RKT

Reckitt Benckiser GroupLSE:RKT Stock Report

Market Cap

UK£42.3b

7D

3.4%

1Y

-19.3%

Updated

20 Sep, 2021

Data

Company Financials +
RKT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends4/6

RKT Overview

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, and internationally.

Reckitt Benckiser Group Competitors

Johnson & Johnson

NYSE:JNJ

US$433.7b

LVMH Moët Hennessy - Louis Vuitton Société Européenne

ENXTPA:MC

€311.7b

Procter & Gamble

NYSE:PG

US$350.5b

Pfizer

NYSE:PFE

US$246.1b

Price History & Performance

Summary of all time highs, changes and price drops for Reckitt Benckiser Group
Historical stock prices
Current Share PriceUK£59.25
52 Week HighUK£54.66
52 Week LowUK£77.74
Beta0.18
1 Month Change5.30%
3 Month Change-8.61%
1 Year Change-19.28%
3 Year Change-13.31%
5 Year Change-17.51%
Change since IPO771.32%

Recent News & Updates

Sep 15
Are Investors Undervaluing Reckitt Benckiser Group plc (LON:RKT) By 24%?

Are Investors Undervaluing Reckitt Benckiser Group plc (LON:RKT) By 24%?

In this article we are going to estimate the intrinsic value of Reckitt Benckiser Group plc ( LON:RKT ) by taking the...

Shareholder Returns

RKTGB Household ProductsGB Market
7D3.4%1.2%-2.5%
1Y-19.3%-14.7%22.0%

Return vs Industry: RKT underperformed the UK Household Products industry which returned -16.5% over the past year.

Return vs Market: RKT underperformed the UK Market which returned 19.9% over the past year.

Price Volatility

Is RKT's price volatile compared to industry and market?
RKT volatility
RKT Beta0.18
Industry Beta0.52
Market Beta1

Stable Share Price: RKT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RKT's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
181943,500Laxman Narasimhanhttps://www.reckitt.com

Reckitt Benckiser Group plc manufactures, markets, and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, and internationally. 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 products; sore throat medications; and hair removal products under the Nurofen, Scholl, Strepsils, and Veet brands.

Reckitt Benckiser Group Fundamentals Summary

How do Reckitt Benckiser Group's earnings and revenue compare to its market cap?
RKT fundamental statistics
Market CapUK£42.32b
Earnings (TTM)-UK£1.64b
Revenue (TTM)UK£13.68b

3.1x

P/S Ratio

-25.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RKT income statement (TTM)
RevenueUK£13.68b
Cost of RevenueUK£5.64b
Gross ProfitUK£8.04b
ExpensesUK£9.68b
Earnings-UK£1.64b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-2.31
Gross Margin58.75%
Net Profit Margin-12.02%
Debt/Equity Ratio156.6%

How did RKT perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

-76%

Payout Ratio

Valuation

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

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RKT (£59.25) is trading below our estimate of fair value (£77)

Significantly Below Fair Value: RKT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RKT is overvalued based on its PB Ratio (6.5x) compared to the XE Household Products industry average (1.9x).


Future Growth

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

54.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RKT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

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

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

Revenue vs Market: RKT's revenue (1.6% per year) is forecast to grow slower than the UK market (5.5% per year).

High Growth Revenue: RKT's revenue (1.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RKT's Return on Equity is forecast to be high in 3 years time (24.1%)


Past Performance

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

-37.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RKT is currently unprofitable.

Growing Profit Margin: RKT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RKT is unprofitable, and losses have increased over the past 5 years at a rate of 37.9% per year.

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

Earnings vs Industry: RKT is unprofitable, making it difficult to compare its past year earnings growth to the Household Products industry (7.9%).


Return on Equity

High ROE: RKT has a negative Return on Equity (-24.91%), as it is currently unprofitable.


Financial Health

How is Reckitt Benckiser Group's financial position?


Financial Position Analysis

Short Term Liabilities: RKT's short term assets (£6.8B) do not cover its short term liabilities (£9.4B).

Long Term Liabilities: RKT's short term assets (£6.8B) do not cover its long term liabilities (£11.8B).


Debt to Equity History and Analysis

Debt Level: RKT's debt to equity ratio (156.6%) is considered high.

Reducing Debt: RKT's debt to equity ratio has increased from 37.1% to 156.6% over the past 5 years.

Debt Coverage: RKT's debt is well covered by operating cash flow (21.3%).

Interest Coverage: RKT's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet


Dividend

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

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RKT's dividend (2.95%) is higher than the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: RKT's dividend (2.95%) is low compared to the top 25% of dividend payers in the UK market (3.92%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: RKT's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Laxman Narasimhan (53 yo)

2yrs

Tenure

UK£5,118,809

Compensation

Mr. Laxman Narasimhan serves as Independent Director at Verizon Communications Inc. since July 01, 2021. He has been an Executive Director of Reckitt Benckiser Group plc since July 16, 2019 and has been it...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Laxman's total compensation is reasonable compared to companies of similar size in the UK market.

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


Leadership Team

Experienced Management: RKT's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: RKT'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: RKT 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 employee growth, exchange listings and data sources


Key Information

  • Name: Reckitt Benckiser Group plc
  • Ticker: RKT
  • Exchange: LSE
  • Founded: 1819
  • Industry: Household Products
  • Sector: Household
  • Market Cap: UK£42.318b
  • Shares outstanding: 714.23m
  • Website: https://www.reckitt.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 21:10
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.