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. There are concerns on the financial health of 3RB while its profitability can be described as average. 3RB has a valuation in line with the averages, but it does not seem to be growing. Finally 3RB also has an excellent dividend rating.
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.
3RB had positive earnings in 4 of the past 5 years.
3RB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 5.64%, 3RB perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
3RB's Return On Equity of 21.29% is in line compared to the rest of the industry. 3RB outperforms 55.56% of its industry peers.
The Return On Invested Capital of 3RB (12.36%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 3RB is significantly below the industry average of 18.18%.
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
3RB has a Profit Margin of 10.06%. This is comparable to the rest of the industry: 3RB outperforms 55.56% of its industry peers.
The Operating Margin of 3RB (23.10%) is better than 77.78% 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 60.66%, 3RB belongs to the top of the industry, outperforming 88.89% 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
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
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
3RB has an Altman-Z score of 2.37. 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.
The Altman-Z score of 3RB (2.37) is worse than 66.67% 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 66.67% 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.
Looking at the Debt to Equity ratio, with a value of 1.19, 3RB is in line with its industry, outperforming 55.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 3.91 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.55
WACC8%
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.
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.
3RB has a worse Quick ratio (0.39) than 66.67% 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%.
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
3RB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.30% yearly.
Based on estimates for the next years, 3RB will show a small growth in Revenue. The Revenue will grow by 4.81% on average per year.
EPS Next Y2.22%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
EPS Next 5Y4.3%
Revenue Next Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
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
With a Price/Earnings ratio of 14.33, 3RB is valued correctly.
Based on the Price/Earnings ratio, 3RB is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
3RB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 14.02, which indicates a correct valuation of 3RB.
88.89% of the companies in the same industry are more expensive than 3RB, based on the Price/Forward Earnings ratio.
3RB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 14.02 |
4.2 Price Multiples
77.78% 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 the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.62 | ||
| EV/EBITDA | 9.58 |
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)6.46
PEG (5Y)N/A
EPS Next 2Y4.77%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
3RB has a Yearly Dividend Yield of 4.09%, which is a nice return.
Compared to an average industry Dividend Yield of 3.05, 3RB pays a better dividend. On top of this 3RB pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 3RB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
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.
3RB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP96.84%
EPS Next 2Y4.77%
EPS Next 3Y5.42%
FRA:3RB (5/30/2025, 7:00:00 PM)
59.46
+0.86 (+1.47%)
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 Cap43.79B
Analysts76.43
Price Target69.27 (16.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.09% |
Yearly Dividend2.34
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%
PT rev (3m)-0.32%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.69%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 14.02 | ||
| P/S | 2.6 | ||
| P/FCF | 16.62 | ||
| P/OCF | 13.74 | ||
| P/B | 5.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.58 |
EPS(TTM)4.15
EY6.98%
EPS(NY)4.24
Fwd EY7.13%
FCF(TTM)3.58
FCFY6.02%
OCF(TTM)4.33
OCFY7.28%
SpS22.87
BVpS10.81
TBVpS-17.54
PEG (NY)6.46
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 | 2.37 |
F-Score6
WACC8%
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 Year0.46%
Revenue Next 2Y1.99%
Revenue Next 3Y2.57%
Revenue Next 5Y4.81%
EBIT growth 1Y-1%
EBIT growth 3Y7.21%
EBIT growth 5Y1%
EBIT Next Year19.34%
EBIT Next 3Y9.5%
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%