RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - Deutsche Boerse Ag - GB00B24CGK77 - Common Stock - Currency: EUR
Taking everything into account, 3RB scores 4 out of 10 in our fundamental rating. 3RB was compared to 7 industry peers in the Household Products industry. 3RB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 3RB has a valuation in line with the averages, but it does not seem to be growing. 3RB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 3RB was profitable.
In the past year 3RB had a positive cash flow from operations.
3RB had positive earnings in 4 of the past 5 years.
In the past 5 years 3RB always reported a positive cash flow from operatings.
1.2 Ratios
3RB has a Return On Assets (5.64%) which is in line with its industry peers.
3RB has a Return On Equity of 21.29%. This is comparable to the rest of the industry: 3RB outperforms 42.86% of its industry peers.
3RB's Return On Invested Capital of 12.36% is in line compared to the rest of the industry. 3RB outperforms 42.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 3RB is significantly below the industry average of 17.94%.
The last Return On Invested Capital (12.36%) for 3RB is above the 3 year average (11.89%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 10.06%, 3RB perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Looking at the Operating Margin, with a value of 23.10%, 3RB is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of 3RB has remained more or less at the same level.
With an excellent Gross Margin value of 60.66%, 3RB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 3RB has remained more or less at the same level.
| 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.
3RB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 3RB has less shares outstanding
The debt/assets ratio for 3RB is higher compared to a year ago.
2.2 Solvency
3RB has an Altman-Z score of 2.27. 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 worse Altman-Z score (2.27) than 85.71% of its industry peers.
3RB has a debt to FCF ratio of 3.91. This is a good value and a sign of high solvency as 3RB would need 3.91 years to pay back of all of its debts.
The Debt to FCF ratio of 3RB (3.91) is worse than 85.71% of its industry peers.
A Debt/Equity ratio of 1.19 is on the high side and indicates that 3RB has dependencies on debt financing.
3RB's Debt to Equity ratio of 1.19 is in line compared to the rest of the industry. 3RB outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.27 |
ROIC/WACC1.55
WACC7.96%
2.3 Liquidity
3RB has a Current 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 Current ratio, with a value of 0.58, 3RB is doing worse than 85.71% of the companies in the same industry.
A Quick Ratio of 0.39 indicates that 3RB may have some problems paying its short term obligations.
The Quick ratio of 3RB (0.39) is worse than 85.71% of its industry peers.
| 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%.
Measured over the past 5 years, 3RB shows a small growth in Earnings Per Share. The EPS has been growing by 6.55% on average per year.
3RB shows a decrease in Revenue. In the last year, the revenue decreased by -3.00%.
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)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 4.30% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y4.3%
Revenue Next Year1.09%
Revenue Next 2Y2.34%
Revenue Next 3Y2.81%
Revenue Next 5Y4.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.17, the valuation of 3RB can be described as correct.
Based on the Price/Earnings ratio, 3RB is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
3RB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.86, which indicates a correct valuation of 3RB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 3RB indicates a rather cheap valuation: 3RB is cheaper than 85.71% of the companies listed in the same industry.
3RB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 13.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 3RB indicates a rather cheap valuation: 3RB is cheaper than 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3RB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 8.89 |
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)6.39
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.17%, 3RB is a good candidate for dividend investing.
3RB's Dividend Yield is rather good when compared to the industry average which is at 3.08. 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
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
3RB pays out 96.84% of its income as dividend. 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 (5/2/2025, 7:00:00 PM)
57.94
+1.3 (+2.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners64.56%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap39.47B
Analysts76.43
Price Target69.27 (19.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend2.31
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)-1.51%
PT rev (3m)0.64%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.24%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.41%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.17 | ||
| Fwd PE | 13.86 | ||
| P/S | 2.38 | ||
| P/FCF | 15.19 | ||
| P/OCF | 12.56 | ||
| P/B | 5.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.89 |
EPS(TTM)4.09
EY7.06%
EPS(NY)4.18
Fwd EY7.22%
FCF(TTM)3.81
FCFY6.58%
OCF(TTM)4.61
OCFY7.96%
SpS24.38
BVpS11.52
TBVpS-18.69
PEG (NY)6.39
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
WACC7.96%
ROIC/WACC1.55
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 5Y4.3%
Revenue 1Y (TTM)-3%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.22%
Revenue Next Year1.09%
Revenue Next 2Y2.34%
Revenue Next 3Y2.81%
Revenue Next 5Y4.81%
EBIT growth 1Y-1%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.19%
EBIT Next 3Y9.58%
EBIT Next 5Y5.19%
FCF growth 1Y1.37%
FCF growth 3Y21.14%
FCF growth 5Y18.03%
OCF growth 1Y1.75%
OCF growth 3Y16.48%
OCF growth 5Y13.71%