RENTOKIL INITIAL PLC-SP ADR (RTO) Fundamental Analysis & Valuation

NYSE:RTO • US7601251041

31.59 USD
-0.27 (-0.85%)
At close: Mar 9, 2026
31.59 USD
0 (0%)
After Hours: 3/9/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This RTO fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to RTO. RTO was compared to 82 industry peers in the Commercial Services & Supplies industry. RTO has an average financial health and profitability rating. RTO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

6

1. RTO Profitability Analysis

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.
  • Each year in the past 5 years RTO had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

1.2 Ratios

  • RTO has a Return On Assets of 2.35%. This is in the better half of the industry: RTO outperforms 60.98% of its industry peers.
  • RTO's Return On Equity of 6.35% is fine compared to the rest of the industry. RTO outperforms 62.20% of its industry peers.
  • With a Return On Invested Capital value of 4.66%, RTO perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for RTO is significantly below the industry average of 10.60%.
Industry RankSector Rank
ROA 2.35%
ROE 6.35%
ROIC 4.66%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1.3 Margins

  • RTO has a better Profit Margin (4.80%) than 65.85% of its industry peers.
  • In the last couple of years the Profit Margin of RTO has declined.
  • With a decent Operating Margin value of 10.17%, RTO is doing good in the industry, outperforming 69.51% of the companies in the same industry.
  • RTO's Operating Margin has improved in the last couple of years.
  • RTO has a better Gross Margin (88.18%) than 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 88.18%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60 80

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4

2. RTO Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RTO is destroying value.
  • The number of shares outstanding for RTO remains at a similar level compared to 1 year ago.
  • 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 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 2.27 indicates that RTO is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • RTO has a Altman-Z score (2.27) which is comparable to the rest of the industry.
  • RTO has a debt to FCF ratio of 8.79. This is a slightly negative value and a sign of low solvency as RTO would need 8.79 years to pay back of all of its debts.
  • RTO's Debt to FCF ratio of 8.79 is fine compared to the rest of the industry. RTO outperforms 62.20% of its industry peers.
  • A Debt/Equity ratio of 1.00 indicates that RTO is somewhat dependend on debt financing.
  • RTO's Debt to Equity ratio of 1.00 is in line compared to the rest of the industry. RTO outperforms 40.24% of its industry peers.
Industry RankSector Rank
Debt/Equity 1
Debt/FCF 8.79
Altman-Z 2.27
ROIC/WACC0.61
WACC7.65%
RTO Yearly LT Debt VS Equity VS FCFRTO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 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 has a worse Current ratio (1.12) than 67.07% of its industry peers.
  • A Quick Ratio of 1.03 indicates that RTO should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.03, RTO is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. RTO Growth Analysis

3.1 Past

  • The earnings per share for RTO have decreased strongly by -15.45% in the last year.
  • RTO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.17% yearly.
  • The Revenue has grown by 16.75% in the past year. This is quite good.
  • The Revenue has been growing by 21.98% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-15.45%
EPS 3Y3.04%
EPS 5Y8.17%
EPS Q2Q%-15.51%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y35.34%
Revenue growth 5Y21.98%
Sales Q2Q%24.28%

3.2 Future

  • Based on estimates for the next years, RTO will show a small growth in Earnings Per Share. The EPS will grow by 3.43% on average per year.
  • Based on estimates for the next years, RTO will show a small growth in Revenue. The Revenue will grow by 6.09% on average per year.
EPS Next Y9.12%
EPS Next 2Y9.83%
EPS Next 3Y11.12%
EPS Next 5Y3.43%
Revenue Next Year10.84%
Revenue Next 2Y7.1%
Revenue Next 3Y6.82%
Revenue Next 5Y6.09%

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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
RTO Yearly EPS VS EstimatesRTO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.5 1 1.5

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4

4. RTO Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 25.27, RTO can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 64.63% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of RTO to the average of the S&P500 Index (26.46), we can say RTO is valued inline with the index average.
  • The Price/Forward Earnings ratio is 19.24, which indicates a rather expensive current valuation of RTO.
  • Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 74.39% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of RTO to the average of the S&P500 Index (24.65), we can say RTO is valued slightly cheaper.
Industry RankSector Rank
PE 25.27
Fwd PE 19.24
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 60.98% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than 69.51% of the companies in the same industry.
Industry RankSector Rank
P/FCF 23.17
EV/EBITDA 14.84
RTO Per share dataRTO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RTO does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of RTO may justify a higher PE ratio.
PEG (NY)2.77
PEG (5Y)3.09
EPS Next 2Y9.83%
EPS Next 3Y11.12%

