RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - GB00B24CGK77 - Common Stock
65.88 EUR
+0.28 (+0.43%)
3RB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 8 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
3RB had positive earnings in the past year.
3RB had a positive operating cash flow in the past year.
3RB had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 3RB had a positive operating cash flow.
1.2 Ratios
3RB has a Return On Assets of 5.05%. This is in the lower half of the industry: 3RB underperforms 75.00% of its industry peers.
3RB has a Return On Equity (19.68%) which is in line with its industry peers.
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.
3RB had an Average Return On Invested Capital over the past 3 years of 11.89%. This is significantly below the industry average of 18.04%.
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
Looking at the Profit Margin, with a value of 8.88%, 3RB is doing worse than 75.00% of the companies in the same industry.
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.
3RB has a Gross Margin of 60.89%. This is amongst the best in the industry. 3RB outperforms 100.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 3RB is creating some value.
Compared to 1 year ago, 3RB has less shares outstanding
The number of shares outstanding for 3RB has been reduced compared to 5 years ago.
3RB has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.43 indicates that 3RB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.43, 3RB is doing worse than 62.50% of the companies in the same industry.
3RB has a debt to FCF ratio of 4.60. This is a neutral value as 3RB would need 4.60 years to pay back of 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 | 2.43 |
ROIC/WACC1.57
WACC8.19%
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's Current ratio of 0.56 is on the low side compared to the rest of the industry. 3RB is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.37 indicates that 3RB may have some problems paying its short term obligations.
3RB's Quick ratio of 0.37 is on the low side compared to the rest of the industry. 3RB is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
3RB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.24%, which is quite good.
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
The Earnings Per Share is expected to grow by 3.80% on average over the next years.
Based on estimates for the next years, 3RB will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y2.85%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
EPS Next 5Y3.8%
Revenue Next Year-0.37%
Revenue Next 2Y1.02%
Revenue Next 3Y1.81%
Revenue Next 5Y2.66%
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 16.07, the valuation of 3RB can be described as correct.
3RB's Price/Earnings ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. 3RB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.08, the valuation of 3RB can be described as correct.
3RB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 3RB is cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.69. 3RB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 3RB is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 3RB is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 9.94 |
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)5.63
PEG (5Y)N/A
EPS Next 2Y4.22%
EPS Next 3Y4.86%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.63%. 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 3.15.
3RB's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
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.
The dividend of 3RB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP112%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
FRA:3RB (9/5/2025, 7:00:00 PM)
65.88
+0.28 (+0.43%)
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 Cap44.64B
Analysts77.78
Price Target69.74 (5.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend2.27
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)2.64%
PT rev (3m)0.68%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.62%
EPS NY rev (3m)0.62%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.07 | ||
| Fwd PE | 15.08 | ||
| P/S | 2.77 | ||
| P/FCF | 19.21 | ||
| P/OCF | 15.42 | ||
| P/B | 6.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.94 |
EPS(TTM)4.1
EY6.22%
EPS(NY)4.37
Fwd EY6.63%
FCF(TTM)3.43
FCFY5.21%
OCF(TTM)4.27
OCFY6.48%
SpS23.78
BVpS10.73
TBVpS-17.69
PEG (NY)5.63
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 | 2.43 |
F-Score7
WACC8.19%
ROIC/WACC1.57
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 Y2.85%
EPS Next 2Y4.22%
EPS Next 3Y4.86%
EPS Next 5Y3.8%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
Revenue Next Year-0.37%
Revenue Next 2Y1.02%
Revenue Next 3Y1.81%
Revenue Next 5Y2.66%
EBIT growth 1Y1.08%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
EBIT Next 5Y6.2%
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%