(RTO) Rentokil Initial - Overview
Stock: Pest Control, Hygiene Services, Garment Supply, Specialist Cleaning
Dividends
| Dividend Yield | 2.95% |
| Yield on Cost 5y | 2.00% |
| Yield CAGR 5y | 5.93% |
| Payout Consistency | 83.2% |
| Payout Ratio | 6.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 33.8% |
| Relative Tail Risk | -13.2% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.90 |
| Alpha | 19.00 |
| Character TTM | |
|---|---|
| Beta | 0.776 |
| Beta Downside | 0.756 |
| Drawdowns 3y | |
|---|---|
| Max DD | 49.81% |
| CAGR/Max DD | 0.09 |
Description: RTO Rentokil Initial January 03, 2026
Rentokil Initial plc (NYSE:RTO) is a global provider of route-based pest-control, hygiene, laundry, and specialist cleaning services, operating across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey and the Pacific. Its core offerings include rodent and insect management, commercial-grade hand-sanitiser and dispenser solutions, garment laundering, and niche cleaning contracts such as graffiti removal, trauma clean-up and flood or fire damage remediation. The company was founded in 1903 and is headquartered in Crawley, United Kingdom.
Key performance indicators from the most recent FY24 results show revenue of £3.3 bn, a 5.2 % year-on-year increase driven primarily by higher demand for hygiene products and pest-control contracts in the United States, and an adjusted EBITDA margin of 15.8 %, reflecting operational leverage from its subscription-based service model. The business is sensitive to macro-economic factors such as commercial real-estate occupancy rates and inflation-linked input costs (e.g., chemicals and labor), while regulatory trends-stricter health-and-safety standards and increased focus on ESG-linked building certifications-act as tailwinds for both pest-control and hygiene segments. The sector’s base growth rate is estimated at 3–4 % CAGR, with pandemic-induced hygiene spending still above pre-COVID levels, providing a modest secular upside.
For a deeper, data-driven assessment of RTO’s valuation dynamics and scenario analysis, you may find the ValueRay platform worth a quick look.
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income: 691.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 3.05 > 1.0 |
| NWC/Revenue: 3.30% < 20% (prev 5.13%; Δ -1.83% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.56b > Net Income 691.0m |
| Net Debt (4.35b) to EBITDA (2.13b): 2.04 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (506.2m) vs 12m ago 0.16% < -2% |
| Gross Margin: 45.78% > 18% (prev 0.22%; Δ 4555 % > 0.5%) |
| Asset Turnover: 91.21% > 50% (prev 50.51%; Δ 40.70% > 0%) |
| Interest Coverage Ratio: 3.79 > 6 (EBITDA TTM 2.13b / Interest Expense TTM 386.0m) |
Altman Z'' 2.99
| A: 0.03 (Total Current Assets 3.65b - Total Current Liabilities 3.27b) / Total Assets 14.23b |
| B: 0.43 (Retained Earnings 6.18b / Total Assets 14.23b) |
| C: 0.12 (EBIT TTM 1.46b / Avg Total Assets 12.61b) |
| D: 0.59 (Book Value of Equity 5.25b / Total Liabilities 8.97b) |
| Altman-Z'' Score: 2.99 = A |
Beneish M -3.07
| DSRI: 0.66 (Receivables 1.18b/859.0m, Revenue 11.50b/5.55b) |
| GMI: 0.49 (GM 45.78% / 22.33%) |
| AQI: 0.98 (AQ_t 0.67 / AQ_t-1 0.68) |
| SGI: 2.07 (Revenue 11.50b / 5.55b) |
| TATA: -0.06 (NI 691.0m - CFO 1.56b) / TA 14.23b) |
| Beneish M-Score: -3.07 (Cap -4..+1) = AA |
What is the price of RTO shares?
Over the past week, the price has changed by +2.06%, over one month by +3.61%, over three months by +19.29% and over the past year by +32.59%.
Is RTO a buy, sell or hold?
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the RTO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 34.4 | 7.1% |
| Analysts Target Price | 34.4 | 7.1% |
| ValueRay Target Price | 36.6 | 13.8% |
RTO Fundamental Data Overview February 02, 2026
P/E Trailing = 50.8226
P/E Forward = 19.8413
P/S = 2.1135
P/B = 3.0764
P/EG = 1.3862
Revenue TTM = 11.50b GBP
EBIT TTM = 1.46b GBP
EBITDA TTM = 2.13b GBP
Long Term Debt = 4.18b GBP (from longTermDebt, last quarter)
Short Term Debt = 1.48b GBP (from shortTermDebt, last quarter)
Debt = 6.04b GBP (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.35b GBP (from netDebt column, last quarter)
Enterprise Value = 16.04b GBP (11.68b + Debt 6.04b - CCE 1.69b)
Interest Coverage Ratio = 3.79 (Ebit TTM 1.46b / Interest Expense TTM 386.0m)
EV/FCF = 13.73x (Enterprise Value 16.04b / FCF TTM 1.17b)
FCF Yield = 7.28% (FCF TTM 1.17b / Enterprise Value 16.04b)
FCF Margin = 10.15% (FCF TTM 1.17b / Revenue TTM 11.50b)
Net Margin = 6.01% (Net Income TTM 691.0m / Revenue TTM 11.50b)
Gross Margin = 45.78% ((Revenue TTM 11.50b - Cost of Revenue TTM 6.24b) / Revenue TTM)
Gross Margin QoQ = 13.53% (prev 12.49%)
Tobins Q-Ratio = 1.13 (Enterprise Value 16.04b / Total Assets 14.23b)
Interest Expense / Debt = 1.54% (Interest Expense 93.0m / Debt 6.04b)
Taxrate = 24.07% (52.0m / 216.0m)
NOPAT = 1.11b (EBIT 1.46b * (1 - 24.07%))
Current Ratio = 1.12 (Total Current Assets 3.65b / Total Current Liabilities 3.27b)
Debt / Equity = 1.15 (Debt 6.04b / totalStockholderEquity, last quarter 5.27b)
Debt / EBITDA = 2.04 (Net Debt 4.35b / EBITDA 2.13b)
Debt / FCF = 3.73 (Net Debt 4.35b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.48% (Net Income 691.0m / Total Assets 14.23b)
RoE = 15.57% (Net Income TTM 691.0m / Total Stockholder Equity 4.44b)
RoCE = 16.99% (EBIT 1.46b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 12.53% (NOPAT 1.11b / Invested Capital 8.87b)
WACC = 6.19% (E(11.68b)/V(17.73b) * Re(8.78%) + D(6.04b)/V(17.73b) * Rd(1.54%) * (1-Tc(0.24)))
Discount Rate = 8.78% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.08%
[DCF Debug] Terminal Value 87.41% ; FCFF base≈927.4m ; Y1≈1.14b ; Y5≈1.95b
Fair Price DCF = 94.14 (EV 51.70b - Net Debt 4.35b = Equity 47.34b / Shares 502.9m; r=6.19% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: -27.63 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 72.96 | Revenue CAGR: 30.14% | SUE: N/A | # QB: 0
EPS next Year (2026-12-31): EPS=1.46 | Chg30d=+0.023 | Revisions Net=+1 | Growth EPS=+9.6% | Growth Revenue=+3.8%