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Rentokil Initial

DB:RTO1
Snowflake Description

Adequate balance sheet with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RTO1
DB
£7B
Market Cap
  1. Home
  2. DE
  3. Commercial Services
Company description

Rentokil Initial plc, through its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. The last earnings update was 8 days ago. More info.


Add to Portfolio Compare Print
  • Rentokil Initial has significant price volatility in the past 3 months.
RTO1 Share Price and Events
7 Day Returns
6.1%
DB:RTO1
-5.6%
DE Commercial Services
-3%
DE Market
1 Year Returns
2.6%
DB:RTO1
-33.4%
DE Commercial Services
-20.6%
DE Market
RTO1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rentokil Initial (RTO1) 6.1% -30.9% -19.1% 2.6% 47.3% 123.5%
DE Commercial Services -5.6% -24.5% -34.8% -33.4% -36.4% -47.1%
DE Market -3% -19.1% -26.2% -20.6% -25.6% -30.7%
1 Year Return vs Industry and Market
  • RTO1 outperformed the Commercial Services industry which returned -33.4% over the past year.
  • RTO1 outperformed the Market in Germany which returned -20.6% over the past year.
Price Volatility
RTO1
Industry
5yr Volatility vs Market

RTO1 Value

 Is Rentokil Initial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rentokil Initial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rentokil Initial.

DB:RTO1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:RTO1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.594 (1 + (1- 19%) (19.22%))
0.79
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:RTO1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rentokil Initial is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:RTO1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 4.47%)
2020 246.34 Analyst x5 235.81
2021 316.38 Analyst x6 289.91
2022 340.22 Analyst x5 298.42
2023 355.74 Est @ 4.56% 298.70
2024 366.68 Est @ 3.08% 294.72
2025 374.15 Est @ 2.04% 287.87
2026 379.04 Est @ 1.31% 279.17
2027 382.07 Est @ 0.8% 269.37
2028 383.76 Est @ 0.44% 258.99
2029 384.50 Est @ 0.19% 248.40
Present value of next 10 years cash flows £2,761.00
DB:RTO1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £384.50 × (1 + -0.39%) ÷ (4.47% – -0.39%)
£7,887.19
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £7,887.19 ÷ (1 + 4.47%)10
£5,095.33
DB:RTO1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,761.00 + £5,095.33
£7,856.33
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £7,856.33 / 1,846.63
£4.25
DB:RTO1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RTO1 represents 1.11818x of LSE:RTO
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.11818x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 4.25 x 1.11818
€4.76
Value per share (EUR) From above. €4.76
Current discount Discount to share price of €4.29
= -1 x (€4.29 - €4.76) / €4.76
9.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Rentokil Initial is available for.
Intrinsic value
10%
Share price is €4.29 vs Future cash flow value of €4.76
Current Discount Checks
For Rentokil Initial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Rentokil Initial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Rentokil Initial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rentokil Initial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rentokil Initial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RTO1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.15
LSE:RTO Share Price ** LSE (2020-04-03) in GBP £3.83
Germany Commercial Services Industry PE Ratio Median Figure of 6 Publicly-Listed Commercial Services Companies 95.32x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rentokil Initial.

DB:RTO1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RTO Share Price ÷ EPS (both in GBP)

= 3.83 ÷ 0.15

24.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rentokil Initial is good value based on earnings compared to the DE Commercial Services industry average.
  • Rentokil Initial is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Rentokil Initial's expected growth come at a high price?
Raw Data
DB:RTO1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 24.97x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
-3.3%per year
Europe Commercial Services Industry PEG Ratio Median Figure of 49 Publicly-Listed Commercial Services Companies 1.07x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:RTO1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 24.97x ÷ -3.3%

-7.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rentokil Initial earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rentokil Initial's assets?
Raw Data
DB:RTO1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £0.54
LSE:RTO Share Price * LSE (2020-04-03) in GBP £3.83
Germany Commercial Services Industry PB Ratio Median Figure of 9 Publicly-Listed Commercial Services Companies 2.21x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:RTO1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RTO Share Price ÷ Book Value per Share (both in GBP)

= 3.83 ÷ 0.54

7.05x

* Primary Listing of Rentokil Initial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rentokil Initial is overvalued based on assets compared to the DE Commercial Services industry average.
X
Value checks
We assess Rentokil Initial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. Rentokil Initial has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RTO1 Future Performance

