RTO:LSE-Rentokil Initial plc (GBX)

COMMON STOCK | Specialty Business Services | LSE

Last Closing Price

GBX 361.90

Change

-37.60 (-9.41)%

Market Cap

GBX 6.69B

Volume

5.68M

Average Target Price

GBX 467.22 (+29.10%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Rentokil Initial plc, through its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services from rodents to flying and crawling insects, as well as to other forms of wildlife management for commercial and residential customers. The company also provides hygiene services, including the provision and maintenance of products, such as air fresheners, sanitizers, feminine hygiene units, hand dryers, paper and linen towel dispensers, soap dispensers, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and laundering of workwear, uniforms, cleanroom uniforms, and protective equipment. Further, the company installs and services interior and exterior plant displays, flowers, replica foliage, Christmas decorations, and ambient scenting for commercial businesses; offers property care services consisting of damp proofing, property conservation, and woodworm and wood rot treatment; and provides a range of specialized deep cleaning, and specialist industrial cleaning and disinfection services, including the professional and discreet disinfection of areas that have been exposed to bio-hazardous situations, such as crime and trauma scenes, prison cells, void properties, emergency vehicles, and healthcare establishments. Additionally, it offers a range of healthcare waste management services comprising the collection, disposal, and recycling of hazardous and offensive waste produced by businesses and organizations associated with the provision of healthcare; and color-coded sharps disposal bins to deal with various types of waste. Rentokil Initial plc was founded in 1903 and is headquartered in Camberley, the United Kingdom.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-27 )

Largest Industry Peers for Specialty Business Services

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
HSV:LSE HomeServe plc

-36.00 (-3.59%)

GBX3.24B 29.66 20.23
SRP:LSE Serco Group plc

-4.40 (-3.47%)

GBX1.48B 28.71 13.96
FSJ:LSE James Fisher and Sons plc

-16.00 (-1.23%)

GBX0.67B 18.24 9.74
CPI:LSE Capita plc

-6.10 (-16.27%)

GBX0.55B 5.73 4.75
RST:LSE Restore plc

-11.00 (-3.09%)

GBX0.44B 27.60 9.49
JSG:LSE Johnson Service Group PLC

+3.00 (+2.90%)

GBX0.40B 12.89 4.30
KGH:LSE Knights Group Holdings plc

+24.00 (+6.98%)

GBX0.28B 52.06 22.67
SDY:LSE Speedy Hire Plc

+0.60 (+1.28%)

GBX0.25B 10.11 4.96
MTO:LSE Mitie Group plc

-4.40 (-6.61%)

GBX0.24B 3.60 4.14
HYVE:LSE Hyve Group Plc

+0.95 (+4.29%)

GBX0.19B 57.75 6.32

ETFs Containing RTO

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Specialty Business Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -20.11% 82% B- 58% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -20.11% 82% B- 58% F
Trailing 12 Months  
Capital Gain 4.26% 82% B- 84% B
Dividend Return 1.35% 21% F 41% F
Total Return 5.61% 82% B- 83% B
Trailing 5 Years  
Capital Gain 167.08% 96% A 95% A
Dividend Return 13.27% 53% F 59% F
Total Return 180.35% 96% A 94% A
Average Annual (5 Year Horizon)  
Capital Gain 30.82% 97% A+ 92% A-
Dividend Return 1.61% 33% F 52% F
Total Return 32.43% 94% A 91% A-
Risk Return Profile  
Volatility (Standard Deviation) 15.06% 97% A+ 56% F
Risk Adjusted Return 215.39% 100% A+ 99% A+
Market Capitalization 6.69B 100% A+ 97% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Specialty Business Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 23.81 39% F 22% F
Price/Book Ratio 665.26 4% F 6% F
Price / Cash Flow Ratio 14.46 31% F 22% F
EV/EBITDA 16.30 14% F 13% F
Management Effectiveness  
Return on Equity 30.93% 96% A 93% A
Return on Invested Capital 11.51% 62% D- 76% C
Return on Assets 5.65% 72% C- 74% C
Debt to Equity Ratio 105.75% 4% F 15% F
Technical Ratios  
Short Ratio N/A N/A N/A N/A N/A
Short Percent N/A N/A N/A N/A N/A
Beta 0.21 89% B+ 86% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (GBX)

Quarterly Financials (GBX)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.