Rentokil Initial PLC ADR RTO

Morningstar Rating

Our Support of Rentokil's Moat Is Unwavering; Shares Undervalued

Business Strategy and Outlook

Rentokil Initial is the largest pest control firm operating primarily in residential and commercial services. The industry is highly fragmented, with Rentokil, Rollins, and a few smaller global competitors, as well as over 40,000 regional and local players worldwide. Rentokil’s scale is a cost advantage, as its ability to spread fixed costs across a larger revenue base and its local route density contribute to industry-leading margins.

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