# Rentokil Initial plc American (RTO) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Basic Materials / Chemicals. Price $23.83, market value $12.0 billion.

## Valuation
- **P/E (trailing): 37.8×** (5-yr avg 152.5×, 3-yr avg 152.5×). Rentokil Initial plc American trades at 37.8× trailing earnings, well below its own five-year average of 152.5×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 15.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.79**. A PEG of 0.79 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.7×**. Each dollar of revenue is priced at 1.7×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 6.4%** (5-yr avg 1.0%). Free cash flow equals 6.4% of the market value, above its five-year average of 1.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.6%**. The inverse of the P/E: 2.6% of the price is earned each year.

## Profitability
- **Operating margin: 8.5%**. 8.5% of revenue is left after running the business.
- **Net margin: 6.8%**. 6.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.6%**. 8.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.3%**. Return on all capital, debt included, is 6.3%.

## Growth
- **Revenue growth (1 yr): 4.4%**. Revenue grew 4.4% over the last year.
- **EPS growth (1 yr): 19.5%**. Earnings per share rose 19.5%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.76**. Debt is 0.76 times equity, moderate leverage.

## Dividends
- **Dividend yield: 2.67%** ($0.13 per share, trailing). Rentokil Initial plc American yields 2.67%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 65%** (40% of free cash flow). 65% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.

## Price and momentum
- **Total return (1 yr): -4.1%** (YTD -18.1%, 3-mo -19.8%). The shares are down 4.1% over twelve months including dividends.
- **From 52-week high: -31.3%** (2.6% above the low). Trading 31% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 39**. An RSI of 39 is neutral.
- **Beta (1 yr): 0.45** (volatility 34%). Beta of 0.45 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RTO · Page: https://foliofundamentals.com/stocks/rto

Not investment advice.