Rentokil Initial Plc (RTO) 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

Experian Plc

RELX Plc

Intertek Group Plc

Rentokil Initial Plc

Wise Plc

Serco Group Plc

MITIE Group Plc

GlobalData Plc

John Wood Group Plc

IWG Plc

Keywords Studios Plc

Why is Rentokil Initial Plc ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 20.69% of over the last 5 years
The company is Net-Debt Free

Healthy long term growth as Net Sales has grown by an annual rate of 13.28%

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at GBP 1,412.88 MM
INTEREST COVERAGE RATIO(Q) Highest at 667.67
CASH AND EQV(HY) Highest at GBP 1,725.59 MM

With ROE of 10.29%, it has a very expensive valuation with a 2.65 Price to Book Value

Over the past year, while the stock has generated a return of 24.35%, its profits have risen by 5.7% ; the PEG ratio of the company is 4.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rentokil Initial Plc should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Rentokil Initial Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rentokil Initial Plc

24.35%

-0.80

29.38%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.28%

EBIT Growth (5y)

20.69%

EBIT to Interest (avg)

5.55

Debt to EBITDA (avg)

2.52

Net Debt to Equity (avg)

0.68

Sales to Capital Employed (avg)

0.65

Tax Ratio

24.62%

Dividend Payout Ratio

64.84%

Pledged Shares

Institutional Holding

0.40%

ROCE (avg)

11.32%

ROE (avg)

13.68%

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

2.65

EV to EBIT

18.66

EV to EBITDA

10.82

EV to Capital Employed

2.02

EV to Sales

2.55

PEG Ratio

4.58

Dividend Yield

142.09%

ROCE (Latest)

10.82%

ROE (Latest)

10.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,412.88 MM

INTEREST COVERAGE RATIO(Q)

Highest at 667.67

CASH AND EQV(HY)

Highest at GBP 1,725.59 MM

DEBT-EQUITY RATIO (HY)

Lowest at 69.3 %

OPERATING PROFIT(Q)

Highest at GBP 663.13 MM

OPERATING PROFIT MARGIN(Q)

Highest at 25.06 %

EPS(Q)

Highest at GBP 0.08

-4What is not working for the Company

ROCE(HY)

Lowest at 5.31%

RAW MATERIAL COST(Y)

Grown by 6.4% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 19.76 times

Here's what is working for Rentokil Initial Plc

Operating Cash Flow

Highest at GBP 1,412.88 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Interest Coverage Ratio

Highest at 667.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at GBP 663.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 25.06 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at GBP 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Cash and Eqv

Highest at GBP 1,725.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 69.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at GBP 295.72 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Depreciation

At GBP 295.72 MM has Grown at 32.23%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (GBP MM)

Here's what is not working for Rentokil Initial Plc

Inventory Turnover Ratio

Lowest at 19.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.4% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales