QualityDipStocks / Consumer Discretionary · Other Consumer Services
Rentokil Initial plc) RTO
Outside our quality screen, so we don’t track its dips. It’s 30% below its 52-week high.
Outside our quality screen, trading near our fair value estimate.
- Fair value est.
- $25.29+5%
- Market Value
- —
- Off 52-wk high
- −30%
- Risk vs market
- Lowbeta 0.32
4 bullish · 5 bearish See why
Repriced or dip?
Dip: business intact
The price is 30% below its 52-week high (Apr 14), but the business held up: net cash (cash minus debt) 0.0% of market cap since the high, shares outstanding unchanged, operating margin 0.0 pts.
Some numbers held up (net cash (cash minus debt) 0.0% of market cap since the high, shares outstanding unchanged, operating margin 0.0 pts), others slipped. The price is 30% below its 52-week high.
The price is 30% below its 52-week high, and the business changed too.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 9 numbers, high vs now
- Revenue, last 12 months$6.9B → $6.9B (0.0%)about the same
- Earnings per share, 12 months$0.19 → $0.19 (0.0%)about the same
- Free cash flow, 12 months$764M → $764M (0.0%)held up
- Operating margin8.5% → 8.5% (0.0 pts)held up
- Shares outstanding0.0% (unchanged)held up
- Net cash (cash minus debt)0.0% of market cap since the highheld up
- Stock vs its sector (Consumer Discretionary)stock −30%, sector median +7% since Apr 14changed
- Price fall vs business numbersprice −30%, revenue/EPS/FCF median 0% (shown, not scored)
- Valuation multipleP/FCF 22.9× at the high → 16.0× now (shown, not scored)
No new report since the high (Apr 14, 2026): the business numbers are the same as then, so this read is capped at 65. Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($34.52, Apr 14) the price assumed about 10%/yr free-cash-flow growth; at the low ($19.75, Sep 30) about 0%; today about 3%. The last 3 years delivered 4%/yr (revenue).
Dashed line: what the last 3 years delivered, 4%/yr (revenue)
| High | Low | Now | |
|---|---|---|---|
| Price | $34.52Apr 14 | $19.75Sep 30 | $24.07 |
| Implied growth | +10% | 0% | +3% |
| P/E | 37.2× | 21.3× | 26.0× |
| P/FCF | 22.9× | 13.1× | 16.0× |
| EV/Sales | 2.4× | 1.3× | 1.6× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 4.0% ±2 points. Bear = 10.5% and 2.0%; bull = 8.5% and 6.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, RTO’s free cash flow would need to grow about 3% a year for five years; our estimate uses 4%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much RTO moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.6× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.32
- Volatility
- 34% vs 13% SPY
- Correlation SPY
- 0.12
- Correlation QQQ
- 0.00
How it ranks
Where RTO stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Not in the top quarter on any of these 6 measures
- Discount to fair value estimate5% · price below our base caseTop 42%of 1,314
- Free cash flow yield6.3% · free cash flow vs market capTop 29%of 1,391
- Dividends + buybacks yield2.5% · cash paid out or used to retire shares, vs market capLowest 47%of 1,836
- Revenue growth, last 12 months+4.4% · vs the 12 months beforeLowest 26%of 1,814
- Operating margin8.5% · of sales kept as operating profitLowest 38%of 1,288
- Return on invested capital9.5% · profit per dollar of capitalLowest 45%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $25.29
Assumes 4.0% growth for 5 years (revenue grew 4.0% a year FY23–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $1.51 a share (fiscal year to Dec 31, 2025, 5 shares per ADR), from the 20-F filed Mar 25, 2026. Net debt $4.5B, not deducted.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ValuationFree-cash-flow yield of 6.3% (price / FCF 16.0×): $764M of free cash in the last 12 months.
Balance sheetNet cash of $908M: cash and short-term investments exceed debt (Dec 31, 2025).
Cash returnsDividend yield of 2.5% ($304M paid over 12 months, 65% of earnings).
Cash returnsFree cash flow grew 18% over the last 12 months vs the 12 months before.
Top bearish points 5 of 5
Balance sheetOperating income covers interest only 2.3× over the last 12 months.
ProfitabilityOperating margin narrowed to 8.5% in FY2025 from 11.4% in FY2023 (SEC filings).
ProfitabilityReturn on equity of 8.7%, below the 16% median for the 332 Consumer Discretionary companies we cover.
ProfitabilityReturn on invested capital of 9.5%, below the 12% median for the 241 Consumer Discretionary companies we cover.
QualityDoesn’t pass our quality screen: no positive free cash flow; ROE under 12% and ROIC under 10%.
All fundamentals
P/E 26.0 · FCF yield 6.3% · ROE 9%
Valuation
- P/E
- 26.0×Consumer Discretionary median 20.7×
- Price / FCF
- 16.0×
- FCF yield
- 6.3%
- EV / EBITDA
- 10.2×
- Price / sales
- 1.77×
- Price / book
- 2.22×
- Market cap
- $12.2Bprice × diluted shares
- Enterprise value
- $11.3B
Growth
- Revenue, 12 months
- $6.9B
- Sales growth, 12 months
- +4.4%vs the 12 months before
- Sales growth, 3 yrs
- +4.0%/yrfrom FY2023
- Diluted EPS, 12 months
- $0.19
- EPS growth, last FY
- +19.5%
- Net income, 12 months
- $470M
- Net income growth
- +20%12 months vs before
Profitability
- Gross margin
- n/agross profit isn't reported (common for service and financial companies)
- Operating margin
- 8.5%
- Net margin
- 6.8%
- FCF margin
- 11.1%
- Return on equity
- 9%
- Return on invested capital
- 9%
Balance sheet
- Cash & short-term inv.
- $2.3B
- Total debt
- $1.4B
- Net cash
- $908M
- Debt / equity
- 0.26×
- Interest coverage
- 2.3×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $764M
- FCF growth, 12 months
- +18%
- Dividend yield
- 2.49%$304M paid
- Payout ratio
- 65%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025; balance sheet at Dec 31, 2025. From Rentokil Initial plc)’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
Sales +7%
- Gross margin14%
- Operating margin13%
- Return on invested capital8%
- Return on equity6%
- Sales growth (latest quarter vs year-ago quarter)+7%
- Net debt / EBITDA2.9×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $24.07
- 52-wk lowlowest close, 1 year$19.75−17.9%
- PriceMon Nov 2 close$24.07you are here
- Fair value est.base case$25.29+5.1%
- 52-wk highhighest close, 1 year$34.52+43.4%
Momentum & 52-week range
RSI 76 · 5 days +6.5%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
RTO is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Rentokil Initial plc) in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Other Consumer Services
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.