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4

5. RTO Dividend Analysis

5.1 Amount

  • RTO has a Yearly Dividend Yield of 1.98%.
  • Compared to an average industry Dividend Yield of 0.79, RTO pays a better dividend. On top of this RTO pays more dividend than 86.59% of the companies listed in the same industry.
  • RTO's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.98%

5.2 History

  • On average, the dividend of RTO grows each year by 21.34%, which is quite nice.
  • RTO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)21.34%
Div Incr Years0
Div Non Decr Years0
RTO Yearly Dividends per shareRTO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 2023 2024 2025 0.2 0.4 0.6

5.3 Sustainability

  • 93.98% of the earnings are spent on dividend by RTO. 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.
DP93.98%
EPS Next 2Y9.83%
EPS Next 3Y11.12%
RTO Yearly Income VS Free CF VS DividendRTO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 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

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RTO Fundamentals: All Metrics, Ratios and Statistics

RENTOKIL INITIAL PLC-SP ADR

NYSE:RTO (3/9/2026, 8:04:00 PM)

After market: 31.59 0 (0%)

31.59

-0.27 (-0.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)03-05
Earnings (Next)04-16
Inst Owners98.5%
Inst Owner ChangeN/A
Ins Owners2.66%
Ins Owner ChangeN/A
Market Cap15.89B
Revenue(TTM)6.97B
Net Income(TTM)334.62M
Analysts77.86
Price Target32.49 (2.85%)
Short Float %0.83%
Short Ratio3.17
Dividend
Industry RankSector Rank
Dividend Yield 1.98%
Yearly Dividend0.12
Dividend Growth(5Y)21.34%
DP93.98%
Div Incr Years0
Div Non Decr Years0
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)5.35%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-2.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.27%
Revenue NY rev (3m)-3.03%
Valuation
Industry RankSector Rank
PE 25.27
Fwd PE 19.24
P/S 2.28
P/FCF 23.17
P/OCF 16.34
P/B 3.02
P/tB N/A
EV/EBITDA 14.84
EPS(TTM)1.25
EY3.96%
EPS(NY)1.64
Fwd EY5.2%
FCF(TTM)1.36
FCFY4.32%
OCF(TTM)1.93
OCFY6.12%
SpS13.86
BVpS10.48
TBVpS-7.33
PEG (NY)2.77
PEG (5Y)3.09
Graham Number17.17
Profitability
Industry RankSector Rank
ROA 2.35%
ROE 6.35%
ROCE 6.46%
ROIC 4.66%
ROICexc 5.45%
ROICexgc 54.53%
OM 10.17%
PM (TTM) 4.8%
GM 88.18%
FCFM 9.84%
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)6.27%
ROICexc(5y)8.1%
ROICexgc(3y)56.33%
ROICexgc(5y)65.04%
ROCE(3y)7.83%
ROCE(5y)9.4%
ROICexgc growth 3Y13.51%
ROICexgc growth 5Y13.16%
ROICexc growth 3Y-12.36%
ROICexc growth 5Y-7.04%
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 8.79
Debt/EBITDA 3.95
Cap/Depr 46.51%
Cap/Sales 4.12%
Interest Coverage 2.63
Cash Conversion 73.35%
Profit Quality 204.88%
Current Ratio 1.12
Quick Ratio 1.03
Altman-Z 2.27
F-Score5
WACC7.65%
ROIC/WACC0.61
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)-15.45%
EPS 3Y3.04%
EPS 5Y8.17%
EPS Q2Q%-15.51%
EPS Next Y9.12%
EPS Next 2Y9.83%
EPS Next 3Y11.12%
EPS Next 5Y3.43%
Revenue 1Y (TTM)16.75%
Revenue growth 3Y35.34%
Revenue growth 5Y21.98%
Sales Q2Q%24.28%
Revenue Next Year10.84%
Revenue Next 2Y7.1%
Revenue Next 3Y6.82%
Revenue Next 5Y6.09%
EBIT growth 1Y1.85%
EBIT growth 3Y38.12%
EBIT growth 5Y27.11%
EBIT Next Year51.35%
EBIT Next 3Y20.57%
EBIT Next 5Y15.5%
FCF growth 1Y48.39%
FCF growth 3Y15.67%
FCF growth 5Y16.41%
OCF growth 1Y44.96%
OCF growth 3Y17.52%
OCF growth 5Y14.58%

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.


Can you provide the valuation status for RENTOKIL INITIAL PLC-SP ADR?

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.


What are the PE and PB ratios of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?

The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 25.27 and the Price/Book (PB) ratio is 3.02.


What is the financial health of RENTOKIL INITIAL PLC-SP ADR (RTO) stock?

The financial health rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 4 / 10.