RTO
Rentokil Initial PLC
$23.45
▼ 0.4%Updated Today 11:13 AM ET
RTO at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 51/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 23.8% over the last 12 months
Market Cap
$14.21B
P/E
31.95x
Forward P/E (est.)
26.71x
ROE
8.7%
Revenue Growth
27.1%
EPS Growth
19.6%
Profit Margin
6.8%
FCF Yield
1.0%
Debt / Equity
1.1x
ROIC
5.0%
Interest Coverage
2.34x
Current Ratio
1.16x
Dividend Yield
2.1%
Implied Growth (rev. DCF)
3.4%
Rating Score
51/100
Rentokil Initial PLC (RTO) is a large-cap company in the Commercial Services & Supplies industry, part of the Industrials sector of the S&P 500, with a market value around $14.21B.
In its latest reported year it generated about $6.91B in revenue and $470.00M in net profit.
Our model rates RTO Neutral (51/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RTO's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RTO trades near $23.45, below its 50-day average ($31.09) and 200-day average ($30.01). Price below both averages is a downtrend — momentum is against buyers for now.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 42 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. RTO's is $0.62 (~2.6% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month RTO found buyers near $28.16 (support) and sellers near $30.90 (resistance); its 52-week range is $22.72–$34.67. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
2Y CAGR
4.0%
Revenue moved from $6.38B in 2023 to $6.91B in 2025, a 4.0% compound annual growth rate. The most recent year grew a strong 27.1% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
—
Operating Margin
8.5%
Net Margin
6.8%
ROE
8.7%
Rentokil Initial PLC keeps about 6.8% of each sales dollar as net profit. Return on equity is 8.7% and return on invested capital about 5.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$4.16B
Net Debt
$1.84B
Net Debt / EBITDA
3.15x
Debt / Equity
1.1x
Leverage: debt-to-equity is 1.1x, and operating profit covers interest about 2.3x, with a current ratio of 1.2x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.16B of total debt against $2.32B of cash.
Operating CF
$972.00M
Free Cash Flow
$764.00M
FCF Margin
11.1%
In the latest year Rentokil Initial PLC produced about $972.00M of operating cash flow and $764.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 1.0% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
2.1%
Total paid (latest FY)
$304.00M
History on record
3 years
dividend uses 40% of free cash flow
65% of net income paid out
total dividends increased 2 years in a row
no cuts in the last 3 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
31.95x
P/S
2.17x
P/B
2.72x
EV / EBITDA
14.43x
RTO trades at 32.0x trailing earnings (about 26.7x on estimated forward earnings), 2.2x sales, and 2.7x book value. Reverse-engineering today's price implies the market expects roughly 3.4% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$12.52
Current price
$23.45
Starting FCF (latest 10-K)
$764.00M
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where RTO sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How RTO stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), RTO ranks #67 of 273 by our overall rating. It trades at roughly in line versus the sector on earnings (32x P/E vs. 31.4x median) with a lower return on equity (8.7% vs. 18.1%) and faster revenue growth (27.1% vs. 6.0%).
P/E vs sector
32x
median 31.4x
ROE vs sector
8.7%
median 18.1%
Growth vs sector
27.1%
median 6.0%
Sector rank
#67
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $23.45 today · expected CAGR 16% – 29%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $8.77B | $11.14B | $14.15B | $17.97B | $22.82B |
| Net income | $614.12M | $779.93M | $990.52M | $1.26B | $1.60B |
| EPS | $1.01 | $1.29 | $1.63 | $2.08 | $2.64 |
| Share price (low) | $19.26 | $24.46 | $31.06 | $39.44 | $50.09 |
| Share price (high) | $32.43 | $41.19 | $52.31 | $66.43 | $84.37 |
| CAGR (low–high) | -18% / 38% | 2% / 33% | 10% / 31% | 14% / 30% | 16% / 29% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for RTO:
- Revenue is growing 27.1% a year, a sign of real demand.
- Pays a 2.1% dividend on top of any price gains.
The case against RTO:
- Interest coverage is thin (2.3x), so debt costs bite.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 32.0x earnings, disappointing results could compress the multiple.
Balance-sheet risk — debt/equity of 1.1x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Rentokil Initial PLC is a large-cap industrials business still growing nicely, with modest profitability, and a heavier debt load to watch. It trades at 32.0x earnings, which our model scores Neutral (51/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 31 Wall Street analysts covering RTO recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Latest SEC Filings
RTO's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
RTO — frequently asked questions
Is RTO a good stock to buy?
We don't give buy or sell advice. Our model rates Rentokil Initial PLC Neutral (51/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is RTO's rating on The Stocks School?
Rentokil Initial PLC currently scores 51/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does RTO's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Rentokil Initial PLC's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for RTO calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this RTO analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RTO. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.