … Let’s take a look at Reckitt Benckiser Group’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Spotlight On Reckitt Benckiser Group plc's (LON:RB.) Fundamentals

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Reckitt Benckiser Group plc (LON:RB.) due to its excellent fundamentals in more than one area.

Simply Wall St -

Calculating The Fair Value Of Reckitt Benckiser Group plc (LON:RB.)

How far off is Reckitt Benckiser Group plc (LON:RB.) from its intrinsic value? … by taking the expected future cash flows and discounting them to their present value. … If you are reading this and its not June 2018 then I highly recommend you check out the latest calculation for Reckitt Benckiser Group by following the link below.

Simply Wall St -

Company Info

Description

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.

Details
Name: Reckitt Benckiser Group plc
RB.
Exchange: LSE
Founded: 1823
£44,281,893,634
707,943,943
Website: http://www.rb.com
Address: Reckitt Benckiser Group plc
Turner House,
103-105 Bath Road,
Slough,
Berkshire, SL1 3UH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RB. Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RBGP.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB 3RB Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
XTRA 3RB Ordinary Shares XETRA Trading Platform DE EUR 02. Jan 1992
SWX RB Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1992
BMV RB N Ordinary Shares Bolsa Mexicana de Valores MX MXN 02. Jan 1992
BATS-CHIXE RBL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK RBGL.Y SPONSORED ADR Pink Sheets LLC US USD 13. Oct 2008
DB 3RBB SPONSORED ADR Deutsche Boerse AG DE EUR 13. Oct 2008
Number of employees
Current staff
Staff numbers
37,345
Reckitt Benckiser Group employees.
Industry
Household Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 21:33
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/09
Last earnings filing: 2019/04/02
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.