Reckitt Benckiser Group Plc (RB.) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Reckitt Benckiser Group Plc

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Why is Reckitt Benckiser Group Plc ?

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 833.17
ROCE(HY) Lowest at 17.41%
DEBT-EQUITY RATIO (HY) Highest at 131.84 %

With ROE of 28.91%, it has a very expensive valuation with a 5.82 Price to Book Value

Over the past year, while the stock has generated a return of -3.59%, its profits have risen by 10.4% ; the PEG ratio of the company is 2

Below par performance in long term as well as near term

Along with generating -3.59% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Reckitt Benckiser Group Plc for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reckitt Benckiser Group Plc

-4.38%

-1.46

22.28%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.02%

EBIT Growth (5y)

18.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.51

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

0.56

Tax Ratio

26.18%

Dividend Payout Ratio

99.26%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

38.77%

ROE (avg)

34.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.82

EV to EBIT

18.05

EV to EBITDA

18.05

EV to Capital Employed

3.11

EV to Sales

4.73

PEG Ratio

2.03

Dividend Yield

1366.25%

ROCE (Latest)

17.23%

ROE (Latest)

28.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 5,195 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 60.16%

RAW MATERIAL COST(Y)

Fallen by -2.78% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 6.27

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 833.17

ROCE(HY)

Lowest at 17.41%

DEBT-EQUITY RATIO (HY)

Highest at 131.84 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.27 times

NET SALES(Q)

Lowest at GBP 6,981 MM

OPERATING PROFIT(Q)

Lowest at GBP 1,733 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 24.82 %

Here's what is working for Reckitt Benckiser Group Plc

Operating Cash Flow

Highest at GBP 5,195 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend Payout Ratio

Highest at 60.16% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Dividend per share

Highest at GBP 6.27

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost

Fallen by -2.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Reckitt Benckiser Group Plc

Interest Coverage Ratio

Lowest at 833.17 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 131.84 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at GBP 6,981 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP 1,733 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 24.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio