Morningstar

Rentokil Initial PLC ADR RTO

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Stock XNYS Rating as of
$29.64 −0.50 (1.66%)
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As of Delayed Price Closed

Company Report

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North American Momentum Continues, Giving Us Further Faith in Successful Integration

Ben Slupecki

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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Price vs Fair Value

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RTO is trading at a LOCK|JtHN$# premium.
Price
$29.64
Fair Value
SqF
Uncertainty
LOCK|t>$
1-Star Price
LOCK|.bD
5-Star Price
LOCK|.C
Economic Moat
LOCK|F$yK&
Capital Allocation
LOCK|$#RZhq?

Bulls Say, Bears Say

Bulls

The Terminix acquisition bolsters Rentokil’s cost advantage from route density and offers higher margin potential after the integration.

Bears

As the industry consolidates, deal multiples could rise on the 40-50 acquisitions that Rentokil completes a year, harming return on invested capital.

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News

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Trading Information

Previous Close Price
$30.14
Day Range
$29.64–30.05
52-Week Range
$22.77–34.67
Bid/Ask
$29.34 / $29.95
Shares Outstanding
503.25M
Market Cap
$14.92B
Volume/Avg
613,794 / 906,436

Key Statistics

Price/Earnings (Normalized)
22.42
Price/Sales
2.22
Dividend Yield (Trailing)
2.09%
Dividend Yield (Forward)
2.09%
Total Yield
2.09%

Company Profile

Rentokil Initial is the largest global provider of route-based pest control and commercial hygiene services, operating in over 90 countries, with its largest operations in the United States following the acquisition of Terminix. The group also offers a range of specialist route-based services, including office and commercial space plant care, property care, and workwear rentals. The group serves a diverse client base of global food producers, hotel chains, industrial goods companies, restaurants, and individual residential customers.
Sector
Industrials
Industry
Specialty Business Services
Stock Style Box
Mid Growth
Total Number of Employees
64,084
Website
https://www.rentokil-initial.com

Competitors

Valuation

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Metric
RTO
ECL
CTAS
Price/Earnings (Normalized)
 22.4236.5738.36
Price/Book Value
 2.777.9615.19
Price/Sales
 2.224.906.72
Price/Cash Flow
 16.9024.7828.41
Price/Earnings
RTO
ECL
CTAS

Financial Strength

Metric
RTO
ECL
CTAS
Quick Ratio
 1.050.680.95
Current Ratio
 1.160.991.98
Interest Coverage
 2.449.1724.22
Quick Ratio
RTO
ECL
CTAS

Profitability

Metric
RTO
ECL
CTAS
Return on Assets (Normalized)
 4.69%9.20%20.54%
Return on Equity (Normalized)
 12.22%23.11%43.80%
Return on Invested Capital (Normalized)
 7.34%13.08%28.27%
Return on Assets
RTO
ECL
CTAS

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