RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - Deutsche Boerse Ag - GB00B24CGK77 - Common Stock - Currency: EUR
3RB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 9 industry peers in the Household Products industry. While 3RB is still in line with the averages on profitability rating, there are concerns on its financial health. 3RB is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
3RB had positive earnings in the past year.
In the past year 3RB had a positive cash flow from operations.
Of the past 5 years 3RB 4 years were profitable.
Each year in the past 5 years 3RB had a positive operating cash flow.
1.2 Ratios
3RB's Return On Assets of 5.64% is on the low side compared to the rest of the industry. 3RB is outperformed by 66.67% of its industry peers.
The Return On Equity of 3RB (21.29%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 12.36%, 3RB is in line with its industry, outperforming 55.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 3RB is significantly below the industry average of 18.62%.
The 3 year average ROIC (11.89%) for 3RB is below the current ROIC(12.36%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 21.29% | ||
| ROIC | 12.36% |
ROA(3y)6.6%
ROA(5y)4.69%
ROE(3y)21.8%
ROE(5y)15.6%
ROIC(3y)11.89%
ROIC(5y)10.92%
1.3 Margins
The Profit Margin of 3RB (10.06%) is comparable to the rest of the industry.
3RB has a Operating Margin of 23.10%. This is in the better half of the industry: 3RB outperforms 77.78% of its industry peers.
3RB's Operating Margin has been stable in the last couple of years.
3RB's Gross Margin of 60.66% is amongst the best of the industry. 3RB outperforms 88.89% of its industry peers.
3RB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.1% | ||
| PM (TTM) | 10.06% | ||
| GM | 60.66% |
OM growth 3Y4.8%
OM growth 5Y-0.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.04%
2. Health
2.1 Basic Checks
3RB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 3RB has less shares outstanding
Compared to 5 years ago, 3RB has less shares outstanding
Compared to 1 year ago, 3RB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.27 indicates that 3RB is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.27, 3RB is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of 3RB is 3.91, which is a good value as it means it would take 3RB, 3.91 years of fcf income to pay off all of its debts.
3RB has a worse Debt to FCF ratio (3.91) than 66.67% of its industry peers.
3RB has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
3RB has a Debt to Equity ratio (1.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.53
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.58 indicates that 3RB may have some problems paying its short term obligations.
3RB has a Current ratio of 0.58. This is in the lower half of the industry: 3RB underperforms 66.67% of its industry peers.
3RB has a Quick Ratio of 0.58. This is a bad value and indicates that 3RB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.39, 3RB is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
3RB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.92%.
The Earnings Per Share has been growing slightly by 6.55% on average over the past years.
Looking at the last year, 3RB shows a decrease in Revenue. The Revenue has decreased by -3.00% in the last year.
The Revenue has been growing slightly by 1.98% on average over the past years.
EPS 1Y (TTM)7.92%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%24.8%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
3.2 Future
Based on estimates for the next years, 3RB will show a small growth in Earnings Per Share. The EPS will grow by 3.54% on average per year.
Based on estimates for the next years, 3RB will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue Next Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5Y2.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.38, which indicates a correct valuation of 3RB.
Compared to the rest of the industry, the Price/Earnings ratio of 3RB indicates a somewhat cheap valuation: 3RB is cheaper than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, 3RB is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.07, which indicates a correct valuation of 3RB.
Based on the Price/Forward Earnings ratio, 3RB is valued cheaper than 88.89% of the companies in the same industry.
3RB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 14.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 3RB is valued a bit cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 3RB is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 3RB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.48
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.96%. Purely for dividend investing, there may be better candidates out there.
3RB's Dividend Yield is rather good when compared to the industry average which is at 3.13. 3RB pays more dividend than 100.00% of the companies in the same industry.
3RB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of 3RB has a limited annual growth rate of 2.63%.
Dividend Growth(5Y)2.63%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
96.84% of the earnings are spent on dividend by 3RB. This is not a sustainable payout ratio.
The dividend of 3RB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.84%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
FRA:3RB (7/18/2025, 7:00:00 PM)
58.08
+0.4 (+0.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners64.49%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap39.45B
Analysts77.86
Price Target69.16 (19.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend2.28
Dividend Growth(5Y)2.63%
DP96.84%
Div Incr Years2
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.8%
PT rev (3m)-2.91%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 14.07 | ||
| P/S | 2.41 | ||
| P/FCF | 15.38 | ||
| P/OCF | 12.71 | ||
| P/B | 5.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.93 |
EPS(TTM)4.04
EY6.96%
EPS(NY)4.13
Fwd EY7.11%
FCF(TTM)3.78
FCFY6.5%
OCF(TTM)4.57
OCFY7.87%
SpS24.13
BVpS11.41
TBVpS-18.51
PEG (NY)6.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.64% | ||
| ROE | 21.29% | ||
| ROCE | 18.86% | ||
| ROIC | 12.36% | ||
| ROICexc | 12.99% | ||
| ROICexgc | N/A | ||
| OM | 23.1% | ||
| PM (TTM) | 10.06% | ||
| GM | 60.66% | ||
| FCFM | 15.65% |
ROA(3y)6.6%
ROA(5y)4.69%
ROE(3y)21.8%
ROE(5y)15.6%
ROIC(3y)11.89%
ROIC(5y)10.92%
ROICexc(3y)12.61%
ROICexc(5y)11.8%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)17.99%
ROCE(5y)16.41%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y4.53%
ROICexc growth 5Y6.53%
OM growth 3Y4.8%
OM growth 5Y-0.96%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.49%
GM growth 5Y0.04%
F-Score6
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 35.55% | ||
| Cap/Sales | 3.28% | ||
| Interest Coverage | 9.35 | ||
| Cash Conversion | 58.55% | ||
| Profit Quality | 155.47% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 2.27 |
F-Score6
WACC8.08%
ROIC/WACC1.53
Cap/Depr(3y)47.78%
Cap/Depr(5y)67.97%
Cap/Sales(3y)3.14%
Cap/Sales(5y)3.26%
Profit Quality(3y)124.15%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)7.92%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%24.8%
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
Revenue Next Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5Y2.65%
EBIT growth 1Y-1%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
EBIT Next 5Y6.07%
FCF growth 1Y1.37%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y1.75%
OCF growth 3Y16.48%
OCF growth 5Y13.71%