RECKITT BENCKISER GROUP PLC (3RB.DE) Stock Fundamental Analysis
FRA:3RB - Deutsche Boerse Ag - GB00B24CGK77 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 3RB. 3RB was compared to 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 has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years 3RB 4 years were profitable.
In the past 5 years 3RB always reported a positive cash flow from operatings.
1.2 Ratios
3RB's Return On Assets of 5.05% is on the low side compared to the rest of the industry. 3RB is outperformed by 62.50% of its industry peers.
3RB has a Return On Equity of 19.68%. This is in the better half of the industry: 3RB outperforms 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.84%, 3RB is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
3RB had an Average Return On Invested Capital over the past 3 years of 11.89%. This is significantly below the industry average of 18.74%.
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 62.50% of its industry peers.
3RB has a Operating Margin of 23.41%. This is amongst the best in the industry. 3RB outperforms 87.50% 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
An Altman-Z score of 2.38 indicates that 3RB is not a great score, but indicates only limited risk for bankruptcy at the moment.
3RB's Altman-Z score of 2.38 is on the low side compared to the rest of the industry. 3RB is outperformed by 62.50% of its industry peers.
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 has a worse Debt to FCF ratio (4.60) than 62.50% of its industry peers.
A Debt/Equity ratio of 1.26 is on the high side and indicates that 3RB has dependencies on debt financing.
3RB's Debt to Equity ratio of 1.26 is fine compared to the rest of the industry. 3RB outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.6 | ||
| Altman-Z | 2.38 |
ROIC/WACC1.59
WACC8.09%
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 62.50% of its industry peers.
A Quick Ratio of 0.37 indicates that 3RB may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.37, 3RB is doing worse than 62.50% of the companies in the same industry.
| 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.
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 -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 3.54% on average over the next years.
3RB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue Next Year-0.29%
Revenue Next 2Y1.47%
Revenue Next 3Y2.19%
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
With a Price/Earnings ratio of 15.25, 3RB is valued correctly.
75.00% of the companies in the same industry are more expensive than 3RB, based on the Price/Earnings ratio.
3RB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.19 indicates a correct valuation of 3RB.
87.50% of the companies in the same industry are more expensive than 3RB, based on the Price/Forward Earnings ratio.
3RB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 14.19 |
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.
3RB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 3RB is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| EV/EBITDA | 9.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 3RB may justify a higher PE ratio.
PEG (NY)6.88
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 3.63%.
3RB's Dividend Yield is a higher than the industry average which is at 3.31.
3RB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| 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.
3RB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP112%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
FRA:3RB (8/7/2025, 7:00:00 PM)
62.38
-0.6 (-0.95%)
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 Cap42.36B
Analysts77.86
Price Target67.95 (8.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend2.28
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)-1.75%
PT rev (3m)-1.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.75%
Revenue NY rev (3m)-1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.25 | ||
| Fwd PE | 14.19 | ||
| P/S | 2.64 | ||
| P/FCF | 18.31 | ||
| P/OCF | 14.7 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.62 |
EPS(TTM)4.09
EY6.56%
EPS(NY)4.4
Fwd EY7.05%
FCF(TTM)3.41
FCFY5.46%
OCF(TTM)4.24
OCFY6.8%
SpS23.62
BVpS10.66
TBVpS-17.57
PEG (NY)6.88
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 | 2.38 |
F-Score7
WACC8.09%
ROIC/WACC1.59
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 Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y3.54%
Revenue 1Y (TTM)-2.41%
Revenue growth 3Y2.3%
Revenue growth 5Y1.98%
Sales Q2Q%-2.6%
Revenue Next Year-0.29%
Revenue Next 2Y1.47%
Revenue Next 3Y2.19%
Revenue Next 5Y2.65%
EBIT growth 1Y1.08%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
EBIT Next 5Y6.07%
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%