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RENTOKIL INITIAL PLC-SP ADR (RTO) Stock Fundamental Analysis

USA - NYSE:RTO - US7601251041 - ADR

27.82 USD
+0.32 (+1.16%)
Last: 10/31/2025, 8:12:33 PM
27.82 USD
0 (0%)
After Hours: 10/31/2025, 8:12:33 PM
Fundamental Rating

5

Overall RTO gets a fundamental rating of 5 out of 10. We evaluated RTO against 82 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of RTO while its profitability can be described as average. RTO is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

RTO had positive earnings in the past year.
In the past year RTO had a positive cash flow from operations.
RTO had positive earnings in each of the past 5 years.
In the past 5 years RTO always reported a positive cash flow from operatings.
RTO Yearly Net Income VS EBIT VS OCF VS FCFRTO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

1.2 Ratios

RTO's Return On Assets of 2.36% is in line compared to the rest of the industry. RTO outperforms 58.54% of its industry peers.
With a Return On Equity value of 6.38%, RTO perfoms like the industry average, outperforming 57.32% of the companies in the same industry.
RTO has a Return On Invested Capital (4.69%) which is in line with its industry peers.
RTO had an Average Return On Invested Capital over the past 3 years of 5.49%. This is below the industry average of 10.38%.
Industry RankSector Rank
ROA 2.36%
ROE 6.38%
ROIC 4.69%
ROA(3y)2.76%
ROA(5y)3.54%
ROE(3y)7.41%
ROE(5y)11.9%
ROIC(3y)5.49%
ROIC(5y)6.1%
RTO Yearly ROA, ROE, ROICRTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1.3 Margins

The Profit Margin of RTO (4.80%) is better than 63.41% of its industry peers.
RTO's Profit Margin has declined in the last couple of years.
The Operating Margin of RTO (10.17%) is better than 70.73% of its industry peers.
RTO's Operating Margin has improved in the last couple of years.
RTO's Gross Margin of 86.86% is amongst the best of the industry. RTO outperforms 98.78% of its industry peers.
RTO's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 10.17%
PM (TTM) 4.8%
GM 86.86%
OM growth 3Y2.06%
OM growth 5Y4.21%
PM growth 3Y-14.07%
PM growth 5Y-11.59%
GM growth 3Y1.51%
GM growth 5Y1.16%
RTO Yearly Profit, Operating, Gross MarginsRTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

3

2. Health

2.1 Basic Checks

RTO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, RTO has about the same amount of shares outstanding.
RTO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RTO has been reduced compared to a year ago.
RTO Yearly Shares OutstandingRTO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
RTO Yearly Total Debt VS Total AssetsRTO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

An Altman-Z score of 2.14 indicates that RTO 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 2.14, RTO is in line with its industry, outperforming 50.00% of the companies in the same industry.
RTO has a debt to FCF ratio of 8.70. This is a slightly negative value and a sign of low solvency as RTO would need 8.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.70, RTO is doing good in the industry, outperforming 60.98% of the companies in the same industry.
RTO has a Debt/Equity ratio of 1.00. This is a neutral value indicating RTO is somewhat dependend on debt financing.
The Debt to Equity ratio of RTO (1.00) is worse than 63.41% of its industry peers.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 8.7
Altman-Z 2.14
ROIC/WACC0.62
WACC7.51%
RTO Yearly LT Debt VS Equity VS FCFRTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.3 Liquidity

RTO has a Current Ratio of 1.12. This is a normal value and indicates that RTO is financially healthy and should not expect problems in meeting its short term obligations.
RTO's Current ratio of 1.12 is on the low side compared to the rest of the industry. RTO is outperformed by 73.17% of its industry peers.
A Quick Ratio of 1.03 indicates that RTO should not have too much problems paying its short term obligations.
RTO has a Quick ratio of 1.03. This is in the lower half of the industry: RTO underperforms 67.07% of its industry peers.
Industry RankSector Rank
Current Ratio 1.12
Quick Ratio 1.03
RTO Yearly Current Assets VS Current LiabilitesRTO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

