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

USA - NYSE:RTO - US7601251041 - ADR

27.66 USD
-0.16 (-0.58%)
Last: 11/3/2025, 12:51:07 PM
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 a medium profitability rating, but doesn't score so well on its financial health evaluation. 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

In the past year RTO was profitable.
RTO had a positive operating cash flow in the past year.
In the past 5 years RTO has always been profitable.
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 57.32% of its industry peers.
RTO has a Return On Equity of 6.38%. This is comparable to the rest of the industry: RTO outperforms 56.10% of its industry peers.
RTO's Return On Invested Capital of 4.69% is in line compared to the rest of the industry. RTO outperforms 51.22% of 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

RTO has a better Profit Margin (4.80%) than 63.41% of its industry peers.
RTO's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.17%, RTO is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
In the last couple of years the Operating Margin of RTO has grown nicely.
RTO has a better Gross Margin (86.86%) than 98.78% of its industry peers.
In the last couple of years the Gross Margin of RTO has remained more or less at the same level.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RTO is destroying value.
Compared to 1 year ago, RTO has about the same amount of shares outstanding.
Compared to 5 years ago, RTO has more shares outstanding
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

RTO has an Altman-Z score of 2.14. This is not the best score and indicates that RTO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.14, RTO perfoms like the industry average, 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.
Looking at the Debt to Equity ratio, with a value of 1.00, RTO is doing worse than 64.63% of the companies in the same industry.
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.
The Current ratio of RTO (1.12) is worse than 73.17% of its industry peers.
RTO has a Quick Ratio of 1.03. 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 Quick ratio of 1.03 is on the low side compared to the rest of the industry. RTO is outperformed by 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%.
The Earnings Per Share has been growing by 10.83% on average over the past years. This is quite good.
RTO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.42%.
The Revenue has been growing by 21.74% on average over the past years. This is a very strong growth!
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

Based on estimates for the next years, RTO will show a small growth in Earnings Per Share. The EPS will grow by 6.14% on average per year.
The Revenue is expected to grow by 9.48% on average over the next years. This is quite good.
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

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 decreasing.
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

The Price/Earnings ratio is 22.13, which indicates a rather expensive current valuation of RTO.
Based on the Price/Earnings ratio, RTO is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.11. RTO is around the same levels.
With a Price/Forward Earnings ratio of 22.51, RTO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RTO to the average of the S&P500 Index (22.55), we can say RTO is valued inline with the index average.
Industry RankSector Rank
PE 22.13
Fwd PE 22.51
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as RTO.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 70.73% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.09
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

The decent profitability rating of RTO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.04
EPS Next 2Y0.92%
EPS Next 3Y4.18%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.14%, RTO has a reasonable but not impressive dividend return.
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.
Compared to an average S&P500 Dividend Yield of 2.37, RTO has a dividend comparable with the average S&P500 company.
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 been paying a dividend for at least 10 years, so it has 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

94.52% of the earnings are spent on dividend by RTO. This is not a sustainable payout ratio.
RTO's earnings are growing slower than its dividend. 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 (11/3/2025, 12:51:07 PM)

27.66

-0.16 (-0.58%)

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 Cap13.91B
Revenue(TTM)7.01B
Net Income(TTM)336.24M
Analysts71.2
Price Target30.09 (8.79%)
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 22.13
Fwd PE 22.51
P/S 1.98
P/FCF 20.09
P/OCF 14.16
P/B 2.64
P/tB N/A
EV/EBITDA 13.2
EPS(TTM)1.25
EY4.52%
EPS(NY)1.23
Fwd EY4.44%
FCF(TTM)1.38
FCFY4.98%
OCF(TTM)1.95
OCFY7.06%
SpS13.94
BVpS10.48
TBVpS-7.33
PEG (NY)N/A
PEG (5Y)2.04
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 22.13 and the Price/Book (PB) ratio is 2.64.


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%.