Intrinsiqq
Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) logoRentokil Initial plc American Depositary Shares (each representing five Ordinary Shares)RTO
$22.76-0.52%
Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) logo

Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares)

RTO

$22.76

-$0.12 (-0.52%)

⊜ Compare
ProfitabilityThin marginsGrowthModeratingCash FlowHealthy conversionValuationFairly valued
What stands out

Operating margin is thin at 9.53%. Limited cushion if revenue slows or costs rise.

What's changing

Revenue grew 4.4% in the fiscal year ended Dec 2025, steady but not accelerating.

What deserves caution

Net debt of $3.81B represents 5.4x FCF, leverage limits flexibility.

Valuation context

24.55x earnings, 16.34x FCF. A middle-of-the-range multiple: the price assumes roughly the current trajectory.

Price History

-23.3%

Valuation & Multiples

Based on TTM earnings · Diluted shares

Market Cap$11.49B
EPS$0.93
P/E24.55
P/FCF16.34
EV/EBITDA12.03
FCF Yield6.1%
Div. Yield3.01%
Net Debt/FCF5.4x
52-Week Range
$19.75$34.52

Profitability & Returns

Revenue (TTM)

$6.91B

▲ +4.4% YoY

Net Income (TTM)

$470M

▲ +19.9% YoY

Op. Margin

9.53%

▼ -1.3pp YoY

ROIC

4.44%

▼ -1.3pp YoY

Cash Flow & Balance Sheet

FCF (TTM)

$703M

▲ +18.5% YoY

Op. Cash Flow (TTM)

$972M

▲ +12.0% YoY

Net Debt

$3.81B

Cash & Equiv.

$2.32B

3Y CAGR: +11.1%

3Y CAGR: +8.2%

Continue Research

Is Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) (RTO) overvalued?

At a P/E of 24.6 and a price-to-free-cash-flow of 16.3, Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) (RTO) trades below a two-stage DCF intrinsic value of about $35.96 per share, so at $22.76 the stock looks undervalued (58.0% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.

On quality, Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) scores 68/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.0%; see dividend safety for coverage and history. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.

Frequently asked

What is Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares)'s fair value?+

Intrinsiqq's two-stage DCF estimates an intrinsic value of about $35.96 per share for RTO, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $26.97. At today's $22.76, that puts the stock about 58.0% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.

Is Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) a high-quality business?+

Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) scores 68 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 9.5% operating margin and a 4.4% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.

Does Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) (RTO) pay a dividend, and how much?+

Yes, Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) pays a regular dividend of about $0.69 per share per year (typically in quarterly installments), a yield of roughly 3.0% at the current price. That is a payout ratio of about 73.7% of earnings, so the dividend is covered, with less cushion. Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) has grown the dividend at roughly 33.9% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For RTO's full payout history, growth streak and dividend-safety score, see the dividends tab.

Is Rentokil Initial plc American Depositary Shares (each representing five Ordinary Shares) a good stock to buy right now?+

That depends on valuation and quality together, not either alone. RTO currently trades below its estimated intrinsic value and scores 68/100 on quality (solid). It also yields about 3.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.

Related stocks: Specialty Business Services

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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Not financial advice. Analytical data for research only.

Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.