Fact based stock research
Rentokil Initial (LSE:RTO)

GB00B082RF11

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Rentokil Initial stock research in summary

rentokil-initial.com

ANALYSIS: With an Obermatt Combined Rank of 33 (worse than 67% compared with investment alternatives), Rentokil Initial (Facility Services, United Kingdom) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Rentokil Initial are a good value (attractively priced) with a consolidated Value Rank of 85 (better than 85% of alternatives) but show below-average growth (Growth Rank of 21), and are riskily financed (Safety Rank of 26), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 33, is a hold recommendation based on Rentokil Initial's financial characteristics. As the company Rentokil Initial's key financial metrics exhibit good value (Obermatt Value Rank of 85) but low growth (Obermatt Growth Rank of 21) and risky financing practices (Obermatt Safety Rank of 26), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 85% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	85
Growth Rank	21
Safety Rank	26
Combined Rank	33

Country	United Kingdom
Industry	Facility Services
Index	FTSE All Shares, FTSE 100, FTSE 350, Dividends Europe, Employee Focus EU
Size class	X-Large

This stock has achievements: Gold Winner CEO, Top 10 Stock.

25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Rentokil Initial

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	7	97	86	85
GROWTH
GROWTH	48	35	42	21
SAFETY
SAFETY	32	9	28	26
SENTIMENT
SENTIMENT	n/a	30	58	^new
360° VIEW
360° VIEW	n/a	35	59	^new

Most recent update of the stock research: 25-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Rentokil Initial is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	7	97	86	85
GROWTH
GROWTH	48	35	42	21
SAFETY
SAFETY	32	9	28	26
COMBINED
COMBINED	5	44	57	33

Last update of combined financial performance: 25-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Rentokil Initial the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 85 (better than 85% compared with alternatives) for 2024, Rentokil Initial shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Rentokil Initial. Price-to-Sales is 55 which means that the stock price compared with what market professionals expect for future sales is lower than for 55% of comparable companies, indicating a good value for Rentokil Initial's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 50% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Rentokil Initial are expected to be higher than for 90% of all competitors (a Dividend Yield rank of 90). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 85, is a buy recommendation based on Rentokil Initial's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Rentokil Initial based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	20	76	61	55
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	40	49	53	50
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	2	43	61	61
DIVIDEND YIELD
DIVIDEND YIELD	54	85	85	90
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	7	97	86	85

Last update of Value Rank: 25-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Rentokil Initial; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 21 (better than 21% compared with alternatives), Rentokil Initial shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with all four metrics below average for Rentokil Initial. Sales Growth has a rank of 21, which means that currently professionals expect the company to grow less than 79% of its competitors. The same is valid for Profit Growth, with a rank of 19, and Capital Growth with 42. In addition, Stock Returns have a below market rank of 34, which means that the stock returns have recently been below 66% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 21, is a sell recommendation for growth and momentum investors. These are all bad growth momentum indicators. These are negative signals for investors interested in growth companies. Value is likely good for this company, as investors may have left this stock in the cold. If that is the case, investors should look at the company's outlook, especially Sentiment performance, because it may be a turnaround situation that could entail above-average stock returns in the future. But it remains a risky bet, as no growth signals are in the green zone yet. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	35	8	21	21
PROFIT GROWTH
PROFIT GROWTH	77	24	65	19
CAPITAL GROWTH
CAPITAL GROWTH	n/a	82	50	42
STOCK RETURNS
STOCK RETURNS	54	69	27	34
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	48	35	42	21

Last update of Growth Rank: 25-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Rentokil Initial.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 26 (better than 26% compared with alternatives), the company Rentokil Initial has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Rentokil Initial is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Rentokil Initial. Liquidity is at 51, meaning the company generates more profit to service its debt than 51% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 20, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 80% of its competitors. Leverage is also high at a rank of 21, which means that the company has an above-average debt-to-equity ratio. It has more debt than 79% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 26 (worse than 74% compared with alternatives), Rentokil Initial has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	51	3	16	21
REFINANCING
REFINANCING	22	16	34	20
LIQUIDITY
LIQUIDITY	45	57	62	51
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	32	9	28	26

Last update of Safety Rank: 25-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Rentokil Initial and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	37	42	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	43	70	^new
MARKET PULSE
MARKET PULSE	n/a	47	62	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	30	58	^new

Last update of Sentiment Rank: 25-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Rentokil Initial.
Upgrade to a Premium Account to access the latest ranks.