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Earnings warning

Rentokil Initial

LSE:RTO · GB00B082RF11
Commercial Services & SuppliesX-Large

360

29
EV / EBIT32
Price / Owner Earnings44
Owner Earnings Yield45
Dividend Yield77
Price/Sales41
EV / Gross Profit2
Price/Book39
Return on Capital19
Cash Return on Capital39
Return on Equity16
EBIT Margin60
Gross Profitability3
Cash Conversion51
Accruals83
Owner Earnings Margin61
Sales growth38
Profit Growth96
Long-Term EPS Growth47
Owner Earnings Growth68
Reinvestment7
Price momentum80
Debt load18
Refinancing42
Debt Payback40
Liquidity32
Analyst ratings46
Opinion Changes78
Price Target Upside47
Market mood79
Value Creation6/20not creating value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Rentokil Initial doesn't consistently earn more than its cost of capital, so it isn't yet creating shareholder value.

Profile

CountryUK
IndustryCommercial Services & Supplies
SizeX-Large
TypePublic Company
ExchangeLSE
Founded2005
Employees6,386
ISINGB00B082RF11
Last UpdateApr 2, 2026
Themes
CleanTechProcess AutomationEnvironmental ConsultingEnvironmental EngineeringEnvironment, Health and Safety (EH&S)WorkTechHome ImprovementPollution ControlProfessional ServicesService Industry

Description

Rentokil Initial plc (Rentokil Initial) operates as a global leader in Pest Control and Hygiene & Wellbeing services. Rentokil Initial is a global leader in the provision of route-based services. The company’s local service teams operate in 89 count…

Analysis

Middle-of-the-road

Rentokil Initial plc is a middle-of-the-road business: neither the economics nor the price stand out from the peer group.

The price is fair. You pay 23.5× its owner earnings: the cash an owner could take out each year, which is in the historically fair zone. At today's price, the market is assuming roughly 8% yearly growth; analysts expect 9%. The price, in other words, assumes less than the experts do.

The trajectory is moderate and the balance sheet is adequate. The company scores 6/20 on our value-creation score: not creating value.

What to watch: The financial cushion is thinner than comfortable. A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
68
2023202420252026

All-time high

72

Mar 2026

All-time low

8

Jan 2025

Average rank

39

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
41
48
61
76
Price/Earnings
28
50
53
49
Price/Book
39
51
61
43
Dividend Yield
77
100
85
85
Value (overall)
49
73
84
97

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →