Rentokil Initial plc

NYSE:RTO Stock Report

Market Cap: US$16.6b

Rentokil Initial Future Growth

Future criteria checks 3/6

Rentokil Initial is forecast to grow earnings and revenue by 26.3% and 4.6% per annum respectively. EPS is expected to grow by 26.7% per annum. Return on equity is forecast to be 14.1% in 3 years.

Key information

26.3%

Earnings growth rate

26.69%

EPS growth rate

Commercial Services earnings growth13.6%
Revenue growth rate4.6%
Future return on equity14.14%
Analyst coverage

Good

Last updated30 Apr 2026

Recent future growth updates

No updates

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

Earnings and Revenue Growth Forecasts

NYSE:RTO - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20287,9907218881,28612
12/31/20277,6426448021,17817
12/31/20267,3225266541,03817
12/31/20256,908290703972N/A
9/30/20256,812286685959N/A
6/30/20257,5463567081,006N/A
3/31/20257,072364635914N/A
12/31/20246,617346593868N/A
9/30/20245,934345573830N/A
6/30/20246,683477633904N/A
3/31/20246,735479649917N/A
1/1/20246,385437654916N/A
9/30/20236,215411603859N/A
6/30/20236,112372587852N/A
3/31/20235,260324538784N/A
12/31/20224,490280496725N/A
9/30/20223,790279408610N/A
6/30/20223,742326391599N/A
3/31/20223,961349475693N/A
12/31/20213,999356545761N/A
9/30/20213,991351616826N/A
6/30/20214,104357641850N/A
3/31/20213,977307575784N/A
12/31/20203,833254540749N/A
9/30/20203,555277467668N/A
6/30/20203,354301438635N/A
3/31/20203,370327401606N/A
12/31/20193,596376387613N/A
9/30/20193,264115N/A529N/A
6/30/20193,296-123N/A505N/A
3/31/20193,300-127N/A496N/A
12/31/20183,152-125N/A464N/A
9/30/20183,14660N/A463N/A
6/30/20183,108250N/A458N/A
3/31/20183,344612N/A510N/A
12/31/20173,257922N/A513N/A
9/30/20173,234915N/A517N/A
6/30/20173,145889N/A511N/A
3/31/20172,871533N/A472N/A
12/31/20162,672207N/A445N/A
9/30/20162,631195N/A454N/A
6/30/20162,514178N/A451N/A
3/31/20162,628186N/A475N/A
12/31/20152,594183N/A472N/A
9/30/20152,649192N/A498N/A
6/30/20152,739204N/A533N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTO's forecast earnings growth (26.3% per year) is above the savings rate (3.5%).

Earnings vs Market: RTO's earnings (26.3% per year) are forecast to grow faster than the US market (16.7% per year).

High Growth Earnings: RTO's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RTO's revenue (4.6% per year) is forecast to grow slower than the US market (11.6% per year).

High Growth Revenue: RTO's revenue (4.6% 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 low in 3 years time (14.1%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/05/11 15:22
End of Day Share Price 2026/05/08 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