RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
Europe - FRA:3RB - GB00B24CGK77 - Common Stock
64.82 EUR
-0.68 (-1.04%)
3RB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 8 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 3RB was profitable.
3RB had a positive operating cash flow in the past year.
Of the past 5 years 3RB 4 years were profitable.
3RB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.05%, 3RB is doing worse than 75.00% of the companies in the same industry.
With a Return On Equity value of 19.68%, 3RB perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
3RB's Return On Invested Capital of 12.84% is in line compared to the rest of the industry. 3RB outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 3RB is significantly below the industry average of 18.07%.
The last Return On Invested Capital (12.84%) for 3RB is above the 3 year average (11.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.68% | ||
| ROIC | 12.84% |
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 (8.88%) is worse than 75.00% of its industry peers.
The Operating Margin of 3RB (23.41%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of 3RB has remained more or less at the same level.
Looking at the Gross Margin, with a value of 60.89%, 3RB belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
3RB's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.41% | ||
| PM (TTM) | 8.88% | ||
| GM | 60.89% |
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.
The number of shares outstanding for 3RB has been reduced compared to 1 year ago.
3RB has less shares outstanding than it did 5 years ago.
3RB has a worse debt/assets ratio than last year.
2.2 Solvency
3RB has an Altman-Z score of 2.41. This is not the best score and indicates that 3RB is in the grey zone with still only limited risk for bankruptcy at the moment.
3RB has a Altman-Z score (2.41) which is in line with its industry peers.
The Debt to FCF ratio of 3RB is 4.60, which is a neutral value as it means it would take 3RB, 4.60 years of fcf income to pay off all of its debts.
3RB's Debt to FCF ratio of 4.60 is on the low side compared to the rest of the industry. 3RB is outperformed by 75.00% of its industry peers.
3RB has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
3RB has a Debt to Equity ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.56
WACC8.21%
2.3 Liquidity
3RB has a Current Ratio of 0.56. This is a bad value and indicates that 3RB is not financially healthy enough and could expect problems in meeting its short term obligations.
3RB has a Current ratio of 0.56. This is in the lower half of the industry: 3RB underperforms 75.00% of its industry peers.
3RB has a Quick Ratio of 0.56. This is a bad value and indicates that 3RB is not financially healthy enough and could expect problems in meeting its short term obligations.
3RB has a Quick ratio of 0.37. This is in the lower half of the industry: 3RB underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.24% over the past year.
3RB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.55% yearly.
Looking at the last year, 3RB shows a decrease in Revenue. The Revenue has decreased by -2.41% in the last year.
Measured over the past years, 3RB shows a small growth in Revenue. The Revenue has been growing by 1.98% on average per year.
EPS 1Y (TTM)14.24%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%4.4%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
3.2 Future
3RB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.77% yearly.
3RB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y3.23%
EPS Next 2Y4.42%
EPS Next 3Y4.91%
EPS Next 5Y5.77%
Revenue Next Year-0.23%
Revenue Next 2Y1.08%
Revenue Next 3Y1.81%
Revenue Next 5Y2.99%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.89, 3RB is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of 3RB indicates a somewhat cheap valuation: 3RB is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.86, 3RB is valued a bit cheaper.
3RB is valuated correctly with a Price/Forward Earnings ratio of 14.86.
Based on the Price/Forward Earnings ratio, 3RB is valued cheaper than 87.50% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, 3RB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than 3RB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 3RB is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.95 | ||
| EV/EBITDA | 9.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.91
PEG (5Y)N/A
EPS Next 2Y4.42%
EPS Next 3Y4.91%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.62%. Purely for dividend investing, there may be better candidates out there.
3RB's Dividend Yield is a higher than the industry average which is at 3.18.
Compared to an average S&P500 Dividend Yield of 2.44, 3RB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
112.00% of the earnings are spent on dividend by 3RB. This is not a sustainable payout ratio.
3RB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP112%
EPS Next 2Y4.42%
EPS Next 3Y4.91%
FRA:3RB (10/3/2025, 7:00:00 PM)
64.82
-0.68 (-1.04%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners69.79%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap43.81B
Analysts77.78
Price Target69.96 (7.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend2.26
Dividend Growth(5Y)2.63%
DP112%
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)0.12%
PT rev (3m)1.16%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.37%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)-0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 14.86 | ||
| P/S | 2.73 | ||
| P/FCF | 18.95 | ||
| P/OCF | 15.22 | ||
| P/B | 6.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.82 |
EPS(TTM)4.08
EY6.29%
EPS(NY)4.36
Fwd EY6.73%
FCF(TTM)3.42
FCFY5.28%
OCF(TTM)4.26
OCFY6.57%
SpS23.71
BVpS10.7
TBVpS-17.63
PEG (NY)4.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.05% | ||
| ROE | 19.68% | ||
| ROCE | 20.63% | ||
| ROIC | 12.84% | ||
| ROICexc | 13.59% | ||
| ROICexgc | N/A | ||
| OM | 23.41% | ||
| PM (TTM) | 8.88% | ||
| GM | 60.89% | ||
| FCFM | 14.42% |
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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 37.9% | ||
| Cap/Sales | 3.54% | ||
| Interest Coverage | 8.8 | ||
| Cash Conversion | 54.86% | ||
| Profit Quality | 162.4% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 2.41 |
F-Score7
WACC8.21%
ROIC/WACC1.56
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)14.24%
EPS 3Y6.55%
EPS 5YN/A
EPS Q2Q%4.4%
EPS Next Y3.23%
EPS Next 2Y4.42%
EPS Next 3Y4.91%
EPS Next 5Y5.77%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
Revenue Next Year-0.23%
Revenue Next 2Y1.08%
Revenue Next 3Y1.81%
Revenue Next 5Y2.99%
EBIT growth 1Y1.08%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year18.55%
EBIT Next 3Y9%
EBIT Next 5Y7.4%
FCF growth 1Y-1.03%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y0.68%
OCF growth 3Y16.48%
OCF growth 5Y13.71%