Briefing From The Editor - RTO Stock

Rentokil Initial logged a 19.0% change during today's morning session, and is now trading at a price of $32.9 per share.

Rentokil Initial returned losses of -12.0% last year, with its stock price reaching a high of $41.55 and a low of $23.39. Over the same period, the stock underperformed the S&P 500 index by -42.3%. AThe company's 50-day average price was $26.81. Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. Based in Crawley, United Kingdom, the Large-Cap Consumer Discretionary company has 58,600 full time employees. Rentokil Initial has offered a 0.3% dividend yield over the last 12 months.

Generally Positive Cash Flows and an Average Current Ratio:

2020 2021 2022
Revenue (M) $2,803 $2,957 $3,714
Operating Margins 10% 12% 9%
Net Margins 7% 9% 6%
Net Income (M) $186 $263 $232
Free Cash Flow (M) $548 $563 $600

Rentokil Initial Has Elevated P/B and P/E Ratios:

Rentokil Initial has a trailing twelve month P/E ratio of 34.8 compared to the Consumer Discretionary sector's average of 22.96. Furthermore, Rentokil Initial is likely overvalued compared to the book value of its equity, since its P/B ratio of 20.92 is higher than the sector average of 4.24.

Most of the Market Indicators on Rentokil Initial Are Negative:

The 2 analysts following Rentokil Initial have set target prices ranging from $29.1 to $47.16 per share, for an average of $38.13 with a buy rating. The company is trading -13.7% away from its average target price, indicating that there is an analyst consensus of some upside potential.

The largest shareholder is Janus Henderson Group PLC, whose 4% stake in the company is worth $527,534,284.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.