 How is Rentokil Initial expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rentokil Initial expected to grow at an attractive rate?
  • Rentokil Initial's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Rentokil Initial's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Rentokil Initial's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RTO1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RTO1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts -3.3%
DB:RTO1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.3%
Germany Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 21.2%
Germany Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:RTO1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RTO1 Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,150 1
2022-12-31 3,059 665 245 11
2021-12-31 2,915 620 212 12
2020-12-31 2,684 513 141 12
2020-04-03
DB:RTO1 Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 2,714 463 284
2019-09-30 2,655 430 94
2019-06-30 2,595 398 -97
2019-03-31 2,534 381 -97
2018-12-31 2,472 364 -98
2018-09-30 2,414 355 46
2018-06-30 2,355 347 190
2018-03-31 2,384 364 436
2017-12-31 2,412 380 683
2017-09-30 2,413 386 683
2017-06-30 2,415 392 682
2017-03-31 2,291 377 425

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rentokil Initial's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Rentokil Initial's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:RTO1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Rentokil Initial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RTO1 Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.14 0.18 0.12 6.00
2021-12-31 0.12 0.16 0.10 9.00
2020-12-31 0.09 0.12 0.02 8.00
2020-04-03
DB:RTO1 Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.15
2019-09-30 0.05
2019-06-30 -0.05
2019-03-31 -0.05
2018-12-31 -0.05
2018-09-30 0.02
2018-06-30 0.10
2018-03-31 0.24
2017-12-31 0.37
2017-09-30 0.37
2017-06-30 0.37
2017-03-31 0.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rentokil Initial is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Rentokil Initial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rentokil Initial has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RTO1 Past Performance

  How has Rentokil Initial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rentokil Initial's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rentokil Initial's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Rentokil Initial has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Rentokil Initial has become profitable in the last year making it difficult to compare the Europe Commercial Services industry average.
Earnings and Revenue History
Rentokil Initial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rentokil Initial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RTO1 Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 2,714.40 283.80 1,516.10
2019-09-30 2,654.75 93.60 1,442.10
2019-06-30 2,595.10 -96.60 1,368.10
2019-03-31 2,533.70 -97.45 1,366.05
2018-12-31 2,472.30 -98.30 1,364.00
2018-09-30 2,413.55 45.70 1,346.50
2018-06-30 2,354.80 189.70 1,329.00
2018-03-31 2,383.55 436.35 1,329.30
2017-12-31 2,412.30 683.00 1,329.60
2017-09-30 2,413.45 682.65 1,264.05
2017-06-30 2,414.60 682.30 1,198.50
2017-03-31 2,291.35 425.05 1,198.05
2016-12-31 2,168.10 167.80 1,197.60
2016-09-30 2,029.45 150.70 1,081.00
2016-06-30 1,890.80 133.60 964.40
2016-03-31 1,824.90 128.95 965.05
2015-12-31 1,759.00 124.30 965.70
2015-09-30 1,750.35 127.15 949.85
2015-06-30 1,741.70 130.00 934.00
2015-03-31 1,741.25 128.05 934.85
2014-12-31 1,740.80 126.10 935.70
2014-09-30 1,746.15 111.95 893.45 0.90
2014-06-30 1,751.50 97.80 851.20 1.80
2014-03-31 1,771.45 89.95 850.40 1.80
2013-12-31 1,791.40 82.10 849.60 1.80
2013-09-30 1,902.30 70.65 959.20 1.80
2013-06-30 2,013.20 59.20 1,068.80 1.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Rentokil Initial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Rentokil Initial used its assets more efficiently than the DE Commercial Services industry average last year based on Return on Assets.
  • Rentokil Initial's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rentokil Initial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rentokil Initial has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RTO1 Health

 How is Rentokil Initial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rentokil Initial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rentokil Initial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rentokil Initial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Rentokil Initial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rentokil Initial Company Filings, last reported 3 months ago.

DB:RTO1 Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,002.30 1,143.90 311.40
2019-09-30 1,002.30 1,143.90 311.40
2019-06-30 858.70 1,654.80 452.40
2019-03-31 858.70 1,654.80 452.40
2018-12-31 832.60 1,223.90 132.30
2018-09-30 832.60 1,223.90 132.30
2018-06-30 1,030.60 1,213.80 162.80
2018-03-31 1,030.60 1,213.80 162.80
2017-12-31 934.00 1,197.50 310.60
2017-09-30 934.00 1,197.50 310.60
2017-06-30 834.20 1,479.70 502.70
2017-03-31 834.20 1,479.70 502.70
2016-12-31 360.70 1,297.00 171.10
2016-09-30 360.70 1,297.00 171.10
2016-06-30 317.50 1,223.90 128.30
2016-03-31 317.50 1,223.90 128.30
2015-12-31 212.10 1,211.60 201.90
2015-09-30 212.10 1,211.60 201.90
2015-06-30 141.60 959.10 267.60
2015-03-31 141.60 959.10 267.60
2014-12-31 100.00 1,007.20 239.40
2014-09-30 100.00 1,007.20 239.40
2014-06-30 -46.00 1,009.90 167.90
2014-03-31 -46.00 1,009.90 167.90
2013-12-31 -232.00 1,446.10 435.80
2013-09-30 -232.00 1,446.10 435.80
2013-06-30 -186.40 1,224.60 125.00
  • Rentokil Initial's level of debt (114.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (978.6% vs 114.1% today).
  • Debt is well covered by operating cash flow (40.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.2x coverage).
X
Financial health checks
We assess Rentokil Initial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rentokil Initial has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RTO1 Dividends