6

3. Growth

3.1 Past

RTO shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
Measured over the past years, RTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.83% on average per year.
Looking at the last year, RTO shows a quite strong growth in Revenue. The Revenue has grown by 17.42% in the last year.
RTO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y10.05%
EPS 5Y10.83%
EPS Q2Q%6.87%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
Sales Q2Q%24.28%

3.2 Future

RTO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.14% yearly.
Based on estimates for the next years, RTO will show a quite strong growth in Revenue. The Revenue will grow by 9.48% on average per year.
EPS Next Y-7.04%
EPS Next 2Y0.92%
EPS Next 3Y4.18%
EPS Next 5Y6.14%
Revenue Next Year6.36%
Revenue Next 2Y4.7%
Revenue Next 3Y4.71%
Revenue Next 5Y9.48%

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 decreasing: in the next years the growth will be less than in the last years.
RTO Yearly Revenue VS EstimatesRTO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
RTO Yearly EPS VS EstimatesRTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5

4

4. Valuation

4.1 Price/Earnings Ratio

RTO is valuated rather expensively with a Price/Earnings ratio of 22.26.
63.41% of the companies in the same industry are more expensive than RTO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of RTO to the average of the S&P500 Index (26.11), we can say RTO is valued inline with the index average.
A Price/Forward Earnings ratio of 22.64 indicates a rather expensive valuation of RTO.
63.41% of the companies in the same industry are more expensive than RTO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.55. RTO is around the same levels.
Industry RankSector Rank
PE 22.26
Fwd PE 22.64
RTO Price Earnings VS Forward Price EarningsRTO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

RTO's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than the industry average as 70.73% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 20.21
EV/EBITDA 13.2
RTO Per share dataRTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

RTO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.06
EPS Next 2Y0.92%
EPS Next 3Y4.18%

4

5. Dividend

5.1 Amount

RTO has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
RTO's Dividend Yield is rather good when compared to the industry average which is at 2.58. RTO pays more dividend than 84.15% of the companies in the same industry.
RTO's Dividend Yield is comparable with the S&P500 average which is at 2.37.
Industry RankSector Rank
Dividend Yield 2.14%

5.2 History

The dividend of RTO is nicely growing with an annual growth rate of 21.12%!
RTO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.12%
Div Incr Years0
Div Non Decr Years0
RTO Yearly Dividends per shareRTO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

RTO pays out 94.52% of its income as dividend. This is not a sustainable payout ratio.
The dividend of RTO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP94.52%
EPS Next 2Y0.92%
EPS Next 3Y4.18%
RTO Yearly Income VS Free CF VS DividendRTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M
RTO Dividend Payout.RTO Dividend Payout, showing the Payout Ratio.RTO Dividend Payout.PayoutRetained Earnings

RENTOKIL INITIAL PLC-SP ADR

NYSE:RTO (10/31/2025, 8:12:33 PM)

After market: 27.82 0 (0%)

