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

NYSE:RTO • US7601251041

Current stock price

33.6 USD
-0.26 (-0.77%)
At close:
33.31 USD
-0.29 (-0.86%)
Pre-Market:

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

6

1. RTO Profitability Analysis

1.1 Basic Checks

  • In the past year RTO was profitable.
  • 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M

1.2 Ratios

  • The Return On Assets of RTO (3.26%) is better than 68.75% of its industry peers.
  • RTO's Return On Equity of 8.55% is fine compared to the rest of the industry. RTO outperforms 68.75% of its industry peers.
  • RTO has a Return On Invested Capital of 4.14%. This is comparable to the rest of the industry: RTO outperforms 57.50% of its industry peers.
  • RTO had an Average Return On Invested Capital over the past 3 years of 4.68%. This is significantly below the industry average of 9.78%.
Industry RankSector Rank
ROA 3.26%
ROE 8.55%
ROIC 4.14%
ROA(3y)3.13%
ROA(5y)3.49%
ROE(3y)8.18%
ROE(5y)10.22%
ROIC(3y)4.68%
ROIC(5y)5.17%
RTO Yearly ROA, ROE, ROICRTO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

1.3 Margins

  • RTO's Profit Margin of 6.80% is fine compared to the rest of the industry. RTO outperforms 76.25% of its industry peers.
  • RTO's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of RTO (9.53%) is better than 70.00% of its industry peers.
  • In the last couple of years the Operating Margin of RTO has declined.
  • With an excellent Gross Margin value of 83.12%, RTO belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
  • In the last couple of years the Gross Margin of RTO has remained more or less at the same level.
Industry RankSector Rank
OM 9.53%
PM (TTM) 6.8%
GM 83.12%
OM growth 3Y-10.83%
OM growth 5Y-3.24%
PM growth 3Y2.89%
PM growth 5Y0.51%
GM growth 3Y0.85%
GM growth 5Y0.97%
RTO Yearly Profit, Operating, Gross MarginsRTO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60 80

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. RTO Health Analysis

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.
  • The number of shares outstanding for RTO has been increased compared to 5 years ago.
  • The debt/assets ratio for RTO is higher compared to a year ago.
RTO Yearly Shares OutstandingRTO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 5B 10B 15B

2.2 Solvency

  • RTO has an Altman-Z score of 2.44. 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.
  • RTO has a Altman-Z score of 2.44. This is comparable to the rest of the industry: RTO outperforms 57.50% of its industry peers.
  • The Debt to FCF ratio of RTO is 8.63, which is on the high side as it means it would take RTO, 8.63 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 8.63, RTO is doing good in the industry, outperforming 61.25% of the companies in the same industry.
  • A Debt/Equity ratio of 0.96 indicates that RTO is somewhat dependend on debt financing.
  • RTO has a Debt to Equity ratio of 0.96. This is in the lower half of the industry: RTO underperforms 62.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 8.63
Altman-Z 2.44
ROIC/WACC0.53
WACC7.86%
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 2025 1B 2B 3B 4B 5B

2.3 Liquidity

  • A Current Ratio of 1.16 indicates that RTO should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.16, RTO is not doing good in the industry: 66.25% of the companies in the same industry are doing better.
  • RTO has a Quick Ratio of 1.07. This is a normal value and indicates that RTO is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.07, RTO is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.16
Quick Ratio 1.07
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 2025 1B 2B 3B 4B

More info and screens

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

4

3. RTO Growth Analysis

3.1 Past

  • The earnings per share for RTO have decreased by -4.63% in the last year.
  • RTO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.51% yearly.
  • RTO shows a small growth in Revenue. In the last year, the Revenue has grown by 4.40%.
  • Measured over the past years, RTO shows a quite strong growth in Revenue. The Revenue has been growing by 19.77% on average per year.
EPS 1Y (TTM)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y11.32%
Revenue growth 5Y19.77%
Sales Q2Q%29.82%

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 5.47% on average per year.
  • RTO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.80% yearly.
EPS Next Y23.76%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
EPS Next 5Y5.47%
Revenue Next Year3.15%
Revenue Next 2Y3.73%
Revenue Next 3Y3.21%
Revenue Next 5Y4.8%

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 stable.
  • 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 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

More info and screens

Find the best growth stocksShow best growing peers

5

4. RTO Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 25.85 indicates a quite expensive valuation of RTO.
  • Compared to the rest of the industry, the Price/Earnings ratio of RTO indicates a somewhat cheap valuation: RTO is cheaper than 65.00% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.86. RTO is around the same levels.
  • With a Price/Forward Earnings ratio of 20.85, RTO is valued on the expensive side.
  • Based on the Price/Forward Earnings ratio, RTO is valued a bit cheaper than 68.75% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.39, RTO is valued a bit cheaper.
Industry RankSector Rank
PE 25.85
Fwd PE 20.85
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 is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, RTO is valued a bit cheaper than 63.75% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.04
EV/EBITDA 16.31
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's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • RTO has a very decent profitability rating, which may justify a higher PE ratio.
  • RTO's earnings are expected to grow with 13.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)4.69
EPS Next 2Y17.64%
EPS Next 3Y13.93%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. RTO Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.86%, RTO has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.85, RTO pays a better dividend. On top of this RTO pays more dividend than 87.50% 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 1.86%

