# Reckitt Benckiser Group plc (RKT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Defensive / Household Products. Price 5134p, market value 32.6 billionp.

## Valuation
- **P/E (trailing): 11.6×** (5-yr avg 2014.4×, 3-yr avg 2074.1×). Reckitt Benckiser Group plc trades at 11.6× trailing earnings, well below its own five-year average of 2014.4×: cheap by its own standards. The Consumer Defensive median in the September 2026 study was 20.1×. Forward P/E is 14.2×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.10**. A PEG of 0.10 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.1×**. Each dollar of revenue is priced at 1.1×.
- **Price / book: 5.8×**. The shares trade at 5.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 4.8×**. Enterprise value is 4.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 11.5%** (5-yr avg 0.0%). Free cash flow equals 11.5% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 8.6%**. The inverse of the P/E: 8.6% of the price is earned each year.

## Profitability
- **Gross margin: 60.7%**. Reckitt Benckiser Group plc keeps 60.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 23.4%**. 23.4% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 22.4%**. 22.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 41.1%**. 41.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 36.4%**. Return on all capital, debt included, is 36.4%: comfortably above what that capital costs.
- **Return on assets: 18.4%**. Each dollar of assets produces 18.4% of profit.

## Growth
- **Revenue growth (1 yr): 0.3%** (3-yr -0.6%/yr, 5-yr 0.3%/yr). Revenue grew 0.3% over the last year, against 0.3% a year compounded over five years.
- **EPS growth (1 yr): 139.9%** (3-yr 14.3%/yr, 5-yr 24.0%/yr). Earnings per share rose 139.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -3.4%/yr**. Free cash flow has compounded at -3.4% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.09**. Debt is 1.09 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 8.1×**. Operating profit covers interest 8.1× over, a safe margin.
- **Current ratio: 0.85** (quick 0.63). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.52**. A Z-score of 2.52 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 4.23%** (2p per share, trailing). Reckitt Benckiser Group plc yields 4.23%, an income-level yield.
- **Payout ratio: 44%** (63% of free cash flow). 44% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 10**. 10 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 3.4%/yr** (1-yr 5.0%). The dividend has grown 3.4% a year over five years.
- **Shareholder yield: 10.2%**. Dividends plus net buybacks return 10.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (19 analysts). 19 analysts cover Reckitt Benckiser Group plc; the consensus is buy, with an average price target of 6239p (+22% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -14.5%** (YTD -18.7%, 3-mo 12.0%). The shares are down 14.5% over twelve months including dividends.
- **From 52-week high: -21.3%** (40.1% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.80** (volatility 23%). Beta of 0.80 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RKT.L · Page: https://foliofundamentals.com/stocks/rkt.l

Not investment advice.