 What is Rentokil Initial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.34%
Current annual income from Rentokil Initial dividends. Estimated to be 1.58% next year.
If you bought €2,000 of Rentokil Initial shares you are expected to receive €27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rentokil Initial's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Rentokil Initial's dividend is below the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:RTO1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Germany Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 318 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:RTO1 Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 0.07 11.00
2021-12-31 0.06 13.00
2020-12-31 0.05 12.00
2020-04-03
DB:RTO1 Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-26 0.052 1.357
2020-02-27 0.052 1.203
2019-03-27 0.045 1.045
2019-02-28 0.045 1.279
2018-04-05 0.039 1.189
2018-03-01 0.039 1.441
2017-07-31 0.035 1.155
2017-04-05 0.034 1.270
2017-02-23 0.034 1.386
2016-04-08 0.029 1.412
2016-02-25 0.029 1.729
2015-04-10 0.026 1.725
2015-02-27 0.026 1.878
2014-04-11 0.023 1.932
2014-02-28 0.023 1.839
2013-03-15 0.021 2.030
2012-03-02 0.020 2.394
2012-03-01 0.020 2.559
2010-04-15 0.000 0.000
2010-02-19 0.000 0.000
2009-11-06 0.000 0.000
2009-07-31 0.000 0.000
2009-05-01 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Rentokil Initial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Rentokil Initial only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Rentokil Initial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Rentokil Initial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rentokil Initial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rentokil Initial has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RTO1 Management

 What is the CEO of Rentokil Initial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andy Ransom
COMPENSATION £4,406,700
AGE 56
TENURE AS CEO 6.5 years
CEO Bio

Mr. Andrew M. Ransom, also known as Andy, has been the Chief Executive Officer of Rentokil Initial plc since October 1, 2013. Mr. Andy serves as Non-Executive Director and Senior Independent Director of Selecta AG since February 01, 2019. Mr. Ransom is Director of Street League. He served as the Executive Director of Corporate Development for Rentokil Initial plc since May 1, 2008. He joined Rentokil Initial plc in 2008 as the Executive Director of the global Pest Control business and was also responsible for its Legal and M&A functions. Mr. Ransom joined Ambius from Imperial Chemical Industries PLC. He served as Executive Vice President of Mergers & Acquisitions, General Counsel and Company Secretary of Imperial Chemical Industries PLC (ICI Plc) since June 30, 2005. During his twenty years at ICI, he was responsible for a number of Group functions (including M&A and Legal) and international businesses (including ICI's Regional and Industrial Division) and worked for a number of years in both Canada and the USA. Mr. Ransom served a Member of Executive Management Team at Imperial Chemical Industries PLC since July 1, 2005. Mr. Ransom served as an Executive Vice President of Imperial Chemical Industries PLC. Mr. Ransom worked as General Counsel for ICI in the Americas as well as in a senior legal role for the Group, based in London. He was with ICI for eighteen years. He joined Group Legal Department at ICI's Head Office in 1987, where he specialised as Senior Mergers and Acquisitions Lawyer. Mr. Ransom was seconded to ICI Explosives in Toronto, Canada in 1996 and became Vice President and General Counsel for ICI in the Americas three years later. A seasoned negotiator and transaction lawyer, he led the legal effort on many ICI deals including the sale of ICI's explosives business to Orica in 1998 and the transaction with Huntsman in 1999. He serves as the Chairman of the Board of Ambius, Inc. and has Executive responsibility for Ambius globally and since January 1, 2009 for both the Asia and Pacific Regions. He is also has functional responsibility for Corporate Development, M&A, Legal, Company Secretariat, Risk and Health and Safety. He has been an Executive Director of Rentokil Initial plc since May 1, 2008. Mr. Ransom served as a Director of Zeneca, Inc. He served as Director of Akzo Nobel India Limited (also known as ICI India Ltd) from April 1, 2007 to April 28, 2008. He serves as Director and Trustee of Street League. He is the Patron of Malaria No More UK. He served as a Director of Lotte Pakistan PTA Limited (also known as Pakistan PTA Ltd) from October 24, 2007 to April 30, 2008. Mr. Ransom is a graduate of the University of Southampton and qualified as a Solicitor in 1987.