27.82

+0.32 (+1.16%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)10-23 2025-10-23
Earnings (Next)03-05 2026-03-05/amc
Inst Owners74.38%
Inst Owner ChangeN/A
Ins Owners0.59%
Ins Owner ChangeN/A
Market Cap13.99B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts71.2
Price Target30.09 (8.16%)
Short Float %0.71%
Short Ratio5.14
Dividend
Industry RankSector Rank
Dividend Yield 2.14%
Yearly Dividend0.12
Dividend Growth(5Y)21.12%
DP94.52%
Div Incr Years0
Div Non Decr Years0
Ex-Date08-15 2025-08-15 (0.2075)
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)2.01%
PT rev (3m)7.09%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.37%
Valuation
Industry RankSector Rank
PE 22.26
Fwd PE 22.64
P/S 2
P/FCF 20.21
P/OCF 14.24
P/B 2.66
P/tB N/A
EV/EBITDA 13.2
EPS(TTM)1.25
EY4.49%
EPS(NY)1.23
Fwd EY4.42%
FCF(TTM)1.38
FCFY4.95%
OCF(TTM)1.95
OCFY7.02%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)N/A
PEG (5Y)2.06
Graham Number17.17
Profitability
Industry RankSector Rank
ROA 2.36%
ROE 6.38%
ROCE 6.5%
ROIC 4.69%
ROICexc 5.48%
ROICexgc 54.84%
OM 10.17%
PM (TTM) 4.8%
GM 86.86%
FCFM 9.88%
ROA(3y)2.76%
ROA(5y)3.54%
ROE(3y)7.41%
ROE(5y)11.9%
ROIC(3y)5.49%
ROIC(5y)6.1%
ROICexc(3y)6.28%
ROICexc(5y)8.1%
ROICexgc(3y)56.79%
ROICexgc(5y)65.31%
ROCE(3y)7.83%
ROCE(5y)9.4%
ROICexgc growth 3Y13.81%
ROICexgc growth 5Y13.34%
ROICexc growth 3Y-12.34%
ROICexc growth 5Y-7.02%
OM growth 3Y2.06%
OM growth 5Y4.21%
PM growth 3Y-14.07%
PM growth 5Y-11.59%
GM growth 3Y1.51%
GM growth 5Y1.16%
F-Score5
Asset Turnover0.49
Health
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 8.7
Debt/EBITDA 3.92
Cap/Depr 46.49%
Cap/Sales 4.14%
Interest Coverage 2.62
Cash Conversion 73.49%
Profit Quality 205.91%
Current Ratio 1.12
Quick Ratio 1.03
Altman-Z 2.14
F-Score5
WACC7.51%
ROIC/WACC0.62
Cap/Depr(3y)45.91%
Cap/Depr(5y)48.18%
Cap/Sales(3y)4.33%
Cap/Sales(5y)4.77%
Profit Quality(3y)155.2%
Profit Quality(5y)166.26%
High Growth Momentum
Growth
EPS 1Y (TTM)6.45%
EPS 3Y10.05%
EPS 5Y10.83%
EPS Q2Q%6.87%
EPS Next Y-7.04%
EPS Next 2Y0.92%
EPS Next 3Y4.18%
EPS Next 5Y6.14%
Revenue 1Y (TTM)17.42%
Revenue growth 3Y34.91%
Revenue growth 5Y21.74%
Sales Q2Q%24.28%
Revenue Next Year6.36%
Revenue Next 2Y4.7%
Revenue Next 3Y4.71%
Revenue Next 5Y9.48%
EBIT growth 1Y2.43%
EBIT growth 3Y37.69%
EBIT growth 5Y26.87%
EBIT Next Year45.65%
EBIT Next 3Y18.76%
EBIT Next 5Y16.89%
FCF growth 1Y49.86%
FCF growth 3Y15.31%
FCF growth 5Y16.19%
OCF growth 1Y46.44%
OCF growth 3Y17.15%
OCF growth 5Y14.36%

RENTOKIL INITIAL PLC-SP ADR / RTO FAQ

Can you provide the ChartMill fundamental rating for RENTOKIL INITIAL PLC-SP ADR?

ChartMill assigns a fundamental rating of 5 / 10 to RTO.


What is the valuation status of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?

ChartMill assigns a valuation rating of 4 / 10 to RENTOKIL INITIAL PLC-SP ADR (RTO). This can be considered as Fairly Valued.


Can you provide the profitability details for RENTOKIL INITIAL PLC-SP ADR?

RENTOKIL INITIAL PLC-SP ADR (RTO) has a profitability rating of 6 / 10.


Can you provide the PE and PB ratios for RTO stock?

The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 22.26 and the Price/Book (PB) ratio is 2.66.


Can you provide the dividend sustainability for RTO stock?

The dividend rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 4 / 10 and the dividend payout ratio is 94.52%.