# Rentokil Initial plc (RTO.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Professional Services. Price 344p, market value 8.7 billionp.

## Valuation
- **P/E (trailing): 38.2×** (5-yr avg 3574.0×, 3-yr avg 3157.3×). Rentokil Initial plc trades at 38.2× trailing earnings, well below its own five-year average of 3574.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 15.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.91**. A PEG of 0.91 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.8×**. Each dollar of revenue is priced at 0.8×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.1×**. Enterprise value is 6.1× 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: 2.6%**. The inverse of the P/E: 2.6% of the price is earned each year.

## Profitability
- **Gross margin: 46.9%**. Rentokil Initial plc keeps 46.9% of revenue after the direct cost of what it sells.
- **Operating margin: 11.2%**. 11.2% of revenue is left after running the business.
- **Net margin: 7.0%**. 7.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.7%**. 8.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 12.9%**. Return on all capital, debt included, is 12.9%.
- **Return on assets: 4.6%**. Each dollar of assets produces 4.6% of profit.

## Growth
- **Revenue growth (1 yr): -5.7%** (3-yr 11.3%/yr, 5-yr 12.9%/yr). Revenue fell 5.7% over the last year, against 12.9% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 16.7%** (3-yr 5.3%/yr, 5-yr 7.0%/yr). Earnings per share rose 16.7%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 12.5%/yr**. Free cash flow has compounded at 12.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.12**. Debt is 1.12 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.1×**. Operating profit covers interest 3.1× over, a safe margin.
- **Current ratio: 1.16** (quick 1.07). Current assets cover the next year's liabilities 1.16 times.
- **Altman Z-score: 1.98**. A Z-score of 1.98 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.75%** (0p per share, trailing). Rentokil Initial plc yields 2.75%, 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.
- **Shareholder yield: 2.8%**. Dividends plus net buybacks return 2.8% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (19 analysts). 19 analysts cover Rentokil Initial plc; the consensus is buy, with an average price target of 473p (+38% 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): -8.2%** (YTD -22.6%, 3-mo -22.1%). The shares are down 8.2% over twelve months including dividends.
- **From 52-week high: -32.2%** (4.3% above the low). Trading 32% 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): 36**. An RSI of 36 is neutral.
- **Beta (1 yr): 0.69** (volatility 34%). Beta of 0.69 against the FTSE All-Share: the shares move much less than the market.

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

Not investment advice.