CEO Compensation
  • Andy's compensation has increased in line with Rentokil Initial recently becoming profitable.
  • Andy's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Rentokil Initial management team in years:

6.5
Average Tenure
55
Average Age
  • The average tenure for the Rentokil Initial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andy Ransom

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
56
TENURE
6.5 yrs

Jeremy Townsend

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
9.7 yrs

Mark Purcell

TITLE
Chief Information Officer
TENURE
1 yrs

Katharine Rycroft

TITLE
Head of Investor Relations

Daragh P. Fagan

TITLE
Group General Counsel & Company Secretary
AGE
49
TENURE
6.6 yrs

Malcolm Padley

TITLE
Director of Corporate Communications
TENURE
14.3 yrs

Gary Booker

TITLE
Chief Marketing
TENURE
2.3 yrs

Vanessa Evans

TITLE
Group Human Resources Director
AGE
50
TENURE
4.3 yrs

Stuart Ingall-Tombs

TITLE
Chief Financial Officer of Europe
TENURE
5.5 yrs

John Myers

TITLE
Managing Director of North America
AGE
61
TENURE
6.5 yrs
Board of Directors Tenure

Average tenure and age of the Rentokil Initial board of directors in years:

6.9
Average Tenure
56
Average Age
  • The tenure for the Rentokil Initial board of directors is about average.
Board of Directors

Richard Solomons

TITLE
Non Executive Chairman
AGE
58
TENURE
0.9 yrs

Andy Ransom

TITLE
CEO & Executive Director
COMPENSATION
£4M
AGE
56
TENURE
11.9 yrs

Jeremy Townsend

TITLE
CFO & Executive Director
COMPENSATION
£3M
AGE
55
TENURE
9.7 yrs

Ian Harley

TITLE
Chairman of Rentokil Initial Pension Trustee Limited
COMPENSATION
£30K
AGE
68
TENURE
12.8 yrs

Angela Seymour-Jackson

TITLE
Non-Executive Independent Director
COMPENSATION
£60K
AGE
53
TENURE
8.1 yrs

Julie Southern

TITLE
Non-Executive Independent Director
COMPENSATION
£75K
AGE
61
TENURE
5.8 yrs

John Pettigrew

TITLE
Senior Independent Director
COMPENSATION
£60K
AGE
50
TENURE
0.9 yrs

Linda Yueh

TITLE
Non-Executive Independent Director
COMPENSATION
£60K
TENURE
2.4 yrs

Cathy Turner

TITLE
Non-Executive Director
AGE
56
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Rentokil Initial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rentokil Initial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RTO1 News

Simply Wall St News

RTO1 Company Info

Description

Rentokil Initial plc, through its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. It offers a range of pest control services from rodents to flying and crawling insects, as well as to other forms of wildlife management for commercial and residential customers. The company also provides hygiene services, including the provision and maintenance of products, such as air fresheners, sanitizers, feminine hygiene units, hand dryers, paper and linen towel dispensers, soap and hand sanitizer dispensers, toilet paper dispensers, and floor protection mats. In addition, it engages in the supply and laundering of workwear, uniforms, cleanroom uniforms, and protective equipment. Further, the company installs and services interior and exterior plant displays, flowers, replica foliage, Christmas decorations, and ambient scenting for commercial businesses; offers property care services consisting of damp proofing, property conservation, and woodworm and wood rot treatment; and provides a range of specialized deep cleaning, and specialist industrial cleaning and disinfection services, including the professional and discreet disinfection of areas that have been exposed to bio-hazardous situations, such as crime and trauma scenes, prison cells, void properties, emergency vehicles, and healthcare establishments. Additionally, it offers a range of healthcare waste management services comprising the collection, disposal, and recycling of hazardous and offensive waste produced by businesses and organizations associated with the provision of healthcare; and color-coded sharps disposal bins to deal with various types of waste. Rentokil Initial plc was founded in 1903 and is headquartered in Camberley, the United Kingdom.

Details
Name: Rentokil Initial plc
RTO1
Exchange: DB
Founded: 1903
£8,074,025,537
1,846,632,965
Website: http://www.rentokil-initial.com
Address: Rentokil Initial plc
Riverbank,
Meadows Business Park,
Camberley,
Surrey, GU17 9AB,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RTO Ordinary Shares London Stock Exchange GB GBP 11. May 1992
OTCPK RKLI.F Ordinary Shares Pink Sheets LLC US USD 11. May 1992
DB RTO1 Ordinary Shares Deutsche Boerse AG DE EUR 11. May 1992
SWX OXRTO Ordinary Shares SIX Swiss Exchange CH GBP 11. May 1992
BATS-CHIXE RTOL Ordinary Shares BATS 'Chi-X Europe' GB GBP 11. May 1992
OTCPK RTOK.Y SPONSORED ADR Pink Sheets LLC US USD 25. Sep 1995
Number of employees
Current staff
Staff numbers
43,000
Rentokil Initial employees.
Industry
Environmental and Facilities Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 22:16
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.