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Rentokil Initial plcNYSE:RTO Stock Report

Market Cap US$16.8b
Share Price
US$33.40
US$36.14
7.6% undervalued intrinsic discount
1Y44.0%
7D-0.6%
Portfolio Value
​
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Rentokil Initial plc

NYSE:RTO Stock Report

Market Cap: US$16.8b

Rentokil Initial (RTO) Stock Overview

Provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific. More details

RTO fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends3/6

Rewards

Trading at 18.4% below our estimate of its fair value

Earnings are forecast to grow 26.34% per year

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 1.86% is not well covered by earnings

Large one-off items impacting financial results


RTO Community Fair Values

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Rentokil Initial plc Competitors

Price History & Performance

Summary of share price highs, lows and changes for Rentokil Initial
Historical stock prices
Current Share PriceUK£33.65
52 Week HighUK£34.67
52 Week LowUK£22.72
Beta0.42
1 Month Change3.03%
3 Month Change4.63%
1 Year Change43.99%
3 Year Change-16.17%
5 Year Change1.94%
Change since IPO168.48%

Recent News & Updates

Seeking Alpha • Mar 10

Rentokil: A Bug Business With Long-Term Bite

Summary Rentokil (RTO) offers a more attractive valuation and diversified growth profile than peer Rollins, trading at a significant discount despite similar growth drivers. RTO reported FY'25 revenues of $6.91B (+3.8% YoY), with organic growth, margin expansion, and strong free cash flow supporting deleveraging and investment-grade credit ratings. Industry tailwinds, operational efficiencies, and a robust M&A pipeline underpin expectations for mid-to-high single-digit EPS growth and margin improvement toward 20%+ by 2027. While valuation is not cheap at 12.9x EV/EBITDA and 21x P/E, RTO can justify its multiple if it delivers on organic growth, margin targets, and cost savings. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Mar 10

Rentokil: A Bug Business With Long-Term Bite

Summary Rentokil (RTO) offers a more attractive valuation and diversified growth profile than peer Rollins, trading at a significant discount despite similar growth drivers. RTO reported FY'25 revenues of $6.91B (+3.8% YoY), with organic growth, margin expansion, and strong free cash flow supporting deleveraging and investment-grade credit ratings. Industry tailwinds, operational efficiencies, and a robust M&A pipeline underpin expectations for mid-to-high single-digit EPS growth and margin improvement toward 20%+ by 2027. While valuation is not cheap at 12.9x EV/EBITDA and 21x P/E, RTO can justify its multiple if it delivers on organic growth, margin targets, and cost savings. Read the full article on Seeking Alpha
Seeking Alpha • Mar 20

Rentokil: Industry Tailwinds, A Turnaround, And A High Caliber Activist Investor

Summary The pest control industry is attractive due to its capital-light, non-cyclical nature, providing relatively predictable revenue streams. This feature is being enhanced through greater sales through subscriptions and long-term contracts. Meanwhile, the industry benefits from a growth tailwind due to greater urbanisation, a regulatory push on commercial customers, and global warming potentially increasing insect populations. Rentokil's stock has declined over 50% from its peak price. We believe this is attributed primarily from challenges in integrating the Terminix acquisition. We believe this is a fixable problem. Read the full article on Seeking Alpha
Seeking Alpha • Feb 11

Why Rollins Could Be Rentokil's Biggest Threat In The U.S.

Summary The article provides an update on Rentokil Initial's preliminary results for 2024, with a focus on the struggling U.S. business. In particular, a comparison is made with competitor Rollins, Inc., which was the market leader in pest control in the U.S. prior to Rentokil Initial's acquisition of Terminix. I explain why Rollins could pose a threat to the turnaround of Rentokil's U.S. business and give reasons for the stark difference in valuation. I elaborate on why Rentokil stock is slowly but surely moving down my watch list, while I have started following Rollins stock with great interest. Read the full article on Seeking Alpha
Seeking Alpha • Jan 07

Rentokil Initial: Improving Customer Retention To Accelerate Growth, Initiate With 'Buy'

Summary Rentokil Initial's acquisition of Terminix strengthens its market leadership in the US pest control market, enhancing scale, route density, and cost synergies. The integration of Terminix is expected to improve customer retention rates, operational efficiencies, and overall service quality through Rentokil's advanced digital platform. Rentokil's FY24 guidance remains unchanged, with anticipated organic revenue growth of 1.8% and a projected operating margin of 15.9% by FY33. Initiating a 'Buy' rating for RTO with a one-year target price of UK Pound 5.1 per share or USD $31.5 per ADR share. Read the full article on Seeking Alpha
Seeking Alpha • Oct 15

Rentokil: Why Trian's Stake Shouldn't Turn Heads

Summary In June, Rentokil shares soared in response to takeover speculation and the announcement that activist Trian (co-founded by Nelson Peltz) had acquired a sizable stake in the company. Optimism faded quickly after a profit warning in September. RTO stock is now trading near pandemic lows. In this update, I take a close look at Trian Fund Management's holding and explain what role Janus Henderson - a core Trian investment - could play in this context. I explain why I am not (particularly) moved by the activist's involvement and share at what price I would consider a position in RTO shares. Read the full article on Seeking Alpha
Seeking Alpha • Oct 03

Rentokil Initial: Significant Potential And Runway For Growth

Summary Trian Partners' involvement in Rentokil Initial plc, including appointing Brian Baldwin to the board, aims to enhance shareholder value and operational efficiency. Rentokil's stock has underperformed due to integration issues with Terminix and weak North American growth, prompting a profit warning. Trian's strategy may involve simplifying Rentokil's business segments, improving margins, and potentially moving its primary listing to the US for better valuation. Significant value creation is expected over the next 2-3 years through aggressive management changes and operational improvements driven by Trian's expertise. Read the full article on Seeking Alpha
Seeking Alpha • Jun 12