5.2 History

  • RTO has been paying a dividend for at least 10 years, so it has a reliable track record.
  • RTO has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years3
Div Non Decr Years3
RTO Yearly Dividends per shareRTO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

5.3 Sustainability

  • 64.68% of the earnings are spent on dividend by RTO. This is not a sustainable payout ratio.
DP64.68%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
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 2025 0 200M 400M 600M
RTO Dividend Payout.RTO Dividend Payout, showing the Payout Ratio.RTO Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

RTO Fundamentals: All Metrics, Ratios and Statistics

RENTOKIL INITIAL PLC-SP ADR

NYSE:RTO (4/10/2026, 8:04:00 PM)

Premarket: 33.31 -0.29 (-0.86%)

33.6

-0.26 (-0.77%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)03-05
Earnings (Next)04-16
Inst Owners97.1%
Inst Owner Change0.26%
Ins Owners2.65%
Ins Owner ChangeN/A
Market Cap16.90B
Revenue(TTM)6.91B
Net Income(TTM)470.00M
Analysts79.29
Price Target34.28 (2.02%)
Short Float %0.95%
Short Ratio2.66
Dividend
Industry RankSector Rank
Dividend Yield 1.86%
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP64.68%
Div Incr Years3
Div Non Decr Years3
Ex-Date04-10
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)5.5%
PT rev (3m)8.85%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-2.38%
Valuation
Industry RankSector Rank
PE 25.85
Fwd PE 20.85
P/S 2.45
P/FCF 24.04
P/OCF 17.39
P/B 3.07
P/tB N/A
EV/EBITDA 16.31
EPS(TTM)1.3
EY3.87%
EPS(NY)1.61
Fwd EY4.8%
FCF(TTM)1.4
FCFY4.16%
OCF(TTM)1.93
OCFY5.75%
SpS13.74
BVpS10.93
TBVpS-6.8
PEG (NY)1.09
PEG (5Y)4.69
Graham Number17.88
Profitability
Industry RankSector Rank
ROA 3.26%
ROE 8.55%
ROCE 5.92%
ROIC 4.14%
ROICexc 5.15%
ROICexgc 80.37%
OM 9.53%
PM (TTM) 6.8%
GM 83.12%
FCFM 10.18%
ROA(3y)3.13%
ROA(5y)3.49%
ROE(3y)8.18%
ROE(5y)10.22%
ROIC(3y)4.68%
ROIC(5y)5.17%
ROICexc(3y)5.44%
ROICexc(5y)6.18%
ROICexgc(3y)64.65%
ROICexgc(5y)55%
ROCE(3y)6.73%
ROCE(5y)7.66%
ROICexgc growth 3Y40.95%
ROICexgc growth 5Y-4.26%
ROICexc growth 3Y5.78%
ROICexc growth 5Y-13.9%
OM growth 3Y-10.83%
OM growth 5Y-3.24%
PM growth 3Y2.89%
PM growth 5Y0.51%
GM growth 3Y0.85%
GM growth 5Y0.97%
F-Score5
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.96
Debt/FCF 8.63
Debt/EBITDA 4.32
Cap/Depr 47.78%
Cap/Sales 3.89%
Interest Coverage 2.58
Cash Conversion 79.61%
Profit Quality 149.57%
Current Ratio 1.16
Quick Ratio 1.07
Altman-Z 2.44
F-Score5
WACC7.86%
ROIC/WACC0.53
Cap/Depr(3y)44.88%
Cap/Depr(5y)47.37%
Cap/Sales(3y)4.16%
Cap/Sales(5y)4.6%
Profit Quality(3y)149.71%
Profit Quality(5y)155.82%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.63%
EPS 3Y-0.36%
EPS 5Y5.51%
EPS Q2Q%8.28%
EPS Next Y23.76%
EPS Next 2Y17.64%
EPS Next 3Y13.93%
EPS Next 5Y5.47%
Revenue 1Y (TTM)4.4%
Revenue growth 3Y11.32%
Revenue growth 5Y19.77%
Sales Q2Q%29.82%
Revenue Next Year3.15%
Revenue Next 2Y3.73%
Revenue Next 3Y3.21%
Revenue Next 5Y4.8%
EBIT growth 1Y-7.97%
EBIT growth 3Y-0.74%
EBIT growth 5Y15.88%
EBIT Next Year54.35%
EBIT Next 3Y20.74%
EBIT Next 5Y16.01%
FCF growth 1Y18.55%
FCF growth 3Y8.34%
FCF growth 5Y12.22%
OCF growth 1Y11.98%
OCF growth 3Y6.31%
OCF growth 5Y12.14%

RENTOKIL INITIAL PLC-SP ADR / RTO Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 4 / 10 to RTO.


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

ChartMill assigns a valuation rating of 5 / 10 to RENTOKIL INITIAL PLC-SP ADR (RTO). This can be considered as Fairly Valued.


What is the profitability of RTO stock?

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


What is the valuation of RENTOKIL INITIAL PLC-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for RENTOKIL INITIAL PLC-SP ADR (RTO) is 25.85 and the Price/Book (PB) ratio is 3.07.


Is the dividend of RENTOKIL INITIAL PLC-SP ADR sustainable?

The dividend rating of RENTOKIL INITIAL PLC-SP ADR (RTO) is 4 / 10 and the dividend payout ratio is 64.68%.