Rentokil Initial PLC
LSE:RTO
Intrinsic Value
Rentokil Initial Plc engages in the provision of business support services. [ Read More ]
The intrinsic value of one
RTO
stock under the Base Case scenario is
561.86
GBX.
Compared to the current market price of 414.4 GBX,
Rentokil Initial PLC
is
Undervalued by 26%.
Rentokil Initial PLC's market capitalization is 10.5B GBX.
RTO stock price is 414.4 GBX.
RTO stock price (414.4 GBX) is 26% less than its Intrinsic Value (561.86 GBX).
RTO stock price (414.4 GBX) is 42% less than its Relative Value (709.15 GBX). Open Relative Valuation
RTO has upside potential of 31% compared to the average analyst price target.
Open Wall St Estimates
RTO's ROE (Return on Equity) for the past 12 months is positive and is equal to 9%.
RTO's short-term assets (3B GBP) exceed its short-term liabilties (3B GBP).
RTO has positive three-year average ROIC (Return on Invested Capital): 9%. The company is efficient at using invested capital to generate operating income.
RTO has positive Operating Income for the last twelve months.
RTO's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 7%.
RTO's ROIC (Return on Invested Capital) has decreased in the last 3 years from 10% to 7%.
RTO's Revenue is forecast to grow at a rate of 5% per year over the next 3 years.
RTO has positive Net Income for the last twelve months.
RTO has positive three-year average ROE (Return on Equity): 14%. The company is efficient at transforming stockholders' equity into net income.
RTO has positive Net Debt. This means that the company has more debt (3B GBP) than cash and short-term investments (2B GBP).
RTO's ROE (Return on Equity) has decreased in the last 3 years from 17% to 9%.
RTO's D/E (Debt to Equity) is very low and is equal to 0.85.
RTO's Revenue has grown by an exceptional 45% over the past 12 months.
RTO's long-term assets (11B GBP) exceed its long-term liabilties (7B GBP).
RTO's Altman Z-Score is equal to 2.01.
RTO has positive Free Cash Flow for the last twelve months.
RTO's Revenue has been growing by an exceptional 24% per year for the last 3 years.
RTO has positive Gross Profit for the last twelve months.
RTO generates enough operating income (765m GBP) to cover interest payments on its debt (191m GBP).
Valuation Backtest
Rentokil Initial PLC
Run backtest to discover the historical profit from buying and selling
RTO
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Rentokil Initial PLC
Balance Sheet Decomposition
Rentokil Initial PLC
| Current Assets | 2.7B |
| Cash & Short-Term Investments | 1.6B |
| Receivables | 913m |
| Other Current Assets | 221m |
| Non-Current Assets | 8.4B |
| Long-Term Investments | 65m |
| PP&E | 951m |
| Intangibles | 7B |
| Other Non-Current Assets | 372m |
| Current Liabilities | 2.6B |
| Accounts Payable | 1.1B |
| Other Current Liabilities | 1.4B |
| Non-Current Liabilities | 4.5B |
| Long-Term Debt | 3.5B |
| Other Non-Current Liabilities | 988m |
Earnings Waterfall
Rentokil Initial PLC
|
Revenue
|
5.4B
GBP
|
|
Cost of Revenue
|
-900m
GBP
|
|
Gross Profit
|
4.5B
GBP
|
|
Operating Expenses
|
-3.7B
GBP
|
|
Operating Income
|
765m
GBP
|
|
Other Expenses
|
-384m
GBP
|
|
Net Income
|
381m
GBP
|
Free Cash Flow Analysis
Rentokil Initial PLC
RTO Profitability Score
Profitability Due Diligence
Rentokil Initial PLC's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
Score
Rentokil Initial PLC's profitability score is 57/100. The higher the profitability score, the more profitable the company is.
RTO Solvency Score
Solvency Due Diligence
Rentokil Initial PLC's solvency score is 42/100. The higher the solvency score, the more solvent the company is.
Score
Rentokil Initial PLC's solvency score is 42/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
RTO Price Targets Summary
Rentokil Initial PLC
According to Wall Street analysts, the average 1-year price target for
RTO
is 544.87 GBX
with a low forecast of 160.41 GBX and a high forecast of 708.75 GBX.
Shareholder Return
RTO Price
Rentokil Initial PLC
| Average Annual Return | 9.1% |
| Standard Deviation of Annual Returns | 11.55% |
| Max Drawdown | -40% |
| Market Capitalization | 10.5B GBX |
| Shares Outstanding | 2 511 540 000 |
| Percentage of Shares Shorted | 50% |
RTO News
Last Important Events
Rentokil Initial PLC
Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.
Sentiment Analysis
Rentokil Initial PLC
Company Profile
Rentokil Initial PLC
Country
Industry
Market Cap
Dividend Yield
Description
Rentokil Initial Plc engages in the provision of business support services. The company is headquartered in Camberley, Surrey and currently employs 46,000 full-time employees. The company went IPO on 2005-06-21. The firm is engaged in the provision of route-based services, which protect people. Its core services are :Pest Control and Hygiene and offer a range of smaller specialist services including Plants, Property Care and Workwear. The company is a multi-local business operating in approximately 83 countries. The firm offers a range of pest control services from rodents to flying and crawling insects, to other forms of wildlife management. Initial Hygiene is the Company's hygiene services business. Workwear provides workwear in Europe. The firm also provides a range of other specialist services, including plants, medical services, property care and specialist hygiene.
Contact
IPO
Employees
Officers
The intrinsic value of one
RTO
stock under the Base Case scenario is
561.86
GBX.
Compared to the current market price of 414.4 GBX,
Rentokil Initial PLC
is
Undervalued by 26%.
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