Voss Capital - Rentokil Initial:  Recency Bias Provides Skeptics A Rallying Cry

Summary Rentokil Initial is a global leader in pest control with high-quality business characteristics and attractive growth opportunities in the US market. The recent acquisition of Terminix led to a slowdown in North American organic revenue growth, causing the stock to trade at a substantial discount. Despite integration challenges, RTO has potential for significant upside as it improves organic growth and re-rates to historical multiples, potentially appealing to PE buyout firms. Read the full article on Seeking Alpha
Seeking Alpha • May 06

Rentokil Initial: Wide Moat Revenue And Profit Compounder

Summary Rentokil is a market leader in the pest control industry, controlling 21% of the global market. The pest control market is expected to reach $42.5 billion by 2032, with high margins. Rentokil has faced challenges following its acquisition of Terminix, but long-term investors should take note of its potential for growth. Read the full article on Seeking Alpha
Seeking Alpha • Mar 01

Rentokil Initial: Excessive Derating But Still Unattractive Risk/Reward, Hold

Summary Rentokil Initial's stock has lost over 28% of its value due to disappointing organic growth in North America Pest Control. This has triggered a sentiment shift as investors are concerned about the defensive nature of the business and the company's ability to hit growth and margin targets. We revise our estimates downwards to better reflect the current situation. While we find the derating excessive, we still do not find the risk/reward attractive and issue a Hold rating. Read the full article on Seeking Alpha
Seeking Alpha • Feb 11

GreenWood Investors - Rentokil: Synergies Ripple Should Push Margins To Best-In-Class Levels

Summary A dramatic 30% share price fall in reaction to a profit warning at Rentokil triggered Chris’s efforts to underwrite the pest control opportunity. We believe Rentokil’s culture will help to bring additional progress towards further improving Terminix’s culture and operational processes. Due to the quarterly profit volatility making the company “uninvestable” for the compounder crowd, the business trades for 18x 2023 earnings. This is before significant synergies ripple through the income statement— which should push group margins to best-in-class levels globally. Read the full article on Seeking Alpha
Seeking Alpha • Sep 04

Rentokil Initial: Thriving Compounder In A Market Leading Position

Summary Rentokil Initial offers integrated service solutions for pest control, hygiene services, and workwear solutions. The company has grown at a CAGR of 11%, with strong organic growth and consistent acquisitions. RTO has a fantastic business model, with a leading position in numerous segments and deep expertise, allowing for 4-6% organic growth in a mature industry. The company has consistently improved FCF, with scope for further margin improvement as it optimizes acquired entities. This will be a key value lever in the coming years. In conjunction with strong fundamentals (& M&A), RTO is benefiting from industry tailwinds, as infrastructure spending and economic development globally drive demand. Read the full article on Seeking Alpha
Seeking Alpha • Jun 08

Rentokil Initial: A Compellingly Priced Leader In The Attractive Pest Control Industry

Summary Rentokil Initial operates in the attractive and expanding pest control industry, with opportunities for growth through acquisitions. The recent acquisition of Terminix strengthens Rentokil Initial's position in the pest control market and also provides ample synergies. The company's valuation remains compelling despite trading near its all-time high, with multiples significantly below major competitors. I rate the company as a buy. Read the full article on Seeking Alpha

Shareholder Returns

RTOUS Commercial ServicesUS Market
7D-0.6%-2.8%2.1%
1Y44.0%-16.2%30.6%

Return vs Industry: RTO exceeded the US Commercial Services industry which returned -15.7% over the past year.

Return vs Market: RTO exceeded the US Market which returned 31% over the past year.

Price Volatility

Is RTO's price volatile compared to industry and market?
RTO volatility
RTO Average Weekly Movement5.3%
Commercial Services Industry Average Movement7.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: RTO has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: RTO's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190363,388Mike Duffywww.rentokil-initial.com

Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, Europe, the United Kingdom, Asia, the Middle East, North Africa, Turkey, and Pacific. The company offers a range of pest control services for rodents, and flying and crawling insects, as well as other forms of wildlife management. It 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 plc Fundamentals Summary

How do Rentokil Initial's earnings and revenue compare to its market cap?
RTO fundamental statistics
Market capUS$16.78b
Earnings (TTM)US$290.00m
Revenue (TTM)US$6.91b
57.9x
P/E Ratio
2.4x
P/S Ratio

Is RTO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
RTO income statement (TTM)
RevenueUS$6.91b
Cost of RevenueUS$5.96b
Gross ProfitUS$951.00m
Other ExpensesUS$661.00m
EarningsUS$290.00m

Last Reported Earnings

Dec 31, 2025

Next Earnings Date

Jul 30, 2026

Earnings per share (EPS)0.12
Gross Margin13.77%
Net Profit Margin4.20%
Debt/Equity Ratio101.7%

How did RTO perform over the long term?

See historical performance and comparison

Dividends

1.9%
Current Dividend Yield
108%
Payout Ratio

Does RTO pay a reliable dividends?

See RTO dividend history and benchmarks
When do you need to buy RTO by to receive an upcoming dividend?
Rentokil Initial dividend dates
Ex Dividend DateApr 10 2026
Dividend Pay DateMay 19 2026
Days until Ex dividend30 days
Days until Dividend pay date9 days

Does RTO pay a reliable dividends?

See RTO dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/07 09:44
End of Day Share Price 2026/05/07 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Rentokil Initial plc is covered by 29 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Paul Daniel SullivanBarclays
James RosenthalBarclays
Jane SparrowBarclays